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MLO Mortgage Loan Origination (SAFE MLO) Exam is now Stable and With Pass Result | Test Your Knowledge for Free

MLO Practice Questions

Mortgage Loan Origination (SAFE MLO) Exam

Last Update 4 days ago
Total Questions : 230

Dive into our fully updated and stable MLO practice test platform, featuring all the latest SAFE MLO exam questions added this week. Our preparation tool is more than just a NMLS study aid; it's a strategic advantage.

Our SAFE MLO practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about MLO. Use this test to pinpoint which areas you need to focus your study on.

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Question # 1

Mortgage loan originators planning to renew their licenses are required by the SAFE Act to complete which of the following education topics as part of their mandatory annual continuing education?

Options:

A.  

Credit score modeling standards

B.  

Mortgage loan loss mitigation standards

C.  

Nontraditional mortgage lending standards

D.  

30-year conventional mortgage lending standards

Discussion 0
Question # 2

Which of the following sources of funds is acceptable to utilize for down payments, closing costs or financial reserves?

Options:

A.  

Virtual currency funds

B.  

Community second funds

C.  

Personal unsecured loans

D.  

Foreign assets located outside of the U.S. or its territories

Discussion 0
Question # 3

A 7.25% interest-only loan has an initial balance of $239,500.00. The annual homeowner's insurance premium is $551.00, and the annual property taxes are $1,773.00. What is the total monthly payment, including the escrow?

Options:

A.  

$1,446.98

B.  

$1,584.65

C.  

$1,640.65

D.  

$1,701.29

Discussion 0
Question # 4

Which of the following fees is a finance charge?

Options:

A.  

Appraisal fees

B.  

Title insurance

C.  

Discount points

D.  

Pest inspection fees

Discussion 0
Question # 5

Which of the following statements defines the term "business day" in a mortgage rescission under the Truth in Lending Act (TILA)?

Options:

A.  

Every day from 9 a.m. to 5 p.m.

B.  

Every day except Sunday and legal holidays

C.  

Any days except Saturdays and Sundays

D.  

Any days that employees may access the office to work

Discussion 0
Question # 6

Which of the following documents is a real estate conveyance?

Options:

A.  

Quit claim deed

B.  

Promissory note

C.  

Mortgage instrument

D.  

Occupancy certificate

Discussion 0
Question # 7

An interest-only mortgage is a mortgage with scheduled payments that require the consumer to have:

Options:

A.  

Payments of interest for a specified amount of time.

B.  

Fixed payments every month, but the interest rate adjusts monthly.

C.  

Adjustable payments every month based on an adjustable interest rate.

D.  

Monthly payments for a specified amount of time that then roll over to principal-only payments because the interest has already been paid.

Discussion 0
Question # 8

When a mortgage loan originator notices multiple Social Security number discrepancies within the same loan file, it is considered a red flag of:

Options:

A.  

fair lending.

B.  

mortgage fraud.

C.  

a forgetful borrower.

D.  

pricing discrepancies.

Discussion 0
Question # 9

Which of the following events will cause a mortgage loan originator's (MLO's) temporary authority to cease in a given state?

Options:

A.  

The MLO was terminated by his previous employer.

B.  

Another state denies the MLO's license application.

C.  

The state does not grant temporary authority to transitioning MLOs.

D.  

A week has elapsed between when the MLO's federal registration expired and sponsorship by a new employer.

Discussion 0
Question # 10

Which of the following loans are covered by TILA-RESPA Integrated Disclosure (TRID)?

Options:

A.  

Second home loans

B.  

Chattel-dwelling loans

C.  

Reverse mortgage loans

D.  

Home equity lines of credit (HELOCs)

Discussion 0
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