NMLS (MLO) TEST STUDY Exam Questions And Correct Answers 100% Verified.
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NMLS MLO
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NMLS MLO
NMLS (MLO) TEST STUDY Exam
Questions And Correct Answers 100%
Verified.
Which property is exempt under RESPA? - Answer25 acres or more
Which of the following is a purpose of RESPA? - AnswerTo eliminate kickback and referral fees
CFPB is the acronym for: - AnswerConsumer Financial Protection Bu...
NMLS (MLO) TEST STUDY Exam
Questions And Correct Answers 100%
Verified.
Which property is exempt under RESPA? - Answer✔25 acres or more
Which of the following is a purpose of RESPA? - Answer✔To eliminate kickback and referral fees
CFPB is the acronym for: - Answer✔Consumer Financial Protection Bureau.
Who provides the Annual Escrow Account Disclosure Statement? - Answer✔The Servicing
Lender
What is a purpose of the Truth in Lending Act? - Answer✔To enable consumers to compare the
cost of credit from lender to lender
A Loan Estimate: - Answer✔should exhibit a reasonable relationship to the actual final
settlement costs.
FCRA is the acronym for: - Answer✔Fair Credit Reporting Act.
The federal act that requires lenders to disclose mortgage loan information by geographic area
is: - Answer✔HMDA.
FHA is the acronym for: - Answer✔Fair Housing Act
If a home is purchased with an FHA owner-occupied loan, what type of FHA refinance can the
borrower use to refinance? - Answer✔Streamline
What information is a mortgage loan originator not allowed to ask a borrower who is applying
for a home mortgage? - Answer✔Receipt of Public Assistance
Define "Business day" under the Truth in Lending Act for the three day right of rescission. -
Answer✔Monday through Saturday except legal public holidays
Which of the following is an acceptable condition on which to base a mortgage loan originator's
compensation? - Answer✔A fixed percentage of the loan amount
What is the purpose of HMDA? - Answer✔To detect discriminatory lending
The following two disclosures are required by RESPA, if applicable: - Answer✔.LE and AfBA
A mortgage broker provides tickets to an NFL game to a title company executive for referring
customers to them. Which federal law does this arrangement violate? - Answer✔RESPA
When is an Affiliated Business Agreement required? - Answer✔At the time the borrower is
referred to the affiliated business partner
The Fair Credit Reporting Act covers all of the following EXCEPT: - Answer✔prohibiting
discrimination regarding the handicapped.
ECOA is also a part of what Reg.: - Answer✔B
TILA does not apply to which of the following: - Answer✔Commercial loans
The CHARM booklet was prepared by: - Answer✔the CFPB.
Which of the following must be provided to the client on an ARM loan? - Answer✔The CHARM
Handbook
An MLO provides the borrower a Loan Estimate in her office the day after the application was
completed, the borrower signs all disclosures and verbally tells the MLO they are ready to
proceed with the loan. The loan originator can charge the borrower for an appraisal: -
Answer✔That day
When can a lender collect a loan origination fee? - Answer✔When the loan closes
Which rule requires all financial institutions to design, implement, and maintain safeguards to
protect customer information while it is in the custody and control of the institution and its
agents? - Answer✔The Safeguard Rule
After meeting with the borrowers to complete a loan application, you return to your office and
order a Tri-Merged credit report. Now that you have a credit report, what Loan Disclosure must
you now prepare and mail (or give) to them? - Answer✔Notice to Home Loan Applicant
HMDA requires the lenders to obtain what information for each borrower? - Answer✔Race and
Sex
You and the borrower believe an Adjustable Rate Mortgage would be best for the borrower.
What is the name of the booklet you are required to give? - Answer✔CHARM Booklet
Which rule dictates how instructions are required to dispose of consumer's information? -
Answer✔The Disposal Rule
The Borrower is entitled to the disclosure of the costs of a mortgage loan through the Loan
Estimate: - Answer✔within three business days of the loan application.
