MLO Mortgage Loan Origination (SAFE MLO) Exam Dumps

dumps2025-01-13T10:21:36+08:00

MLO Mortgage Loan Origination (SAFE MLO) exam consists of multiple-choice questions: the national component has 125 questions, with 115 scored and 10 unscored; state-specific components have 45–55 scored questions and 10 unscored pre-test questions; the national component has a time limit of 190 minutes,state-specific components have a time limit of 90 minutes, plus an additional 30 minutes for a survey and tutorial. The required passing score is 75%. The exam cost $110. We provide the latest MLO Mortgage Loan Origination (SAFE MLO) MLO exam dumps, which can ensure you pass. Free Mortgage Loan Origination (SAFE MLO) MLO exam dumps are available below.

Page 1 of 4

1. Which of the following loan types may be considered a qualified loan under ability-to-pay rules

An interest-only mortgage

A loan with a balloon payment

A loan with negative amortization

A mortgage with an adjustable rate

2. How often must a nonexempt telemarketing entity check their call list against the National Do Not Call Registry?

Every 7 days

Every 2 weeks

Every 31 days

Annually

3. Which of the following services is included in the definition of a settlement service?

Flood insurance

Homeowners association fees

Title company/escrow agent services

Sale of the mortgage loan on the secondary market

4. If a mortgage loan includes a prepayment penalty, it must be included on which of the following disclosures?

Loan Estimate only

Closing Disclosure only

Uniform Residential Loan Application

Both the Loan Estimate and Closing Disclosure

5. Which of the following applicant characteristics is legally permitted to be considered in evaluating credit risk?

Whether the applicant seems likely to have children

Whether the applicant has a phone number listing in their name

Whether the applicant's age makes them ineligible for credit-related insurance

Whether the alimony payments the applicant relies on for income are likely to continue and to be consistently made

6. Which of the following statements is permissible in an advertisement?

"Current interest rates as low as 3.50% with an APR of 3.99%. Contact us today!"

"Looking for a VA loan? We are endorsed by and affiliated with the VA administration."

"Take out a reverse mortgage loan with us, and you can stay in your home as long as you want and never make a payment."

"Close a mortgage loan with us within the next 60 days and when interest rates drop, we will refinance your loan at a lower rate guaranteed."

7. The Equal Credit Opportunity Act (ECOA) defines the term "elderly" as anyone:

60 years of age or older.

62 years of age or older.

65 years of age or older.

70 years of age or older.

8. A borrower is approved for an 80/20 loan.

Which of the following describes the lien priority for the 20% loan?

First

Second

First as it will be combined with the 80% loan

Second but combined with any other liens

9. A mortgage loan originator (MLO) originates a 5/1 ARM where the indexed rate is likely to be higher than the introductory rate.

The Truth in Lending Act (TILA) states that an MLO must calculate a borrower's monthly Payment amount based on which of the following?

Payment amount during the fixed introductory period

An average of the varying payment amounts over the life of the loan

The total amount of the payments

Fully indexed rate of the loan

10. Prepaid charges include which of the following items?

Origination fee

Credit report fee

Conveyance tax

Per diem interest

Page 2 of 4

11. How many days after loan consummation does a lender have to refund an excess charge subject to th

10% aggregate tolerance?

45 days

50 days

60 days

90 days

12. It is acceptable for a lender to request a co-applicant in which of the following situations?

The borrower will not qualify for the loan on their own.

The borrower's future income is dependent on the co-applicant.

The co-applicant will be residing in the house with the borrower.

The co-applicant is gifting money to the borrower to make a down payment on a purchase-money mortgage

13. The loan-to-value ratio for an FHA loan is calculated by dividing the loan amount by:

the purchase price of the property.

the appraised value of the property.

the lesser of the purchase price or appraised value.

the purchase price, plus the mortgage insurance for FHA loans.

14. Which of the following fees is a finance charge?

A notary fee

An origination fee

An appraisal fee

A late payment fee

15. Which of the following statements describes an advantage of a purchase money second mortgage?

The borrower pays two mortgage payments.

The borrower avoids paying into the escrow account.

The borrower avoids paying private mortgage insurance

The borrower's loan closes faster than a regular mortgage.

16. During the closing the borrower notices that the interest rate increased from 3.250% to 3.875%.

The lender must:

tell the borrower to close the loan.

close the loan, then re-disclose after the loan funds.

postpone the closing, re-disclose and wait three days.

postpone the closing, re-disclose and wait three business days.

17. How many continuing education hours must mortgage loan originators complete every year to renew their license?

3 hours

8 hours

16 hours

20 hours

18. Maximum available flood insurance structure coverage for a residential property from the National Flood Insurance Program is what amount?

£250,000

£500,000

$750,000

$1,000,000

19. A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer's mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower's bank records.

Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?

The buyer's agent

All parties involved in the transaction

His loan processor

The report Is not permitted to be discussed with any parties involved in the transaction.

20. If an applicant provides a waiver for the requirement to receive their appraisal three business days prior to a loan's consummation and the transaction ends up not closing at all, a creditor must still provide a copy of the appraisal no later than how many days after the creditor determines consummation will not occur?

10 days

30 days

45 days

60 days

Page 3 of 4

21. A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:

been convicted of a felony within the past seven years.

had an MLO license suspended in any governmental jurisdiction.

taken and failed the SAFE MLO National Test three times within the last year.

never been licensed or registered as an MLO in any governmental jurisdiction.

22. The upfront premium charged on an FHA mortgage transaction to protect a creditor in the event of borrower default is an example of:

optional credit life insurance.

force-placed hazard insurance.

government mortgage insurance.

private mortgage insurance

23. According to the Truth in Lending Act (TILA), a dwelling includes which of the following?

An unimproved lot

A six-unit apartment complex

An individual condominium unit

A timeshare

24. How many days before consummation must a borrower receive a revised Loan Estimate?

4 business days

5 business days

7 business days

10 business days

25. Which of the following fees or charges is an allowable closing cost typically found on a Closing Disclosure?

Origination charge

Referral fee

Servicing fee

Yield-to-loan fee

26. What is the loan amount on the purchase price of $249,955.00 if the borrower is putting 18% down?

$204,693.10

$204,936.10

$204,963.10

$204,966.10

27. When does the Loan Estimate expire?

After the 3rd business day

After the 5th business day

After the 7th business day

After the 10th business day

28. A borrower who knowingly makes false statements on a federally related mortgage loan to obtain property may be:

imprisoned for 10 to 16 months

fined up to JB10,000 or imprisoned for 6 months.

fined up to $1 million and imprisoned for 30 years.

fined up to the total purchase price of their home.

29. In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?

Only the borrower who makes the most income

Only the borrower with the majority interest in the transaction

Only the person who will actually occupy the property

Any person who has an ownership interest in the property

30. Which of the following responses describes the required amount of flood insurance coverage?

The original appraised value of the home

The outstanding principal balance of the loan

The minimum amount of National Flood Insurance Program coverage available

The property value on file with the county property valuation administrator office

Page 4 of 4

31. The debt-to-income analysis should assess a borrower's total monthly housing related payments as a percentage of the:

net monthly income

gross monthly income.

taxable income.

loan amount.

32. Non-qualified mortgages offer more options for borrowers who:

are unemployed.

are self-employed.

have no down payment.

are currently living with their parents.

33. Which of the following activities is a function of the Consumer Financial Protection Bureau (CFPB)?

Regulating the federal funds rate at which money is lent to banks

Regulating the number of mortgage loan originators in the mortgage industry

Regulating mortgage lenders on their mortgage origination practices and procedures

Deciding what quantity of mortgage-backed securities are purchased by the government

34. The appraiser valuation independence obligates appraisers to perform their duties in a manner free from outside influence through which of the following actions?

Encouraging a target value

Withholding payment from an appraiser

Asking the appraiser to substantiate a value

Communication directly between the loan officer and the appraiser

35. Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act

(ECOA)?

Receipt of child support

Immigration status

Marital status

Country of birth

36. Which of the following items may lenders use to verify a borrower's income for his ability to repay a mortgage?

An electronic paystub

A copy of a check register

The income stated on the loan application

The borrower's attestation that he expects a raise within 30 days

MLO Mortgage Loan Origination (SAFE MLO) Exam Dumps

MLO Mortgage Loan Origination (SAFE MLO) Exam Dumps

Share this post