NM MLO case studies

NM MLO · Put your knowledge to work in context.

The NMLS Mortgage Loan Originator (MLO) Test is the licensing exam used within the Nationwide Multistate Licensing System, the system through which individuals obtain and maintain state mortgage loan originator licenses. It is intended for candidates who need to demonstrate the knowledge required to originate mortgage loans responsibly under federal and state rules, and for currently licensed MLOs who must meet testing requirements as part of licensing. The NM MLO case studies are 5 cases and about 3,865 words.

The Late Title Premium: TRID Redisclosure and Tolerance Rescue

Marcus and Lena Ott are scheduled to close a 385,000 purchase at 2:00 p.m. Their rate lock on the 30-year conventional loan expires Wednesday at midnight, and there is no federal holiday this week.

644 words, about 3 min 2

A 7/1 ARM at the Ceiling: Payment Shock and Qualification Rate

Priya is a first-time buyer under contract on a 525,000 townhome with a 420,000 7/1 ARM, 30-year amortization. The note rate is 6.250%, caps are 5/1/5, the margin is 2.750%, and the 30-day SOFR index at consummation is 4.300%.

787 words, about 4 min 3

S-Corporation Owner: Add-Backs, Distributions, and a Declining Year

Devon is a 100% owner of a consulting S-corporation and has been in business for six years. He is applying for a conventional purchase with estimated PITI of 2,950.

764 words, about 4 min 4

The Branch Manager's Rate Bonus and the Realtor's Rent Check

You originate for a mid-sized lender and are paid a 28,000 base plus 75 basis points of the loan amount, on loans at any rate. Your branch manager proposes two changes he says will "keep the lights on": an extra 25 basis points whenever the borrower's note rate is at least 0.375% above the posted par rate, and a 1% origination fee paid to you directly by the borrower at closing while the lender continues to pay your 75 basis points.

850 words, about 4 min 5

HPML Refinance: Escrow Waiver, Drive-By Appraisal, and a Three-Month Cushion

A borrower is refinancing her primary residence with a 520,000 first lien. The rate was set Tuesday, the APR is 7.85%, and the comparable average prime offer rate for that date is 6.20%.

820 words, about 4 min