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MLO Mortgage Loan Origination (SAFE MLO) Exam is now Stable and With Pass Result | Test Your Knowledge for Free

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Mortgage Loan Origination (SAFE MLO) Exam

Last Update 3 days ago
Total Questions : 230

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Question # 51

A title insurance policy ensures that:

Options:

A.  

A condominium is warrantable.

B.  

The title commitment is accurate.

C.  

The borrower owns the property.

D.  

The borrower can repay the loan.

Discussion 0
Question # 52

When a mortgage loan originator (MLO) receives information from a borrower that indicates potential employment fraud, the MLO should:

Options:

A.  

Take no additional action because it is not confirmed.

B.  

Take no additional action unless the borrower admits that they submitted false employment information.

C.  

Report the information to another MLO for their opinion.

D.  

Report the information to the company's compliance officer.

Discussion 0
Question # 53

Which of the following statements describes an advantage of a purchase money second mortgage?

Options:

A.  

The borrower pays two mortgage payments.

B.  

The borrower avoids paying into the escrow account.

C.  

The borrower avoids paying private mortgage insurance

D.  

The borrower's loan closes faster than a regular mortgage.

Discussion 0
Question # 54

How many days must a borrower's mortgage loan be delinquent before the mortgage company is permitted to submit the first notice filing in the foreclosure process?

Options:

A.  

30 days

B.  

60 days

C.  

90 days

D.  

120 days

Discussion 0
Question # 55

A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:

Options:

A.  

been convicted of a felony within the past seven years.

B.  

had an MLO license suspended in any governmental jurisdiction.

C.  

taken and failed the SAFE MLO National Test three times within the last year.

D.  

never been licensed or registered as an MLO in any governmental jurisdiction.

Discussion 0
Question # 56

If a borrower believes that there is incorrect information on their credit report, which of the following actions should they take?

Options:

A.  

Ask the lender to fix the error

B.  

Call the credit bureau to report the error

C.  

Make a written notification to the credit bureau to report the error

D.  

Ask the company that is reporting the error to the credit bureau to fix the error

Discussion 0
Question # 57

Which of the following loans is subject to right of rescission?

Options:

A.  

A purchase loan secured by a rental home

B.  

A refinance loan secured by a vacation home

C.  

A cash-out refinance loan on a primary residence

D.  

A rate and term refinance loan through the same creditor

Discussion 0
Question # 58

What is the maximum APR that will qualify as a Safe Harbor qualified mortgage?

Options:

A.  

An APR equal to or less than the average prime offer rate (APOR)

B.  

An APR less than the APOR + 1.0%

C.  

An APR less than the APOR + 1.5%

D.  

An APR less than the APOR + 2.5%

Discussion 0
Question # 59

A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer's mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower's bank records. Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?

Options:

A.  

The buyer's agent

B.  

All parties involved in the transaction

C.  

His loan processor

D.  

The report Is not permitted to be discussed with any parties involved in the transaction.

Discussion 0
Question # 60

Which of the following individuals is required to be licensed as a mortgage loan originator (MLO)?

Options:

A.  

A seller providing financing to the purchaser of a dwelling owned by the seller

B.  

A loan processor performing clerical duties under the direction and supervision of a licensed broker

C.  

An MLO’s assistant explaining and describing the steps that a borrower will need to take in order to obtain a loan

D.  

An underwriter presenting a revised loan offer to a borrower under the direction and supervision of a licensed lender

Discussion 0
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