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. Utilize diverse question formats, including flashcards and multiple choice, with detailed explanations. Gear up for your MLO exam with comprehensive study material!

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.


According to Florida law, how many days does a borrower have to cancel the loan modification agreement?

  1. Two business days

  2. Three business days

  3. Five business days

  4. Seven business days

The correct answer is: Three business days

In Florida, borrowers are afforded the right to cancel a loan modification agreement within three business days. This grace period is designed to protect consumers, ensuring they have adequate time to review the terms and implications of the modification before being legally bound to it. Having this timeframe allows borrowers to ensure they are making a well-informed decision, which is essential in the context of financial agreements that can significantly impact their circumstances. While other options suggest different timeframes, the legal stipulation specifically sets this period at three business days, confirming its crucial role in consumer protection laws in Florida.