MLO Flashcards
Using the cost approach which of the following factors does an appraiser need to determine the factor of a residential property?
The current estimate of replacing the property
The margin for an adj rate mortgage is set by the?
Mortgage lender/investor
A state licensed mortgage loan originator is defined as any individual who for compensation or gain:
Negotiates loans for a mortgage company
What is the initial monthly payment excluding taxes insurance and mortgage insurance on a $200,000 30 year fixed rate mortgage at 5% with a 10 year interest only option?
$833.33
200,000*5%=10,000/12=833.33
A 5.875% interest only loan has an initial balance of 198,250. The annual homeowners insurance premium is $802. The annual property taxes are $1,592. What is the total monthly payment including the escrow?
$1170.10
198,250*5.875%=11647.187/12=970.598+66.83+
132.66=1170.10
A 5.50% interest only loan has an initial balance of $322,300. The annual homeowners insurance premium is $783 and the annual property taxes are $2,729. What is the total monthly payment including the escrow?
1769.87
322,300*5.50%=17726.5/12=1477.2083+65.25+
227.41666=1769.87
An an acceleration clause:
Gives the lender the right to demand payment of the entire outstanding balance if a monthly payment is missed.
If the average prime offer rate is 6% a loan secured by a subordinate lien on a dwelling would be considered a higher priced mortgage loan under the truth in lending act if it’s apr is?
9.5%
Under federal law which of the following documents must be reported to have a clear title when a loan is refinanced and a mortgage is paid off?
Reconveyance or satisfaction
What are the traditional or manual qualifying debt to income ratios used by the FHA?
31/43
According to the real estate settlement procedure act(RESPA) if there are no changed circumstances which of the following fees may not increase after the issuance of the GFE?
The Origination Charge/Fee
The fully indexed rate for an adjustable rate mortgage loan with a current index of 1.45%, a margin of 3.00% with a rounding provision to nearest 1/8th percent is?
4.50%
The fully indexed rate for an adjustable rate mortgage loan with a current index of 1.45%, a margin of 3.00% and NO rounding provision is??
4.45%
The provisions of the truth in lending act do not apply when the????
Credit is primarily for commercial or business purposes
According to regulation Z (TILA) the term business days for the purpose of rescission is defined as all calendar days EXCEPT:
Sundays and Federal holidays
A borrower applies for a 30year mortgage loan of 157,600 at a fixed interest rate of 5.75%. The principal and interest payment on the loan is 919.71 additional expenses include annual property taxes of 1,220 and an annual homeowners insurance payment of 410. If the mortgage insurance factor is .0032 what is the borrowers total monthly payment?
1,097.58 First use 919.71+101.6667+34.1667=1055.54 Then, 157,600*.0032/12=42.03 1055.54+42.03=1097.57
The determination of a borrowers ability to repay the loan is required by?
The Truth in Lending Act(TILA)
A borrower applies for a 30 year mortgage loan of $212,100 at a fixed interest rate of 6.125%. The principal and interest payment on the loan is $1,288.74. Additional expenses include annual property taxes of $1719 and annual homeowners insurance payment of $510. If the mortgage insurance factor is .0078, what is the borrowers total monthly payment?
1,612.36
A mortgage loan originator is allowed to do which of the following?
Collect a loan application fee.
What is the MINIMUM amount of hazard insurance dwelling coverage required by a Fannie Mae/ Freddie Mac loan?
The lower of 100% of the insurable value of the improvements or an amount equal to the unpaid principal balance of the mortgage.
According to the SAFE Act, a mortgage loan originator MUST retake the licensing test if the MLO fails to maintain a license for what period of time, excluding any time the individual was a federally registered MLO?
5 years
The TILA-RESPA Integrated Disclosure Rule only applies to which of the following?
Construction loans
Under the TILA-RESPA Integrated Disclosure Rule, which of the following is considered a valid changed circumstance?
A borrower locks in the interest rate.
Which of the following circumstances requires a creditor to issue a corrected Closing Disclosure and provide the borrower with an additional three day waiting period for closing?
The borrower