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 factors is considered when determining the interest rate for a subprime mortgage?

Options :

A : The term of the loan

B : The property location

C : The sales price of the property

D : The credit score of the applicants]

Answer: D

Question 3

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

Options :

A : Oral confirmation from the borrower

B : An updated statement showing a zero balance

C : A letter from the borrower explaining that they paid it off

D : No additional information required

Answer: B

Question 4

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 5

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

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