Mortgage Loan Originator (MLO) National Exam – Artricia Woods Practice Exam

The name or names of the borrower is one of the initial items of information necessary for a creditor to make a lending decision because it establishes the identity of the individuals applying for the loan. This information is essential for conducting background checks, credit assessments, and verification of income and employment history. Knowing the identity of the borrower allows the creditor to access relevant financial data about the applicants, assess their creditworthiness, and comply with legal and regulatory requirements.

While other options, such as the monthly mortgage payment amount and appraisal reports, are important in the lending process, they come into play after the lender has confirmed the borrower's identity and basic eligibility. Previous banking relationships can be useful for understanding the borrower's financial behavior but are not as fundamental to the initial decision as identifying the borrower themselves.