Practice National Exam 4 Questions and
Answers Graded A+
When is it permissible to deny a loan application based on a borrower's age?
- If the borrower is younger than 21.
- If the borrower is younger than 18.
- If the borrower is older than 62.
- It is never OK to deny a loan application based upon age. - Correct answer-A
lender can only deny an application because of age if the applicant is a minor.
Anyone under 18 years of age cannot legally enter into a contract.
If the borrower is younger than 18.
An MLO is required to take pre-licensing education. How many hours must the
MLO take?
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,- 20 hours
- 10 hours
- 8 hours
- 22 hours - Correct answer-An MLO is required to take 20 hours of pre-licensing
education per the SAFE Act.
20 hours
Section 32 of TILA is also known as:
- ECOA
- HOEPA
- The Homeownership Protection Act
- Rules regarding Higher-priced mortgages - Correct answer-Section 32 of TILA is
also known as the Home Ownership Equity Protection Act or HOEPA. HOEPA
deals mostly with high-cost home loans.
HOEPA
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,Which of the following type of loan is assumable?
- VA loans
- Conventional loans
- USDA loans
- Subprime loans - Correct answer-VA and FHA loans are often assumable.
VA loans
A credit card company has a written policy that anyone who is age 21-27 can only
have a credit limit of $5,000, but anyone over 30 automatically gets a credit limit
of $10,000. This is an example of:
- Disparate treatment
- Disparate impact
- Comparative evidence
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, - Discrimination - Correct answer-Disparate Treatment is either overt
discrimination, or there is comparative evidence of discrimination. This policy
overtly discriminates against people of certain ages.
Disparate treatment
Section 35 of TILA covers what?
- High-cost home loans
- Higher-priced home loans
- The Ability to Repay Rule
- The Loan Originator Compensation Rule - Correct answer-Section 35 of TILA
deals specifically with higher-priced mortgage loans or HPMLs.
Higher-priced home loans
According to Regulation Z, the borrower has the right to rescind, at closing the
Notice of the Right to Rescind must be provided to the borrower. Which of the
following is true about the Notice of the Right to Rescind?
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Answers Graded A+
When is it permissible to deny a loan application based on a borrower's age?
- If the borrower is younger than 21.
- If the borrower is younger than 18.
- If the borrower is older than 62.
- It is never OK to deny a loan application based upon age. - Correct answer-A
lender can only deny an application because of age if the applicant is a minor.
Anyone under 18 years of age cannot legally enter into a contract.
If the borrower is younger than 18.
An MLO is required to take pre-licensing education. How many hours must the
MLO take?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,- 20 hours
- 10 hours
- 8 hours
- 22 hours - Correct answer-An MLO is required to take 20 hours of pre-licensing
education per the SAFE Act.
20 hours
Section 32 of TILA is also known as:
- ECOA
- HOEPA
- The Homeownership Protection Act
- Rules regarding Higher-priced mortgages - Correct answer-Section 32 of TILA is
also known as the Home Ownership Equity Protection Act or HOEPA. HOEPA
deals mostly with high-cost home loans.
HOEPA
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Which of the following type of loan is assumable?
- VA loans
- Conventional loans
- USDA loans
- Subprime loans - Correct answer-VA and FHA loans are often assumable.
VA loans
A credit card company has a written policy that anyone who is age 21-27 can only
have a credit limit of $5,000, but anyone over 30 automatically gets a credit limit
of $10,000. This is an example of:
- Disparate treatment
- Disparate impact
- Comparative evidence
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, - Discrimination - Correct answer-Disparate Treatment is either overt
discrimination, or there is comparative evidence of discrimination. This policy
overtly discriminates against people of certain ages.
Disparate treatment
Section 35 of TILA covers what?
- High-cost home loans
- Higher-priced home loans
- The Ability to Repay Rule
- The Loan Originator Compensation Rule - Correct answer-Section 35 of TILA
deals specifically with higher-priced mortgage loans or HPMLs.
Higher-priced home loans
According to Regulation Z, the borrower has the right to rescind, at closing the
Notice of the Right to Rescind must be provided to the borrower. Which of the
following is true about the Notice of the Right to Rescind?
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