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NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. Which of the following factors does not affect the funding fee on a VA purchase?
A) Service-connected disability
B) Marital status
C) Loan-to-value ratio
D) First-time user
2. What are the maximum basis points added to the average prime offer rate (APOR) that keep a loan's APR as a qualified mortgage under the Consumer Financial Protection Bureau's (CFPB's) Safe Harbor Rule?
A) 100 basis points
B) 150 basis points
C) 300 basis points
D) 85 basis points
3. Within how many days must a creditor notify an applicant of action taken on a completed mortgage loan application?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
4. According to the Truth in Lending Act (TILA), which of the following advertising statements does not require additional disclosures to supplement the advertisement?
A) "Payments as low as $600 for a $100,000 mortgage"
B) "Come in today for your free consultation"
C) "15-year and 30-year mortgages available"
D) "Only 1 point up front to get you in a home"
5. Which of the following acts provides a state licensing and regulatory agency to investigate and examine a mortgage company?
A) Truth in Lending Act (TILA)
B) Home Ownership and Equity Protection Act (HOEPA)
C) SAFE Act
D) Real Estate Settlement Procedures Act (RESPA)
Solutions:
Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C |