NMLS S.A.F.E 2023/2024 Problem Solving Exam Questions and With Distinction level Marking scheme
An escrow account analysis has been completed on Mary Thompson's loan. It is discovered that there is a $40 overage in her account. How many days does the servicer have to return the money?
a. Ther...
NMLS S.A.F.E 2023/2024 Problem Solving
Exam Questions and With Distinction level
Marking scheme
An escrow account analysis has been completed on Mary
Thompson's loan. It is discovered that there is a $40 overage in
her account. How many days does the servicer have to return the
money?
a. There is no refund
b. The servicer would not return the money; it would be applied
toward the principal amount
c. The servicer has 30 days from completion of the analysis to
return the overage
d. Ms. Thompson must be refunded within 90 days - correct
answer a. There is no refund
Which of the following is least likely to be held in an escrow or
reserve account?
a. HOA fees
b. Mortgage insurance premium
c. Hazard insurance reserve
d. Property tax reserve - correct answer a. HOA fees
Assuming a borrower is not allowed to shop for the credit report
provider, which of the following best describes the applicable
tolerance?
,a. Zero tolerance
b. No tolerance requirement
c. Tolerance depends on certain factors
d. 10% tolerance - correct answer a. Zero tolerance
Assuming that a borrower is allowed for title insurance and the
opt to pick a policy not referred to by the lender, which of the
following best describes the applicable tolerance?
a. Zero tolerance
b. No tolerance requirement
c. Tolerance depends on certain factors
d. 10% tolerance - correct answer b. No tolerance
requirement
RESPA requires _____ to be provided within 45 days of closing. It
provides information regarding an estimate of related payments
(for expenses such as taxes and insurance) that will be required
in the first 12 months of the loan.
a. The HUD-1
b. The Initial Escrow Statement
c. The Loan Estimate form
d. The Initial Rate Change Disclosure - correct answer b.
The Initial Escrow Statement
,A hazard insurance company hosts a dinner for the employees of
a mortgage broker. The designated broker encourages the
employees to send clients to the insurance company. Who has
violated RESPA?
a. The hazard insurance company
b. Both the hazard insurance company and the mortgage broker
c. The mortgage broker
d. Neither the hazard insurance company nor the mortgage
broker - correct answer b. Both the hazard insurance
company and the mortgage broker
Unilateral increases in the cost of settlement services made by
another provider with the intention of retaining the additional
fees are referred to as:
a. YSP
b. Markups
c. SRP
d. Unearned fees - correct answer b. Markups
An originator uses a contracted processor who charges $500 per
file. The fee disclosed to the borrower for processing is $800, a
difference of $300 which the originator keeps for himself. This is:
a. A violation of RESPA's prohibition against fee-splitting
b. Permitted only as long as receipts are kept from the processor
for five years
, c. A unilateral markup, which is legal, but may be a violation of
RESPA's prohibition against unearned fees
d. A violation of ECOA - correct answer c. A unilateral
markup, which is legal, but may be a violation of RESPA's
prohibition against unearned fees
Which of the following fees is not included in the calculation of
the finance charge for a mortgage?
a. Origination fees charged by the creditor
b. Charges for title work by an affiliate of the creditor
c. Use of a closing attorney required by the creditor
d. Fees charged by an unaffiliated appraiser - correct answer
d. Fees charged by an unaffiliated appraiser
The Truth-in-Lending Act:
a. Regulates the time a borrower is required to pay private
mortgage insurance
b. Requires that the borrower be informed of estimated closing
costs within three business days of application
c. Regulates language and terms used in advertising for credit
d. Prohibits unlicensed brokers from offering government loan
products - correct answer c. Regulates language and terms
used in advertising for credit
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