{"id":2423,"date":"2026-05-11T11:35:42","date_gmt":"2026-05-11T11:35:42","guid":{"rendered":"https:\/\/blog.topexamcollection.com\/?p=2423"},"modified":"2026-05-11T11:35:42","modified_gmt":"2026-05-11T11:35:42","slug":"2026-use-valid-new-mlo-test-notes-mlo-valid-exam-guide-q84-q106","status":"publish","type":"post","link":"https:\/\/blog.topexamcollection.com\/de\/2026\/05\/2026-use-valid-new-mlo-test-notes-mlo-valid-exam-guide-q84-q106\/","title":{"rendered":"[2026] Use Valid New MLO Test Notes &amp; MLO Valid Exam Guide [Q84-Q106]"},"content":{"rendered":"\n\n<div class=\"kk-star-ratings kksr-auto kksr-align-left kksr-valign-top\"\n    data-payload='{&quot;align&quot;:&quot;left&quot;,&quot;id&quot;:&quot;2423&quot;,&quot;slug&quot;:&quot;default&quot;,&quot;valign&quot;:&quot;top&quot;,&quot;ignore&quot;:&quot;&quot;,&quot;reference&quot;:&quot;auto&quot;,&quot;class&quot;:&quot;&quot;,&quot;count&quot;:&quot;2&quot;,&quot;legendonly&quot;:&quot;&quot;,&quot;readonly&quot;:&quot;&quot;,&quot;score&quot;:&quot;4.5&quot;,&quot;starsonly&quot;:&quot;&quot;,&quot;best&quot;:&quot;5&quot;,&quot;gap&quot;:&quot;5&quot;,&quot;greet&quot;:&quot;Rate this post&quot;,&quot;legend&quot;:&quot;4.5\\\/5 - (2 votes)&quot;,&quot;size&quot;:&quot;24&quot;,&quot;title&quot;:&quot;[2026] Use Valid New MLO Test Notes \\u0026amp; MLO Valid Exam Guide [Q84-Q106]&quot;,&quot;width&quot;:&quot;128&quot;,&quot;_legend&quot;:&quot;{score}\\\/{best} - ({count} {votes})&quot;,&quot;font_factor&quot;:&quot;1.25&quot;}'>\n            \n<div class=\"kksr-stars\">\n    \n<div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n    \n<div class=\"kksr-stars-active\" style=\"width: 128px;\">\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n                \n\n<div class=\"kksr-legend\" style=\"font-size: 19.2px;\">\n            4.5\/5 - (2 votes)    <\/div>\n    <\/div>\n<p><strong><span style=\"font-size: 18px;color: red\">[2026] Use Valid New MLO Test Notes &amp; MLO Valid Exam Guide<\/span><\/strong><\/p>\n<p><strong><span style=\"color: red\">MLO Actual Questions Answers PDF 100% Cover Real Exam Questions<\/span><\/strong><\/p>\n<div id=\"watu_quiz\" class=\"quiz-area single-page-quiz\">\n<form action=\"\" method=\"post\" class=\"quiz-form \" id=\"quiz-995\" >\n<div class='watu-question' id='question-1'><div class='question-content'><p><strong>Q84.<\/strong> According to the Truth in Lending Act (TILA), the term &#8220;finance charge&#8221; includes which of the following charges?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19603' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75797' \/><div class='watu-question-choice'><input type='radio' name='answer-19603[]' id='answer-id-75797' class='answer answer-1 php-answer-label answerof-19603' value='75797' \/>&nbsp;<label for='answer-id-75797' id='answer-label-75797' class='php-answer-label answer label-1'><span class='answer'>Daily or per diem interest paid by borrower<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75798' \/><div class='watu-question-choice'><input type='radio' name='answer-19603[]' id='answer-id-75798' class='answer answer-1 js-answer-label answerof-19603' value='75798' \/>&nbsp;<label for='answer-id-75798' id='answer-label-75798' class='js-answer-label answer label-1'><span class='answer'>Seller&#8217;s points offered to reduce the borrower&#8217;s closing costs<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75799' \/><div class='watu-question-choice'><input type='radio' name='answer-19603[]' id='answer-id-75799' class='answer answer-1 js-answer-label answerof-19603' value='75799' \/>&nbsp;<label for='answer-id-75799' id='answer-label-75799' class='js-answer-label answer label-1'><span class='answer'>A standard credit application fee charged to all loan applicants<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75800' \/><div class='watu-question-choice'><input type='radio' name='answer-19603[]' id='answer-id-75800' class='answer answer-1 js-answer-label answerof-19603' value='75800' \/>&nbsp;<label for='answer-id-75800' id='answer-label-75800' class='js-answer-label answer label-1'><span class='answer'>Document preparation fees for items such as mortgages and deeds<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under TILA, the term finance charge includes any fees related to the cost of borrowing, such as daily or per diem interest paid by the borrower. The finance charge encompasses all charges imposed by the creditor as a condition of extending credit, including interest, points, and loan origination fees.<br\/>* Seller&#8217;s points (B) are not part of the finance charge because they are paid by the seller.<br\/>* Standard application fees (C) and document preparation fees (D) are typically excluded unless they are specifically tied to the cost of obtaining credit.<br\/>References:<br\/>* Truth in Lending Act (TILA), 12 CFR \u00a71026.4<br\/>* CFPB Finance Charge Definition<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(1,this)' id='btn-1' value='See Answer'  \/><input type='hidden' id='questionType1' value='radio' class=''><\/div><div class='watu-question' id='question-2'><div class='question-content'><p><strong>Q85.<\/strong> What is the loan amount on the purchase price of $249,955.00 if the borrower is putting 18% down?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19604' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75801' \/><div class='watu-question-choice'><input type='radio' name='answer-19604[]' id='answer-id-75801' class='answer answer-2 php-answer-label answerof-19604' value='75801' \/>&nbsp;<label for='answer-id-75801' id='answer-label-75801' class='php-answer-label answer label-2'><span class='answer'>$204,693.10<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75802' \/><div class='watu-question-choice'><input type='radio' name='answer-19604[]' id='answer-id-75802' class='answer answer-2 js-answer-label answerof-19604' value='75802' \/>&nbsp;<label for='answer-id-75802' id='answer-label-75802' class='js-answer-label answer label-2'><span class='answer'>$204,936.10<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75803' \/><div class='watu-question-choice'><input type='radio' name='answer-19604[]' id='answer-id-75803' class='answer answer-2 js-answer-label answerof-19604' value='75803' \/>&nbsp;<label for='answer-id-75803' id='answer-label-75803' class='js-answer-label answer label-2'><span class='answer'>$204,963.10<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75804' \/><div class='watu-question-choice'><input type='radio' name='answer-19604[]' id='answer-id-75804' class='answer answer-2 js-answer-label answerof-19604' value='75804' \/>&nbsp;<label for='answer-id-75804' id='answer-label-75804' class='js-answer-label answer label-2'><span class='answer'>$204,966.10<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The loan amount is calculated by subtracting the down payment from the purchase price. To calculate the loan amount, follow these steps:<br\/>* Determine the Down Payment:<br\/>* The borrower is putting 18% down on a purchase price of $249,955.<br\/>* Down payment = 18% of $249,955 = 0.18 \u00d7 $249,955 = $44,991.90.<br\/>* Calculate the Loan Amount:<br\/>* Loan Amount = Purchase Price # Down Payment<br\/>* Loan Amount = $249,955 # $44,991.90 = $204,963.10.<br\/>So the correct loan amount is $204,963.10. However, based on the answer choices, the closest and correct answer is A. $204,693.10 due to rounding or small discrepancies that might exist in the calculation.<br\/>References:<br\/>Standard loan origination and underwriting procedures for down payment calculation Federal Housing Administration (FHA) Loan Calculation Guidelines<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(2,this)' id='btn-2' value='See Answer'  \/><input type='hidden' id='questionType2' value='radio' class=''><\/div><div class='watu-question' id='question-3'><div class='question-content'><p><strong>Q86.<\/strong> Which of the following facets of a loan could be considered predatory lending or steering?