NMLS Exam Study Guide 2022/2023 Graded A+

1. Regarding Mortgage Servicing Transfers, what are the number of days that the current mortgage servicer must inform that customer prior to transferring the loan to another lender- who will subsequently service that loan. How many days prior to this loan transfer does the current mortgage servicer have to inform the customer? - ANSWER 15 2. URAR is the acronym for: - ANSWER Uniform Residential Appraisal Report 3. How many questions are on the UST (Unified State Test)? - ANSWER 25 4. PR is the generally accepted acronym for; - ANSWER Preliminary Title Report 5. S.A.F.E. is the short title for what Mortgage Licensing act of 2008 - ANSWER Secure and Fair Enforcement 6. PMI is the acronym for: - ANSWER Private Mortgage Insurance 7. The SAFE Act is designed to do all of the following except: - ANSWER Reduce fraud by creating an enforcement agency that prosecutes unethical activity 8. MIP is the acronym for: - ANSWER Mortgage Insurance Premium 9. The Nationwide Mortgage Licensing System and Registry accomplishes all of the following except...? - ANSWER Provides tracking of the number of loans each mortgage loan originator writes, including loan amounts and types 10. COFI is an Index used in which district? - ANSWER 11th District 11. The SAFE Mortgage Licensing Act is designed NOT to: a. Increase integrity in the residential mortgage loan market b. Enhance consumer protections c. Reduce fraud d. Keep mortgage rates low with licensing standards - ANSWER Keep mortgage rates low with licensing standards 12. HUD-1 is an acronym for the: - ANSWER Settlement Statement 13. Which of the following would NOT be considered a Federal Banking Agency? a. Comptroller of the Currency b. Board of Governors of the Federal Reserve System c. Federal Bureau of Investigation d. National Credit Union Administration - ANSWER Federal Bureau of Investigation 14. HUD is the acronym for - ANSWER Department of Housing and Urban Development 15. Which of the following are powers/duties of the Regulatory Authority? - ANSWER Conduct examinations of licensee's books and records 16. GNMA is the acronym for: - ANSWER Government National Mortgage Association 17. True or False? A depository institution includes any credit union - ANSWER TRUE 18. CFPB is the acronym for; - ANSWER Consumer Financial Protection Bureau 19. Who determines continuing education requirements and dates for license renewal? - ANSWER The state Regulatory Authority as established under the SAFE Act 20. FNMA IS THE ACRONYM FOR: - ANSWER Federal national Mortgage Association 21. Which of the following is NOT true of a loan originator? a. A loan originator takes a residential mortgage loan application b. A loan originator performs purely administrative tasks c. A loan originator offers or nefotiates terms of a residential mortgage loan for compensation or gain d. A loan originator assists in the financing of real property - ANSWER A loan originator performs purely administrative tasks 22. The practice of getting people to sell their omes at bargain prices by suggesting that certain ethnic groups are going to move into the area is nicknamed: - ANSWER Blockbusting 23. Background checks performed by the Regulatory Authority cannot include: - ANSWER Personal checking account information 24. 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 gibe? - ANSWER CHARM Booklet 25. Which of the following would NOT be considered an administrative of clerical task? a. Receiving Borrower Information b. Processing loan applications c. Distributing information for processing or underwriting a loan d. Bringing together parties interested in the mortgage of a property - ANSWER Bringing together parties interested in the mortgage of a property 26. The Regulatory Authority may impose penalties for each violation up to, and not exceeding: - ANSWER 25000 27. 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/give to them? - ANSWER Notice to Home Loan Applicant 28. Give the job title for the following definition; One who "assists a consumer in obtaining or applying to ontain a residential mortgage loan." - ANSWER Mortgage Loan originator 29. After you have met with your customers and completed a 1003, within how many business days must you send completed GFE to your customers? - ANSWER 3 30. The penalties issued by the Regulatory Authority are ____ penalties on mortgage loan originators - ANSWER civil 31. Within how many business days after ordering a customer's credit report and/or completing a 1003, must you send a completed TIL to them? - ANSWER 3 32. Which of the following could be classified as real estate brokerage activity? - ANSWER Acting as a real estate agent or real estate broker for a buyer of a real property 33. The HUD-1 settlement statement is requited on which of the following? a. All real estate transactions b. All real estate transactions with mortgages c. All residential transactions with mortgages that are federally related d. All residential real estate transactions - ANSWER All residential transactions with mortgages that are federally related 34. A loan originator is: - ANSWER An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain 35. In a face-to-face application, what do you do if the borrower refuses to fill out the race, ethnicity and gender section on Section X of the 1003? - ANSWER Use your best guess and complete the information in Section X of the 1003 36. Provide the term for the following definition: "an individual who performs clerical or support duties at the direction of and subject to the supervision and instruction of a state-licensed loan originator or a registered loan originator." - ANSWER Loan Processor 37. Which is not part of the original loan application a. Borrower's Marital Status b. ECOA Disclosure c. Borrower provided ethnicity d. Borrower provided birth date - ANSWER ECOA Disclosure 38. The Nationwide Mortgage Licensing System and Registry is developed and maintained by which of the following: a. The Conference of State Bank Supervisors and the NMLS b. The American Association of Residential Mortgage Regulators and the NMLS c. The Conference of State Bank Supervisors and The American Association of Residential Mortgage Regulators d. The NMLSR - ANSWER The Conference of State Bank Supervisors and The American Association of Residential Mortgage Regulators 39. Which is not an application disclosure? a. Servicing disclosure b. Environmental Hazard Disclosure c. Appraisal Disclosure d. APR Disclosure - ANSWER Environmental Hazard Disclosure 40. Clerical or support duties of a loan processor or underwriter would NOT include: a. Offering or negotiating loan rates or terms b. Counseling consumers about residential mortgage loan rates or terms c. Both A&B d. Data entry on a file - ANSWER Both A&B 41. 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 42. A mortgage Loan Originator is: - ANSWER Any person who for compensation places a loan withing this state for others 43. 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 gibe? - ANSWER CHARM Booklet 44. What does the term "Nontraditional mortgage product" mean? - ANSWER Any Mortgage product other than a 30 year fixed rate mortgage 45. Regarding Mortgage Servicing Transfers, what are the number of days that the current mortgage servicer must inform that customer prior to transferring the loan to another lender- who will subsequently service that loan. How many days prior to this loan transfer does the current mortgage servicer have to inform the customer? - ANSWER 15