NMLS 2023//2024 Pre course Study Guide Exam Questions and Verified for Accuracy Answers
The HUD-1/CD is not required if - correct answer the borrower has no closing costs
Initial Escrow Statement - correct answer the borrower receives an Initial Escrow Statement at closing or within 45 da...
NMLS 2023/2024 2023/2024 Pre course Study
Guide Exam Questions and Verified for
Accuracy Answers
The HUD-1/CD is not required if - correct answer the
borrower has no closing costs
Initial Escrow Statement - correct answer the borrower
receives an Initial Escrow Statement at closing or within 45 days
after closing that estimates the first-year escrow payment for
property taxes and homeowner's insurance
The initial escrow account statement must include the monthly
mortgage payment, the portion going to escrow, itemize
estimated taxes, insurance premiums, and other charges; the
anticipated disbursement date of those charges, the amount of
the cushion, and a trial running balance.
Servicing Transfer Statements - correct answer Servicing
rights for loans may change hands frequently, and its not unusual
for homeowners to receive multiple notifications that instruct
them to send the monthly mortgage payments to a different
company and address. The servicer must notify the borrower 15
days before the change goes into effect. The notice must contain
the new servicer's name, address, toll-free phone number and
effective date of the transfer. Borrowers cannot be penalized for
non-payment if they continued to make payments to the prior
servicer; this grace period expires after 60 days. By then, they
should have received phone calls from the new servicer asking
about the missing payments and 60 days should be ample time to
get the matter resolved.
,Annual Escrow Analysis Statement - correct answer Lenders
are required to conduct an annual analysis of all escrow
accounts, inform the borrowers of the findings and refund any
excess of $50 or more
A servicer shall submit to the borrower an annual statement for
each escrow account within 30 days of the completion of the
computation year. The servicer must conduct an escrow account
analysis before submitting an annual escrow account statement
to the borrower
It must contain the account history; projections for the next year;
current mortgage payment and portion going to escrow; amount
of past year's monthly mortgage payment and portion that went
into the escrow account; total amount paid into the escrow
account during the past year; amount paid from the account for
taxes; insurance premiums, and other charges; balance at the
end of the period; explanation of how the surplus, shortage, or
deficiency is being handled; and, if applicable, the reasons why
the estimated low monthly balance was not reached
Loan Estimate overview - correct answer The LE is very
similar to the GFE except that, in addition to anticipated closing
costs, it also includes the financing charges and terms, which
eliminates the need for a separate TILA disclosure. The following
conditions apply to both estimates:
*The GFE and LE both have expiration dates for an interest rate
lock
*A charge for a credit report is the only fee that can be collected
prior to the delivery of the LE and the borrower's notification
that he wishes to proceed with the loan. Checks or credit card
, information ma not be collected for any purpose until these
conditions are satisfied. This applies even if cards are not
charged or the checks cashed until after the conditions are met
*Any estimate of costs providing to the borrower before the
estimate must clearly state that the charges could change
*The borrower cannot be required to submit any documents prior
to the delivery of the estimate
*The estimate may be provided by the lender or the loan
originator
*It must be delivered or mailed no later than 3 business days
after a loan application is submitted
*It must be delivered or mailed no later than 7 business days
prior to loan consummation. This can be waived if the borrower
has an emergency, such as an impending foreclosure, that
justifies an approved faster closing. The borrower must provide a
written explanation of the emergency
Changes that can be made to the CD/HUD-1 include - correct
answer size of pages, font, addition of signature lines,
translation into any language, and all forms of printing the
document
Any other changes must be approved by the CFPB
Short-Year Statements - correct answer can be issued to end
the escrow account computation year and establish the
beginning date of the new computation year. These statements
may be provided upon the transfer of servicing and are required
upon loan payoff. The statement is due to the borrower within 60
days after receiving the pay-off funds
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