WorksheetsNMLS Prep Study
Total questions: 25
Worksheet time: 2hrs 5mins
All of the following are covered under RESPA except?
1-4 Unit Townhouse
Commercial Business Complex
Single Family Resident
Multi-Family 2 Floors
If a state does not have legislature in place that meets the minimum requirements for MLO licensure, who is responsible for implementing one?
Consumer Financial Protection Bureau
Attorney General’s Office
American Association of Residential Mortgage Regulators
Conference of State Bank Supervisors
One purpose of the SAFE Act was to:
Make sure that MLO’s are safe in the workplace
Ensure that all MLO’s have at least a college degree
Have one centralized location for fingerprinting
Create policies to ensure consumer protection in Mortgage Loan Transactions
Which of the following does a Mortgage Loan Originator NOT do?
Offer rates
Underwrite a Loan
Review purchase application documents
Take an application
Which of the following would be grounds for denial of an MLO license?
A bankruptcy within the last 5 years
Two 90-day late payments on a mortgage within the last 2 years
A reckless driving charge within the last 7 years
A conviction breach of trust from 12 years ago
How many hours of pre-education must a MLO complete
8 hours including 2 hours of ethics
10 hours including 2 hours of non-traditional mortgage products
12 hours including 3 hours of federal law
20 hours including 3 hours of ethics
How many days must an MLO applicant wait to retake an exam after failing the first time?
30 Days
60 Days
90 Days
45 Days
If an MLO advertises a specific rate and term, which of the following is true?
He must be likely to offer that rate and term within the next 90 days
He must have closed a loan with that rate and term within the last 30 days
He must actually offer that rate and term
He must offer a rate and term with similar terms
If an MLO fails a state licensing exam 3 consecutive times, he must wait how long before he can retake it?
180 Days
60 Days
90 Days
30 Days
How many hours of ethics education must be completed in an MLO’s continuing education?
1 Hour
2 Hours
4 Hours
8 Hours
How many days are the estimated closing costs on the Loan Estimate valid for?
7 business days
14 business days
10 business days
30 calendar days
What is the finance charge?
The settlement costs that include all pre-paid items
The actual cost of credit as a dollar amount
The settlement costs that exclude all 3rd party fees
The cost of credit expressed as yearly rate
What is the APR?
Average prime rate which is analyzed weekly by Freddie Mac
Annual prime rate which is computed each year by March 1
Average point reduction which is determined by the lender’s par rate
Annual percentage rate which is the actual cost of credit
To become licensed, a MLO has to provide. .
Pictures
High School Band Photo
Girlfriends Mom
Fingerprints to the FBI
Which of the following is not listed on the Credit Report?
Employment
Marital Status
Credit Score
Lamborghini
A borrower is purchasing a property for $300,000 which is valued at $320,000. The seller is contributing 6% seller concessions to the borrower. The closing costs are $9,200 for the loan. How much seller concessions can the borrower receive?
$18,000
$20,280
$9,200
$6,000
Which of the following would be a violation of RESPA section 8?
Paying a referral fee
Coercion of the borrower to use specific a title company
Receiving a referral fee
Structuring a relationship with the affiliated business
Per RESPA and TILA, which of the following changes in APR would require the re-disclosure of the APR on an updated Closing Disclosure delivered prior to consummation?
1/18 1%
1/8 1%
1/10 1%
1/6 1%
The Cost of Funds Index is commonly known as:
The 13th district of San Francisco
The 11th district of San Francisco
The 13th district of San Francisco
The U.S. Treasury
What is a Jumbo loan?
A loan that exceeds the LTV restrictions of conventional loans
A loan that exceeds the loan limits of Fannie Mae
A loan that exceeds the traditional refinance cash out restrictions
A loan that exceeds the points and fees limits of a Qualified Mortgage
What is the difference between a Consumer and a Customer?
A consumer applies for a loan and a customer only inquires about a loan
A consumer only inquires about a loan and a customer applies for a loan
Consumer involved in singe transaction customer has ongoing relationship
A consumer requires an opt-out of privacy sharing notice and a customer does not
Who needs to be licensed?
A W-2 underwriter working for a state-licensed institution
A W-2 processor working for a depository institution
A 1099 Underwriter working for depository institution
A MLO working for a subsidiary of a credit union
Which of the following is an objective of the Dodd-Frank act?
To prevent identity theft
To prevent MLO steering for unfavorable products
To ensure timely and accurate disclosure of settlement costs in residential loans
To deter terrorism and money-laundering
How many days prior to loan consummation must the Loan Estimate be provided to the borrower?
Must be received 3 calendar days prior to consummation
Must be received 3 business days prior to consummation
Must be received 4 calendar days prior to consummation
Must be received 4 business days prior to consummation
Who are Red Flags enforced by?
Red Robin Committee
Federal Dollar Association
Federal Trade Commission
Ginnie Mae
