NMLS MLO Exam Dumps - Valid Questions Answers

A quit claim deed is a legal document used in real estate transactions to convey ownership or interest in a property from one party to another. It transfers the grantor’s interest in the property without any warranties or guarantees about the property’s title.

Promissory notes (B) represent a borrower’s promise to repay a loan.

Mortgage instruments (C) create a lien on the property but do not convey ownership.

Occupancy certificates (D) certify that a property complies with regulations for occupancy but are not involved in transferring ownership.

References:

Real Estate Law on property conveyances

Fannie Mae Deed and Title Transfer Guidelines

Non-qualified mortgages (Non-QM) are designed to help borrowers who do not meet the standard documentation or income verification requirements of traditional qualified mortgages (QM). Non-QM loans provide more flexibility in underwriting guidelines and are often used by borrowers such as:

Self-employed individuals who may have inconsistent or difficult-to-verify income streams. These borrowers may use bank statements or asset-based verification instead of W-2 forms or tax returns to qualify for a loan.

Non-QMs cater to borrowers who have unique financial situations but still demonstrate the ability to repay. Non-QM loans are not necessarily high-risk but offer alternatives for those who don’t meet the stringent Qualified Mortgage rules.

Other options:

Unemployed individuals (A) typically cannot qualify unless they have alternative forms of income.

No down payment (C): Non-QM loans usually still require a down payment, though the amount may vary.

Living with parents (D) is not a relevant factor in Non-QM lending.

References:

Dodd-Frank Act and Ability-to-Repay (ATR) rule

CFPB guidelines on Qualified vs. Non-Qualified Mortgages

A borrower who knowingly makes false statements on a federally related mortgage loan to obtain property can face severe penalties under federal law. The penalties can include:

A fine of up to $1 million.

Imprisonment for up to 30 years.

These penalties fall under federal statutes such as 18 U.S.C. § 1014, which covers fraud and false statements related to loan applications. This is a serious offense, and the law is designed to deter fraud in federally related mortgage transactions.

References:

18 U.S.C. § 1014 - Penalties for False Statements

Fraud Enforcement and Recovery Act (FERA)