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MLO Practice Exam (Latest Update) Questions
and Verified Answers (100% Guaranteed Pass)
All of the following information is provided under Section X of the 1003, except: a.) Ethnicity b.) Name and address of employer c.) Sex d.) Race b.) Name and address of employer Section X of the URLA contains information on: a.) Assets and Liabilities b.) Information for Government Monitoring Purpose c.) Declarations d.) Details of transaction b.) Information for Government Monitoring Purpose When determining the best options for a potential borrower, an MLO must always find what? a.) Nonconventional b.) Federal Housing Administration c.) Nonconforming d.) Department of The Veterans Administration c.) Nonconforming
Choose the best answer. All of the following are Government loan programs or types, except: a.) Nonconventional b.) Federal Housing Administration c.) Nonconforming d.) Department of the Veterans Administration c.) Nonconforming What is the purpose of Title IX? To ensure the borrower acknowledges that the information provided in the application is accurate and correct If you are an MLO speaking to a potential client in person and at section X of the URLA they refuse to provide the information for monitoring purposes, what must you do? Mark only the ones you can confirm through visual observation What type of income documentation must the processor collect for a self-employed borrower? a.) 2 years W2s b.) 2 years paystubs c.) 2 years 1099s d.) 2 years tax returns d.) 2 years tax returns
b. $2,680. c. $5,806. d. $6,527. c. $5,806. Paul is refinancing his home. The estimated value of his home is $725,000, and his new loan amount is $525,700. Paul makes $5,000 a week salary. His new PITI payment is $2,700. He also has a car payment of $540 a month, a Visa payment of $200 a month, a MasterCard payment of $103 a month. What is Paul's Gross Monthly Income? a. $10,833. b. $18,500. c. $21,666. d. $24,272. c. $21,666. Sarah is purchasing a home. The purchase price is $227,500 and she is putting 10% down. What is the loan amount? a. $204,750. b. $22,750. c. $227,500. d. $207,450. a. $204,750. The property Tiffany is purchasing was appraised at $206,000. The purchase price was $205,400 and the new loan amount is $164,32. What is the LTV?
Jordan has a new PITI payment of $1,225, a Visa payment of $155 a month, a Home Depot charge card payment of $357 a month and a car payment of $225 a month. He makes $3,200 bi-weekly. He also has a pet poodle which he gets groomed once a week, which costs $27 for each session. What is Jordan's Gross Monthly Income? $6,933. George works as a machine operator and makes $3,212 Semi-monthly. What is his GMI? $6,424. Which of the following is not one of The Big Three Credit Bureaus? a. Experian b. Equifax c. Transunion d. Credstar d. Credstar Which of the following would be disclosed in the Public Record Items section of the consumer's credit report? a. Previous Bankruptcy b. A 30 day late car payment c. A 60 day late credit card payment d. A past due utility bill
b. Vacation c. Rental d. Commercial d. Commercial All of the following are advantages of the FHA mortgage loan except: a. Min down payment of 3.5% b. Loan is assumable c. No underwriting or qualification guidelines d. No pre-payment penalties c. No underwriting or qualification guidelines The one-time fee required by FHA is? The Upfront Mortgage Insurance Premium and is a fee of 1.75% What are the qualifying debt ratios for a VA loan? o%/ 41% If a buyer puts down less than 10% on a VA loan, what is the maximum percentage they can receive in seller concessions? 4% The funding fee on a VA loan ranges from:
a. 0.5-3.3% b. 0.5-3.0% c. 1.20-1.25% d. .35-.60% a. 0.5-3.3% What is the required minimum down payment on a VA loan? No Down Payment Required What are the qualifying debt ratios for a USDA loan? a. 0%/41% b. 28/36% c. 29/41% d. 29/45% d. 29%/45%