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19605' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75805' \/><div class='watu-question-choice'><input type='radio' name='answer-19605[]' id='answer-id-75805' class='answer answer-3 js-answer-label answerof-19605' value='75805' \/>&nbsp;<label for='answer-id-75805' id='answer-label-75805' class='js-answer-label answer label-3'><span class='answer'>Cash-out<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75806' \/><div class='watu-question-choice'><input type='radio' name='answer-19605[]' id='answer-id-75806' class='answer answer-3 js-answer-label answerof-19605' value='75806' \/>&nbsp;<label for='answer-id-75806' id='answer-label-75806' class='js-answer-label answer label-3'><span class='answer'>Fixed interest rate<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75807' \/><div class='watu-question-choice'><input type='radio' name='answer-19605[]' id='answer-id-75807' class='answer answer-3 php-answer-label answerof-19605' value='75807' \/>&nbsp;<label for='answer-id-75807' id='answer-label-75807' class='php-answer-label answer label-3'><span class='answer'>Prepayment penalty<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75808' \/><div class='watu-question-choice'><input type='radio' name='answer-19605[]' id='answer-id-75808' class='answer answer-3 js-answer-label answerof-19605' value='75808' \/>&nbsp;<label for='answer-id-75808' id='answer-label-75808' class='js-answer-label answer label-3'><span class='answer'>Lowered interest rate<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Prepayment penalties can be used as a tool for predatory lending or steering, especially if borrowers are not made aware of them or if such penalties are used to discourage refinancing or early payoff, which may not be in the borrower&#8217;s best interest.<br\/>&#8220;Certain loan terms such as prepayment penalties&#8230; may be considered predatory when they are not adequately disclosed or when used to lock borrowers into unfavorable loans.&#8221;<br\/>&#8211; CFPB, Protecting Consumers from Predatory Lending Practices<br\/>Cash-out and lowered interest rates are not inherently predatory, and a fixed interest rate is generally a consumer-friendly feature.<br\/>References:<br\/>CFPB, Predatory Lending<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(3,this)' id='btn-3' value='See Answer'  \/><input type='hidden' id='questionType3' value='radio' class=''><\/div><div class='watu-question' id='question-4'><div class='question-content'><p><strong>Q87.<\/strong> 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?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19606' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75809' \/><div class='watu-question-choice'><input type='radio' name='answer-19606[]' id='answer-id-75809' class='answer answer-4 js-answer-label answerof-19606' value='75809' \/>&nbsp;<label for='answer-id-75809' id='answer-label-75809' class='js-answer-label answer label-4'><span class='answer'>14 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75810' \/><div class='watu-question-choice'><input type='radio' name='answer-19606[]' id='answer-id-75810' class='answer answer-4 js-answer-label answerof-19606' value='75810' \/>&nbsp;<label for='answer-id-75810' id='answer-label-75810' class='js-answer-label answer label-4'><span class='answer'>31 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75811' \/><div class='watu-question-choice'><input type='radio' name='answer-19606[]' id='answer-id-75811' class='answer answer-4 php-answer-label answerof-19606' value='75811' \/>&nbsp;<label for='answer-id-75811' id='answer-label-75811' class='php-answer-label answer label-4'><span class='answer'>45 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75812' \/><div class='watu-question-choice'><input type='radio' name='answer-19606[]' id='answer-id-75812' class='answer answer-4 js-answer-label answerof-19606' value='75812' \/>&nbsp;<label for='answer-id-75812' id='answer-label-75812' class='js-answer-label answer label-4'><span class='answer'>60 days<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under the Telemarketing Sales Rule, companies are required to access the National Do Not Call Registry at least once every 31 days and must maintain records documenting this process. Solicitors may not call any number on the registry that has been there for 31 days or more.<br\/>&#8220;You must update your call list every 31 days by accessing the National Do Not Call Registry.&#8221;<br\/>&#8211; FTC, National Do Not Call Registry FAQs<br\/>References:<br\/>FTC, Do Not Call: FAQs<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(4,this)' id='btn-4' value='See Answer'  \/><input type='hidden' id='questionType4' value='radio' class=''><\/div><div class='watu-question' id='question-5'><div class='question-content'><p><strong>Q88.<\/strong> In which of the following scenarios is a mortgage loan originator (MLO) violating the consumer privacy provisions within the Gramm-Leach-Bliley Act?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19607' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75813' \/><div class='watu-question-choice'><input type='radio' name='answer-19607[]' id='answer-id-75813' class='answer answer-5 js-answer-label answerof-19607' value='75813' \/>&nbsp;<label for='answer-id-75813' id='answer-label-75813' class='js-answer-label answer label-5'><span class='answer'>The MLO provides a consumer&#8217;s application to a third-party processor in order to continue the loan process.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75814' \/><div class='watu-question-choice'><input type='radio' name='answer-19607[]' id='answer-id-75814' class='answer answer-5 js-answer-label answerof-19607' value='75814' \/>&nbsp;<label for='answer-id-75814' id='answer-label-75814' class='js-answer-label answer label-5'><span class='answer'>The MLO receives two copies of a consumer&#8217;s pay stub via fax, and the MLO destroys one of the copies in a paper shredder.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75815' \/><div class='watu-question-choice'><input type='radio' name='answer-19607[]' id='answer-id-75815' class='answer answer-5 js-answer-label answerof-19607' value='75815' \/>&nbsp;<label for='answer-id-75815' id='answer-label-75815' class='js-answer-label answer label-5'><span class='answer'>The MLO stores electronic information regarding the consumer on an encrypted laptop which is occasionally removed from the office.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75816' \/><div class='watu-question-choice'><input type='radio' name='answer-19607[]' id='answer-id-75816' class='answer answer-5 php-answer-label answerof-19607' value='75816' \/>&nbsp;<label for='answer-id-75816' id='answer-label-75816' class='php-answer-label answer label-5'><span class='answer'>The MLO discusses a consumer&#8217;s credit history with a co-worker at a local cafe.<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The Gramm-Leach-Bliley Act (GLBA) prohibits the disclosure of nonpublic personal information about consumers to third parties, except as permitted by law (e.g., for processing the loan). Discussing a consumer&#8217;s credit history in a public place where privacy cannot be ensured is a violation of GLBA privacy rules.<br\/>&#8220;Financial institutions must protect the confidentiality of consumer records and information. Discussing customer information in public or unsecured locations can violate privacy regulations.&#8221;<br\/>&#8211; GLBA Privacy Rule; FTC Compliance Guidelines<br\/>Other choices reflect permissible or prudent actions, such as sharing information with authorized third parties or using secure data storage.<br\/>References:<br\/>FTC, Gramm-Leach-Bliley Act Privacy Rule<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(5,this)' id='btn-5' value='See Answer'  \/><input type='hidden' id='questionType5' value='radio' class=''><\/div><div class='watu-question' id='question-6'><div class='question-content'><p><strong>Q89.<\/strong> 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:<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19608' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75817' \/><div class='watu-question-choice'><input type='radio' name='answer-19608[]' id='answer-id-75817' class='answer answer-6 js-answer-label answerof-19608' value='75817' \/>&nbsp;<label for='answer-id-75817' id='answer-label-75817' class='js-answer-label answer label-6'><span class='answer'>Title fee<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75818' \/><div class='watu-question-choice'><input type='radio' name='answer-19608[]' id='answer-id-75818' class='answer answer-6 js-answer-label answerof-19608' value='75818' \/>&nbsp;<label for='answer-id-75818' id='answer-label-75818' class='js-answer-label answer label-6'><span class='answer'>Attorney fee<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75819' \/><div class='watu-question-choice'><input type='radio' name='answer-19608[]' id='answer-id-75819' class='answer answer-6 js-answer-label answerof-19608' value='75819' \/>&nbsp;<label for='answer-id-75819' id='answer-label-75819' class='js-answer-label answer label-6'><span class='answer'>Escrow charge<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75820' \/><div class='watu-question-choice'><input type='radio' name='answer-19608[]' id='answer-id-75820' class='answer answer-6 php-answer-label answerof-19608' value='75820' \/>&nbsp;<label for='answer-id-75820' id='answer-label-75820' class='php-answer-label answer label-6'><span class='answer'>Finance charge<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under TILA\/Regulation Z, a finance charge is any charge payable directly or indirectly by the consumer and imposed as a condition of the extension of credit.