Free Mortgage Loan Originator MCQ Questions and Answers

Question 1

The SAFE Act stipulates that a mortgage loan originator must be designated as an MLO to carry out all of the following tasks, with the exception of:

Accepted Answer

Perform work related to extensions of credit for timeshare plans

Answer

To carry out tasks associated with timeshare plan credit extensions, one would not need the MLO certification.

Question 2

Except for, all of the following MLOs must possess a state license:

Accepted Answer

An MLO working for a federally insured depository institution

Answer

This would comprise banks, credit unions, and affiliates that are owned, controlled, and governed by a depository institution and are subject to federal banking agency regulation.

Question 3

Which of the following is not required to have a unique identifying number in order to act as an MLO under the SAFE Act:

Accepted Answer

None of the above

Answer

The employee of an insured depository institution is registered with the NMLS, not licensed, although all MLOs require a unique identifier number.

Question 4

Which of the following sums up evaluation the best:

Accepted Answer

An estimate of market value

Answer

Although ""An estimate of value"" is a perfectly acceptable response, ""An estimate of market value"" is the best response and will increase your score when it comes to residential mortgages.

Question 5

All of the following are listed as not requiring an MLO designation under the SAFE Act's definition of administrative and clerical work, with the exception of:

Accepted Answer

Collecting information on behalf of the consumer with regard to a residential mortgage loan

Answer

The right response includes gathering customer information from numerous industry sources. An MLO designation is necessary because this falls within MLO activities. The other options entail interacting with the customer to receive, gather, distribute, and communicate information from the customer for the aim of assembling the loan application package. This is administrative in nature.

Mortgage Loan Originator Practice Test

Mortgage Loan Originator Practice Test

Free Mortgage Loan Originator MCQ Questions and Answers