MLO Exam General Info

Question 1

Tax Schedule C is for

Answer 1

Sole Proprietors

Question 2

Tax Schedule E is for

Answer 2

Rental Income and income from LLC’s or Partnerships.

Question 3

TILA Trigger Terms

Answer 3

Down payment
Number of payments or period of repayment
Amount of any payment
Amount of any finance charge

Question 4

Conforming Ratios

Answer 4

28% / 36%

Question 5

FHA Ratios

Answer 5

31% / 43%

Question 6

USDA Ratios

Answer 6

29% / 41%

Question 7

JUMBO Ratios

Answer 7

33% / 38-40%

Question 8

VA Ratio

Answer 8

41% (VA does not have housing (front end) ratio.

Question 9

Four C’s of Underwriting

Answer 9

Collateral
Capital
Capacity
Character (Credit History)

Question 10

High-Cost Loan (HOEPA)

Section 32 Loans

Answer 10

APR exceeds APOR by more than;
6.5% for first-lien loan
8.5% first-lien, dwelling is personal property and less than $50K.
8.5% subordinate lien loan; 
Or
Total points and fees exceed:
>$20K =5%

Question 11

Loan application is considered received when it includes these 6 things;;

Answer 11

Name
SSN
Income
Address
Value of property
Amount of loan sought.