MLO PRACTICE EXAM QUESTIONS
AND ANSWERS ALL CORRECT
What is requested of an applicant under HMDA? - Answer- 1. Race
2. Ethnicity/National Origin
3. Sex
When is the only time you would ask for religion under ECOA? - Answer- Is the
Investor/borrower is a Non-Profit Organization
What is the only fee that can be charged prior to delivery of a loan estimate form? -
Answer- A credit reporting fee
A claim/lien against real property held by someone not the owner? - Answer-
Encumbrance
WHO completes closing disclosure for WHOM? - Answer- Borrower to creditor;
Settlement Agent to seller
What is the max housing and total debt ratios? - Answer- 28%/36%
What term describes the transfer of ownership of real estate from one owner to
another? - Answer- Conveyance
What is a non-traditional Mortgage? - Answer- Anything other than a 30 year fixed
mortgage
What $ amount is needed to report according to the Bank Secrecy Act (BSA)? -
Answer- Exceeding $10k cash
What 6 pieces are needed on an application? - Answer- 1. Borrower Income
2. Borrower SSN
3. Borrower Name
4. Property Address
5. Property Value
6. Loan Amount
(3 personal, 3 property)
What is another word for the settlement agent? - Answer- The title agent
What does the P in RESPA stand for? - Answer- Procedures
, What does RESPA stand for? - Answer- The real estate settlement procedures act
What fee is required on all VA loans? - Answer- A funding fee
What kind of payment has a balance that grows after monthly payments? - Answer- A
neg AM payment (Negative Amortization)
What REG is RESPA under? - Answer- REG X
What does MARS stand for? - Answer- Mortgage Assistance and Relief service rule
What does Tila cover? - Answer- Credit, Advertisement, and Rescission (C.A.R)
When is the initial escrow statement due? What is the surplus needed to reimburse? -
Answer- Within 45 days of establishment; over $50
Who created red flag rules? - Answer- FTC
What is the purpose of the FACT Act? - Answer- To prevent identity theft
A VA flat fee on a loan cannot exceed what %? - Answer- 1%
What are the three Non-Conventional loan programs? - Answer- 1. VA
2. FHA
3. USDA
PITI + Monthly Debt/Gross Monthly Income = ? - Answer- Back End Debt Ratio
How long is a LE good for? What does TIP stand for? - Answer- LE is good for 10
business days; TIP = Total Interest Percentage (APR = Total interest + fees
percentage)
What does MAP stand for? Which reg is it under? - Answer- MAP = Mortgage Acts and
Practices Act; Reg N
What reg is FCRA under and what does it stand for? - Answer- FCRA is under reg V;
Fair credit reporting act.
What's the difference between FCRA and ECOA? - Answer- ECOA is for credit
applications while FCRA is for credit reports.
When is the final CD delivered? - Answer- At consummation (Doc signing)
Who gives the closing disclosure to the borrower? - Answer- The Creditor
AND ANSWERS ALL CORRECT
What is requested of an applicant under HMDA? - Answer- 1. Race
2. Ethnicity/National Origin
3. Sex
When is the only time you would ask for religion under ECOA? - Answer- Is the
Investor/borrower is a Non-Profit Organization
What is the only fee that can be charged prior to delivery of a loan estimate form? -
Answer- A credit reporting fee
A claim/lien against real property held by someone not the owner? - Answer-
Encumbrance
WHO completes closing disclosure for WHOM? - Answer- Borrower to creditor;
Settlement Agent to seller
What is the max housing and total debt ratios? - Answer- 28%/36%
What term describes the transfer of ownership of real estate from one owner to
another? - Answer- Conveyance
What is a non-traditional Mortgage? - Answer- Anything other than a 30 year fixed
mortgage
What $ amount is needed to report according to the Bank Secrecy Act (BSA)? -
Answer- Exceeding $10k cash
What 6 pieces are needed on an application? - Answer- 1. Borrower Income
2. Borrower SSN
3. Borrower Name
4. Property Address
5. Property Value
6. Loan Amount
(3 personal, 3 property)
What is another word for the settlement agent? - Answer- The title agent
What does the P in RESPA stand for? - Answer- Procedures
, What does RESPA stand for? - Answer- The real estate settlement procedures act
What fee is required on all VA loans? - Answer- A funding fee
What kind of payment has a balance that grows after monthly payments? - Answer- A
neg AM payment (Negative Amortization)
What REG is RESPA under? - Answer- REG X
What does MARS stand for? - Answer- Mortgage Assistance and Relief service rule
What does Tila cover? - Answer- Credit, Advertisement, and Rescission (C.A.R)
When is the initial escrow statement due? What is the surplus needed to reimburse? -
Answer- Within 45 days of establishment; over $50
Who created red flag rules? - Answer- FTC
What is the purpose of the FACT Act? - Answer- To prevent identity theft
A VA flat fee on a loan cannot exceed what %? - Answer- 1%
What are the three Non-Conventional loan programs? - Answer- 1. VA
2. FHA
3. USDA
PITI + Monthly Debt/Gross Monthly Income = ? - Answer- Back End Debt Ratio
How long is a LE good for? What does TIP stand for? - Answer- LE is good for 10
business days; TIP = Total Interest Percentage (APR = Total interest + fees
percentage)
What does MAP stand for? Which reg is it under? - Answer- MAP = Mortgage Acts and
Practices Act; Reg N
What reg is FCRA under and what does it stand for? - Answer- FCRA is under reg V;
Fair credit reporting act.
What's the difference between FCRA and ECOA? - Answer- ECOA is for credit
applications while FCRA is for credit reports.
When is the final CD delivered? - Answer- At consummation (Doc signing)
Who gives the closing disclosure to the borrower? - Answer- The Creditor
