MLO

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...

It is acceptable for a lender to request a co-applicant in which of the following situations?A . The borrower will not qualify for the loan on their own.B . The borrower's future income is dependent on the co-applicant.C . The co-applicant will be residing in the house with the borrower.D...

If a mortgage loan includes a prepayment penalty, it must be included on which of the following disclosures?A . Loan Estimate onlyB . Closing Disclosure onlyC . Uniform Residential Loan ApplicationD . Both the Loan Estimate and Closing DisclosureView AnswerAnswer: D Explanation: If a mortgage loan includes a prepayment penalty,...

When does the Loan Estimate expire?A . After the 3rd business dayB . After the 5th business dayC . After the 7th business dayD . After the 10th business dayView AnswerAnswer: D Explanation: Under TILA-RESPA Integrated Disclosure (TRID) rules, the Loan Estimate (LE) expires after 10 business days from the...

How many days before consummation must a borrower receive a revised Loan Estimate?A . 4 business daysB . 5 business daysC . 7 business daysD . 10 business daysView AnswerAnswer: C Explanation: Under TILA-RESPA Integrated Disclosure (TRID) rules, borrowers must receive the Loan Estimate (LE) at least 7 business days...

Which of the following fees or charges is an allowable closing cost typically found on a Closing Disclosure? A. Origination charge B. Referral fee C. Servicing fee D. Yield-to-loan feeView AnswerAnswer: A Explanation: An origination charge is an allowable closing cost typically found on the Closing Disclosure (CD). This fee...

Maximum available flood insurance structure coverage for a residential property from the National Flood Insurance Program is what amount?A . £250,000B . £500,000C . $750,000D . $1,000,000View AnswerAnswer: A Explanation: The maximum available flood insurance structure coverage for a residential property under the National Flood Insurance Program (NFIP) is £250,000....

Which of the following is an origination fee?A . Appraisal feeB . Underwriting feeC . Title insurance feeD . Prepaid Interest feeView AnswerAnswer: B Explanation: An underwriting fee is considered an origination fee because it is a charge for the lender’s services in processing and evaluating the mortgage application. Origination...

Which of the following items may lenders use to verify a borrower's income for his ability to repay a mortgage?A . An electronic paystubB . A copy of a check registerC . The income stated on the loan applicationD . The borrower's attestation that he expects a raise within 30...

A mortgage loan originator (MLO) originates a 5/1 ARM where the indexed rate is likely to be higher than the introductory rate. The Truth in Lending Act (TILA) states that an MLO must calculate a borrower's monthly Payment amount based on which of the following?A . Payment amount during the...