NMLS EXAM | LATEST UPDATE| ULTIMATE SOLUTION

What law deals with credit, APR & advertising of consumer loans? - ANSWER TILA/REGULATION Z Which regulation prohibits kickbacks? - ANSWER RESPA Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV? - ANSWER HPA - Homeowners Protection Act Which regulation prohibits fee splitting? - ANSWER RESPA Regulation X is the letter used to describe which Law? - ANSWER RESPA RESPA is the acronym used to describe which law? - ANSWER Real Estate Settlement Procedures Act What type of mortgage requires a non-refundable funding fee? - ANSWER VA Loan What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan? - ANSWER Acceleration Clause What is the provision in a mortgage enabling a lender to demand full repayment if the borrower TRANSFERS the loan? - ANSWER Alienation Clause What does CFPB stand for? - ANSWER Consumer Financial Protection Bureau What two laws created the CFBP? - ANSWER Dodd Frank Act and Consumer Finance Protection Act Which regulations is designed to help meet the Credit Needs of the Communities in which it operates? - ANSWER CRA - Community Reinvestment Act Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report? - ANSWER 90 Under ECOA rules and regulations, how many days does the lender have to provide a copy of an appraisal report, once requested by the borrower? - ANSWER 30 NMLS EXAM | LATEST UPDATE| ULTIMATE SOLUTION 2 | P a g e If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of the appraisal be provided to the borrower? - ANSWER 3 business days Conforming Loans follow the guidelines of which regulators? - ANSWER Fannie Mae and Freddie Mac Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers? - ANSWER ECOA - Regulation B How old must a borrower be to qualify for a Reverse Mortgage? - ANSWER 62 years old Which regulation has the primary function of preventing Identity Theft? - ANSWER FACT Act Which regulation has SECTION 114 Rules? - ANSWER FACT Act Which regulation requires the creditor to verify the VALIDITY of any change of address received? - ANSWER SECTION 114 of the FACT Act What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property? - ANSWER TENURE Method What is the fraud scheme where a borrower uses someone else's name to purchase the property, but that person WILL NOT be living at the property? - ANSWER Straw Borrower What government lender "insures" mortgages"? - ANSWER FHA What government lender "guarantees" mortgages? - ANSWER VA Loans What government lender loans money to fund purchases in rural areas? - ANSWER USDA/Dept. of Argriculture What is the value remaining in property after all liens and debts have been paid? - ANSWER Equity