NMLS SAFE ACT MLO Exam - Federal Law 2022/2023 with 100% correct answers
2 views 0 purchase
Course
NMLS SAFE
Institution
NMLS SAFE
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
An established business relationship with a company also will be created if you make an in...
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 - ANSWER-C. 3 months
An established business relationship with a company also will be created if you make an inquiry to the
company, or submit an application to it. This kind of established business relationship exists for three
months after the inquiry or application. During this time, the company can call you.
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below would be considered
a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
D. $200,000 loan with fees of $16,500 - ANSWER-D. $200,000 loan with fees of $16,500
What does it mean that HUD Homes are initially offered on a "priority basis"?
A. People who are buying the home as their primary residence are given 1st priority to make an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to make an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage quick sale.
,D. HUD will give priority financing to initial buyers of HUD Homes. - ANSWER-A. People who are buying
the home as their primary residence are given 1st priority to make an offer.
HUD is the Department of Housing and Urban Development: the United States federal department that
administers federal programs dealing with better housing and urban renewal; created in 1965
The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
C. closing costs.
D. loan servicing practices. - ANSWER-B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and key provisions.
RESPA requires disclosure of closing costs and loan servicing practices. ECOA requires disclosure of the
appraisal.
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
D. Within 1 business days after settlement - ANSWER-B. Within 30 calendar days after settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the amount by
which the tolerance was exceeded, at settlement or within 30 calendar days after settlement.
Which Regulation corresponds to The Real Estate Settlement Procedures Act (RESPA) ?
A. regulation Y
,B. regulation V
C. regulation Z
D. regulation X - ANSWER-D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One, passed by the
Federal Reserve Board, concerns credit extended to people who purchase United States Treasury
securities. The other, also known as the Real Estate Settlement Procedures Act (RESPA) is concerned
with the process of completing real estate sales. People who participate in such sales are monitored by
the Department of Housing and Urban Development to determine whether or not they are adhering to
legislation such as Regulation X.
Which is a disclosure that RESPA requires creditors to give to customers at the time of the mortgage
loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE - ANSWER-B. HUD-1
The HUD-1 Settlement Statement is a standard form in use in the United States of America which is used
to itemize services and fees charged to the borrower by the lender or broker.
The Federal law requiring unrestricted access to public accommodations is the:
A. Fair Housing act
B. The public accommodations
C. Real Estate Settlement procedures act
D. Americans with Disabilities Act. - ANSWER-D. Americans with Disabilities Act.
The Americans with Disabilities Act which gives civil rights protection to individuals with disabilities
similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion.
, It guarantees equal opportunity for individuals with disabilities in public accommodations, employment,
transportation, State and local government services, and telecommunications.
If each of the following loans would otherwise require compliance with the Federal Truth-in-Lending
ACT, which one would be exempt on the basis of the type of loan itself?
A. An agricultural loan by a bank
B. A VA loan from a federally-charted savings and loan association
C. $25,000 loan from a credit union for home improvement
D. $20,000 signature loan from a consumer finance company - ANSWER-A. An agricultural loan by a bank
Truth-In-Lending Act was designed to protect the borrower by requiring the lender to make a
meaningful disclosure of credit terms to the borrower. The Truth-in-Lending Act would not cover
Agricultural Loans. The right of rescission on a loan begins when Loan documents are signed by the
borrower;
TILA allows consumers _____ to back out of a loan transaction through a right of rescission.
A. 5 Business days
B. 3 Business days
C. 7 Business days
D. 9 Business days - ANSWER-B. 3 Business days
Under TILA, a consumer may rescind a consumer credit transaction within 3 business days if all TILA
disclosure requirements are not met
Of the following real estate loans, which one would not have to comply with the federal Truth-in-
Lending law:
A. A loan to re-finance a single-family residence;
B. A loan to purchase a mobile home;
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
