NMLS- SAFE Test Review.Questions and Answers Latest Updated 2024

When ordering an appraisal, it is illegal to... - ANSWER-Request that the appraiser return a minimum or specific value. Mortgage professionals are permitted to communicate their own or the borrower's opinion when ordering an appraisal; however, requesting a specific or minimum value is considered improper influence of an appraiser and is a serious ethical and legal violation. Borrower credit is... - ANSWER-An amount paid by the lender to borrower for locking an interest rate at a rate higher than the par rate. The borrower credit is used to help the borrower subsidize closing costs in exchange for taking the higher rate. MAP Rule implementing regulations... - ANSWER-Regulation N Equity stripping is... - ANSWER-The unethical practice of basing a loan approval on only the appraised value of the property. The practice does not consider repayment ability. Some states have passed regulations aimed at prohibiting the practice. Three conditions that an affiliated business must meet to satisfy referral requirements... - ANSWER-Disclosure of the relationship, No required use of the referred entity, Limitations on the "things of value" resulting from the arrangement