Online Access Free MLO Practice Test

A couple purchasing a house does not have enough money in reserve to meet the underwriting guidelines for their loan. They are required to bring $10,000 to closing, and they will be $3,000 short unless they can find additional cash. The mortgage loan originator may assist the borrowers by taking which of the following actions?

• A.Having the real estate agent deposit $3,000 into the borrowers' bank account to generate a deposit record and then withdrawing the money immediately
• B.Suggesting that the borrowers temporarily borrow money from a relative to deposit into their bank account until the loan closes
• C.Editing the underwriter's copy of the purchase and sales agreement on the property to show a $3,000 contribution from the seller
• D.Asking the borrowers if they have any previously undisclosed additional cash assets that can be documented

A creditor receives an application with all the required pieces of information but wants to have additional information to determine a borrower's qualifications for a loan. Which of the following actions is most compliant with industry regulations?

• A.Provide a fees worksheet, a Falr Lending Disclosure and an Equal Credit Opportunity Act (ECOA) form to the consumer, waiting until the additional necessary information is obtained to Issue the balance of required disclosures
• B.Provide timely initial disclosures to the consumer even though the requested information when received may reflect that the initially disclosed figures are outdated
• C.Carefully document attempts to obtain the necessary additional information from the consumer to show why the decision to hold further processing was made
• D.Consider the application incomplete and put initial processing on hold until the additional information is received

When a consumer applies for an ARM, the creditor must provide a variable-rate program disclosure:

• A.No later than seven business days before loan consummation.
• B.After the creditor has received documents verifying information related to the consumer's application.
• C.No later than three business days before loan consummation.
• D.At the time an application form is provided or before the consumer pays a nonrefundable fee, whichever is earlier.

Which of the following is an example of a loan expense that is permitted to change without any tolerance restrictions?

• A.Property taxes paid by the borrower
• B.A lender's processing fee that is paid by the borrower
• C.An escrow fee that is paid by the borrower and the borrower did not shop for the fee
• D.A lender's tax service fee that is paid by the borrower

If a mortgage loan includes a prepayment penalty, it must be included on which of the following disclosures?

• A.Closing Disclosure only
• B.Both the Loan Estimate and Closing Disclosure
• C.Uniform Residential Loan Application
• D.Loan Estimate only