SAFE MLO EXAM QUESTIONS AND
ANSWERS ALL CORRECT
Which agency becomes the receiver for a failing financial institution? - Answer- FDIC
Which does not have zero variance between GFE & the HUD-1?
A) Title Insurance
B) Real estate transfer tax
C) Loan origination fees
D) Credit report Fee - Answer- Title insurance (that means there is variance for this and
no variance for the others)
What can have unlimited variance between GFE and HUD-1? - Answer- Hazard
insurance
What happens if the acceptable variance between the GFE and the HUD-1 is
exceeded? - Answer- The excess is refunded to the borrower within 30 days
What happens if the acceptable variance between the LE and the CD is exceeded? -
Answer- The excess is refunded to the borrower within 60 days
Which law requires businesses to print only the last 5 card numbers on a credit card
receipt? - Answer- Fact Act
A higher priced home loan is one whose: - Answer- APR exceeds the average prime
rate by 1.5% for first-lien loans
What type of mortgage is a non-recourse loan? - Answer- Reverse mortgage
Who chooses forced-placed hazard insurance companies? - Answer- Lender
What is required for FHA Streamline refinance loan? - Answer- Current on mortgage
payments for last 3 months
What law addresses loan originators' compensation issues? - Answer- Loan Origination
Rule
Commercial telemarketers are restricted to calling: - Answer- Between 8AM and 9PM
, Commercial telemarketers must search the Do-Not-Call registry every - Answer- 31
days
The first page of an advertiser's fax must include - Answer- opt-out instructions
Which law protects homewoners from foreclosure scams? - Answer- Mortgage
Assistance Relief Services Rule
ECOA is Regulation ______ - Answer- Regulation B
TILA is administered by ______ - Answer- CFPB
HOEPA considers a loan to be high cost if total charges to borrower exceeds ______ %
of loan amount? - Answer- 5%
For reverse mortgage, TILA disclosure must be delivered how many days prior to
closing? - Answer- 7 days
Home Mortgage Disclosure Act (HMDA) implemented by _____ - Answer- FRB
Loan amount, gender, race, & age; which is not required on HMDA? - Answer- Age
HMDA does not - Answer- Set lending quotas for protected classes
Bankruptcies are kept on record for how long? - Answer- 10 years
Tax liens are kept on record for how long? - Answer- 7 years
Borrowers entitled to a free credit report if lender takes adverse action and they ask for
the report within how many days of receiving notice of the action? - Answer- 60 days
Company with established relationship can call someone _____ after last purchase -
Answer- 18 months
If consumer inquiry or submits an application, can call for how long? - Answer- 3 months
Lender has how long to refund excessive variance? - Answer- 60 days
How many days before loan consummation is a borrower entitled to see a revised CD
that did not trigger an additional 3-day waiting period? - Answer- 1 business day
How may days before loan consummation is a seller entitled to see the CD? - Answer- 0
(day of closing)
ANSWERS ALL CORRECT
Which agency becomes the receiver for a failing financial institution? - Answer- FDIC
Which does not have zero variance between GFE & the HUD-1?
A) Title Insurance
B) Real estate transfer tax
C) Loan origination fees
D) Credit report Fee - Answer- Title insurance (that means there is variance for this and
no variance for the others)
What can have unlimited variance between GFE and HUD-1? - Answer- Hazard
insurance
What happens if the acceptable variance between the GFE and the HUD-1 is
exceeded? - Answer- The excess is refunded to the borrower within 30 days
What happens if the acceptable variance between the LE and the CD is exceeded? -
Answer- The excess is refunded to the borrower within 60 days
Which law requires businesses to print only the last 5 card numbers on a credit card
receipt? - Answer- Fact Act
A higher priced home loan is one whose: - Answer- APR exceeds the average prime
rate by 1.5% for first-lien loans
What type of mortgage is a non-recourse loan? - Answer- Reverse mortgage
Who chooses forced-placed hazard insurance companies? - Answer- Lender
What is required for FHA Streamline refinance loan? - Answer- Current on mortgage
payments for last 3 months
What law addresses loan originators' compensation issues? - Answer- Loan Origination
Rule
Commercial telemarketers are restricted to calling: - Answer- Between 8AM and 9PM
, Commercial telemarketers must search the Do-Not-Call registry every - Answer- 31
days
The first page of an advertiser's fax must include - Answer- opt-out instructions
Which law protects homewoners from foreclosure scams? - Answer- Mortgage
Assistance Relief Services Rule
ECOA is Regulation ______ - Answer- Regulation B
TILA is administered by ______ - Answer- CFPB
HOEPA considers a loan to be high cost if total charges to borrower exceeds ______ %
of loan amount? - Answer- 5%
For reverse mortgage, TILA disclosure must be delivered how many days prior to
closing? - Answer- 7 days
Home Mortgage Disclosure Act (HMDA) implemented by _____ - Answer- FRB
Loan amount, gender, race, & age; which is not required on HMDA? - Answer- Age
HMDA does not - Answer- Set lending quotas for protected classes
Bankruptcies are kept on record for how long? - Answer- 10 years
Tax liens are kept on record for how long? - Answer- 7 years
Borrowers entitled to a free credit report if lender takes adverse action and they ask for
the report within how many days of receiving notice of the action? - Answer- 60 days
Company with established relationship can call someone _____ after last purchase -
Answer- 18 months
If consumer inquiry or submits an application, can call for how long? - Answer- 3 months
Lender has how long to refund excessive variance? - Answer- 60 days
How many days before loan consummation is a borrower entitled to see a revised CD
that did not trigger an additional 3-day waiting period? - Answer- 1 business day
How may days before loan consummation is a seller entitled to see the CD? - Answer- 0
(day of closing)
