The MLO license and the NMLS exam, in the order a state asks

Under the Homeowners Protection Act, if PMI on a current borrower's loan has not already ended, it must end no later than:

1. When an appraisal shows 75% LTV

   A new appraisal does not trigger the statute: HPA measures the 80% and 78% points against the home's original value, not a fresh valuation.
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2. The 10th anniversary of the loan's closing

   There is no 10-year date in the HPA; this guess replaces the real backstop, which is tied to the loan's own amortization schedule.
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3. The 5th anniversary of the loan

   A 5th anniversary is far too early and appears nowhere in the HPA termination rules; it borrows a typical seasoning period from investor guidelines.
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4. The midpoint of the amortization period

   The HPA backstop ends PMI the month after the amortization midpoint (year 15 of a 30-year loan) for a borrower who is current, even if 78% was never reached.
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Select an answer to record it. The card then marks the key and opens the reasoning under every choice.

A $350,000 first-lien loan meets all General QM product and underwriting rules. Its APR exceeds the APOR by 2.0 percentage points. What is its status?

1. Rebuttable presumption QM

   At 2.0 points over APOR the first lien is still under the 2.25-point General QM price limit, but at 1.5 points or more it is higher-priced, so it keeps QM status with only a rebuttable presumption.
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2. Section 32 high-cost mortgage

   The HOEPA rate trigger for a first lien is 6.5 points over APOR, so a 2.0-point spread is nowhere near Section 32 high-cost status.
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3. Non-qualified mortgage

   Calling it non-QM confuses the higher-priced threshold with the QM price ceiling; the loan stays under the 2.25-point limit and meets the product rules.
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4. Safe harbor QM

   The safe harbor ends once a first lien is priced 1.5 points or more above APOR; a 2.0-point spread is past that line.
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To document six months of reserves, a jumbo applicant submits one internet screenshot of an account summary. Why will the underwriter likely reject it?

1. It shows a balance but not the interest rate

   The interest rate on a deposit account has nothing to do with reserves; the underwriter needs ownership and history, not yield.
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2. It is older than 10 days at application

   No 10-day freshness rule exists for asset documents; investors set longer age limits, and the screenshot's problem is its content, not its date.
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3. It does not verify owner or account activity

   A summary screenshot rarely shows the account holder's name, the account number and the transaction history, so it cannot prove whose funds they are or source recent deposits.
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4. It does not list a beneficiary for the account

   A payable-on-death beneficiary is irrelevant to whether funds belong to the borrower and are available as reserves.
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An MLO shows a consumer only a loan that pays the MLO a higher commission, even though the consumer qualifies for a loan with a lower rate and fees. This is:

1. A RESPA Section 8 referral kickback

   Section 8 targets payments between settlement providers for referrals; a creditor paying its own originator more for a product is a Regulation Z compensation issue.
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2. Steering prohibited by Regulation Z

   Regulation Z bars directing a consumer to a loan because it pays the originator more unless it is in the consumer's interest, and hiding a cheaper eligible loan fails that test.
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3. Permitted if the commission is disclosed

   Disclosing the higher pay does not cure the conduct; the anti-steering rule turns on the consumer's interest, not on transparency about compensation.
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4. Permitted if the consumer signs the application

   The consumer's signature on the application does not convert steering into an informed choice when the cheaper loan was never shown.
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