NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 11:

  According to the Truth in Lending Act (TILA), which of the following advertising statements does not require additional disclosures to supplement the advertisement?

  A. "Payments as low as $600 for a $100,000 mortgage"
  B. "Only 1 point up front to get you in a home"
  C. "15-year and 30-year mortgages available"
  D. "Come in today for your free consultation"
  D. "Come in today for your free consultation"

• Question 12:

  A mortgage loan originator (MLO) is in the process of taking an application for a 30-year mortgage, and the borrowers are over 72 years old. Which of the following actions must the MLO take?

  A. The MLO must present them with a reverse mortqaqe.
  B. The MLO must present them with a home equity line of credit (HELOC).
  C. The MLO must complete the application and proceed as normal.
  D. The MLO must inquire about the ability to repay in the event of a borrower's death.
  C. The MLO must complete the application and proceed as normal.

• Question 13:

  A borrower is approved for an 80/20 loan. Which of the following describes the lien priority for the 20% loan?

  A. First
  B. Second
  C. First as it will be combined with the 80% loan
  D. Second but combined with any other liens
  B. Second

• Question 14:

  How many days must a borrower's mortgage loan be delinquent before the mortgage company is permitted to submit the first notice filing in the foreclosure process?

  A. 30 days
  B. 60 days
  C. 90 days
  D. 120 days
  D. 120 days

• Question 15:

  Which of the following federal laws requires mortgage lenders to adopt and follow anti- money laundering (AML) rules and regulations?

  A. The National Bank Act
  B. The National Currency Act
  C. The Bank Secrecy Act
  D. The Real Estate Settlement Procedures Act
  C. The Bank Secrecy Act

• Question 16:

  A lender is permitted to accept the employment information provided by the borrower on the initial loan application without asking for a letter of explanation in which of the following circumstances?

  A. The borrower lacks a history in an industry that requires specific skills.
  B. A recent college graduate holds a high-level position in the organization.
  C. The residence is more than 120 miles from the work location on a refinance.
  D. The borrower has been employed by the same company for three years.
  D. The borrower has been employed by the same company for three years.

• Question 17:

  Which of the following statements describes the purpose of the TILA-RESPA Integrated Disclosure (TRID)?

  A. It provides a three-day cooling-off period for all loans
  B. It allows borrowers five days to review the final amount needed for settlement.
  C. It ensures that the terms and fees that are quoted at the time of application do not change.
  D. It aids borrowers in understanding the loan transaction process by utilizing readily understandable language.
  D. It aids borrowers in understanding the loan transaction process by utilizing readily understandable language.

• Question 18:

  Which of the following fees must remain the same unless a valid changed circumstance occurs?

  A. Total per diem interest
  B. Homeowner's insurance
  C. Owner's title insurance premium
  D. Fees paid to an affiliate of the lender
  D. Fees paid to an affiliate of the lender

• Question 19:

  According to Federal Reserve Regulation Z, which of the following fees is a finance charge in a residential mortgage transaction?

  A. Notary
  B. Interest
  C. Credit report
  D. Title Insurance
  B. Interest

• Question 20:

  What is the maximum APR that will qualify as a Safe Harbor qualified mortgage?

  A. An APR equal to or less than the average prime offer rate (APOR)
  B. An APR less than the APOR + 1.0%
  C. An APR less than the APOR + 1.5%
  D. An APR less than the APOR + 2.5%
  C. An APR less than the APOR + 1.5%