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NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. According to the TILA-RESPA Integrated Disclosure rule (TRID), changed circumstances that may result in a revised Loan Estimate include which of the following situations?
A) Market fluctuations on a locked loan
B) A natural disaster in the area where the loan will close
C) Changes that the MLO should have known at the time the Loan Estimate was provided
D) The borrower receiving a salary increase
2. Which of the following activities is an example of redlining in mortgage lending?
A) The act of the mortgage lender putting a "red line" under the borrower's name in a file to indicate they are a substandard applicant
B) Ensuring that all creditworthy borrowers are afforded equal treatment when applying for a mortgage loan
C) The mortgage loan originator convincing the underwriter to move their loan file to the front of the line or "redline" it
D) The systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices
3. An easement:
A) allows a loan applicant to close on a loan even if all the stipulations have not been met.
B) is a mortgage modification.
C) allows a borrower to make less than the required payments without going through a full mortgage modification.
D) is a right to cross or otherwise use someone else's land for a specified purpose.
4. A mortgage loan originator (MLO) received a salary of 1% per loan plus a bonus of $5,000 for closing the most loans in the office last year. In addition, he received a trip to Hawaii based on closing 100 or more transactions with an interest rate of 5% or higher. Is the MLO's compensation prohibited?
A) His compensation is permitted as compensation only includes salary and bonuses and his salary and bonus is not based on loan terms.
B) His compensation is not permitted as compensation includes all financial incentives and his trip was awarded based on closing the most loans with certain loan terms.
C) His compensation is not permitted as compensation only includes salary and his salary is based on loan terms.
D) His compensation is permitted as compensation only includes salary and his salary is not based on loan terms.
5. Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?
A) Country of birth
B) Receipt of child support
C) Marital status
D) Immigration status
Solutions:
Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: D |
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