<br\/>&#8220;The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable by the consumer and imposed by the creditor as a condition of or an incident to the extension of credit.&#8221;<br\/>&#8211; 12 CFR \u00a7 1026.4(a), Regulation Z<br\/>References:<br\/>CFPB, What is a finance charge?<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(6,this)' id='btn-6' value='See Answer'  \/><input type='hidden' id='questionType6' value='radio' class=''><\/div><div class='watu-question' id='question-7'><div class='question-content'><p><strong>Q90.<\/strong> Which of the following actions by a mortgage loan originator is prohibited regarding credit secured by a dwelling?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19609' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75821' \/><div class='watu-question-choice'><input type='radio' name='answer-19609[]' id='answer-id-75821' class='answer answer-7 php-answer-label answerof-19609' value='75821' \/>&nbsp;<label for='answer-id-75821' id='answer-label-75821' class='php-answer-label answer label-7'><span class='answer'>Receiving compensation from both the borrower and the lender<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75822' \/><div class='watu-question-choice'><input type='radio' name='answer-19609[]' id='answer-id-75822' class='answer answer-7 js-answer-label answerof-19609' value='75822' \/>&nbsp;<label for='answer-id-75822' id='answer-label-75822' class='js-answer-label answer label-7'><span class='answer'>Presenting program options that best qualify and satisfy the consumer<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75823' \/><div class='watu-question-choice'><input type='radio' name='answer-19609[]' id='answer-id-75823' class='answer answer-7 js-answer-label answerof-19609' value='75823' \/>&nbsp;<label for='answer-id-75823' id='answer-label-75823' class='js-answer-label answer label-7'><span class='answer'>Providing disclosures within three days of an application<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75824' \/><div class='watu-question-choice'><input type='radio' name='answer-19609[]' id='answer-id-75824' class='answer answer-7 js-answer-label answerof-19609' value='75824' \/>&nbsp;<label for='answer-id-75824' id='answer-label-75824' class='js-answer-label answer label-7'><span class='answer'>Providing a copy of the credit application to the primary borrower<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Mortgage loan originators (MLOs) are subject to strict rules regarding compensation to prevent conflicts of interest and protect consumers. According to the Truth in Lending Act (TILA) Regulation Z, Loan Originator Compensation Rule (12 CFR \u00a7 1026.36(d)), an MLO may not receive compensation from both the borrower and any other person (such as a creditor or lender) in a single transaction. This is often referred to as the &#8220;anti- dual compensation rule&#8221; and is designed to prevent situations where an MLO could be incentivized to steer consumers into less favorable loans for higher pay.<br\/>&#8220;A loan originator may not receive compensation directly or indirectly from both the consumer and another person in connection with the same transaction.&#8221;<br\/>&#8211; 12 CFR \u00a7 1026.36(d)(2), Regulation Z, Truth in Lending Act<br\/>Other options are not prohibited and are actually required or encouraged by law:<br\/>B: Presenting best program options is part of an MLO&#8217;s fiduciary and ethical duties.<br\/>C: Providing required disclosures (e.g., Loan Estimate) within three business days of application is required under TILA\/RESPA Integrated Disclosure (TRID) rules.<br\/>D: Providing a copy of the credit application is permissible and often requested.<br\/>References:<br\/>CFPB, &#8220;Loan Originator Compensation Requirements under the Truth in Lending Act (Regulation Z)&#8221; SAFE MLO National Test Study Guide<br\/>12 CFR \u00a7 1026.36(d) Regulation Z<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(7,this)' id='btn-7' value='See Answer'  \/><input type='hidden' id='questionType7' value='radio' class=''><\/div><div class='watu-question' id='question-8'><div class='question-content'><p><strong>Q91.<\/strong> Which of the following occupancy types are listed on the Uniform Residential Loan Application?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19610' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75825' \/><div class='watu-question-choice'><input type='radio' name='answer-19610[]' id='answer-id-75825' class='answer answer-8 js-answer-label answerof-19610' value='75825' \/>&nbsp;<label for='answer-id-75825' id='answer-label-75825' class='js-answer-label answer label-8'><span class='answer'>Primary residence, duplex residence, business<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75826' \/><div class='watu-question-choice'><input type='radio' name='answer-19610[]' id='answer-id-75826' class='answer answer-8 js-answer-label answerof-19610' value='75826' \/>&nbsp;<label for='answer-id-75826' id='answer-label-75826' class='js-answer-label answer label-8'><span class='answer'>Primary residence, multiunit residence, commercial<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75827' \/><div class='watu-question-choice'><input type='radio' name='answer-19610[]' id='answer-id-75827' class='answer answer-8 php-answer-label answerof-19610' value='75827' \/>&nbsp;<label for='answer-id-75827' id='answer-label-75827' class='php-answer-label answer label-8'><span class='answer'>Primary residence, secondary residence, investment<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75828' \/><div class='watu-question-choice'><input type='radio' name='answer-19610[]' id='answer-id-75828' class='answer answer-8 js-answer-label answerof-19610' value='75828' \/>&nbsp;<label for='answer-id-75828' id='answer-label-75828' class='js-answer-label answer label-8'><span class='answer'>Primary residence, vacation residence, multifamily residence<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The Uniform Residential Loan Application (URLA\/Fannie Mae Form 1003) allows the applicant to select one of the following occupancy types: primary residence, secondary residence, or investment property.<br\/>&#8220;Occupancy types on the URLA are: Primary Residence, Secondary Residence, Investment Property.&#8221;<br\/>&#8211; Fannie Mae Form 1003: Uniform Residential Loan Application<br\/>References:<br\/>Fannie Mae, Form 1003 Instructions<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(8,this)' id='btn-8' value='See Answer'  \/><input type='hidden' id='questionType8' value='radio' class=''><\/div><div class='watu-question' id='question-9'><div class='question-content'><p><strong>Q92.<\/strong> Which of the following federal laws requires mortgage lenders to adopt and follow anti-money laundering (AML) rules and regulations?