QUESTION: 5

Which of the following activities is an example of redlining in mortgage lending?

Ensuring that all creditworthy borrowers are afforded equal treatment when applying for a mortgage loan
The mortgage loan originator convincing the underwriter to move their loan file to the front of the line or "redline" it
The act of the mortgage lender putting a "red line" under the borrower's name in a file to indicate they are a substandard applicant
The systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices

Answer(s): D

Reference:

https://www.forbes.com/advisor/mortgages/real-estate/what-is-redlining/

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QUESTION: 6

What is the loan amount on the purchase price of $249,955.00 if the borrower is putting 18% down?

$204,693.10
$204,936.10
$204,963.10
$204,966.10

Answer(s): C

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QUESTION: 7

For an FHA loan, which of the following payments must a borrower make to protect a lender in case of a foreclosure?

Down payment
Hazard insurance premium
Mortgage insurance premium
Homeowners association dues

Answer(s): C

Reference:

https://www.nolo.com/legal-encyclopedia/is-an-fha-loan-foreclosure-different-than-other-foreclosures.html

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QUESTION: 8

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?

Tip sharing
Fee splitting
Single fee method
Double fee method

Answer(s): B

Reference:

https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/loan-origination-rule/

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Free MLO Exam Braindumps (page: 11)

QUESTION: 5

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QUESTION: 6

QUESTION: 7

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QUESTION: 8

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