SAFE-NMLS-MLO-CA Exam Study (FULL SET WITH ERROR-FREE ANSWERS)

Fraud for profit is a complex scheme involving... correct answers multiple parties, including mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money. If a lender sells, transfers, or otherwise disposes of its interest in a mortgage and does not service the mortgage, the lender shall... correct answers provide a copy of the Closing Disclosure to the new owner or servicer of the mortgage as a part of the transfer of the loan file. Under the Home Equity Loan Consumer Protection Act of 1988, if the disclosed terms change... correct answers the consumer can refuse to open the plan and is entitled to a refund of fees paid in connection with the application. The Right to Financial Privacy Act specifies that... correct answers before any information is released to the federal government, certain procedures, exemptions, limitations, and requirements concerning the release of customer financial records must be met. An Appraisal Report includes the... correct answers identity of the client and any intended users (by name or type), the intended use of the appraisal, the real estate involved, the real property interest appraised, the purpose of the appraisal, and dates of the appraisal and of the report. What are principles that lenders use to evaluate the risk of making real estate loans. correct answers Underwriting guidelines (The guidelines are just that—guidelines. They are flexible and vary according to loan program. If a borrower makes a small down payment or has marginal credit, the guidelines are more rigid.) One of the most obvious ways to classify loans is by their... correct answers purpose—purchase, refinance, or cash out. Lenders classify loans by the type of... correct answers amortization—fixed-rate, ARM, or GPM. Any mortgage product other than a 30-year, fixed-rate mortgage is called a... correct answers nontraditional mortgage The Panic of 1907 led to the passage of the... correct answers Federal Reserve Act of 1913 that established the Federal Reserve System. The Federal Trade Commission (FTC) was created in 1914 in an attempt to... correct answers "bust up" trusts and break apart monopolies that discouraged competition from smaller and less powerful businesses.