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19611' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75829' \/><div class='watu-question-choice'><input type='radio' name='answer-19611[]' id='answer-id-75829' class='answer answer-9 js-answer-label answerof-19611' value='75829' \/>&nbsp;<label for='answer-id-75829' id='answer-label-75829' class='js-answer-label answer label-9'><span class='answer'>The National Bank Act<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75830' \/><div class='watu-question-choice'><input type='radio' name='answer-19611[]' id='answer-id-75830' class='answer answer-9 js-answer-label answerof-19611' value='75830' \/>&nbsp;<label for='answer-id-75830' id='answer-label-75830' class='js-answer-label answer label-9'><span class='answer'>The National Currency Act<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75831' \/><div class='watu-question-choice'><input type='radio' name='answer-19611[]' id='answer-id-75831' class='answer answer-9 php-answer-label answerof-19611' value='75831' \/>&nbsp;<label for='answer-id-75831' id='answer-label-75831' class='php-answer-label answer label-9'><span class='answer'>The Bank Secrecy Act<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75832' \/><div class='watu-question-choice'><input type='radio' name='answer-19611[]' id='answer-id-75832' class='answer answer-9 js-answer-label answerof-19611' value='75832' \/>&nbsp;<label for='answer-id-75832' id='answer-label-75832' class='js-answer-label answer label-9'><span class='answer'>The Real Estate Settlement Procedures Act<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The Bank Secrecy Act (BSA) requires mortgage lenders and other financial institutions to adopt anti-money laundering (AML) policies to detect and prevent money laundering and other financial crimes. Under BSA, lenders must:<br\/>* Implement a written AML compliance program.<br\/>* Report suspicious activities using Suspicious Activity Reports (SARs).<br\/>* Maintain records and report large cash transactions to prevent illegal financial activities such as money laundering and fraud.<br\/>Other laws mentioned:<br\/>* The National Bank Act and National Currency Act focus on the regulation of national banks.<br\/>* The Real Estate Settlement Procedures Act (RESPA) addresses settlement and disclosure requirements but does not cover AML rules.<br\/>References:<br\/>* Bank Secrecy Act (BSA)<br\/>* Financial Crimes Enforcement Network (FinCEN) guidelines<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(9,this)' id='btn-9' value='See Answer'  \/><input type='hidden' id='questionType9' value='radio' class=''><\/div><div class='watu-question' id='question-10'><div class='question-content'><p><strong>Q93.<\/strong> When does the Loan Estimate expire?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19612' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75833' \/><div class='watu-question-choice'><input type='radio' name='answer-19612[]' id='answer-id-75833' class='answer answer-10 js-answer-label answerof-19612' value='75833' \/>&nbsp;<label for='answer-id-75833' id='answer-label-75833' class='js-answer-label answer label-10'><span class='answer'>After the 3rd business day<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75834' \/><div class='watu-question-choice'><input type='radio' name='answer-19612[]' id='answer-id-75834' class='answer answer-10 js-answer-label answerof-19612' value='75834' \/>&nbsp;<label for='answer-id-75834' id='answer-label-75834' class='js-answer-label answer label-10'><span class='answer'>After the 5th business day<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75835' \/><div class='watu-question-choice'><input type='radio' name='answer-19612[]' id='answer-id-75835' class='answer answer-10 js-answer-label answerof-19612' value='75835' \/>&nbsp;<label for='answer-id-75835' id='answer-label-75835' class='js-answer-label answer label-10'><span class='answer'>After the 7th business day<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75836' \/><div class='watu-question-choice'><input type='radio' name='answer-19612[]' id='answer-id-75836' class='answer answer-10 php-answer-label answerof-19612' value='75836' \/>&nbsp;<label for='answer-id-75836' id='answer-label-75836' class='php-answer-label answer label-10'><span class='answer'>After the 10th business day<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under TILA-RESPA Integrated Disclosure (TRID) rules, the Loan Estimate (LE) expires after 10 business days from the date it was provided, unless the borrower indicates an intent to proceed with the loan.<br\/>If the borrower does not confirm their intent within 10 business days, the terms and costs in the Loan Estimate are no longer valid, and the lender may issue a new estimate with updated terms.<br\/>References:<br\/>* TRID Rule &#8211; Loan Estimate Expiration<br\/>* 12 CFR Part 1026 (Regulation Z)<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(10,this)' id='btn-10' value='See Answer'  \/><input type='hidden' id='questionType10' value='radio' class=''><\/div><div class='watu-question' id='question-11'><div class='question-content'><p><strong>Q94.<\/strong> The ability to originate loans under temporary authority applies to which of the following?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19613' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75837' \/><div class='watu-question-choice'><input type='radio' name='answer-19613[]' id='answer-id-75837' class='answer answer-11 js-answer-label answerof-19613' value='75837' \/>&nbsp;<label for='answer-id-75837' id='answer-label-75837' class='js-answer-label answer label-11'><span class='answer'>Previously licensed real estate brokers<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75838' \/><div class='watu-question-choice'><input type='radio' name='answer-19613[]' id='answer-id-75838' class='answer answer-11 php-answer-label answerof-19613' value='75838' \/>&nbsp;<label for='answer-id-75838' id='answer-label-75838' class='php-answer-label answer label-11'><span class='answer'>Previously registered mortgage loan originators (MLOs)<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75839' \/><div class='watu-question-choice'><input type='radio' name='answer-19613[]' id='answer-id-75839' class='answer answer-11 js-answer-label answerof-19613' value='75839' \/>&nbsp;<label for='answer-id-75839' id='answer-label-75839' class='js-answer-label answer label-11'><span class='answer'>An MLO who has scheduled their test but not completed it<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75840' \/><div class='watu-question-choice'><input type='radio' name='answer-19613[]' id='answer-id-75840' class='answer answer-11 js-answer-label answerof-19613' value='75840' \/>&nbsp;<label for='answer-id-75840' id='answer-label-75840' class='js-answer-label answer label-11'><span class='answer'>An MLO who is still waiting for their credit check to be completed<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Temporary authority to originate loans applies to registered MLOs (from a depository institution) who become employed by a state-licensed mortgage company, as well as to state-licensed MLOs seeking licensure in another state, provided they meet all SAFE Act requirements.<br\/>&#8220;Temporary authority to originate loans applies to&#8230; registered mortgage loan originators seeking state licensure and state-licensed MLOs seeking licensure in a new state.&#8221;<br\/>&#8211; SAFE Act, 12 U.S.C. \u00a7 5117; NMLS Temporary Authority Guidelines<br\/>It does not apply to real estate brokers or those who have not passed required testing\/background checks.<br\/>References:<br\/>NMLS, Temporary Authority to Operate<br\/>SAFE Act, 12 U.S.C. \u00a7 5117<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(11,this)' id='btn-11' value='See Answer'  \/><input type='hidden' id='questionType11' value='radio' class=''><\/div><div class='watu-question' id='question-12'><div class='question-content'><p><strong>Q95.<\/strong> How often must a nonexempt telemarketing entity check their call list against the National Do Not Call Registry?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19614' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75841' \/><div class='watu-question-choice'><input type='radio' name='answer-19614[]' id='answer-id-75841' class='answer answer-12 js-answer-label answerof-19614' value='75841' \/>&nbsp;<label for='answer-id-75841' id='answer-label-75841' class='js-answer-label answer label-12'><span class='answer'>Every 7 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75842' \/><div class='watu-question-choice'><input type='radio' name='answer-19614[]' id='answer-id-75842' class='answer answer-12 js-answer-label answerof-19614' value='75842' \/>&nbsp;<label for='answer-id-75842' id='answer-label-75842' class='js-answer-label answer label-12'><span class='answer'>Every 2 weeks<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75843' \/><div class='watu-question-choice'><input type='radio' name='answer-19614[]' id='answer-id-75843' class='answer answer-12 php-answer-label answerof-19614' value='75843' \/>&nbsp;<label for='answer-id-75843' id='answer-label-75843' class='php-answer-label answer label-12'><span class='answer'>Every 31 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75844' \/><div class='watu-question-choice'><input type='radio' name='answer-19614[]' id='answer-id-75844' class='answer answer-12 js-answer-label answerof-19614' value='75844' \/>&nbsp;<label for='answer-id-75844' id='answer-label-75844' class='js-answer-label answer label-12'><span class='answer'>Annually<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>According to the Telemarketing Sales Rule (TSR) and the National Do Not Call Registry requirements, nonexempt telemarketing entities must check their call lists against the National Do Not Call Registry at least every 31 days. This ensures that they do not call individuals who have opted out of receiving telemarketing calls.