NMLS BUNDLED EXAMS 2023 WITH 100% CORRECT ANSWERS

Acceleration Clause - correct answer Allows lenders to demand payment in full if the borrower defaults on the loan (can be construed as predatory lending) Alienation Clause (Due on Sale Clause) - correct answer Says you must repay your mortgage if you sell your home to a new owner (loan is not as...

Enhancing protection and reducing fraud by directing states to adopt minimum uniform standards for the licensing and registration of residential mortgage loan originators was the purpose of the federal act known as the: a. S.A.F.E. Act b. Federal Trade Act c. Consumer Financial Protection Act ...

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? - correct answer -TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity rem...

Primary Mortgage Market - correct answer -Where credit institutions originate loans C. The maximum the rate can increase over the life of the loan - correct answer -When an ARM has rate caps of 5/2/6, the 6 refers to what? A. The maximum rate increase at the initial adjustment B. The start rat...

What does TILA stand for? - correct answerTruth-In-Lending Act, Regulation Z What is a HELOC loan? - correct answera secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? - correct answer LTV stands for - correct answerLoan to Value...

Regulation Z - correct answerEnforced by Consumer Financial Protection Bureau (CFPB), covers the Consumer Protection Act and the Truth in Lending Act (TILA) Consumer Protection Act - correct answerDisclosures of terms of credit Truth in Lending Act (TILA) - correct answerEnforced by the Federa...

5/1 Adjustable Rate Mortgage - correct answerA 5/1 adjustable rate mortgage (ARM) or 5-year ARM is a mortgage loan where "5" is the number of years your initial interest rate will stay fixed. The "1" represents how often your interest rate will adjust after the initial five-year period ends. The...

ECOA - Reg B - correct answer -Equal Credit Opportunity Act HMDA - Reg C - correct answer -Home Mortgage Disclosure Act RESPA - Reg X - correct answer -Real Estate Settlement Procedures Act TILA - Reg Z - correct answer -Truth In Lending Act HPA - correct answer -Home-owner Protection Ac...

A lender provides a borrower with an initial amortization schedule for Private Mortgage Insurance (PMI) disclosure at loan closing for an adjustable-rate mortgage. The lender MUST also provide a written notice stating the A. Lender's right to increase the monthly payment amount for PMI B. Borr...

If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you in regards to a loan, when does right to contact them expire? A. 1 month B. 2 months C. 3 months D. 4 months - correct answer -C. 3 months An established business relationship with a company also will ...

Which of the following describes an air loan? A. A loan that is obtained with inflated property values B. A loan that is repeatedly refinanced with no benefit to the borrower C. A loan that is presented to the borrower with hidden fees D. A loan that is obtained by a fictitious borrower using ...

Fraud for money Laundering - correct answer --Criminal uses scheme known as value tampering -Criminal offers to buy house at reduced rate -Seller must sell at appraised value on paper, but after closing, seller give the criminal the difference in cash. Adverse Action - correct answer -An unfavo...