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MLO Practice Exam Questions and Answers

Mortgage Loan Origination (SAFE MLO) Exam

Last Update 4 days ago
Total Questions : 120

Mortgage Loan Origination (SAFE MLO) Exam is stable now with all latest exam questions are added 4 days ago. Incorporating MLO practice exam questions into your study plan is more than just a preparation strategy.

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Question # 1

Which of the following documents is a real estate conveyance?

Options:

A.  

Quit claim deed

B.  

Promissory note

C.  

Mortgage instrument

D.  

Occupancy certificate

Discussion 0
Question # 2

Under which of the following programs is a creditor required to provide disclosures to the consumer that fully describe each of the creditor's variable-rate loan programs in which the consumer expresses an interest?

Options:

A.  

ARM

B.  

FHA

C.  

Fixed

D.  

Construction

Discussion 0
Question # 3

A mortgage loan originator (MLO) received a salary of 1% per loan plus a bonus of $5,000 for closing the most loans in the office last year. In addition, he received a trip to Hawaii based on closing 100 or more transactions with an interest rate of 5% or higher. Is the MLO's compensation prohibited?

Options:

A.  

His compensation is permitted as compensation only includes salary and his salary is not based on loan terms.

B.  

His compensation is permitted as compensation only includes salary and bonuses and his salary and bonus is not based on loan terms.

C.  

His compensation is not permitted as compensation only includes salary and his salary is based on loan terms.

D.  

His compensation is not permitted as compensation includes all financial incentives and his trip was awarded based on closing the most loans with certain loan terms.

Discussion 0
Question # 4

Which of the following statements defines the term "business day" in a mortgage rescission under the Truth in Lending Act (TILA)?

Options:

A.  

Every day from 9 a.m. to 5 p.m.

B.  

Every day except Sunday and legal holidays

C.  

Any days except Saturdays and Sundays

D.  

Any days that employees may access the office to work

Discussion 0
Question # 5

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 # 6

When does the Loan Estimate expire?

Options:

A.  

After the 3rd business day

B.  

After the 5th business day

C.  

After the 7th business day

D.  

After the 10th business day

Discussion 0
Question # 7

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 # 8

Which of the following is a requirement for a mortgage loan originator (MLO) license?

Options:

A.  

Completed at least 10 hours of pre-licensing education

B.  

Have not had an MLO license revoked in the last five years

C.  

Have never been convicted of a felony in a domestic, foreign or military court

D.  

Are covered by either a net worth or surety bond or pay into a state fund as required by the state loan originator's supervisory authority

Discussion 0
Question # 9

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 # 10

Mortgage loan originators planning to renew their licenses are required by the SAFE Act to complete which of the following education topics as part of their mandatory annual continuing education?

Options:

A.  

Credit score modeling standards

B.  

Mortgage loan loss mitigation standards

C.  

Nontraditional mortgage lending standards

D.  

30-year conventional mortgage lending standards

Discussion 0
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