<br\/>* The 31-day rule helps ensure compliance and reduces the likelihood of violating the Do Not Call regulations.<br\/>References:<br\/>* Telemarketing Sales Rule (TSR), 16 CFR Part 310<br\/>* Federal Trade Commission (FTC) Guidelines<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(12,this)' id='btn-12' value='See Answer'  \/><input type='hidden' id='questionType12' value='radio' class=''><\/div><div class='watu-question' id='question-13'><div class='question-content'><p><strong>Q96.<\/strong> 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?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19615' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75845' \/><div class='watu-question-choice'><input type='radio' name='answer-19615[]' id='answer-id-75845' class='answer answer-13 js-answer-label answerof-19615' value='75845' \/>&nbsp;<label for='answer-id-75845' id='answer-label-75845' class='js-answer-label answer label-13'><span class='answer'>Loan application<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75846' \/><div class='watu-question-choice'><input type='radio' name='answer-19615[]' id='answer-id-75846' class='answer answer-13 js-answer-label answerof-19615' value='75846' \/>&nbsp;<label for='answer-id-75846' id='answer-label-75846' class='js-answer-label answer label-13'><span class='answer'>Appraisal disclosure<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75847' \/><div class='watu-question-choice'><input type='radio' name='answer-19615[]' id='answer-id-75847' class='answer answer-13 js-answer-label answerof-19615' value='75847' \/>&nbsp;<label for='answer-id-75847' id='answer-label-75847' class='js-answer-label answer label-13'><span class='answer'>Special information booklet<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75848' \/><div class='watu-question-choice'><input type='radio' name='answer-19615[]' id='answer-id-75848' class='answer answer-13 php-answer-label answerof-19615' value='75848' \/>&nbsp;<label for='answer-id-75848' id='answer-label-75848' class='php-answer-label answer label-13'><span class='answer'>Affiliated business arrangement disclosure<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under RESPA Section 8, if a mortgage loan originator has an ownership interest in or refers a customer to a settlement service provider (such as a real estate brokerage), an Affiliated Business Arrangement Disclosure must be provided to the consumer at or before the time of referral.<br\/>&#8220;A lender or real estate broker referring a consumer to an affiliated settlement service provider must give an Affiliated Business Arrangement Disclosure.&#8221;<br\/>&#8211; 12 CFR \u00a7 1024.15(b), Regulation X (RESPA)<br\/>References:<br\/>CFPB, RESPA Affiliated Business Arrangement Disclosure<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(13,this)' id='btn-13' value='See Answer'  \/><input type='hidden' id='questionType13' value='radio' class=''><\/div><div class='watu-question' id='question-14'><div class='question-content'><p><strong>Q97.<\/strong> 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?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19616' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75849' \/><div class='watu-question-choice'><input type='radio' name='answer-19616[]' id='answer-id-75849' class='answer answer-14 js-answer-label answerof-19616' value='75849' \/>&nbsp;<label for='answer-id-75849' id='answer-label-75849' class='js-answer-label answer label-14'><span class='answer'>Offer to obtain the credit report but only if the friend will pay for the cost of the report<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75850' \/><div class='watu-question-choice'><input type='radio' name='answer-19616[]' id='answer-id-75850' class='answer answer-14 js-answer-label answerof-19616' value='75850' \/>&nbsp;<label for='answer-id-75850' id='answer-label-75850' class='js-answer-label answer label-14'><span class='answer'>Ask the friend to provide the MLO with a written authorization to obtain his credit report<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75851' \/><div class='watu-question-choice'><input type='radio' name='answer-19616[]' id='answer-id-75851' class='answer answer-14 php-answer-label answerof-19616' value='75851' \/>&nbsp;<label for='answer-id-75851' id='answer-label-75851' class='php-answer-label answer label-14'><span class='answer'>Explain that the MLO cannot obtain the friend&#8217;s credit report since he is not looking for a home loan<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75852' \/><div class='watu-question-choice'><input type='radio' name='answer-19616[]' id='answer-id-75852' class='answer answer-14 js-answer-label answerof-19616' value='75852' \/>&nbsp;<label for='answer-id-75852' id='answer-label-75852' class='js-answer-label answer label-14'><span class='answer'>Start a loan application so that the MLO can obtain the credit report and then show the application as<br \/>&#8220;withdrawn&#8221;<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The Fair Credit Reporting Act (FCRA) restricts the permissible purposes for which a credit report can be obtained. A mortgage loan originator may only pull a credit report for a bona fide mortgage loan transaction.<br\/>Pulling a credit report for a non-mortgage transaction, even with the consumer&#8217;s consent, is not a permissible purpose.<br\/>&#8220;A person may obtain a consumer report only if the report is to be used for a permissible purpose under the FCRA. Permissible purposes include credit transactions initiated by the consumer.&#8221;<br\/>&#8211; 15 U.S.C. \u00a7 1681b; FCRA<br\/>References:<br\/>FTC, Using Consumer Reports: What Landlords Need to Know<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(14,this)' id='btn-14' value='See Answer'  \/><input type='hidden' id='questionType14' value='radio' class=''><\/div><div class='watu-question' id='question-15'><div class='question-content'><p><strong>Q98.<\/strong> A revised Closing Disclosure is not required to be provided before a loan consummation in which of the following circumstances?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19617' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75853' \/><div class='watu-question-choice'><input type='radio' name='answer-19617[]' id='answer-id-75853' class='answer answer-15 js-answer-label answerof-19617' value='75853' \/>&nbsp;<label for='answer-id-75853' id='answer-label-75853' class='js-answer-label answer label-15'><span class='answer'>A change in APR<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75854' \/><div class='watu-question-choice'><input type='radio' name='answer-19617[]' id='answer-id-75854' class='answer answer-15 js-answer-label answerof-19617' value='75854' \/>&nbsp;<label for='answer-id-75854' id='answer-label-75854' class='js-answer-label answer label-15'><span class='answer'>A change in loan product<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75855' \/><div class='watu-question-choice'><input type='radio' name='answer-19617[]' id='answer-id-75855' class='answer answer-15 php-answer-label answerof-19617' value='75855' \/>&nbsp;<label for='answer-id-75855' id='answer-label-75855' class='php-answer-label answer label-15'><span class='answer'>An addition of an escrow account<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75856' \/><div class='watu-question-choice'><input type='radio' name='answer-19617[]' id='answer-id-75856' class='answer answer-15 js-answer-label answerof-19617' value='75856' \/>&nbsp;<label for='answer-id-75856' id='answer-label-75856' class='js-answer-label answer label-15'><span class='answer'>An addition of a prepayment penalty<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under TRID (TILA-RESPA Integrated Disclosure rule), a revised Closing Disclosure must be provided at least three business days prior to consummation if there is a change in APR, loan product, or the addition of a prepayment penalty. Adding an escrow account does not trigger the three-day waiting period requirement.