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Mortgage Loan Origination (SAFE MLO) Exam

Last Update 3 days ago
Total Questions : 230

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Question # 41

When applying for a home equity line of credit (HELOC), consumers should review documentation carefully and be sure that they consider:

Options:

A.  

if the HELOC is insured by HU

D.  

B.  

if the HELOC requires private mortgage insurance

C.  

if the company offering the HELOC has deposit accounts insured by the FDI

C.  

D.  

the APR and the costs of acquiring and maintaining the HELO

C.  

Discussion 0
Question # 42

The debt-to-income analysis should assess a borrower's total monthly housing related payments as a percentage of the:

Options:

A.  

net monthly income

B.  

gross monthly income.

C.  

taxable income.

D.  

loan amount.

Discussion 0
Question # 43

A mortgage loan originator who informs a prospective borrower that a certain loan interest rate can only be guaranteed if an application is submitted within the next 30 minutes is committing:

Options:

A.  

Redlining

B.  

Coercion

C.  

Exaggeration

D.  

Discrimination

Discussion 0
Question # 44

A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home. During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?

Options:

A.  

Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction

B.  

[Consider the issue to be a private family matter and proceed with the next steps in the application process

C.  

Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan

D.  

Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf

Discussion 0
Question # 45

Which of the following loans is subject to the Real Estate Settlement Procedures Act (RESPA)?

Options:

A.  

Federally related mortgage loan

B.  

Standard county related mortgage loan

C.  

State registration related mortgage loan

D.  

Unified commerce related mortgage loan

Discussion 0
Question # 46

Prepaid charges include which of the following items?

Options:

A.  

Origination fee

B.  

Credit report fee

C.  

Conveyance tax

D.  

Per diem interest

Discussion 0
Question # 47

In the loan application process, when must specific disclosures be provided to a borrower for an ARM?

Options:

A.  

At closing

B.  

At first mention of an ARM loan

C.  

When a loan is locked in

D.  

Within three days of a complete application

Discussion 0
Question # 48

Which of the following loan types may be considered a qualified loan under ability-to-pay rules

Options:

A.  

An interest-only mortgage

B.  

A loan with a balloon payment

C.  

A loan with negative amortization

D.  

A mortgage with an adjustable rate

Discussion 0
Question # 49

A loan that is meant to be offered to prospective borrowers with poor credit history is generally referred to by which of the following terms?

Options:

A.  

Balloon

B.  

Subprime

C.  

Fixed-rate

D.  

Interest-only

Discussion 0
Question # 50

Which of the following occupancy types are listed on the Uniform Residential Loan Application?

Options:

A.  

Primary residence, duplex residence, business

B.  

Primary residence, multiunit residence, commercial

C.  

Primary residence, secondary residence, investment

D.  

Primary residence, vacation residence, multifamily residence

Discussion 0
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