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NMLS MLO Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Uniform State Content | - Licensing Requirements and Compliance - State Lending Regulations Overview |
| Topic 2: Ethics and Professional Conduct | - Consumer Protection Standards - Fraud Prevention - Disclosure Requirements |
| Topic 3: General Mortgage Knowledge | - Mortgage Types and Products - Loan Closing Procedures - Underwriting Basics - Loan Origination Process |
| Topic 4: Federal Mortgage-Related Laws | - Fair Housing Act - Truth in Lending Act (TILA) / Regulation Z - Real Estate Settlement Procedures Act (RESPA) - Equal Credit Opportunity Act (ECOA) |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
Which of the following fees is a finance charge?
- A. Discount points
- B. Pest inspection fees
- C. Title insurance
- D. Appraisal fees
Correct Answer: A 🗳️
Explanation: Only visible for DumpExam members. You can sign-up / login (it's free).
An appraiser agrees to give a mortgage loan originator (MLO) half of her appraisal fees in return for the MLO's future business. This illegal practice is known as:
- A. blockbusting.
- B. fee splitting.
- C. paying it forward.
- D. redlining.
Correct Answer: B 🗳️
Explanation: Only visible for DumpExam members. You can sign-up / login (it's free).
A loan that is meant to be offered to prospective borrowers with poor credit history is generally referred to by which of the following terms?
- A. Interest-only
- B. Fixed-rate
- C. Subprime
- D. Balloon
Correct Answer: C 🗳️
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A customer wants an estimate of closing costs for the purchase of a $300,000 property with a 20% down payment. Although she has provided the other five pieces of information, a loan application, per Regulation X, has not been triggered because she has not yet found a property to purchase. Which of the following responses best describes what should be done, if anything, according to Regulation Z when a written cost estimate is given prior to a Loan Estimate?
- A. Provide an estimate with the words: "Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan."
- B. Provide an estimate with the following in 12-point font: "This is not an Official Consumer Financial Protection Board (CFPB) Loan Estimate."
- C. Regulation Z does not allow a creditor to provide any estimate of costs until a complete loan application has been made by the borrower.
- D. Use a fictitious address in order to trigger a loan application so that a Loan Estimate can be provided
Correct Answer: A 🗳️
Explanation: Only visible for DumpExam members. You can sign-up / login (it's free).
It is acceptable for a lender to request a co-applicant in which of the following situations?
- A. The co-applicant is gifting money to the borrower to make a down payment on a purchase-money mortgage
- B. The co-applicant will be residing in the house with the borrower.
- C. The borrower's future income is dependent on the co-applicant.
- D. The borrower will not qualify for the loan on their own.
Correct Answer: D 🗳️
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