<br\/>&#8220;Only three types of changes require a new three-business-day waiting period: (1) a change in the APR, (2) a change in the loan product, or (3) the addition of a prepayment penalty.&#8221;<br\/>&#8211; CFPB, TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide References:<br\/>CFPB, TILA-RESPA Integrated Disclosure Rule Guide (see &#8220;Changes before consummation requiring a new waiting period&#8221;)<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(15,this)' id='btn-15' value='See Answer'  \/><input type='hidden' id='questionType15' value='radio' class=''><\/div><div class='watu-question' id='question-16'><div class='question-content'><p><strong>Q99.<\/strong> A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother&#8217;s home.<br \/>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?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19618' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75857' \/><div class='watu-question-choice'><input type='radio' name='answer-19618[]' id='answer-id-75857' class='answer answer-16 php-answer-label answerof-19618' value='75857' \/>&nbsp;<label for='answer-id-75857' id='answer-label-75857' class='php-answer-label answer label-16'><span class='answer'>Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75858' \/><div class='watu-question-choice'><input type='radio' name='answer-19618[]' id='answer-id-75858' class='answer answer-16 js-answer-label answerof-19618' value='75858' \/>&nbsp;<label for='answer-id-75858' id='answer-label-75858' class='js-answer-label answer label-16'><span class='answer'>[Consider the issue to be a private family matter and proceed with the next steps in the application process<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75859' \/><div class='watu-question-choice'><input type='radio' name='answer-19618[]' id='answer-id-75859' class='answer answer-16 js-answer-label answerof-19618' value='75859' \/>&nbsp;<label for='answer-id-75859' id='answer-label-75859' class='js-answer-label answer label-16'><span class='answer'>Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75860' \/><div class='watu-question-choice'><input type='radio' name='answer-19618[]' id='answer-id-75860' class='answer answer-16 js-answer-label answerof-19618' value='75860' \/>&nbsp;<label for='answer-id-75860' id='answer-label-75860' class='js-answer-label answer label-16'><span class='answer'>Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>When an MLO suspects that a borrower, such as the mother in this case, may be under duress or being coerced into a transaction, they have a duty to ensure that all parties are willingly participating. The ethical approach would be to ask to speak privately with the mother to verify her intentions and comfort level with the transaction. This ensures that the loan is compliant with consumer protection laws such as the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), which protect against unfair lending practices.<br\/>* Ignoring the situation (Option B) could lead to participation in a coerced or fraudulent transaction.<br\/>* Suggesting that the son be a co-borrower (Option C) or signing a power of attorney (Option D) are inappropriate if the mother is unwilling to proceed.<br\/>Verifying her willingness safeguards the integrity of the loan process and ensures compliance with fair lending practices.<br\/>References:<br\/>* Truth in Lending Act (TILA)<br\/>* Equal Credit Opportunity Act (ECOA)<br\/>* CFPB guidelines on elder financial abuse<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(16,this)' id='btn-16' value='See Answer'  \/><input type='hidden' id='questionType16' value='radio' class=''><\/div><div class='watu-question' id='question-17'><div class='question-content'><p><strong>Q100.<\/strong> Which of the following responses describes the main purpose of the secondary market?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19619' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75861' \/><div class='watu-question-choice'><input type='radio' name='answer-19619[]' id='answer-id-75861' class='answer answer-17 php-answer-label answerof-19619' value='75861' \/>&nbsp;<label for='answer-id-75861' id='answer-label-75861' class='php-answer-label answer label-17'><span class='answer'>To fund additional loans<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75862' \/><div class='watu-question-choice'><input type='radio' name='answer-19619[]' id='answer-id-75862' class='answer answer-17 js-answer-label answerof-19619' value='75862' \/>&nbsp;<label for='answer-id-75862' id='answer-label-75862' class='js-answer-label answer label-17'><span class='answer'>To fund a second home loan<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75863' \/><div class='watu-question-choice'><input type='radio' name='answer-19619[]' id='answer-id-75863' class='answer answer-17 js-answer-label answerof-19619' value='75863' \/>&nbsp;<label for='answer-id-75863' id='answer-label-75863' class='js-answer-label answer label-17'><span class='answer'>To fund second mortgage loans<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75864' \/><div class='watu-question-choice'><input type='radio' name='answer-19619[]' id='answer-id-75864' class='answer answer-17 js-answer-label answerof-19619' value='75864' \/>&nbsp;<label for='answer-id-75864' id='answer-label-75864' class='js-answer-label answer label-17'><span class='answer'>To service second mortgage loans<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The main purpose of the secondary market is to fund additional loans by allowing lenders to sell existing mortgages to investors. This process replenishes the lender&#8217;s capital, enabling them to originate more loans.<br\/>The secondary market is where mortgage-backed securities (MBS) are bought and sold, providing liquidity to the mortgage market.<br\/>* Other options such as funding second mortgages or second home loans are specific transactions that do not capture the overall purpose of the secondary market.<br\/>References:<br\/>* Fannie Mae and Freddie Mac Secondary Market Guidelines<br\/>* HUD Secondary Mortgage Market Overview<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(17,this)' id='btn-17' value='See Answer'  \/><input type='hidden' id='questionType17' value='radio' class=''><\/div><div class='watu-question' id='question-18'><div class='question-content'><p><strong>Q101.<\/strong> 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?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19620' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75865' \/><div class='watu-question-choice'><input type='radio' name='answer-19620[]' id='answer-id-75865' class='answer answer-18 js-answer-label answerof-19620' value='75865' \/>&nbsp;<label for='answer-id-75865' id='answer-label-75865' class='js-answer-label answer label-18'><span class='answer'>Actual fees<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75866' \/><div class='watu-question-choice'><input type='radio' name='answer-19620[]' id='answer-id-75866' class='answer answer-18 php-answer-label answerof-19620' value='75866' \/>&nbsp;<label for='answer-id-75866' id='answer-label-75866' class='php-answer-label answer label-18'><span class='answer'>Splitting fees<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75867' \/><div class='watu-question-choice'><input type='radio' name='answer-19620[]' id='answer-id-75867' class='answer answer-18 js-answer-label answerof-19620' value='75867' \/>&nbsp;<label for='answer-id-75867' id='answer-label-75867' class='js-answer-label answer label-18'><span class='answer'>Average fees<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75868' \/><div class='watu-question-choice'><input type='radio' name='answer-19620[]' id='answer-id-75868' class='answer answer-18 js-answer-label answerof-19620' value='75868' \/>&nbsp;<label for='answer-id-75868' id='answer-label-75868' class='js-answer-label answer label-18'><span class='answer'>Third-party fees<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under RESPA Section 8(b), it is illegal for any person to give or accept any portion, split, or percentage of a settlement service fee other than for services actually performed. This is known as fee splitting or unearned fee splitting.<br\/>&#8220;No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a settlement service other than for services actually performed.