Mortgage Loan Originator (MLO) Licensing Practice Test

The correct answer highlights the six key pieces of information that are typically required to define a mortgage application, which include the borrower's name, income, desired loan amount, social security number, property address, and an estimate of the property's value.

These elements are critical because they provide the lender with a comprehensive profile of the borrower and the property involved in the mortgage transaction. The borrower's name and social security number are essential for identification and to run credit checks. The income and desired loan amount help assess the borrower's ability to repay the loan and whether they will qualify for the amount requested. The property address and an estimate of the property's value enable the lender to evaluate the collateral for the loan and ensure that it meets underwriting guidelines.

In contrast, the other choices focus on different aspects of the loan process that, while important, do not specifically define the core information typically required at the initial mortgage application stage. For example, credit scores and debt-to-income ratios are calculations and metrics derived from the information provided rather than foundational data. Similarly, elements like employment history, loan type, or lender’s fees, while significant in the overall mortgage process, do not form the initial set of information defining the application itself.