Question 1

A licensed mortgage loan originator (MLO) sharing his commission with another licensed MLO at his company for actual services performed on a loan is considered which of the following terms?

Options :

A : Tip sharing

B : Fee splitting

C : Single fee method

D : Double fee method

Answer: B

Question 2

Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?

Options :

A : The SAFE Act

B : The Dodd-Frank Act

C : The Truth in Lending Act (TILA)

D : The Equal Credit Opportunity Act

Answer: A

Question 3

Which of the following items is a liquid asset?

Options :

A : Antique jewelry

B : Publicly traded stocks

C : Net worth of a business

D : An automobile owned free and clear

Answer: B

Question 4

Which of the following statements describes the purpose of the TILA-RESPA Integrated Disclosure (TRID)?

Options :

A : It provides a three-day cooling-off period for all loans

B : It allows borrowers five days to review the final amount needed for settlement.

C : It ensures that the terms and fees that are quoted at the time of application do not change.

D :

It aids borrowers in understanding the loan transaction process by utilizing readily understandable language

Answer: D

Question 5

An easement:

Options :

A : is a mortgage modification.

B : is a right to cross or otherwise use someone else-s land for a specified purpose.

C : allows a loan applicant to close on a loan even if all the stipulations have not been met.

D :

allows a borrower to make less than the required payments without going through a full mortgage modification.

Answer: B

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