The responsibility of financial institutions to meet both the deposit and credit needs of the
community, including the needs of low-income families, is called? - Answer✔the Community
Reinvestment Act.
Which of the following is NOT calculated into the APR? - Answer✔Realtor's commission
If a loan originator is in a face-to-face loan interview with the applicant, and the applicant does
not wish to answer the questions in Section 10 on the 1003 , the loan officer must: -
Answer✔fill out the information based on visual observation.
Who of the following would be an appropriate person to discuss the borrower's credit with to
determine whether they qualify for the proposed loan or not? - Answer✔Underwriter
According to the Fair and Accurate Credit Transaction Act, when are borrowers entitled to get a
copy of their credit scores? - Answer✔Once a year
In compliance with the general provisions of Regulation Z, how long is a lender required to
maintain records? - Answer✔2 years.
An MLO purchases tickets for a sporting event and provides those tickets to a local real estate
agent as a thank you for a referral and also in the hopes that that real estate agent will continue
to send clients, this would be considered: - Answer✔An illegal practice
What law requires the lender to collect a borrower's demographic information for first
mortgages and home improvement loans? - Answer✔HMDA
An MLO is required to protect a borrower's non-public personal information, per what federal
law? - Answer✔Regulation P
An MLO is looking over a borrower's credit report and sees a fraud alert, under the Economic
Growth, Regulatory Relief and Consumer Protection Act, how long can a fraud alert be on a
borrower's credit report? - Answer✔1 year
RESPA does not apply to: - Answer✔Vacant Land
Which is not a disclosure required within 3 business days of receiving an application? -
Answer✔Environmental hazard disclosure
Dodd-Frank mandated which of the following rules that now appear under TILA: -
Answer✔Qualified Mortgage
How many days in advance of transferring a loan to another lender must the current mortgage
servicer inform that customer of the transfer to another lender who will subsequently be
servicing the loan? - Answer✔15
Under what law is a lender required to provide an adverse action disclosure if the borrower's
credit is the reasoning for all or part of the decision to deny the loan application: -
Answer✔Regulation V
What is the maximum penalty for providing false information on a federally related loan? -
Answer✔Up to $1,000,000 fine and jail time
According to Regulation B, which of the following is not recommended? - Answer✔referring to
the man as the borrower and the woman as a co-borrower
What are the penalties for violating Section 8 of RESPA? - Answer✔$10,000 per incident plus
one year jail time
What is NOT likely to happen if the lender/investor finds fraud? - Answer✔A 1% interest rate
increase on the loan
The practice of getting people to sell their homes at bargain prices by suggesting that certain
ethnic groups are going to move into the area is nicknamed: - Answer✔Blockbusting
Which Act requires the Home Loan Toolkit to be sent to the borrower on a purchase? -
Answer✔TRID
How often do RESPA regulations require that an escrow statement be provided to the
borrower? - Answer✔Annually
"Seller Concessions," as relates to the mortgage business are: - Answer✔offers by sellers to
contribute to the closing costs of the buyer.
A yield spread premium is disclosed on which document? - Answer✔Loan Estimate
If a borrower and a co-borrower are refinancing a home that they both occupy, at the closing -
who must receive a copy of the rescission disclosure? - Answer✔Both borrowers
Regulation B allows all of the following except: - Answer✔using the terms husband or wife
when inquiring about a potential co-borrower.
Regulation Z requires: - Answer✔computation and disclosure of the APR to the borrowers.
If an applicant has been denied credit, how long does the lender have to get a letter of adverse
action to him/her? - Answer✔thirty (30) days
What is the minimum amount of time that a lender has to inform the borrower that they are
transferring servicing? - Answer✔15 days
If a loan officer were to take a loan application Tuesday at 1:00 p.m., what is the last day that
the good faith estimate must be mailed or disclosed? - Answer✔Friday before midnight
All the following could not be considered a higher-priced loan, except: - Answer✔A purchase
loan
Which of the following is a protected class under the Fair Housing Act? - Answer✔A
handicapped individual
What is not included in the APR calculations? - Answer✔Hazard insurance premium
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