The MLO- practice final exam 1 Questions and Answers Updated 2026

The MLO- practice final
exam 1 Questions and
Answers Updated 2026
ABdiscountBpointBisBBESTBdescribedBasBaBchargeBtheBborrowerBpaysBto:



A.)BABlenderBtoBdecreaseBtheBinterestBrateBonBtheBmortgageBloan

B.)BABmortgageBbrokerBatBtheBtimeBofBapplicationBtoBobtainBaBfavorableBrate

C.)BTheBsellerBasBpartBofBtheBclosingBcostsBofBaBloan

D.)BABlenderBtoBensureBagainstBforeclosureB-
BAnswerA.BABlenderBtoBdecreaseBtheBinterestBrateBonBaBmortgageBloan.



ABbuyerBhasBearnestBmoneyBpaymentBofB5kBtheBbuyerBpaysBanBadditionalB2kBinBoptio
nBmoneyBtoBbeBcreditedBatBclosingBonBaBpropertyBwithBaBsaleBpriceBofB160k.BIfBtheBr
equiredBdownBpaymentBisB20%,BhowBmuchBadditionalBmoneyBwillBtheBbuyerBneedBtoB
provideBtowardBtheBdownBpaymentBatBclosingB?B-BAnswer25k



TheBrequirementBforBprivateBmortgageBinsuranceBisBgenerallyBdiscontinuedBwhenBtheBl
oanBtoBvalueBratioBfallsBbelow

A.B20%B

B.B50%B

C.B80%B

D.B90%B-BAnswerC.B80%



WhichBofBtheBfollowingBdocumentsBitemizesBallBsettlementBcostsBincludingBlenderBchar
ges?

A.BAgreementBofBSaleB

B.BHUD-1B/BClosingBDisclosureB

C.BFormB1003B

,D.BForbearanceBAgreementB-BAnswerB.)BHUD-1/closingBDisclosure



AccordingBtoBtheBtruthBinBlendingBactB(TILA),BtheBtermB"refinance"BappliesBto:B

A.BChangeBinBpaymentBscheduleB

B.BABreductionBinBAPRB

C.BTheBrenewalBofBaBsingleBpaymentBobligationBwithBnoBchangeBinBtheBoriginalBtermsB

D.BTheBsatisfactionBofBanBexistingBobligationBandBitsBreplacementBbyBaBnewBobligation
B-
BAnswerD.BTheBsatisfactionBofBanBexistingBobligationBandBit'sBreplacementsBbyBaBnewB
obligation



WhatBdoesBaBloanBoriginatorBuseBtoBdetermineBtheBestimatedBvalueBofBaBpropertyBba
sedBonBanBanalyticalBcomparisonBofBsimilarBpropertyBsales?

A.)BAnBappraisal

B.)BABmarketBsurvey

C.)BAnBareaBsurvey

D.)BABCost-benefitBanalysisB-BAnswerA.BAnBappraisal



WhichBofBtheBfollowingBmethodsBofBdisclosureBdoesBNOTBmeetBtheBrequirementsBofBt
heBEqualBCreditBOpportunityBActB(ECOA)

A.BEmailB

B.BMailedBletterB

C.BTelephoneB

D.BFaxedBletterB-BAnswerC.BTelephone



TheBtermB"20BbasisBpoints"BexpressedBasBaBpercentageBis:B-BAnswer0.20%



AccordingBtoBtheBTruth-in-
LendingBActB(TILA),BwhichBofBtheBfollowingBfeesBisBEXCLUDEDBfromBtheBcalculationBofB
theBannualBpercentageBrate?

, A.BHazardBinsurance

B.BWireBTransfer

C.BPrepaidBinterest

D.BMortgageBinsuranceBpremiumsB-BAnswerA.BHazardBinsurance



FHABloansBare

A.BPartiallyBguaranteedB

B.B100%BinsuredB

C.BExemptB

D.BEntitledB-BAnswerB.B100%Binsured



TheBlateBfeeBforBaBconventionalBloanBis:

A.)B3%BofBprincipleBandBinterest

B.)B4%BofBprincipleBandBinterest

C.)B5%BofBprincipleBandBinterest

D.)B10%BofBprincipleBandBinterestB-BAnswer5%BofBprincipalBandBinterest



ABfundingBfeeBisBrequiredBforBa

A.BFHABloanB

B.BVABloanB

C.BJumboBloanB

D.BConventionalBloanB-BAnswerVABloan



ABmortgageBinsuranceBpremiumBisBrequiredBon

A.BFHABloansB

B.BVABloans

C.BJumboBloansB

D.BConventionalBloansB-BAnswerFHABloans