QUESTION: 13

When preparing a corrected Closing Disclosure, under which of the following conditions is a three-day waiting period required before a loan consummation?

The addition of an escrow account
The addition of a prepayment penalty
If the APR changes within the acceptable tolerance
If a revision is needed to the consumer's contact Information

Answer(s): B

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A creditor receives an application with all the required pieces of information but wants to have additional information to determine a borrower's qualifications for a loan. Which of the following actions is most compliant with industry regulations?

Consider the application incomplete and put initial processing on hold until the additional information is received
Carefully document attempts to obtain the necessary additional information from the consumer to show why the decision to hold further processing was made
Provide timely initial disclosures to the consumer even though the requested information when received may reflect that the initially disclosed figures are outdated
Provide a fees worksheet, a Falr Lending Disclosure and an Equal Credit Opportunity Act (ECOA) form to the consumer, waiting until the additional necessary information is obtained to Issue the balance of required disclosures

Answer(s): C

Reference:

https://www.consumercomplianceoutlook.org/2021/fourth-issue/advanced-topics-in-adverse-action-notices-under-the-equal-credit-opportunity-act/

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QUESTION: 15

A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home. During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?

Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction
Consider the issue to be a private family matter and proceed with the next steps in the application process
Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan
Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf

Answer(s): A

Reference:

https://mlotrainingacademy.com/what-is-a-mortgage-loan-originator/

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QUESTION: 16

A mortgage loan originator (MLO) received a salary of 1% per loan plus a bonus of $5,000 for closing the most loans in the office last year. In addition, he received a trip to Hawaii based on closing 100 or more transactions with an interest rate of 5% or higher. Is the MLO's compensation prohibited?

His compensation is permitted as compensation only includes salary and his salary is not based on loan terms.
His compensation is permitted as compensation only includes salary and bonuses and his salary and bonus is not based on loan terms.
His compensation is not permitted as compensation only includes salary and his salary is based on loan terms.
His compensation is not permitted as compensation includes all financial incentives and his trip was awarded based on closing the most loans with certain loan terms.

Answer(s): D

Reference:

https://www.federalreserve.gov/supervisionreg/regzcg.htm

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Free MLO Exam Braindumps (page: 4)

QUESTION: 13

QUESTION: 14

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QUESTION: 15

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QUESTION: 16

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