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Mortgage Loan Origination (SAFE MLO) Exam

Last Update 3 days ago
Total Questions : 230

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Question # 31

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

Options:

A.  

Oral confirmation from the borrower

B.  

An updated statement showing a zero balance

C.  

A letter from the borrower explaining that they paid it off

D.  

No additional information required

Discussion 0
Question # 32

A borrower obtaining a VA loan is deployed at the time of loan closing. Which of the following individuals is able to sign on behalf of the borrower?

Options:

A.  

A co-borrower

B.  

A purchasing spouse

C.  

A non-purchasing spouse

D.  

Someone with designated power of attorney

Discussion 0
Question # 33

Which of the following is an origination fee?

Options:

A.  

Appraisal fee

B.  

Underwriting fee

C.  

Title insurance fee

D.  

Prepaid interest fee

Discussion 0
Question # 34

Which of the following items may lenders use to verify a borrower's income for his ability to repay a mortgage?

Options:

A.  

An electronic paystub

B.  

A copy of a check register

C.  

The income stated on the loan application

D.  

The borrower's attestation that he expects a raise within 30 days

Discussion 0
Question # 35

A couple purchasing a house does not have enough money in reserve to meet the underwriting guidelines for their loan. They are required to bring $10,000 to closing, and they will be $3,000 short unless they can find additional cash. The mortgage loan originator may assist the borrowers by taking which of the following actions?

Options:

A.  

Editing the underwriter's copy of the purchase and sales agreement on the property to show a $3,000 contribution from the seller

B.  

Having the real estate agent deposit $3,000 into the borrowers' bank account to generate a deposit record and then withdrawing the money immediately

C.  

Asking the borrowers if they have any previously undisclosed additional cash assets that can be documented

D.  

Suggesting that the borrowers temporarily borrow money from a relative to deposit into their bank account until the loan closes

Discussion 0
Question # 36

Which of the following information must be included in advertisements?

Options:

A.  

An NMLS unique identifier

B.  

Estimated loan closing time frames

C.  

A statement of an unrealistic interest rate

D.  

Mortgage loan originator contact information

Discussion 0
Question # 37

When does the Loan Estimate expire?

Options:

A.  

After the 3rd business day

B.  

After the 5th business day

C.  

After the 7th business day

D.  

After the 10th business day

Discussion 0
Question # 38

According to Fannie Mae, a loan with a purchase transaction loan amount of $160,000, sales price of $180,000, and an appraised value of $200,000 has a loan-to-value ratio of what percentage?

Options:

A.  

80%

B.  

88%

C.  

89%

D.  

90%

Discussion 0
Question # 39

Which of the following documents must be provided to the borrower when they request a change in loan product?

Options:

A.  

Loan Estimate

B.  

Service provider list

C.  

Home counseling list

D.  

Amortization schedule

Discussion 0
Question # 40

Which of the following entities has the primary enforcement authority under the Red Flags Rule?

Options:

A.  

IRS

B.  

Federal Trade Commission

C.  

HUD

D.  

Conference of State Bank Supervisors

Discussion 0
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