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MLO Week 1 Practice Quiz Flashcards | StudBud
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MLO Week 1 Practice Quiz
MLO Week 1 Practice Quiz
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Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
What information do we need to pull a client’s credit?
Permissible Purpose, Estimated Property Value, SSN, Name
Name, MLO name, Address, Social Security Number, Date of Birth
Name, Address, SSN, Date of Birth, Permissible Purpose
Name, Address, Loan Amount, Income, Permissible Purpose
2
Which of the following will offer a borrower the right to cancel their loan within three business days of closing?
Fixed Rate
Reverse Mortgage
Refinance
Adjustable Rate Mortgage
3
Who manages a borrower’s taxes and insurance payments?
Settlement Agent
Servicer
None of the above
Impound Manager
4
This person works for the lender.
Settlement Agent
Appraiser
Title Insurer
Underwriter
5
Deed is a concept of ownership.
True
False
6
None of the following are documents typically requested by the processor, EXCEPT:
1004
5509-A
4506-T (Previously 4506-C)
MPMA-33
7
Which of the following documents shows the estimated costs for a loan?
Purchase Contract
Loan Estimate
Security Instrument
Intent to Proceed
8
Which of the following loan products allows a borrower to use their home’s equity?
All of the above
Cash Out Refinance
Home Equity Line of Credit
Home Equity Loan
9
What’s the purpose of loss mitigation?
To attempt to avoid foreclosure.
To protect the mortgagee’s equity stake.
To ensure the collateral is carrying the proper types of insurance.
All of the above
10
What is a benefit for a borrower to buy discount points?
It will lower the amount
It gives them more money for closing
It helps them qualify for the loan
It will lower their interest rate
11
Your client Tyler makes $3,450 semi-monthly. What is Tyler’s gross monthly income?
$6,500
$7,475
$6,900
$7,250
12
All of the following are not benefits of ARMs, EXCEPT:
ARMs do not contain prepayment penalties
A PITI payment that doesn’t change
Might have a lower initial interest rate compared to a fixed rate mortgage
ARMS are easier to qualify
13
Who is NOT required to attend closing?
Mortgage Loan Originator
Borrower
Closing Agent
Settlement Agent
14
Debt-to-income relates to which of the following 4Cs?
Collateral
Credit
Capital
Capacity
15
The borrower has a purchase contract for $150,000, how much is their Down Payment if they have to pay 15% of the loan?
$22,500
$10,000
$15,000
$19,750
16
What does the borrower need to sign to become obligated to the loan?
Intent to Proceed
Loan Estimate
Statement of No Obligation
None of the above
17
What is a deed?
Title work
A document that conveys ownership in a property.
Ownership
A report that shows any encumbrances.
18
When the borrower replaces an existing loan or debt obligation with a new obligation under different terms.
Forbearance
Purchase
Loan Modification
Refinance
