Mortgage Loan Originator (MLO) Licensing Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Mortgage Loan Originator Licensing Test with engaging quizzes. Study with multiple-choice questions that include explanations and suggestions. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which type of residential property loan is NOT impacted by ECOA?

Conventional loans
FHA loans
VA loans
No loan types are exempt

The correct answer is: No loan types are exempt

The correct answer highlights that no loan types are exempt from the Equal Credit Opportunity Act (ECOA). ECOA is a critical piece of legislation aimed at ensuring fair lending practices across various types of loans. The act prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, or reliance on public assistance when making lending decisions. Since ECOA applies to all residential mortgage loans, including conventional, FHA, and VA loans, there are no exemptions; thus, all loan types must adhere to the regulations set forth by ECOA. This ensures that borrowers are treated fairly and consistently, regardless of the type of mortgage they are seeking. Understanding the universality of ECOA is crucial for mortgage loan originators, as it highlights the importance of equitable lending practices in fostering trust and compliance within the financial market.