Mortgage Loan Originator (MLO) Licensing Practice Test

Question: 1 / 605

What is the maximum loan origination fee for a loan amount exceeding $5,000 in Florida?

$125, plus 10% of the entire loan amount

$250, plus 10% of the entire loan amount

In Florida, the maximum loan origination fee for a loan amount exceeding $5,000 is structured to ensure that borrowers are not excessively charged. The correct answer reflects this by allowing a set fee along with a percentage of the overall loan amount. Specifically, the fee consists of a base amount of $250 plus an additional 10% of the total loan amount. This structure is important as it balances the lender's need to charge a reasonable fee for their services with consumer protection measures designed to keep loan costs in check.

The rationale behind having both a flat fee and a percentage allows lenders to cover their costs while also scaling the fees according to the size of the loan, thus accommodating both small and large loan amounts fairly. This approach helps prevent a situation where borrowers with larger loans face disproportionately higher fees compared to those with smaller loans.

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$300, plus 5% of the entire loan amount

$400, flat fee

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