[2026] Use Valid New MLO Test Notes & MLO Valid Exam Guide [Q84-Q106]

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[2026] Use Valid New MLO Test Notes & MLO Valid Exam Guide

MLO Actual Questions Answers PDF 100% Cover Real Exam Questions

Q84. According to the Truth in Lending Act (TILA), the term “finance charge” includes which of the following charges?

Daily or per diem interest paid by borrower

Seller’s points offered to reduce the borrower’s closing costs

A standard credit application fee charged to all loan applicants

Document preparation fees for items such as mortgages and deeds

Q85. 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

Q86. Which of the following facets of a loan could be considered predatory lending or steering?

Cash-out

Fixed interest rate

Prepayment penalty

Lowered interest rate

Q87. No more than how many days before calling any consumer should a company access the National Do Not Call Registry and maintain records documenting this process?

14 days

31 days

45 days

60 days

Q88. In which of the following scenarios is a mortgage loan originator (MLO) violating the consumer privacy provisions within the Gramm-Leach-Bliley Act?

The MLO provides a consumer’s application to a third-party processor in order to continue the loan process.

The MLO receives two copies of a consumer’s pay stub via fax, and the MLO destroys one of the copies in a paper shredder.

The MLO stores electronic information regarding the consumer on an encrypted laptop which is occasionally removed from the office.

The MLO discusses a consumer’s credit history with a co-worker at a local cafe.

Q89. A charge payable by the consumer and imposed by the creditor as an incident to or a condition of the extension of credit is the:

Title fee

Attorney fee

Escrow charge

Finance charge

Q90. Which of the following actions by a mortgage loan originator is prohibited regarding credit secured by a dwelling?

Receiving compensation from both the borrower and the lender

Presenting program options that best qualify and satisfy the consumer

Providing disclosures within three days of an application

Providing a copy of the credit application to the primary borrower

Q91. Which of the following occupancy types are listed on the Uniform Residential Loan Application?

Primary residence, duplex residence, business

Primary residence, multiunit residence, commercial

Primary residence, secondary residence, investment

Primary residence, vacation residence, multifamily residence

Q92. Which of the following federal laws requires mortgage lenders to adopt and follow anti-money laundering (AML) rules and regulations?

The National Bank Act

The National Currency Act

The Bank Secrecy Act

The Real Estate Settlement Procedures Act

Q93. When does the Loan Estimate expire?

After the 3rd business day

After the 5th business day

After the 7th business day

After the 10th business day

Q94. The ability to originate loans under temporary authority applies to which of the following?

Previously licensed real estate brokers

Previously registered mortgage loan originators (MLOs)

An MLO who has scheduled their test but not completed it

An MLO who is still waiting for their credit check to be completed

Q95. How often must a nonexempt telemarketing entity check their call list against the National Do Not Call Registry?

Every 7 days

Every 2 weeks

Every 31 days

Annually

Q96. Which of the following documents is required to be issued to a customer when a mortgage loan originator is also a real estate broker on the same transaction?

Loan application

Appraisal disclosure

Special information booklet

Affiliated business arrangement disclosure

Q97. A friend contacts a mortgage loan originator (MLO) and asks her to obtain a credit report for him to review before he tries to rent a house. The MLO has access to obtaining credit reports but does not handle any rental applications. Which of the following actions should the MLO take?

Offer to obtain the credit report but only if the friend will pay for the cost of the report

Ask the friend to provide the MLO with a written authorization to obtain his credit report

Explain that the MLO cannot obtain the friend’s credit report since he is not looking for a home loan

Start a loan application so that the MLO can obtain the credit report and then show the application as
“withdrawn”

Q98. A revised Closing Disclosure is not required to be provided before a loan consummation in which of the following circumstances?

A change in APR

A change in loan product

An addition of an escrow account

An addition of a prepayment penalty

Q99. 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

Q100. Which of the following responses describes the main purpose of the secondary market?

To fund additional loans

To fund a second home loan

To fund second mortgage loans

To service second mortgage loans

Q101. A person paying or receiving a portion of a fee that has not been earned in connection with the settlement statement is which of the following practices?

Actual fees

Splitting fees

Average fees

Third-party fees

Q102. The SAFE Act defines a nontraditional mortgage as all of the following except:

A 30-year fixed rate mortgage with a 25% down payment.

A payment option ARM with a down payment of 5%.

15-year mortgage with an interest rate of 10%.

An interest-only mortgage.

Q103. How many continuing education hours must mortgage loan originators complete every year to renew their license?

3 hours

8 hours

16 hours

20 hours

Q104. The debt-to-income analysis should assess a borrower’s total monthly housing related payments as a percentage of the:

net monthly income

gross monthly income.

taxable income.

loan amount.

Q105. According to Fannie Mae, a loan with a purchase transaction loan amount of $160,000, sales price of
$180,000, and an appraised value of $200,000 has a loan-to-value ratio of what percentage?

80%

88%

89%

90%