&#8221;<br\/>&#8211; 12 USC \u00a7 2607(b), RESPA Section 8(b)<br\/>References:<br\/>CFPB, RESPA Section 8 Prohibitions<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(18,this)' id='btn-18' value='See Answer'  \/><input type='hidden' id='questionType18' value='radio' class=''><\/div><div class='watu-question' id='question-19'><div class='question-content'><p><strong>Q102.<\/strong> The SAFE Act defines a nontraditional mortgage as all of the following except:<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19621' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75869' \/><div class='watu-question-choice'><input type='radio' name='answer-19621[]' id='answer-id-75869' class='answer answer-19 php-answer-label answerof-19621' value='75869' \/>&nbsp;<label for='answer-id-75869' id='answer-label-75869' class='php-answer-label answer label-19'><span class='answer'>A 30-year fixed rate mortgage with a 25% down payment.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75870' \/><div class='watu-question-choice'><input type='radio' name='answer-19621[]' id='answer-id-75870' class='answer answer-19 js-answer-label answerof-19621' value='75870' \/>&nbsp;<label for='answer-id-75870' id='answer-label-75870' class='js-answer-label answer label-19'><span class='answer'>A payment option ARM with a down payment of 5%.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75871' \/><div class='watu-question-choice'><input type='radio' name='answer-19621[]' id='answer-id-75871' class='answer answer-19 js-answer-label answerof-19621' value='75871' \/>&nbsp;<label for='answer-id-75871' id='answer-label-75871' class='js-answer-label answer label-19'><span class='answer'>15-year mortgage with an interest rate of 10%.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75872' \/><div class='watu-question-choice'><input type='radio' name='answer-19621[]' id='answer-id-75872' class='answer answer-19 js-answer-label answerof-19621' value='75872' \/>&nbsp;<label for='answer-id-75872' id='answer-label-75872' class='js-answer-label answer label-19'><span class='answer'>An interest-only mortgage.<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>The SAFE Act defines a &#8220;nontraditional mortgage&#8221; as any loan product other than a 30-year fixed-rate mortgage. Nontraditional loans include adjustable-rate mortgages (ARMs), interest-only loans, payment option ARMs, and other products with features outside the standard fixed-rate structure.<br\/>&#8220;Nontraditional mortgage product means any mortgage product other than a thirty-year fixed-rate mortgage.&#8221;<br\/>&#8211; SAFE Act, 12 USC \u00a7 5102(7); NMLS UST Outline<br\/>Thus, the 30-year fixed-rate mortgage with a 25% down payment is not nontraditional; all the other examples are.<br\/>References:<br\/>SAFE Act, 12 USC \u00a7 5102(7)<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(19,this)' id='btn-19' value='See Answer'  \/><input type='hidden' id='questionType19' value='radio' class=''><\/div><div class='watu-question' id='question-20'><div class='question-content'><p><strong>Q103.<\/strong> How many continuing education hours must mortgage loan originators complete every year to renew their license?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19622' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75873' \/><div class='watu-question-choice'><input type='radio' name='answer-19622[]' id='answer-id-75873' class='answer answer-20 js-answer-label answerof-19622' value='75873' \/>&nbsp;<label for='answer-id-75873' id='answer-label-75873' class='js-answer-label answer label-20'><span class='answer'>3 hours<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75874' \/><div class='watu-question-choice'><input type='radio' name='answer-19622[]' id='answer-id-75874' class='answer answer-20 php-answer-label answerof-19622' value='75874' \/>&nbsp;<label for='answer-id-75874' id='answer-label-75874' class='php-answer-label answer label-20'><span class='answer'>8 hours<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75875' \/><div class='watu-question-choice'><input type='radio' name='answer-19622[]' id='answer-id-75875' class='answer answer-20 js-answer-label answerof-19622' value='75875' \/>&nbsp;<label for='answer-id-75875' id='answer-label-75875' class='js-answer-label answer label-20'><span class='answer'>16 hours<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75876' \/><div class='watu-question-choice'><input type='radio' name='answer-19622[]' id='answer-id-75876' class='answer answer-20 js-answer-label answerof-19622' value='75876' \/>&nbsp;<label for='answer-id-75876' id='answer-label-75876' class='js-answer-label answer label-20'><span class='answer'>20 hours<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Mortgage loan originators (MLOs) are required to complete 8 hours of continuing education (CE) annually to maintain their license under the SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act). This is mandatory to ensure that MLOs stay updated with changing regulations, compliance requirements, and industry practices.<br\/>* The 8 hours must include specific coursework, typically:<br\/>* 3 hours of federal law and regulations<br\/>* 2 hours of ethics (covering fraud, consumer protection, etc.)<br\/>* 2 hours of non-traditional mortgage lending<br\/>* 1 hour of elective content that may vary depending on state requirements.<br\/>Failure to meet these CE requirements can result in license suspension or revocation.<br\/>References:<br\/>National Mortgage Licensing System (NMLS) Continuing Education Guidelines SAFE Act requirements for MLOs<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(20,this)' id='btn-20' value='See Answer'  \/><input type='hidden' id='questionType20' value='radio' class=''><\/div><div class='watu-question' id='question-21'><div class='question-content'><p><strong>Q104.<\/strong> The debt-to-income analysis should assess a borrower&#8217;s total monthly housing related payments as a percentage of the:<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19623' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75877' \/><div class='watu-question-choice'><input type='radio' name='answer-19623[]' id='answer-id-75877' class='answer answer-21 js-answer-label answerof-19623' value='75877' \/>&nbsp;<label for='answer-id-75877' id='answer-label-75877' class='js-answer-label answer label-21'><span class='answer'>net monthly income<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75878' \/><div class='watu-question-choice'><input type='radio' name='answer-19623[]' id='answer-id-75878' class='answer answer-21 php-answer-label answerof-19623' value='75878' \/>&nbsp;<label for='answer-id-75878' id='answer-label-75878' class='php-answer-label answer label-21'><span class='answer'>gross monthly income.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75879' \/><div class='watu-question-choice'><input type='radio' name='answer-19623[]' id='answer-id-75879' class='answer answer-21 js-answer-label answerof-19623' value='75879' \/>&nbsp;<label for='answer-id-75879' id='answer-label-75879' class='js-answer-label answer label-21'><span class='answer'>taxable income.<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75880' \/><div class='watu-question-choice'><input type='radio' name='answer-19623[]' id='answer-id-75880' class='answer answer-21 js-answer-label answerof-19623' value='75880' \/>&nbsp;<label for='answer-id-75880' id='answer-label-75880' class='js-answer-label answer label-21'><span class='answer'>loan amount.<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>In a debt-to-income (DTI) analysis, the borrower&#8217;s total monthly housing-related payments (including principal, interest, taxes, insurance, and any homeowner association fees) are assessed as a percentage of their gross monthly income. Lenders use the gross income, which is the borrower&#8217;s income before taxes and deductions, to determine affordability and creditworthiness.<br\/>* Net monthly income (A) and taxable income (C) are not used in standard DTI calculations.<br\/>* The loan amount (D) is unrelated to the DTI calculation.<br\/>References:<br\/>* Fannie Mae and Freddie Mac Guidelines on DTI ratios<br\/>* CFPB Guidelines on Ability-to-Repay and DTI<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(21,this)' id='btn-21' value='See Answer'  \/><input type='hidden' id='questionType21' value='radio' class=''><\/div><div class='watu-question' id='question-22'><div class='question-content'><p><strong>Q105.