NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 61:

  Illegal fee splitting occurs when:

  A. two service providers split a fee.
  B. wages are split by two employees.
  C. fees are split between lender and broker.
  D. three companies split a fee but one did no work.
  D. three companies split a fee but one did no work.

• Question 62:

  How often must a nonexempt telemarketing entity check their call list against the National Do Not Call Registry?

  A. Every 7 days
  B. Every 2 weeks
  C. Every 31 days
  D. Annually
  C. Every 31 days

• Question 63:

  What is the minimum amount of flood insurance a lender must require on a residential building located in a special flood hazard area?

  A. $50,000 for residential property structures
  B. $150,000 for residential property structures
  C. $250,000 for residential property structures
  D. $350,000 for residential property structures
  C. $250,000 for residential property structures

• Question 64:

  A mortgage loan originator (MLO) originates a 5/1 ARM where the indexed rate is likely to be higher than the introductory rate. The Truth in Lending Act (TILA) states that an MLO must calculate a borrower's monthly Payment amount based on which of the following?

  A. Payment amount during the fixed introductory period
  B. An average of the varying payment amounts over the life of the loan
  C. The total amount of the payments
  D. Fully indexed rate of the loan
  D. Fully indexed rate of the loan

• Question 65:

  In a federally related mortgage loan transaction, a charge for a settlement service by a person for which no services or nominal services are performed is prohibited:

  A. regardless of the sources of payment.
  B. only if it is paid by the borrower's real estate agent.
  C. unless it is paid by the seller or the seller's real estate agent.
  D. unless it is paid by the mortgage loan originator on the borrower's behalf.
  A. regardless of the sources of payment.

• Question 66:

  Which of the following applicant characteristics is legally permitted to be considered in evaluating credit risk?

  A. Whether the applicant seems likely to have children
  B. Whether the applicant has a phone number listing in their name
  C. Whether the applicant's age makes them ineligible for credit-related insurance
  D. Whether the alimony payments the applicant relies on for income are likely to continue and to be consistently made
  D. Whether the alimony payments the applicant relies on for income are likely to continue and to be consistently made

• Question 67:

  A borrower has been approved for a new home loan and has completed all necessary paperwork. When should the borrower receive the Closing Disclosure?

  A. 4 business days prior lo consummation
  B. 3 business days prior to consummation
  C. 1 business day prior to consummation
  D. On the day of consummation
  B. 3 business days prior to consummation

• Question 68:

  Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?

  A. Bank deposits that are not supported by income or other disclosures
  B. Disclosure of gift funds
  C. Parental loans disclosed but not yet received
  D. Borrower's receipt of a large bonus from an employer
  A. Bank deposits that are not supported by income or other disclosures

• Question 69:

  Under which of the following programs is a creditor required to provide disclosures to the consumer that fully describe each of the creditor's variable-rate loan programs in which the consumer expresses an interest?

  A. ARM
  B. FHA
  C. Fixed
  D. Construction
  A. ARM

• Question 70:

  An easement:

  A. is a mortgage modification.
  B. is a right to cross or otherwise use someone else's land for a specified purpose.
  C. allows a loan applicant to close on a loan even if all the stipulations have not been met.
  D. allows a borrower to make less than the required payments without going through a full mortgage modification.
  B. is a right to cross or otherwise use someone else's land for a specified purpose.