To qualify for a mortgage loan originator license, a person must:
Your Answer: Option(s)
Correct Answer: Option(s) C
Rationale
The SAFE Act requires mortgage loan originators to complete prelicensing education (C). High school graduation (A) or being 21 (B) are not mandatory. A finance degree or banking experience (D) is not required.
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Question 2
Altering a borrower's income verification to increase the likelihood of loan approval is:
Your Answer: Option(s)
Correct Answer: Option(s) A
Rationale
Altering income verification is fraud and prohibited by federal law (A). Underwriting waivers (B), no-income/no-asset loans (C), and government-sponsored loans (D) do not permit this.
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Question 3
A mortgage loan originator paying compensation to a real estate agent for client referrals is:
Your Answer: Option(s)
Correct Answer: Option(s) B
Rationale
Paying for referrals is an illegal kickback under RESPA (B). Client consent (A), noncash gifts (C), or business expenses (D) do not exempt this violation.
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Question 4
A mortgage loan originator is permitted to take which of the following actions to have the appraiser increase the appraised value of a property?
Your Answer: Option(s)
Correct Answer: Option(s) B
Rationale
Providing recent comparable sales (B) is permissible to support a higher appraisal value. Offering commissions (A), more business (C), or threatening to withhold business (D) are unethical and prohibited.
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Question 5
A real estate agent calls a mortgage loan originator (MLO) and states that a potential property buyer needs to be prequalified for a mortgage. The real estate agent states that the home's sellers do not want the potential buyers to purchase the home because they affiliate with a certain religion. In which of the following ways should the MLO respond?
Your Answer: Option(s)
Correct Answer: Option(s) B
Rationale
The MLO must inform the real estate agent that discrimination based on religion is illegal under fair lending laws (B). Referring to another MLO (A), discouraging buyers (C), or advising buyers to look elsewhere (D) violates anti-discrimination laws.
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