NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 41:

  Which of the following entities is the primary regulatory authority for state-licensed, non- depository lenders?

  A. NMLS
  B. The Federal Trade Commission
  C. A state regulator
  D. The Conference of State Bank Supervisors
  C. A state regulator

• Question 42:

  According to Regulation Z, which of the following is a prohibited act?

  A. Including undocumented child support payments made by the borrower
  B. Issuing disclosures to applicants
  C. Redisclosing a Loan Estimate immediately after locking the rate
  D. Advertising rates not currently available to applicants
  D. Advertising rates not currently available to applicants

• Question 43:

  Which of the following documents is a real estate conveyance?

  A. Quit claim deed
  B. Promissory note
  C. Mortgage instrument
  D. Occupancy certificate
  A. Quit claim deed

• Question 44:

  What is the maximum civil penalty that is permitted to be imposed for each violation or failure to comply with the SAFE Act?

  A. $2,500 for each act or omission
  B. 000 for each act or omission
  C. $2,500 for each act or omission; $25,000 maximum
  D. $25, 000 for each act or omission: $250,000 maximum
  A. $2,500 for each act or omission

• Question 45:

  A second (subordinate) mortgage loan includes:

  A. government home purchase loan.
  B. conventional home purchase loan.
  C. home equity conversion mortgage.
  D. home equity lines of credit (HELOCs;
  D. home equity lines of credit (HELOCs;

• Question 46:

  Which of the following loans is subject to right of rescission?

  A. A purchase loan secured by a rental home
  B. A refinance loan secured by a vacation home
  C. A cash-out refinance loan on a primary residence
  D. A rate and term refinance loan through the same creditor
  C. A cash-out refinance loan on a primary residence

• Question 47:

  Which of the following is an example of a non-fluctuating income source?

  A. Salaried W-2 position
  B. Self-employed income
  C. Commission-based W-2 income
  D. Part-time work with irregular hours
  A. Salaried W-2 position

• Question 48:

  Which of the following documents is required to be issued to a customer when a mortgage loan originator is also a real estate broker on the same transaction?

  A. Loan application
  B. Appraisal disclosure
  C. Special information booklet
  D. Affiliated business arrangement
  D. Affiliated business arrangement

• Question 49:

  Which of the following factors is considered when determining the interest rate for a subprime mortgage?

  A. The term of the loan
  B. The property location
  C. The sales price of the property
  D. The credit score of the applicants]
  D. The credit score of the applicants]

• Question 50:

  An appraiser agrees to give a mortgage loan originator (MLO) half of her appraisal fees in return for the MLO's future business. This illegal practice is known as:

  A. redlining.
  B. fee splitting.
  C. blockbusting.
  D. paying it forward.
  B. fee splitting.