Mortgage Loan Originator MCQ Flashcards
7 cards from real Mortgage Loan Originator practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Mortgage Loan Originator MCQ flashcards as text
Which document replaced the HUD-1 Settlement Statement for most mortgage transactions under the TRID rule?
Answer: Closing Disclosure
The Closing Disclosure replaced the HUD-1 Settlement Statement as part of the TRID rule effective October 2015.
What is the maximum conforming loan limit for a single-family property in most U.S. counties (as set by FHFA)?
Answer: $806,500
As of 2025, the baseline conforming loan limit for a one-unit property in most counties is $806,500.
Under the Equal Credit Opportunity Act (ECOA), a lender must notify applicants of a credit decision within how many days of a completed application?
Answer: 30 days
ECOA requires lenders to notify applicants of the credit decision within 30 days of receiving a completed application.
In mortgage lending, 'steering' is prohibited because it:
Answer: Directs borrowers to less favorable loans based on protected class characteristics
Steering is the illegal practice of directing borrowers toward loans that are not in their best interest based on protected characteristics.
What does 'LTV' stand for in mortgage lending?
Answer: Loan-to-Value ratio
LTV (Loan-to-Value) is the ratio of the loan amount to the appraised value or purchase price of the property, whichever is lower.
Which type of mortgage loan is guaranteed by the U.S. Department of Veterans Affairs?
Answer: VA loan
VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and surviving spouses.
A prepayment penalty clause in a mortgage most directly affects a borrower who:
Answer: Pays off the loan earlier than scheduled
A prepayment penalty is a fee charged to borrowers who pay off their mortgage before the end of the loan term or make large principal payments.