MLO by NMLS Actual Free Exam Questions And Answers

Question 1

A borrower has been approved for a new home loan and has completed all necessary paperwork. When should the borrower receive the Closing Disclosure?

A. 1 business day prior to consummation

B. On the day of consummation

C. 4 business days prior lo consummation

D. 3 business days prior to consummation

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 2

Which of the following property types is eligible for FHA financing?

A. Bed and breakfast

B. Manufactured home

C. Vacation home

D. Commercial real estate loan

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 3

When does the Loan Estimate expire?

A. After the 3rd business day

B. After the 10th business day

C. After the 7th business day

D. After the 5th business day

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 4

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

A. Federal Trade Commission

B. IRS

C. Conference of State Bank Supervisors

D. HUD

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 5

A 7.25% interest-only loan has an initial balance of $239,500.00. The annual homeowner's insurance premium is $551.00, and the annual property taxes are $1,773.00. What is the total monthly payment, including the escrow?

A. $1,640.65

B. $1,446.98

C. $1,584.65

D. $1,701.29

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 6

An advertisement only reads: "Looking for low rates on a new mortgage loan? I can get you a $1,100 monthly payment on a $200,000 loan." This statement is a violation of which of the following rules?

A. Real Estate Settlement Procedures Act (RESPA)

B. Truth in Lending Act (TILA)

C. Unfair Deceptive or Abusive Acts or Practices

D. Equal Credit Opportunity Act (ECOA)

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 7

What are the maximum basis points added to the average prime offer rate (APOR) that keep a loan's APR as a qualified mortgage under the Consumer Financial Protection Bureau's (CFPB's) Safe Harbor Rule?

A. 85 basis points

B. 150 basis points

C. 100 basis points

D. 300 basis points

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 8

Maximum available flood insurance structure coverage for a residential property from the National Flood Insurance Program is what amount?

A. $750,000

B. $1,000,000

C. £500,000

D. £250,000

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 9

According to the TILA-RESPA Integrated Disclosure rule (TRID), changed circumstances that may result in a revised Loan Estimate include which of the following situations?

A. A natural disaster in the area where the loan will close

B. Market fluctuations on a locked loan

C. Changes that the MLO should have known at the time the Loan Estimate was provided

D. The borrower receiving a salary increase

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 10

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?

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

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

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

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

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 11

The SAFE Act requires a mortgage loan originator (MLO) to:

A. Retake the SAFE MLO National Test after failing to maintain a valid license for a period of four years.

B. Obtain and annually maintain a license.

C. Maintain a valid unique identifier issued by the AARMR.

D. Register with the Conference of State Bank Supervisors (CSBS).

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 12

A mortgage loan originator (MLO) takes an application for a borrower who is obtaining an owner-occupied maximum amount refinance loan. The borrower also asks for a loan application for a new house that they are purchasing that will not be finished until 60 days after the refinance loan closes. Although the MLO advises the borrower that the terms of the refinance loan require that they occupy the property for 12 months, the borrower says that the new purchase loan will not close until after the refinance loan has closed. The MLO must:

A. advise the borrower that the MLO can do the refinance loan as a non-owner-occupied loan and the purchase loan as an owner-occupied loan.

B. take both applications and do one loan "in house" and broker the second loan to another lender.

C. refer the purchase loan to another MLO in their company to obtain a referral fee.

D. refer the borrower to another lender for the purchase loan so that the MLO is permitted to get a commission on the refinance loan.

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 13

Which of the following fees is a finance charge?

A. An appraisal fee

B. An origination fee

C. A late payment fee

D. A notary fee

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 14

Which of the following types of income are considered as qualifying when applying for a mortgage loan?

A. Net rental income

B. Reimbursed expenses

C. Federal tax refund

D. Family gifts

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 15

How often must a nonexempt telemarketing entity check their call list against the National Do Not Call Registry?

A. Every 2 weeks

B. Annually

C. Every 7 days

D. Every 31 days

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

NMLS Mortgage Loan Origination (SAFE MLO) - MLO Exam Practice Test

Contact Us

Useful Links

Latest Updated