In Arizona, mortgage loan originators (MLOs) who work for non-bank lenders must be licensed under:
Why The SAFE Act and be registered in the NMLS (Nationwide Multistate Licensing System & Registry) Is Correct
Answer B: The SAFE Act and be registered in the NMLS (Nationwide Multistate Licensing System & Registry)
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Arizona Questions
- An Arizona real estate licensee who is also a mortgage loan originator must comply with licensing requirements under:Arizona License Law
- An Arizona buyer's agent who is also a licensed mortgage broker and originates the buyer's loan without disclosure is:Agency
- In Arizona, a 'HELOC' (home equity line of credit) compared to a 'home equity loan' (second mortgage) differs primarily in that:Finance
- An Arizona buyer assumes the seller's existing mortgage. The buyer's lender requires a 'due-on-sale' clause to be enforced. This means:Finance
- A buyer in Arizona purchases a home for $420,000 with a 20% down payment. What is the amount of the buyer's mortgage loan?Real Estate Math
- A buyer in Arizona obtains a $320,000 adjustable-rate mortgage (ARM) with an initial rate of 5.5%. The loan has a 2/2/5 cap structure. The MAXIMUM rate after the first adjustment is:Finance
- Private mortgage insurance (PMI) is typically required on a conventional loan in Arizona when the loan-to-value (LTV) ratio exceeds:Finance
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:Fair Housing
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
State-Specific Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →