NMLS|Nationwide Mortgage Licensing System| Bundle Set

Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. Answer Predatory Lending. RESPA-Real Estate Settlement Procedures Act Answer...

What must a borrower do to avoid having late payments reported to a credit bureau? Answer Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? Answer 3 times the fee What should not be over-weighted in an analysis of borrower...

Fraud for profit is a complex scheme involving... Answer 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 se...

Due date of each payment Answer If an advertisement includes the amount or percentage of any payment, all of the following must also be disclosed, EXCEPT: Yes, records may be kept outside the state as long as they are made available in-state within 72 hours of a request from the Commissioner Answ...

If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you in regards to a loan, when does right to contact them expire? A. 1 month B. 2 months C. 3 months D. 4 months Answer C. 3 months An established business relationship with a company also will be created ...

Primary Mortgage Market Answer Where credit institutions originate loans C. The maximum the rate can increase over the life of the loan Answer When an ARM has rate caps of 5/2/6, the 6 refers to what? A. The maximum rate increase at the initial adjustment B. The start rate for the loan C. The...

Acceleration Clause Answer Allows lenders to demand payment in full if the borrower defaults on the loan (can be construed as predatory lending) Alienation Clause (Due on Sale Clause) Answer Says you must repay your mortgage if you sell your home to a new owner (loan is not assumable) Appraise...

A discount point is BEST described as a charge the borrower pays to: A.) A lender to decrease the interest rate on the mortgage loan B.) A mortgage broker at the time of application to obtain a favorable rate C.) The seller as part of the closing costs of a loan D.) A lender to ensure against ...

Fraud for money Laundering Answer -Criminal uses scheme known as value tampering -Criminal offers to buy house at reduced rate -Seller must sell at appraised value on paper, but after closing, seller give the criminal the difference in cash. Adverse Action Answer An unfavorable credit decision ...

What does TILA stand for? Answer Truth-In-Lending Act, Regulation Z What is a HELOC loan? Answer a secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? Answer LTV stands for Answer Loan to Value Define PMI and state what the ac...

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? Answer TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? Answe...

Qualified mortgages do not include risky features. What are they? Answer Permanent There are four categories of Qualified Mortgages. The following is not included. Answer No negative amortization, No interest only, no loan terms over 30 years and a limit on points and fees charged. The DTI lim...

which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA? Answer FEDERAL RESERVE SYSTEM the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the Answer Acceleration Clause at closing a b...

Enhancing protection and reducing fraud by directing states to adopt minimum uniform standards for the licensing and registration of residential mortgage loan originators was the purpose of the federal act known as the: a. S.A.F.E. Act b. Federal Trade Act c. Consumer Financial Protection Act ...