Random MLO Qs

Question 1

Mortgage RELIEF companies may NOT collect any fees

Answer 1

MARS Rule

Question 2

non-refundable funding fee

Answer 2

VA Loan

Question 3

mortgage enabling the lender to demand full repayment

Answer 3

Alienation Clause

Question 4

When evaluating a Lending Estimate, each of these are subject to a 10% tolerance EXCEPT:

Answer 4

Transfer taxes

Question 5

financial institutions to help meet the credit needs of their communities

Answer 5

CRA

Question 6

Which requires that all financial institutions ensure the security and confidentiality of customer records?

Answer 6

Safeguards Rule

Question 7

ECOA is a law that ensures:

Answer 7

Lenders make credit available with fairness and without discrimination

Question 8

An FHA borrower may

Answer 8

Use a gift for the entire down payment

Question 9

A borrower is refinancing his home and signs the loan papers. How much time does Regulation Z give him to change his mind?

Answer 9

3 business days

Question 10

Which is NOT be considered as debt

Answer 10

Cable service payment

Question 11

HOEPA amends what law?

Answer 11

TILA

Question 12

PITI divided by gross monthly income

Answer 12

Housing expense ratio

Question 13

TILA requires creditors to maintain records

Answer 13

Five Years

Question 14

maximum length of time that collection information can be reported

Answer 14

7 Years

Question 15

A borrower has a stable monthly income of $4,000 and recurring debts of $600. If he’s getting an FHA loan, what’s the maximum monthly payment for which he would qualify?

Answer 15

????

Question 16

freeze on on credit report

Answer 16

FACTA

Question 17

A borrower reports income of $40,000 from rental properties. How much of that should be considered when applying for a mortgage loan?

Answer 17

$30,000

Question 18

Definition (essentially an outline) of a qualified mortgage (QM) loan?

Answer 18

Dodd-Frank Act

Question 19

What is the maximum LTV on a Rural Development 90 loan?

Answer 19

90%

Question 20

During the application process, an MLO asks if the borrower is widowed; he is violating which law?

Answer 20

ECOA

Question 21

What is NOT considered a protected class under the Fair Housing Act?

Answer 21

Age

Question 22

If an MLO or a real estate agent engages in the practice of soliciting homeowners in a particular community to sell their properties because people of other races, religions, or social status have purchased in the area, they would be guilty of:

Answer 22

Blockbusting

Question 23

Which household does NOT qualify as a protected class under the familial status clause of the Fair Housing Act?

Answer 23

Retired couple

Question 24

Which mortgage clause allows a lender to declare the entire unpaid balance due on a borrower’s default?

Answer 24

Acceleration

Question 25

a qualified mortgage (QM) CANNOT have

Answer 25

Balloon payment

Question 26

correct way to ask a client about his or her marital status?

Answer 26

Are you married, unmarried, or separated?

Question 27

A lender is obligated to provide a borrower with what document one business day prior to the loan closing if requested to do so?

Answer 27

Closing Disclosure

Question 28

HMDA government monitoring information on

Answer 28

Section X of the Residential Loan Application

Question 29

A higher priced loan is defined by TILA

Answer 29

average prime offer rate

Question 30

Financial Services Modernization Act of 1999

Answer 30

Gramm-Leach-Bliley Act

Question 31

full disclosure about APR

Answer 31

Regulation Z

Question 32

Which federal act requires that a "Notification of Action Taken" form be delivered to the applicant within 30 days of application?

Answer 32

ECOA

Question 33

As of July 2011, all these laws are implemented and enforced by the Consumer Financial Protection Bureau (CFPB) EXCEPT the:

Answer 33

Fair Housing Act

Question 34

Which statement about loan origination fees on a Loan Estimate is FALSE?

Answer 34

Lender and mortgage broker fees for the same transaction must be itemized

Question 35

third party in a loan transaction

Answer 35

Closing agent

Question 36

dwelling

Answer 36

Any residential structure that contains one-to-four units, whether or not that structure is attached to real property