West Virginia Mortgage Loan Originator (MLO) Practice Test

These questions are part of the practice quiz. Start practicing

• What is the role of the Nationwide Mortgage Licensing System (NMLS)?
• What is a "short sale" in real estate?
• What is the primary purpose of the Good Funds Settlement Act?
• What is the primary focus of the Fair Housing Act?
• Which of the following is NOT a requirement of the Dodd-Frank Act?
• Which form is used to disclose an applicant's right to receive a copy of their credit report?
• What financial document outlines the terms of a mortgage?
• For how long are West Virginia licensees required to maintain copies of their advertising after use?
• Which of the following is least likely to be accepted as verification of repayment ability?
• How much do mortgage brokers and lenders in West Virginia need to pay for each residential mortgage loan they originate or broker?
• What does "subordination" mean in a mortgage context?
• How many days does Aaron have to provide notice of adverse action after receiving a completed loan application?
• What does a borrower typically provide for loan approval?
• Which type of mortgage typically requires no down payment?
• What is the policy regarding application fees in the state of West Virginia?
• What is a common purpose of a loan estimate?
• If the Attorney General finds a willful violation of the law by a licensee, what is the maximum civil penalty they can impose per violation?
• What must mortgage loan originators consider when evaluating the tangible net benefit of a refinance for a borrower?
• Which law requires MLOs to protect personal financial information?
• What is typically required from a borrower when closing on a mortgage?
• What financial term describes the total cost of borrowing money?
• Under the Equal Credit Opportunity Act (ECOA), discrimination based on race is considered what?
• What is the maximum finance charge that may be collected in a subordinate loan transaction?
• Who is responsible for disbursing loan funds to the settlement agent at the appropriate time?
• Each violation of the Residential Mortgage Lender, Broker and Servicer Act is classified as what type of offense?
• Which of the following is a responsibility of mortgage licensees in West Virginia?
• What is the effect of failing to comply with the Good Funds Settlement Act on the enforceability of loan documents?
• In what case can lenders charge prepayment penalties?
• What is the purpose of the special notice under the Consumer Credit and Protection Act?
• Which of the following is an example of a conventional loan?
• What is an origination fee?
• What best describes the term "loan origination fee"?
• What is considered a "prepayment penalty"?
• What is a primary goal of the underwriting process?
• What type of penalty can the Attorney General impose if a licensee commits a willful violation?
• What action should be taken if an applicant has a credit score below the lender’s minimum requirement?
• Which report must mortgage licensees regularly submit to the NMLS?
• Who is the head of the Division of Financial Institutions in West Virginia?
• How quickly must a lender or servicer provide a payoff statement upon request by a borrower?
• What is the legal consequence for each violation of the Residential Mortgage Lender, Broker and Servicer Act in West Virginia?
• Which document must the borrower receive at least three business days before closing?
• What is the maximum total points and fees a lender or broker may collect on a mortgage loan, excluding third-party fees?
• Which party’s liability must be disclosed in the special notice under the Consumer Credit and Protection Act?
• The special notice required under the Consumer Credit and Protection Act is designed to explain what aspect of a loan?
• What is the maximum civil penalty for each violation of the West Virginia S.A.F.E. Act?
• Which of the following is a requirement for mortgage licensees concerning electronic records?
• What type of crime is indicated for violations of the Residential Mortgage Lender, Broker and Servicer Act?
• What aspect of a borrower's financial situation is referred to as DTI?
• What does NOT constitute an unconscionable tactic in mortgage lending?
• For how long must mortgage lenders retain records after the loan closing?
• In the context of mortgage lending, what does it mean to "confess judgment"?
• What is the borrower's primary responsibility after a mortgage loan is closed?
• What is a common characteristic of a fixed-rate mortgage?
• Who primarily oversees and regulates mortgage professionals in West Virginia?
• What is typically the primary factor affecting a borrower's mortgage interest rate?
• What West Virginia law implements identity theft protections?
• What is a balloon mortgage?
• How often must Mortgage Loan Originators (MLOs) renew their licenses?
• Which type of service is covered by the Residential Mortgage Lender, Broker and Servicer Act?
• Each violation of the Residential Mortgage Lender, Broker and Servicer Act is considered what?
