NMLS MLO - Mortgage Loan Origination Exam

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Total 120 questions

Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?

  • A. Bank deposits that are not supported by income or other disclosures
  • B. Disclosure of gift funds
  • C. Parental loans disclosed but not yet received
  • D. Borrower's receipt of a large bonus from an employer


Answer : A

When a mortgage loan originator notices multiple Social Security number discrepancies within the same loan file, it is considered a red flag of:

  • A. fair lending.
  • B. mortgage fraud.
  • C. a forgetful borrower.
  • D. pricing discrepancies.


Answer : B

Which of the following property value approaches does an appraiser use on a rental property?

  • A. Cost approach
  • B. Income approach
  • C. Annual approach
  • D. Sales comparison approach


Answer : B

How many continuing education hours must mortgage loan originators complete every year to renew their license?

  • A. 3 hours
  • B. 8 hours
  • C. 16 hours
  • D. 20 hours


Answer : B

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

  • A. Ensuring that all creditworthy borrowers are afforded equal treatment when applying for a mortgage loan
  • B. The mortgage loan originator convincing the underwriter to move their loan file to the front of the line or "redline" it
  • C. 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
  • D. 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


Answer : D

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Total 120 questions