NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 71:

  The upfront premium charged on an FHA mortgage transaction to protect a creditor in the event of borrower default is an example of:

  A. optional credit life insurance.
  B. force-placed hazard insurance.
  C. government mortgage insurance.
  D. private mortgage insurance
  C. government mortgage insurance.

• Question 72:

  A borrower who knowingly makes false statements on a federally related mortgage loan to obtain property may be:

  A. imprisoned for 10 to 16 months
  B. fined up to JB10,000 or imprisoned for 6 months.
  C. fined up to $1 million and imprisoned for 30 years.
  D. fined up to the total purchase price of their home.
  C. fined up to $1 million and imprisoned for 30 years.

• Question 73:

  During the closing the borrower notices that the interest rate increased from 3.250% to 3.875%. The lender must:

  A. tell the borrower to close the loan.
  B. close the loan, then re-disclose after the loan funds.
  C. postpone the closing, re-disclose and wait three days.
  D. postpone the closing, re-disclose and wait three business days.
  D. postpone the closing, re-disclose and wait three business days.

• Question 74:

  When obtaining a mortgage loan, title insurance is required to protect the:

  A. settlement agent.
  B. seller of the property.
  C. mortgage loan officer.
  D. lender providing the financing.
  D. lender providing the financing.

• Question 75:

  The loan-to-value ratio for an FHA loan is calculated by dividing the loan amount by:

  A. the purchase price of the property.
  B. the appraised value of the property.
  C. the lesser of the purchase price or appraised value.
  D. the purchase price, plus the mortgage insurance for FHA loans.
  C. the lesser of the purchase price or appraised value.

• Question 76:

  What is the loan amount on the purchase price of $249,955.00 if the borrower is putting 18% down?

  A. $204,693.10
  B. $204,936.10
  C. $204,963.10
  D. $204,966.10
  A. $204,693.10

• Question 77:

  How many days after loan consummation does a lender have to refund an excess charge subject to the 10% aggregate tolerance?

  A. 45 days
  B. 50 days
  C. 60 days
  D. 90 days
  C. 60 days

• Question 78:

  When applying for a home equity line of credit (HELOC), consumers should review documentation carefully and be sure that they consider:

  A. if the HELOC is insured by HUD.
  B. if the HELOC requires private mortgage insurance
  C. if the company offering the HELOC has deposit accounts insured by the FDIC.
  D. the APR and the costs of acquiring and maintaining the HELOC.
  D. the APR and the costs of acquiring and maintaining the HELOC.

• Question 79:

  Under the TILA-RESPA Integrated Disclosure rule (TRID), what is the minimum time period that must pass between a borrower's receipt of a Loan Estimate and the closing of a mortgage loan?

  A. 7 business days
  B. 15 business days
  C. 30 business days
  D. 45 calendar days
  A. 7 business days

• Question 80:

  Interest-only mortgages are considered high risk compared to traditional mortgage products because:

  A. scheduled payments do not reduce the loan's principal balance.
  B. the borrower's ability to repay is not considered when making the credit decision.
  C. the interest rate exceeds the average prime offer (APOR) rate by 1.5 percentage points.
  D. the interest rate exceeds the APOR by 6.5 percentage points.
  A. scheduled payments do not reduce the loan's principal balance.