NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 81:

  The debt-to-income analysis should assess a borrower's total monthly housing related payments as a percentage of the:

  A. net monthly income
  B. gross monthly income.
  C. taxable income.
  D. loan amount.
  B. gross monthly income.

• Question 82:

  Which of the following property value approaches does an appraiser use on a rental property?

  A. Cost approach
  B. Income approach
  C. Annual approach
  D. Sales comparison approach
  B. Income approach

• Question 83:

  After receiving a completed application for a creditor's approval of a counteroffer, the creditor must notify an applicant of action taken within how many calendar days?

  A. 15 calendar days
  B. 20 calendar days
  C. 30 calendar days
  D. 60 calendar days
  C. 30 calendar days

• Question 84:

  In the loan application process, when must specific disclosures be provided to a borrower for an ARM?

  A. At closing
  B. At first mention of an ARM loan
  C. When a loan is locked in
  D. Within three days of a complete application
  D. Within three days of a complete application

• Question 85:

  Which of the following actions should a mortgage loan originator (MLO) take if a real estate broker offers the MLO $500 to obtain a purchase-money mortgage for the real estate broker's client?

  A. Decline the money
  B. Apply the $500 towards the downpayment
  C. Receive the $500 fee and include it on the Closinq Disclosure
  D. Accept the money after obtaining the requested loan for the client
  A. Decline the money

• Question 86:

  The Equal Credit Opportunity Act (ECOA) defines the term "elderly" as anyone:

  A. 60 years of age or older.
  B. 62 years of age or older.
  C. 65 years of age or older.
  D. 70 years of age or older.
  B. 62 years of age or older.

• Question 87:

  During the loan application process, which of the following documents specifies the time period that a mortgage lender agrees to hold the mortgage interest rate at a certain percentage?

  A. Loan application
  B. Preapproval letter
  C. Closing Disclosure
  D. Rate lock agreement
  D. Rate lock agreement

• Question 88:

  Which of the following activities is a function of the Consumer Financial Protection Bureau (CFPB)?

  A. Regulating the federal funds rate at which money is lent to banks
  B. Regulating the number of mortgage loan originators in the mortgage industry
  C. Regulating mortgage lenders on their mortgage origination practices and procedures
  D. Deciding what quantity of mortgage-backed securities are purchased by the government
  C. Regulating mortgage lenders on their mortgage origination practices and procedures

• Question 89:

  Which of the following is an origination fee?

  A. Appraisal fee
  B. Underwriting fee
  C. Title insurance fee
  D. Prepaid Interest fee
  B. Underwriting fee

• Question 90:

  Which of the following federal laws requires disclosures intended to prevent lenders or mortgage loan originators (MLOs) from increasing fees during the origination process?

  A. Truth in Lending Act (TILA)
  B. Equal Credit Opportunity Act (ECOA)
  C. Home Mortgage Disclosure Act (HMDA)
  D. Real Estate Settlement Procedures Act (RESPA1)
  D. Real Estate Settlement Procedures Act (RESPA1)