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NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. When preparing a corrected Closing Disclosure, under which of the following conditions is a three-day waiting period required before a loan consummation?
A) If the APR changes within the acceptable tolerance
B) The addition of an escrow account
C) If a revision is needed to the consumer's contact Information
D) The addition of a prepayment penalty
2. Which of the following lender payments is prohibited according to Real Estate Settlement Procedures Act (RESPA)?
A) A payment to its own employees for lender referral activities
B) A payment to an attorney for services actually rendered
C) A payment to the lender's duly appointed agent or contractor for services actually performed in the origination, processing or funding of a loan
D) A payment to a real estate agent for loan referral activities
3. According to Federal Reserve Regulation Z, which of the following fees is a finance charge in a residential mortgage transaction?
A) Notary
B) Interest
C) Title Insurance
D) Credit report
4. Which of the following conditions must be met when presenting loan product options to a consumer?
A) The presentation of loan products with the highest interest rates
B) The presentation of loan products for which the consumer likely qualifies
C) The presentation of loan products with prepayment penalties
D) The presentation of loan products from creditors with which the mortgage loan originator does not regularly do business
5. A sign that an appraisal report may be overvaluing a property is that the:
A) Comparable properties are consistent with the subject property.
B) Subject property is in the same neighborhood as the comparable properties.
C) Subject property and comparable properties were built by the same construction company.
D) Subject property address does not match the house number photographed by the appraiser.
Solutions:
Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |