[Q65-Q89] Positive Aspects of ValidExamDumps MLO Exam Dumps! [Feb-2025] – IT Certification Exam Questions & Answers

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Positive Aspects of Valid Dumps MLO Exam Dumps! [Feb-2025]

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NEW QUESTION 65
Illegal fee splitting occurs when:

two service providers split a fee.

wages are split by two employees.

fees are split between lender and broker.

three companies split a fee but one did no work.

NEW QUESTION 66
Which of the following types of income are considered as qualifying when applying for a mortgage loan?

Reimbursed expenses

Net rental income

Family gifts

Federal tax refund

NEW QUESTION 67
A borrower visits a mortgage loan originator (MLO) for Mortgage ABC to discuss getting a home equity line of credit (HELOC) loan from Bank LMN. The MLO encourages the borrower to apply with Bank XYZ instead because ABC does not provide HELOC loans. When the borrower submits an application directly to XYZ, XYZ pays the MLO $100 from the 1% origination fee that it collected from the borrower. Is this fee permissible?

The fee is permitted if the fee is disclosed on the final settlement statement.

The fee is permitted as the MLO performed origination services for the borrower.

The fee is not permitted as the MLO did not perform any actual origination services for the borrower.

The fee is not permitted as the MLO did not perform any actual origination services for the borrower, unless the fee was paid directly by the borrower.

NEW QUESTION 68
Which of the following must be included in advertisements displayed by mortgage loan originators (MLOs) on their social media pages for mortgage services including payment amounts?

The APR

The MLO’s personal website

The MLO’s business address

The number of days that the rate is available

NEW QUESTION 69
Offering or negotiating the terms of a loan includes which of the following actions?

Providing general explanations or descriptions in response to a consumer’s inquiry

Making an underwriting decision about whether an applicant qualifies for a loan

Presenting particular loan terms to an applicant verbally, in writing, or otherwise

Arranging the loan closing or other aspects of the loan process

NEW QUESTION 70
Which of the following scenarios describes an assumable loan?

A borrower has an option to take out a second mortgage

A borrower has an option to choose a loan servicer.

A purchaser of a property may be able to take over the existing loan payments.

A loan holder can sell the loan.

NEW QUESTION 71
A mortgage loan originator (MLO) takes an application for a borrower who is obtaining an owner-occupied maximum amount refinance loan. The borrower also asks for a loan application for a new house that they are purchasing that will not be finished until 60 days after the refinance loan closes. Although the MLO advises the borrower that the terms of the refinance loan require that they occupy the property for 12 months, the borrower says that the new purchase loan will not close until after the refinance loan has closed. The MLO must:

refer the purchase loan to another MLO in their company to obtain a referral fee.

refer the borrower to another lender for the purchase loan so that the MLO is permitted to get a commission on the refinance loan.

take both applications and do one loan “in house” and broker the second loan to another lender.

advise the borrower that the MLO can do the refinance loan as a non-owner-occupied loan and the purchase loan as an owner-occupied loan.

NEW QUESTION 72
Which of the following factors is considered when determining the interest rate for a subprime mortgage?

The term of the loan

The property location

The sales price of the property

The credit score of the applicants]

NEW QUESTION 73
Which of the following lender payments is prohibited according to Real Estate Settlement Procedures Act (RESPA)?

A payment to an attorney for services actually rendered

A payment to a real estate agent for loan referral activities

A payment to its own employees for lender referral activities

A payment to the lender’s duly appointed agent or contractor for services actually performed in the origination, processing or funding of a loan

NEW QUESTION 74
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.

NEW QUESTION 75
Under which of the following programs is a creditor required to provide disclosures to the consumer that fully describe each of the creditor’s variable-rate loan programs in which the consumer expresses an interest?

ARM

FHA

Fixed

Construction

NEW QUESTION 76
Which of the following fees is a finance charge?

A notary fee

An origination fee

An appraisal fee

A late payment fee

NEW QUESTION 77
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

NEW QUESTION 78
How many days after loan consummation does a lender have to refund an excess charge subject to the 10% aggregate tolerance?

45 days

50 days

60 days

90 days

NEW QUESTION 79
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.

NEW QUESTION 80
Under the TILA-RESPA Integrated Disclosure rule (TRID), what is the minimum time period that must pass between a borrower’s receipt of a Loan Estimate and the closing of a mortgage loan?

7 business days

15 business days

30 business days

45 calendar days

NEW QUESTION 81
When applying for a home equity line of credit (HELOC), consumers should review documentation carefully and be sure that they consider:

if the HELOC is insured by HUD.

if the HELOC requires private mortgage insurance

if the company offering the HELOC has deposit accounts insured by the FDIC.

the APR and the costs of acquiring and maintaining the HELOC.

NEW QUESTION 82
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

NEW QUESTION 83
Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?

The SAFE Act

The Dodd-Frank Act

The Truth in Lending Act (TILA)

The Equal Credit Opportunity Act

NEW QUESTION 84
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

NEW QUESTION 85
Which of the following activities is an example of redlining in mortgage lending?

Ensuring that all creditworthy borrowers are afforded equal treatment when applying for a mortgage loan

The mortgage loan originator convincing the underwriter to move their loan file to the front of the line or “redline” it

The act of the mortgage lender putting a “red line” under the borrower’s name in a file to indicate they are a substandard applicant

The systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices

NEW QUESTION 86
Interest-only mortgages are considered high risk compared to traditional mortgage products because:

scheduled payments do not reduce the loan’s principal balance.

the borrower’s ability to repay is not considered when making the credit decision.

the interest rate exceeds the average prime offer (APOR) rate by 1.5 percentage points.

the interest rate exceeds the APOR by 6.5 percentage points.

NEW QUESTION 87
Which of the following federal laws requires mortgage lenders to adopt and follow anti-money laundering (AML) rules and regulations?

The National Bank Act

The National Currency Act

The Bank Secrecy Act

The Real Estate Settlement Procedures Act

NEW QUESTION 88
According to the Truth in Lending Act (TILA), the term “finance charge” includes which of the following charges?

A standard credit application fee charged to all loan applicants

Seller’s points offered to reduce the borrower’s closing costs

Document preparation fees for items such as mortgages and deeds

Daily or per diem interest paid by borrower

NEW QUESTION 89
An easement:

is a mortgage modification.

is a right to cross or otherwise use someone else’s land for a specified purpose.