• Which of the following best defines the term "escrow" in mortgage lending?
• Under what condition may the Attorney General order a person to cease and desist?
• What type of loan requires no down payment?
• What is the required completion timeline for a Tangible Net Benefit Worksheet for a refinancing loan?
• Which regulation requires lenders to notify applicants if their loan application is denied?
• What is the primary function of the Federal Reserve in relation to mortgage lending?
• What term describes a natural person who assumes liability for a consumer loan without receiving goods, services, or money in return?
• When can origination fees be collected?
• What action may the Commissioner take when a licensee violates the law?
• What is the name of the act that governs the actions of mortgage lenders, brokers, and servicers in West Virginia?
• What type of loan is secured by a mortgage on a property with existing mortgages?
• Which of the following is NOT a requirement for a valid mortgage loan originator practice?
• What type of mortgage loan may have several prior recorded mortgages or deeds of trust?
• What is the maximum allowable interest rate for a mortgage loan in West Virginia?
• If a mortgage loan is made in violation of the law, what may happen to the loan?
• In terms of mortgage laws, what is considered a "misdemeanor" in West Virginia?
• What does "escrow" mean in mortgage lending?
• What does the term "underwriting" refer to in mortgage lending?
• Which of the following actions by a mortgage loan originator would not be in violation of the law?
• Is Aaron allowed to provide loan documents electronically?
• A single violation of the West Virginia S.A.F.E. Act may result in a civil administrative penalty of up to what amount?
• What is a potential consequence of willful violation of the Residential Mortgage Lender, Broker and Servicer Act?
• What document is primarily responsible for detailing the terms and conditions of a mortgage loan?
• Which authority can take disciplinary action for violations of financial law?
• What is the purpose of an appraisal in the loan process?
• What is one of the primary responsibilities of a Mortgage Loan Originator (MLO)?
• What is the definition of a finance charge in mortgage lending?
• What does LTV stand for in mortgage lending?
• Under West Virginia state law, what must a licensee document if a borrower's debt-to-income ratio exceeds a certain percentage?
• What does the term "point" refer to in mortgage lending?
• Which of the following is typically included in closing costs?
• What is the penalty for violating RESPA?
• Which practice is specifically considered an unfair trade practice in West Virginia?
• Which of the following is NOT considered acceptable evidence of repayment ability?
• Which West Virginia law mandates special notice to co-signors on covered loans?
• Which federal law provides protection for consumers against unfair lending practices?
• Under which circumstance may Deb lawfully collect undisclosed fees from clients according to West Virginia law?
• What does "QM" stand for in mortgage lending?
• Which of the following factors does NOT affect a borrower's credit score?
• What is the general term for the fee collected by lenders to cover processing costs?
• What type of mortgage loan typically has the highest interest rates?
• What is the status of collecting an application fee according to current regulations?
• What must lenders ensure about the borrower’s ability to repay under the QM guidelines?
• What does not qualify as a finance charge?
• Which act provides legal protections against high-pressure sales tactics during mortgage transactions?
• Who is obligated to pay a fee for each loan they originate, make, or broker under West Virginia law?
• According to West Virginia law, what does "finance charge" refer to?
• How long must an MLO keep records for each loan transaction?
• In terms of mortgage loans, what does "amortization" refer to?
• What is "dual compensation" in the context of mortgage origination?
• What are closing costs in the context of mortgage transactions?
• What is the maximum amount of compensation an MLO can receive on a loan under TRID regulations?
• Under the Consumer Credit and Protection Act, when can consumer reporting agencies not report credit information?
• Which fee is required by state law for each residential mortgage loan originated or brokered?
• What is the consequence of failing to comply with the Real Estate Settlement Procedures Act (RESPA)?
• Which term describes a loan secured by a mortgage on a property that has one or more prior recorded mortgages?
• Under the SAFE Act, what prerequisite test must MLOs pass to obtain a license?
• If the Commissioner issues an order against a licensee, the licensee may request a hearing within how many days?
• Which of the following is NOT typically included in a loan estimate?
• Which type of mortgage typically requires private mortgage insurance (PMI)?
• Under what circumstances can MLOs receive commission?
• Which relative is NOT included in West Virginia's definition of immediate family?
