Free Mortgage Loan Originator Questions and Answers

Question 1

What level of mortgage loan fraud is reported?

Accepted Answer

Federal

Answer

County

Answer

City

Answer

State

Question 2

The Housing and Economic Recovery Act (HERA) of 2008's Title V is most commonly known as:

Accepted Answer

The SAFE Act

Answer

TILA

Answer

CRA

Answer

RESPA

Question 3

Which of the following organizations started the Nationwide Mortgage Licensing System & Registry (NMLS):

Accepted Answer

Both "CSBS" and "AARMR"

Answer

HUD

Answer

AARMR

Answer

CSBS

Question 4

Which of the following organizations created and maintains the NMLS online system:

Accepted Answer

FINRA

Answer

FFIEC

Answer

FTC

Answer

ABA

Question 5

Except for the following, all of the SAFE Act's goals are:

Accepted Answer

Cap interest rates and fees for federally related mortgage loans

Answer

Facilitate responsible behavior in the subprime mortgage market

Answer

Provide increased accountability for MLOs

Answer

Enhance consumer protection

Question 6

Except for the following, all of the SAFE Act's goals are:

Accepted Answer

Regulate loan transactions involving 1-4 units of residential owner-occupied properties

Answer

Facilitate the collection and disbursement of consumer complaints

Answer

Improve the flow of information to and between regulatory agencies

Answer

Provide a comprehensive licensing database

Question 7

Which of the following organizations examined and approved the CSBS and AARMR model state law:

Accepted Answer

HUD

Answer

OTS

Answer

USDA

Answer

Dept of Veterans Affairs

Question 8

Which of the following describes the document that combines the Good Faith Estimate required by RESPA and the Truth in Lending Statement mandated by TILA:

Accepted Answer

The Loan Estimate

Answer

The Mortgage Servicing Disclosure Statement

Answer

The Closing Disclosure

Answer

The Home Loan Toolkit

Question 9

An MLO may impose which of the following fees on the borrower prior to delivering the Loan Estimate disclosure and other necessary disclosures to the borrower:

Accepted Answer

Credit report fee

Answer

Termite inspection fee

Answer

Survey fee

Answer

Appraisal fee

Question 10

All mortgage loans made after which of the following dates must use the Loan Estimate:

Accepted Answer

October 3, 2015

Answer

April 1, 2011

Answer

January 1, 2014

Answer

July 1, 2010