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NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

1. A title insurance policy ensures that:

A) The borrower can repay the loan.
B) A condominium is warrantable.
C) The borrower owns the property.
D) The title commitment is accurate.


2. In a federally related mortgage loan transaction, a charge for a settlement service by a person for which no services or nominal services are performed is prohibited:

A) regardless of the sources of payment.
B) unless it is paid by the seller or the seller's real estate agent.
C) unless it is paid by the mortgage loan originator on the borrower's behalf.
D) only if it is paid by the borrower's real estate agent.


3. The Equal Credit Opportunity Act (ECOA) defines the term "elderly" as anyone:

A) 70 years of age or older.
B) 65 years of age or older.
C) 62 years of age or older.
D) 60 years of age or older.


4. Offering or negotiating the terms of a loan includes which of the following actions?

A) Arranging the loan closing or other aspects of the loan process
B) Providing general explanations or descriptions in response to a consumer's inquiry
C) Making an underwriting decision about whether an applicant qualifies for a loan
D) Presenting particular loan terms to an applicant verbally, in writing, or otherwise


5. The practice of denying a creditworthy applicant a loan for housing because of the location of the property is sometimes referred to as:

A) low balling.
B) steering.
C) redlining.
D) appraising.


Solutions:

Question # 1
Answer: C
Question # 2
Answer: A
Question # 3
Answer: C
Question # 4
Answer: D
Question # 5
Answer: C

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