• How does the Fair Credit Reporting Act relate to the Consumer Credit and Protection Act?
• In mortgage lending, what does the term "escrow" refer to?
• If title services will cost $500, what is the maximum amount that Deb may collect?
• What is the maximum duration of imprisonment for violations of the Residential Mortgage Lender, Broker and Servicer Act?
• What is the purpose of the Truth in Lending Act?
• Which of the following is an indicator of predatory lending?
• When may licensees collect origination fees on refinanced loans?
• Which of the following is a responsibility of mortgage licensees under the law?
• What must MLOs ensure regarding borrower data privacy?
• What is one of the factors that must be considered for the tangible net benefit when refinancing?
• What is the term for the percentage of a loan that is charged as interest to the borrower?
• Which of the following is a key requirement for conventional mortgages?
• Which factor is NOT considered when assessing a borrower's repayment ability?
• What is an MLO required to do if they discover a loan application contains fraudulent information?
• What is the minimum required continuing education for West Virginia mortgage loan originators each year?
• What is the maximum loan-to-value (LTV) ratio typically permissible for FHA loans?
• What document outlines the terms of the mortgage loan?
• Which entity issues the licenses for mortgage loan originators in West Virginia?
• What does the term "conversion" refer to in mortgage loans?
• Who is responsible for ensuring compliance with the E-Sign Act?
• Which action is least likely to be considered prohibited conduct towards an appraiser?
• What is the penalty for each violation of the Residential Mortgage Lender, Broker and Servicer Act?
• What is required for a borrower to be able to utilize remote online notarization in West Virginia?
• What is the primary purpose of the SAFE Act?
• What fee must mortgage brokers and lenders pay for each residential mortgage loan they originate or broker?
• Which could be considered a violation of appraisal ethics?
• How many hours of pre-licensing education are required for MLOs in West Virginia?
• What is the term for an electronic signature associated with a record that indicates intent to sign?
• What is an "affiliated business arrangement" in real estate?
• Which federal law must mortgage licensees comply with when delivering electronic records and signatures?
• What is the maximum period during which a mortgage licensee cannot collect origination fees after a loan refinance?
• Which Act includes measures related to identity theft?
• When can electronic signatures and documents be used in a mortgage loan transaction in West Virginia?
• What does the acronym RESPA stand for?
• What is the goal of advertising in the mortgage industry according to West Virginia law?
• Which of the following can be considered a benefit of an FHA loan?
• What is the role of a mortgage loan originator when assessing a refinance?
• What typically happens if a borrower fails to make mortgage payments?
• What is the purpose of the Home Mortgage Disclosure Act (HMDA)?
• What is considered an unfair trade practice under West Virginia law?
• What does "foreclosure" mean in the context of mortgage lending?
• Which federal agency regulates the mortgage industry at the national level?
• Who heads the Division of Financial Institutions in West Virginia?
• How is protection from identity theft enforced in West Virginia?
• When is it necessary for a mortgage loan originator to require the submission of documents to verify assets and income?
• What can mortgage loan documents legally include?
• In West Virginia, what is the minimum age requirement to become a licensed MLO?
• Which of the following actions is NOT unlawful for a mortgage loan originator?
• What constitutes a violation under West Virginia mortgage lending laws?
• What role do mortgage brokers play in the loan process?
• What may be included in a finance charge?
• What is the primary purpose of the Residential Mortgage Lender, Broker and Servicer Act?
• What does FHA stand for in mortgage lending?
• What is the purpose of private mortgage insurance (PMI)?
• According to state law, the per loan fee is paid to which entity?
• What is the name of the report that licensees must submit each year to relaying information about their business and operations?
• What must lenders provide to applicants within three business days of receiving a loan application?
• In mortgage terms, what does "escrow" refer to?
• How frequently will the Commissioner publish the list of licenses issued?
• Which activity is permitted for a licensed mortgage loan originator?
• Under the TILA, what information must be disclosed to borrowers?
• Which type of mortgage is most likely to require private mortgage insurance (PMI)?
• When must a consumer receive a copy of the Tangible Net Benefit Worksheet?
• Who has authority over consumer lenders in West Virginia and may take enforcement action?
• In a legal action for a lender's failure to properly disburse settlement proceeds, what may a borrower not attain?