NMLS Exam Study Questions with Correct Answers

NMLS Exam Study Questions with Correct Answers Title XIV (Mortgage Reform and Anti-Predatory Lending Act) - Answer-- Requires MLOs to apply new minimum qualifying standards & defines a new category of "qualified" loans. - Requires verification/documentation of the borrower's ability to repay the loan. - Establishes penalties for irresponsible lending, including extended foreclosure defense for borrowers. Title X (Consumer Financial Protection Act of 2010) - Answer-Provides broad authority to enforce rules to address & prevent what it defines as "abusive" financial practices What 2 acts or laws CREATED the Consumer Financial Protection Bureau (CFPB)? - Answer-Dodd-Frank Act & Consumer Financial Protection Act (Title X) CFPB (Consumer Financial Protection Bureau) Role & Responsibilities - Answer-- Provide authority for rules/enforcements (our boss) - Authority to investigate and conduct hearings in violations of most consumer protection laws (cease & assist) - If it determines a violation has occurred, may issue a cease and desist order (have right to pull license) - May pursue civil action - The CFPB has NO authority to bring criminal charges, but could refer criminal cases to DOJ (Department of Justice) - Must refer potential tax law violations to IRS