Mortgage Loan Originator Mortgage Loan Originator MCQ 3

Question 1

Which document replaced the HUD-1 Settlement Statement for most mortgage transactions under the TRID rule?

Accepted Answer

Closing Disclosure

Answer

The Closing Disclosure replaced the HUD-1 Settlement Statement as part of the TRID rule effective October 2015.

Question 2

What is the maximum conforming loan limit for a single-family property in most U.S. counties (as set by FHFA)?

Accepted Answer

$806,500

Answer

As of 2025, the baseline conforming loan limit for a one-unit property in most counties is $806,500.

Question 3

Under the Equal Credit Opportunity Act (ECOA), a lender must notify applicants of a credit decision within how many days of a completed application?

Accepted Answer

30 days

Answer

ECOA requires lenders to notify applicants of the credit decision within 30 days of receiving a completed application.

Question 4

In mortgage lending, 'steering' is prohibited because it:

Accepted Answer

Directs borrowers to less favorable loans based on protected class characteristics

Answer

Steering is the illegal practice of directing borrowers toward loans that are not in their best interest based on protected characteristics.

Question 5

What does 'LTV' stand for in mortgage lending?

Accepted Answer

Loan-to-Value ratio

Answer

LTV (Loan-to-Value) is the ratio of the loan amount to the appraised value or purchase price of the property, whichever is lower.

Mortgage Loan Originator Practice Test