NMLS Exam Questions And Correct
Answers 100% Verified.
Under the Fair Credit Reporting Act (Reg V), which of the following entities has the burden of
protecting a consumer's privacy when his/her credit information is being reported?
a. The consumer
b. Mortgage broker
c. Credit reporting agenc...
NMLS Exam Questions And Correct
Answers 100% Verified.
Under the Fair Credit Reporting Act (Reg V), which of the following entities has the burden of
protecting a consumer's privacy when his/her credit information is being reported?
a. The consumer
b. Mortgage broker
c. Credit reporting agency
d. HUD - Answer✔c. Credit reporting agency
If a loan applicant chooses not to disclose his or her race on a loan application, what recourse
does a mortgage professional have?
a. Inform the applicant of the implications of the FBI Mortgage Fraud Warning Notice
b. Note that the applicant has declined to answer and select a race based on visual observation
c. Provide the applicant with an Adverse Action Notice
d. Inform the applicant that the lender will reject the loan application since it is incomplete -
Answer✔b. Note that the applicant has declined to answer and select a race based on visual
observation
Lenders must report detailed information about loan transactions and demographic
information concerning borrowers in order to prove that they are not discriminating. Which of
the following laws creates that reporting requirement?
a. Gramm-Leach-Bliley Act
b. HMDA
c. TILA
d. RESPA - Answer✔b. HMDA
Suspicious Activity Reports (SARs) are used to help detect and prevent:
a. Discriminatory lending practices
b. Loan flipping
c. Money laundering
d. Subprime lending - Answer✔c. Money laundering
If a mortgage broker decides to use telemarketing to establish leads for loan origination, which
of the following should occur?
a. The broker should invest in a state-of-the-art predictive dialer
b. The broker should obtain access to the Do-Not-Call registry
c. The broker should only call former and current customers to ask for referrals
d. The broker should stop calling current customers unless they have given consent -
Answer✔b. The broker should obtain access to the Do-Not-Call registry
Name one practice that is prohibited under Section 8 of RESPA - Answer✔Section 8 of RESPA
prohibits a person from giving or accepting any thing of value for referrals of settlement service
business related to a federally related mortgage loan
List at least three categories under ECOA on which creditors may not base credit decisions -
Answer✔Race, color, religion, national origin, sex, marital status, age, or borrower receiving
public assistance
Define rescission as it relates to a mortgage loan transaction - Answer✔The ability for the
borrower to cancel the loan application during a refinance or a HELOC. The borrower is given
this window 3-days prior to closing
List at least two practices that are not prohibited with regard to appraisers - Answer✔Providing
information about the property, asking for more details, explanation of value conclusion,
consider other properties for comparisons, and/or correct errors in the appraisal report
HOEPA was enacted as a part of ___ - Answer✔TILA
If an attorney and lender entered an agreement where the attorney's car loan payments are
paid by the lender, in return for names of potential loan applicants, who violated RESPA? -
Answer✔Both violated RESPA
For which of the following is a creditor permitted to charge more than it discloses on the Loan
Estimate (no tolerance limitation) and still meet the good faith requirement? - Answer✔Prepaid
interest
2|Page
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheStar. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
