Exam (elaborations)
NMLS Exam with Complete Solutions
NMLS Exam with Complete Solutions
[Show more]
Content preview
NMLS Exam with Complete SolutionsWhat law allows the borrower to sue for treble damages CORRECT ANS-Section 9 RESPA
Escrow account CORRECT ANS-The account they set up to pay taxes and insurance
Section 10 RESPA CORRECT ANS-Set a limit on the amount required to be put into an
escrow account for the purposes of paying property taxes and insurance
What is the maximum amount of cushion that RESPA allows the lender to collect at closing?
CORRECT ANS-1/6 of property taxes which is two months
What does an aggregate annual analysis mean CORRECT ANS-An annual escrow account
analysis means they give you a statement saying that how much they took a month, when
they pay taxes and insurance and also if they took $50 or more they must return it
if there is a shortage in funds they require you to pay it from your funds to cover the shortage
Mortgage broker CORRECT ANS-Mortgage broker is an intermediary working with the
borrower and lender while qualifying the borrower for a mortgage broker gathers income
, NMLS Exam with Complete Solutions
asset and employment documentation a credit report and other information processing the
bar wars ability to secure financing
Loans that RESPA is applicable CORRECT ANS-Fannie and Freddie foreclosures, Fannie Mae
and Freddie Mac, USDA, VA, FHA and conventional
Settlement services CORRECT ANS-A settlement service includes any service provided in
connection with the real estate settlement including but not limited to the following: title
searches, title examination, the provision of titles certification, title insurance.
purpose of RESPA CORRECT ANS-Required effective advance disclosure of costs, eliminate
kick back and referral fees, limit amount held in escrow or reserve amounts, reform
recordkeeping of land title information.
6 things that are required for an mortgage application CORRECT ANS-NISAMP (Name,
income, Social Security, Address, Mortgage amount, and property value)
GFE CORRECT ANS-Good Faith Estimate
, NMLS Exam with Complete Solutions
What information is given in the GFE? CORRECT ANS-How much the borrower/buyer
should expect to pay at the settlement/closing.
Requirement 2 of Safeguard Rule (IARCIEECR) CORRECT ANS-Identify and access the risks
to customer information as well as evaluate the effectiveness of controlling the risks.
EXPA (RESPA) CORRECT ANS-Applies to federally related mortgage loans
Funds insured by the government
Funds from a lender REGULATED by the government
Intended for sale to Fannie or Freddie
Made by a creditor regulated under TILA
RESPA CORRECT ANS-Real Estate Settlement Procedures Act
HUD CORRECT ANS-Department of Housing and Urban Development
, NMLS Exam with Complete Solutions
Section 6 (RESPA) CORRECT ANS-Deals with mortgage servicing, protecting from abuses.
Example: not applying payments on time or not paying taxes or insurance.
Mortgage Servicers CORRECT ANS-Deal with the payments being made, taking payments.
Dealing with taxes and insurance. Notify client about late fees
Section 8 (RESPA) CORRECT ANS-Prohibits kickback fees fee splitting and unearned fees, it
prohibits giving or accepting fees of value , prohibits splitting or accepting fees for services
not performed
Section 9 (RESPA) CORRECT ANS-States the seller cannot require the use of a particular
title company as a condition of the sale
Title Insurance CORRECT ANS-Title insurance is insurance policy for the loss of ownership
interest in the property due to legal defects
If section 9 is violated CORRECT ANS-Buyer may sue a seller who violates this provision for
an amount three times all title insurance charges
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 TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $26.35. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now