MLO

MLO practice questions, page 2 of 5, with answer review and explanations.

Question 6

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

  1. $204,693.10
  2. $204,936.10
  3. $204,963.10
  4. $204,966.10

Question 7

For an FHA loan, which of the following payments must a borrower make to protect a lender in case of a foreclosure?

  1. Down payment
  2. Hazard insurance premium
  3. Mortgage insurance premium
  4. Homeowners association dues

Question 8

A licensed mortgage loan originator (MLO) sharing his commission with another licensed MLO at his company for actual services performed on a loan is considered which of the following terms?

  1. Tip sharing
  2. Fee splitting
  3. Single fee method
  4. Double fee method

Question 9

Non-qualified mortgages offer more options for borrowers who:

  1. are unemployed.
  2. are self-employed.
  3. have no down payment.
  4. are currently living with their parents.

Question 10

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?

  1. ARM
  2. FHA
  3. Fixed
  4. Construction