NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 91:

  If an applicant provides a waiver for the requirement to receive their appraisal three business days prior to a loan's consummation and the transaction ends up not closing at all, a creditor must still provide a copy of the appraisal no later than how many days after the creditor determines consummation will not occur?

  A. 10 days
  B. 30 days
  C. 45 days
  D. 60 days
  B. 30 days

• Question 92:

  When preparing a corrected Closing Disclosure, under which of the following conditions is a three-day waiting period required before a loan consummation?

  A. The addition of an escrow account
  B. The addition of a prepayment penalty
  C. If the APR changes within the acceptable tolerance
  D. If a revision is needed to the consumer's contact Information
  B. The addition of a prepayment penalty

• Question 93:

  Which of the following responses describes the main purpose of the secondary market?

  A. To fund additional loans
  B. To fund a second home loan
  C. To fund second mortgage loans
  D. To service second mortgage loans
  A. To fund additional loans

• Question 94:

  Non-qualified mortgages offer more options for borrowers who:

  A. are unemployed.
  B. are self-employed.
  C. have no down payment.
  D. are currently living with their parents.
  B. are self-employed.

• Question 95:

  Which of the following fees is a finance charge?

  A. A notary fee
  B. An origination fee
  C. An appraisal fee
  D. A late payment fee
  B. An origination fee

• Question 96:

  Which of the following statements describes an advantage of a purchase money second mortgage?

  A. The borrower pays two mortgage payments.
  B. The borrower avoids paying into the escrow account.
  C. The borrower avoids paying private mortgage insurance
  D. The borrower's loan closes faster than a regular mortgage.
  C. The borrower avoids paying private mortgage insurance

• Question 97:

  The Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA) require lenders to:

  A. adopt best practices for property evaluations as stipulated in the Home Valuation Code of Conduct.
  B. adopt a credit score evaluation method utilizing the middle of three repository scores and the lowest of all borrowers' scores.
  C. implement a written program to detect warning signs of identity theft.
  D. implement an internal watch system to prevent the misrepresentation of occupancy status
  C. implement a written program to detect warning signs of identity theft.

• Question 98:

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

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

• Question 99:

  According to the Truth in Lending Act (TILA), a dwelling includes which of the following?

  A. An unimproved lot
  B. A six-unit apartment complex
  C. An individual condominium unit
  D. A timeshare
  C. An individual condominium unit

• Question 100:

  The characteristics of a fixed-rate mortgage include a:

  A. fixed margin.
  B. fixed interest rate.
  C. mandatory 30-year term.
  D. minimum balloon payment.
  B. fixed interest rate.