A mortgage loan originator (MLO) takes an application for a borrower who is obtaining an owner-occupied maximum amount refinance loan. The borrower also asks for a loan application for a new house that they are purchasing that will not be finished until 60 days after the refinance loan closes. Although the MLO advises the borrower that the terms of the refinance loan require that they occupy the property for 12 months, the borrower says that the new purchase loan will not close until after the refinance loan has closed. The MLO must:

• A.refer the purchase loan to another MLO in their company to obtain a referral fee.
• B.refer the borrower to another lender for the purchase loan so that the MLO is permitted to get a commission on the refinance loan.
• C.take both applications and do one loan "in house" and broker the second loan to another lender.
• D.advise the borrower that the MLO can do the refinance loan as a non-owner-occupied loan and the purchase loan as an owner-occupied loan.

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Consumer complaints and the analysis of complaints play a vital role in identifying weaknesses in elements of a company's:

• A.hiring procedures and training.
• B.compliance management training and internal controls
• C.secondary marketing practices of selling loans to investors.
• D.compliance management, senior management and branch locations.

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Which of the following statements is permissible in an advertisement?

• A."Current interest rates as low as 3.50% with an APR of 3.99%. Contact us today!"
• B."Looking for a VA loan? We are endorsed by and affiliated with the VA administration."
• C."Take out a reverse mortgage loan with us, and you can stay in your home as long as you want and never make a payment."
• D."Close a mortgage loan with us within the next 60 days and when interest rates drop, we will refinance your loan at a lower rate guaranteed."

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The SAFE Act mandates that state regulatory authorities must have legal mechanisms to impose civil money penalties for which of the following activities?

• A.Paying or receiving referral fees
• B.Charging fees in excess of allowable tolerances
• C.Discriminating against applicants based on their race
• D.Acting as a mortgage loan originator without a valid license or registration

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Which of the following applicant characteristics is legally permitted to be considered in evaluating credit risk?

• A.Whether the applicant seems likely to have children
• B.Whether the applicant has a phone number listing in their name
• C.Whether the applicant's age makes them ineligible for credit-related insurance
• D.Whether the alimony payments the applicant relies on for income are likely to continue and to be consistently made

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