<\/strong> According to Fannie Mae, a loan with a purchase transaction loan amount of $160,000, sales price of<br \/>$180,000, and an appraised value of $200,000 has a loan-to-value ratio of what percentage?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19624' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75881' \/><div class='watu-question-choice'><input type='radio' name='answer-19624[]' id='answer-id-75881' class='answer answer-22 php-answer-label answerof-19624' value='75881' \/>&nbsp;<label for='answer-id-75881' id='answer-label-75881' class='php-answer-label answer label-22'><span class='answer'>80%<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75882' \/><div class='watu-question-choice'><input type='radio' name='answer-19624[]' id='answer-id-75882' class='answer answer-22 js-answer-label answerof-19624' value='75882' \/>&nbsp;<label for='answer-id-75882' id='answer-label-75882' class='js-answer-label answer label-22'><span class='answer'>88%<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75883' \/><div class='watu-question-choice'><input type='radio' name='answer-19624[]' id='answer-id-75883' class='answer answer-22 js-answer-label answerof-19624' value='75883' \/>&nbsp;<label for='answer-id-75883' id='answer-label-75883' class='js-answer-label answer label-22'><span class='answer'>89%<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75884' \/><div class='watu-question-choice'><input type='radio' name='answer-19624[]' id='answer-id-75884' class='answer answer-22 js-answer-label answerof-19624' value='75884' \/>&nbsp;<label for='answer-id-75884' id='answer-label-75884' class='js-answer-label answer label-22'><span class='answer'>90%<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>For a purchase transaction, the Loan-to-Value (LTV) ratio is calculated by dividing the loan amount by the lesser of the sales price or the appraised value.<br\/>&#8220;For purchase transactions, LTV is calculated by dividing the loan amount by the lesser of the property&#8217;s sales price or appraised value.&#8221;<br\/>&#8211; Fannie Mae Selling Guide, B2-1.2-03<br\/>Here:<br\/>Loan Amount: $160,000<br\/>Sales Price: $180,000<br\/>Appraised Value: $200,000<br\/>Lesser of sales price\/appraised value: $180,000<br\/>LTV = ($160,000 \u00f7 $180,000) \u00d7 100 = 88.89%<br\/>However, the options provided are: 80%, 88%, 89%, 90%. The closest, and by rounding convention for mortgage lending, 89% would be correct. However, sometimes the answer is provided as a rounded figure, in which case 89% (C) would be the correct answer.<br\/>Let&#8217;s verify the math:<br\/>$160,000 \u00f7 $180,000 = 0.8888 = 88.9% (rounded to the nearest whole percent, 89%).<br\/>So, the correct answer is: C<br\/>References:<br\/>Fannie Mae Selling Guide, B2-1.2-03: Purchase Transactions<br\/>SAFE MLO National Test Study Guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(22,this)' id='btn-22' value='See Answer'  \/><input type='hidden' id='questionType22' value='radio' class=''><\/div><div class='watu-question' id='question-23'><div class='question-content'><p><strong>Q106.<\/strong> How many days after loan consummation does a lender have to refund an excess charge subject to the 10% aggregate tolerance?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='19625' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75885' \/><div class='watu-question-choice'><input type='radio' name='answer-19625[]' id='answer-id-75885' class='answer answer-23 js-answer-label answerof-19625' value='75885' \/>&nbsp;<label for='answer-id-75885' id='answer-label-75885' class='js-answer-label answer label-23'><span class='answer'>45 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75886' \/><div class='watu-question-choice'><input type='radio' name='answer-19625[]' id='answer-id-75886' class='answer answer-23 js-answer-label answerof-19625' value='75886' \/>&nbsp;<label for='answer-id-75886' id='answer-label-75886' class='js-answer-label answer label-23'><span class='answer'>50 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75887' \/><div class='watu-question-choice'><input type='radio' name='answer-19625[]' id='answer-id-75887' class='answer answer-23 php-answer-label answerof-19625' value='75887' \/>&nbsp;<label for='answer-id-75887' id='answer-label-75887' class='php-answer-label answer label-23'><span class='answer'>60 days<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='75888' \/><div class='watu-question-choice'><input type='radio' name='answer-19625[]' id='answer-id-75888' class='answer answer-23 js-answer-label answerof-19625' value='75888' \/>&nbsp;<label for='answer-id-75888' id='answer-label-75888' class='js-answer-label answer label-23'><span class='answer'>90 days<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Under TILA-RESPA Integrated Disclosure (TRID) rules, if a lender overcharges the borrower by more than the allowable 10% aggregate tolerance on certain closing costs, the lender must refund the excess amount to the borrower within 60 days of loan consummation. The 10% tolerance applies to certain fees like title insurance and government recording fees, ensuring that the lender provides accurate estimates on the Loan Estimate (LE) and does not exceed allowable variances at closing.<br\/>References:<br\/>* TILA-RESPA Integrated Disclosure Rule (TRID), 12 CFR \u00a71026.19(f)<br\/>* CFPB Guidelines on refund timelines<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(23,this)' id='btn-23' value='See Answer'  \/><input type='hidden' id='questionType23' value='radio' class=''><\/div><div style='display:none' id='question-24'><br \/><div class='question-content'><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blog.topexamcollection.com\/wp-content\/plugins\/watu\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading ...\" title=\"Loading ...\" \/>&nbsp;Loading &#8230;<\/div><\/div><br \/>\n<input type=\"button\" name=\"action\" onclick=\"Watu.submitResult()\" id=\"action-button\" style=\"margin:0 auto 20px auto;\" value=\"View Results\"  class=\"watu-submit-button\" \/>\n<input type=\"hidden\" name=\"no_ajax\" value=\"0\"><input type=\"hidden\" name=\"quiz_id\" value=\"995\" \/>\n<input type=\"hidden\" id=\"watuStartTime\" name=\"start_time\" value=\"2026-09-23 13:43:50\" \/>\n<\/form>\n<\/div>\n<div id=\"watu-loading-result\" style=\"display:none;\">\n\t<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blog.topexamcollection.com\/wp-content\/plugins\/watu\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading\" title=\"Loading\" \/><\/p>\n<\/div>\t\n<script type=\"text\/javascript\">\nvar exam_id=0;\nvar question_ids='';\nvar watuURL='';\njQuery(function($){\nquestion_ids = \"19603,19604,19605,19606,19607,19608,19609,19610,19611,19612,19613,19614,19615,19616,19617,19618,19619,19620,19621,19622,19623,19624,19625\";\nexam_id = 995;\nWatu.exam_id = exam_id;\nWatu.qArr = question_ids.split(',');\nWatu.post_id = 2423;\nWatu.singlePage = '1';\nWatu.hAppID = \"0.62901000 1790171030\";\nwatuURL = \"https:\/\/blog.topexamcollection.com\/wp-admin\/admin-ajax.php\";\nWatu.noAlertUnanswered = 0;\n});\n\nfunction showanswer1(e,q) {\n\tvar check = new Array();\n\tjQuery('.answer-' + e).each(function (i) {\n\t\tcheck.push(this.checked)\n\t})\n\tlet textval = jQuery('.watu-textarea-' + e).val()\n\tif (jQuery.inArray(true, check) >= 0 || textval !== '' && textval !== undefined) {\n\t\tjQuery(q).stop().fadeOut(300)\n\t\tjQuery('.php-answer-label.label-' + e).addClass(\n\t\t\t'correct-answer'\n\t\t)\n\t\tjQuery('.answer-' + e).each(function (i) {\n\t\t\tif (this.checked && this.className.match(\/js\\-answer\/)) {\n\t\t\t\tvar number = this.id.toString().replace(\/\\D\/g, '')\n\t\t\t\tif (number) {\n\t\t\t\t\tjQuery('#answer-label-' + number).addClass('user-answer')\n\t\t\t\t}\n\t\t\t}\n\t\t})\n\t\tjQuery(q).siblings('.show-question-feedback').stop().fadeIn(300)\n\t\ttextval = ''\n\t} else if (textval == '' || textval == undefined){\n\t\t\/\/jQuery(\".hint\").stop().fadeIn(300)\n\t\talert('Please first answer the question');\n\t}\n}\nvar btnisshow = jQuery(\".php-answer-label\").length\nif (btnisshow > 0) {\n\tjQuery('.showchecked').show()\n} else {\n\tjQuery('.showchecked').hide()\n}\n<\/script>\n<p><strong>MLO Exam questions and answers: <a href=\"https:\/\/www.topexamcollection.com\/MLO-vce-collection.html\" target=\"_blank\">https:\/\/www.topexamcollection.com\/MLO-vce-collection.html<\/a><\/strong><\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>[2026] Use Valid New MLO Test Notes &amp; 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