MLO, Let's Go
Abe was caught committing arson 8 years ago and his brother Bo was apprehended for printing fake money 15 years ago. They both did the time and now they want to be Mortgage Loan originators. This brother would be able to get a licence.
Who is Abe.
These 6 pieces of information from the bwr make up a completed loan application:
Address, Loan Amount, Income, Estimated Value, Name, Social Security (ALIENS)
This is how many weeks are in a year.
What is 52.
They are responsible for delivering the Loan Estimate and Initial Closing Disclosure to the borrower.
The lender
This type of lien guarantee of payment to builders, contractors, and construction firms that build or repair structures.
What is a mechanic's lien
This is the definition of a Mortgage Loan Originator:
A) Who is an individual who takes residential mortgage loan applications
B) An individual who discusses rates and terms of a mortgage for financial gain.
C) An individual offers or negotiates terms of a residential mortgage loan for compensation or gain.
D) A & C
D) A & C
Who is an individual who takes residential mortgage loan applications and offers or negotiates terms of a residential mortgage loan for compensation or gain.
If an applicant is receiving disclosures by mail, they are considered received on:
The third day business day after they are put in the mail.
Annual PMI is determined by multiplying these:
A) What is the APR and the appraised value of the home.
B) What is the loan amount and the mortgage insurance rate.
C) What is the mortgage insurance rate and the appraised property value.
D) What is the DTI % and the mortgage insurance rate
B) What is the loan amount and the mortgage insurance rate.
In a transaction for a fixed-rate mortgage to finance a home purchase, the loan applicant should receive this booklet .
A) What is 'Your Guide to Being a First time Homebuyer'
B) What is 'Home Purchasing Toolkit: What you
Should Know'
C) What is 'Everything to Know before Buying your Home: Your Home Loan Toolkit'
D) What is 'Your Home Loan Toolkit: A Step-by-Step Guide.
D) What is 'Your Home Loan Toolkit: A Step-by-Step Guide.
An installment debt can be excluded in the underwriting decision if it is this many months from payoff?
A) 1 year
B) 10 months
C) 6 months
D) 2 months
B) 10 months
The main difference between a Mortgage Loan Originator and a Registered Licensed Originator is:
A) One is licensed on a federal level and one is licensed on a state level
B) One is contracted to work under a Mortgage company and one is an independent contractor
C) One is licensed under the NMLS and one works for a bank or depository institution.
D) There is no difference, they both have the same role and qualifications.
C) One is licensed under the NMLS and one works for a bank or depository institution.
DAILY DOUBLE!!!!! This document connects the promissory note to the collateral
What is the mortgage
This is how many pay periods annually when an employee is paid semi-monthly. Double points if you can also answer the amount of annual bi-weekly pay periods...
24 and 26
When structure or portion of a structure that extends over the boundary line of a property onto another parcel it is considered to be:
A) Encompassing property lines
B) Encroachment
C) Encampment
D) Infringement
B) Encroachment
This is the max seller concession that a borrower may receive on a conventional loan when making a 20% down payment
What is 6%
This is Section 8 of a Universal Residential Loan Application:
A) Declarations
B) Employment Information
C) Assets and Liabilities
D) Info for Government monitoring purposes
A) Declarations
This appraisal form commonly used on condos
A) Form 1003
B) Form 1004
C) Form 4506-C
D) Form 1073
What is
D) Form 1073
Qualifying ratios consist of these two separate calculations:
A) Debt to Income and Loan to Value
B) Loan to Value and Loan to Appraised Value
C) Housing Expense Ratio and Total Debt Ratio
D) Private Mortgage Insurance and Property Taxes
C) What is the housing expense ratio and total debt ratio.
If a condo is deemed unwarrantable it generally means this:
A) it failed to meet code and not considered safe for habitation
B) It does not adhere to the Fannie Mae and Freddie Mac guidelines
C) Undocumented renovations were made and weren't reported
D) There is a lien on the title that is preventing it from being purchased
B) It does not adhere to the Fannie Mae and Freddie Mac guidelines
This is the type of predatory lending that involves a loan officer urging a borrower to refinancing a loan without any tangible net benefits for the borrower.
A) What is Loan Flipping
B) What is Loan Flopping
C) What is Bait and Switch
D) What is Reverse Redlining
A) What is Loan Flipping
Name 2 of the 5 C's of underwriting
Capacity (Ability to repay)
Capital (Income and Assets)
Credit (Tradelines)
Collateral (Property)
Character (Borrower’s willingness to repay )
This is the difference between a deed of trust and a promissory note.
What is a deed of trust describes the terms of debt as secured by a property, a promissory note acts as a promise that the borrower will pay the debt.
A borrower owes $200,000 on a first mortgage and $50,000 on a line of credit with a maximum amount of $100,000. If the property appraises for $500,000, this is the LTV.
What is 40%
Hazard insurance requires that a property needs to be insured for this amount:
A) The cost to rebuild it from scratch 'as is'
B) The appraised value of the property or the purchase price (whichever is less)
C) The loan amount
D) Both A and C
D) Both A and C
A mortgage or deed of trust generally includes this clause that requires the loan to be paid off immediately if the property is sold
What is a due-on-sale-clause