NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 111:

  Which of the following lender payments is prohibited according to Real Estate Settlement Procedures Act (RESPA)?

  A. A payment to an attorney for services actually rendered
  B. A payment to a real estate agent for loan referral activities
  C. A payment to its own employees for lender referral activities
  D. A payment to the lender's duly appointed agent or contractor for services actually performed in the origination, processing or funding of a loan
  B. A payment to a real estate agent for loan referral activities

• Question 112:

  Which of the following statements is not true concerning "higher-priced mortgage loans" as defined in the Truth in Lending Act (TILA)?

  A. Creditors must verity income and assets in order to determine whether the loan applicant has the ability to repay the loan.
  B. Creditors must establish an escrow account for taxes and property insurance on first lien mortgage loans.
  C. There are restrictions on prepayment penalties.
  D. Borrowers have a five-day right of rescission.
  D. Borrowers have a five-day right of rescission.

• Question 113:

  Which of the following scenarios describes a form of steering?

  A. A loan officer presents a consumer a loan with the terms a consumer requested that has higher fees than a product the loan officer is able to offer.
  B. A loan officer presents a consumer with a loan that has the lowest total amount of fees.
  C. A loan officer presents a consumer loan options from a particular lender for a higher level of compensation.
  D. A loan officer presents a consumer with loan options from multiple creditors with various fees.
  C. A loan officer presents a consumer loan options from a particular lender for a higher level of compensation.

• Question 114:

  When does the Loan Estimate expire?

  A. After the 3rd business day
  B. After the 5th business day
  C. After the 7th business day
  D. After the 10th business day
  D. After the 10th business day

• Question 115:

  Which of the following statements is permissible in an advertisement?

  A. "Current interest rates as low as 3.50% with an APR of 3.99%. Contact us today!"
  B. "Looking for a VA loan? We are endorsed by and affiliated with the VA administration."
  C. "Take out a reverse mortgage loan with us, and you can stay in your home as long as you want and never make a payment."
  D. "Close a mortgage loan with us within the next 60 days and when interest rates drop, we will refinance your loan at a lower rate guaranteed."
  A. "Current interest rates as low as 3.50% with an APR of 3.99%. Contact us today!"

• Question 116:

  Which of the following must be included in advertisements displayed by mortgage loan originators (MLOs) on their social media pages for mortgage services including payment amounts?

  A. The APR
  B. The MLO's personal website
  C. The MLO's business address
  D. The number of days that the rate is available
  A. The APR

• Question 117:

  The practice of denying a creditworthy applicant a loan for housing because of the location of the property is sometimes referred to as:

  A. steering.
  B. redlining.
  C. appraising.
  D. low balling.
  B. redlining.

• Question 118:

  A borrower's monthly debt-to-income ratio is calculated by taking the:

  A. borrower's gross monthly housing expense divided by the principal, interest, and appraised value.
  B. eligible total monthly debt obligations, including the monthly housing expense, divided by the borrower's gross monthly income.
  C. eligible total monthly debt obligations for trade lines greater than 12 months multiplied by the borrower's net monthly income.
  D. eligible total monthly debt obligations excluding the monthly housing expense divided by the borrower's net monthly income
  B. eligible total monthly debt obligations, including the monthly housing expense, divided by the borrower's gross monthly income.

• Question 119:

  Upon becoming employed by a state-licensed mortgage company, an individual who works for a depository institution as a mortgage loan originator (MLO) shall not be deemed to have temporary authority to act as an MLO in an application state if which of the following events has occurred?

  A. The individual has been a witness in a trial at which the defendant was convicted of felony fraud.
  B. The individual has been subject to a court order for payment of child support.
  C. The individual had an application for an MLO license denied or an MLO license revoked or suspended in any Governmental jurisdiction.
  D. The individual has submitted an application to be a state-licensed MLO in the application state and was registered in the NMLS as an MLO by the prior employer.
  C. The individual had an application for an MLO license denied or an MLO license revoked or suspended in any Governmental jurisdiction.

• Question 120:

  Which of the following loans is subject to the Real Estate Settlement Procedures Act (RESPA)?

  A. Federally related mortgage loan
  B. Standard county related mortgage loan
  C. State registration related mortgage loan
  D. Unified commerce related mortgage loan
  A. Federally related mortgage loan