SAFE MLO TEST ETHICS TEST BANK FULL
SOLUTION VERIFIED QUESTIONS AND
ANSWERS GUARANTEED TO PASS
●● You have completed the necessary pre-licensure education, testing
and application requirements to obtain your mortgage license. You have
been hired by a brokerage and expect your background check to clear
shortly. You have a friend who is eager to proceed with a loan
application and your manager at the brokerage has said that you can start
the file under his/her name then switch to your name once your license
arrives. This action is:
Answer: Illegal & Unethical
●● If fraud is discovered by the servicer, what is LEAST likely to
occur?
Answer: The borrower will experience a rate increase.
●● What rule made it illegal to charge upfront fees and requires
disclosures in ads for mortgage assistance relief providers?
Answer: The MARS Rule
●● You are working with a customer who had disclosed they have new
payment obligations that do not appear on their credit report. You realize
that your customer qualifies for a loan based on figures calculated using
,only payment obligations reported on their credit. In order to ensure
your client qualifies, you decide to exclude the payment obligations that
do not appear on the credit report. This action is:
Answer: Illegal & Unethical
●● A credit card company has a written policy that anyone between the
age of 21-27 can only have a credit limit of $1,000 and anyone over 30
automatically gets a credit limit of $5,000. This is an example of:
Answer: Overt discrimination
●● Your borrower has a joint-asset account with another person. Most of
the money in the account belongs to the non-borrower. The lender
requires two months of bank statements. Under this circumstance, the
documentation needed by the lender requires you to:
Answer: Disclose and document deposits for the borrower and non-
borrower's name on it
●● A lender has a minimum loan amount that they will lend on, that
minimum loan amount is $150,000. The average home value to a
minority in the neighborhood is $100,000, so the lender does not help
anyone in that minority lender, this would be:
Answer: Disparate impact
●● When is a loan officer authorized to refuse to accept a loan
application?
, Answer: When the information supplied by the applicant appears
fraudulent
●● You interview a customer and collect all the information needed to
fill out the 1003 and run credit. Before running credit, you specifically
ask the client if it is okay to run their credit, and they consent. You
should now:
Answer: Have the customer sign a Borrower's Authorization form and
then pull credit.
●● A transaction where the buyers have signed a contract to purchase
real property, but have the intention of immediately selling it to another
buyer can be a sign of:
Answer: Illegal Property Filling
●● You have a customer who has been approved by the lender and is
ready to close. The customer backs out at the last minute because of a
recent interest rate drop and opts to go with a different loan officer. You
paid for the appraisal and want to invoice the customer and be
reimbursed. This course of action would be considered:
Answer: Legal & Ethical
●● Your customer calls you in the morning and tells you to lock the
interest rate at the 5.5% you initially disclosed. You commit to lock the
rate, but your day becomes busy and you aren't able to lock it until later
in the day. When you go to lock the rate, you notice that the pricing has
SOLUTION VERIFIED QUESTIONS AND
ANSWERS GUARANTEED TO PASS
●● You have completed the necessary pre-licensure education, testing
and application requirements to obtain your mortgage license. You have
been hired by a brokerage and expect your background check to clear
shortly. You have a friend who is eager to proceed with a loan
application and your manager at the brokerage has said that you can start
the file under his/her name then switch to your name once your license
arrives. This action is:
Answer: Illegal & Unethical
●● If fraud is discovered by the servicer, what is LEAST likely to
occur?
Answer: The borrower will experience a rate increase.
●● What rule made it illegal to charge upfront fees and requires
disclosures in ads for mortgage assistance relief providers?
Answer: The MARS Rule
●● You are working with a customer who had disclosed they have new
payment obligations that do not appear on their credit report. You realize
that your customer qualifies for a loan based on figures calculated using
,only payment obligations reported on their credit. In order to ensure
your client qualifies, you decide to exclude the payment obligations that
do not appear on the credit report. This action is:
Answer: Illegal & Unethical
●● A credit card company has a written policy that anyone between the
age of 21-27 can only have a credit limit of $1,000 and anyone over 30
automatically gets a credit limit of $5,000. This is an example of:
Answer: Overt discrimination
●● Your borrower has a joint-asset account with another person. Most of
the money in the account belongs to the non-borrower. The lender
requires two months of bank statements. Under this circumstance, the
documentation needed by the lender requires you to:
Answer: Disclose and document deposits for the borrower and non-
borrower's name on it
●● A lender has a minimum loan amount that they will lend on, that
minimum loan amount is $150,000. The average home value to a
minority in the neighborhood is $100,000, so the lender does not help
anyone in that minority lender, this would be:
Answer: Disparate impact
●● When is a loan officer authorized to refuse to accept a loan
application?
, Answer: When the information supplied by the applicant appears
fraudulent
●● You interview a customer and collect all the information needed to
fill out the 1003 and run credit. Before running credit, you specifically
ask the client if it is okay to run their credit, and they consent. You
should now:
Answer: Have the customer sign a Borrower's Authorization form and
then pull credit.
●● A transaction where the buyers have signed a contract to purchase
real property, but have the intention of immediately selling it to another
buyer can be a sign of:
Answer: Illegal Property Filling
●● You have a customer who has been approved by the lender and is
ready to close. The customer backs out at the last minute because of a
recent interest rate drop and opts to go with a different loan officer. You
paid for the appraisal and want to invoice the customer and be
reimbursed. This course of action would be considered:
Answer: Legal & Ethical
●● Your customer calls you in the morning and tells you to lock the
interest rate at the 5.5% you initially disclosed. You commit to lock the
rate, but your day becomes busy and you aren't able to lock it until later
in the day. When you go to lock the rate, you notice that the pricing has
