The practice of getting people to sell their homes at bargain prices by suggesting that certain ethnic
groups are going to move into the area is nicknamed:
1. Price fixing
2. Redlining
3. Steering
4. Blockbusting 4. Blockbusting
You and the borrower believe an Adjustable Rate Mortgage would b...
NMLS License TEST Questions and
Answers Rated A
The practice of getting people to sell their homes at bargain prices by suggesting that certain ethnic
groups are going to move into the area is nicknamed:
1. Price fixing
2. Redlining
3. Steering
4. Blockbusting ✔✔4. Blockbusting
You and the borrower believe an Adjustable Rate Mortgage would be best for the borrower. What
is the name of the booklet you are required to give?
1.CHARM Booklet
2.ARM Disclosure
3.Fair Lending Practices Booklet
4.RESPA Booklet ✔✔1.CHARM Booklet
How many days in advance of transferring a loan to another lender must the current mortgage
servicer inform that customer of the transfer to another lender who will subsequently be servicing
the loan?
1. 15
2. 20
3. 3
4. 45 ✔✔1. 15
After meeting with the borrowers to complete a loan application, you return to your office and
order a
Tri-Merged credit report. Now that you have a credit report, what Loan Disclosure must you now
prepare and mail (or give) to them?
1.Notice to Home Loan Applicant
,2.Credit Authorization Consent
3.Denial Letter
4.Rapid Rescore ✔✔1.Notice to Home Loan Applicant
In a face-to-face application, what do you do if the borrower refuses to fill out the race, ethnicity
and gender section on Section X of the 1003?
1.Continue with the loan application, but be sure to get the information completed before
submitting the loan to the underwriter.
2.Process and complete the loan entirely without the information.
3.Use your best guess and complete the information in Section X of the 1003.
4.End the application process. ✔✔3.Use your best guess and complete the information in Section
X of the 1003.
Which is not part of the original loan application?
1.Borrower's marital status
2.ECOA disclosure
3.Borrower provided ethnicity
4.Borrower provided birth date ✔✔2.ECOA disclosure
Which is not an application disclosure?
1.Servicing disclosure
2.Environmental hazard disclosure
3.Appraisal disclosure
4.APR disclosure ✔✔2.Environmental hazard disclosure
How many days prior to this loan transfer does the current mortgage servicer have to inform the
customer?
1. 15
2. 20
3. 3
,4. 45 ✔✔1. 15
What is not likely to happen if the lender/investor finds fraud?
1. A 1% interest rate increase on the loan
2. The lender and/or broker will be required to repurchase the loan
3. The entire loan can be called due and payable
4. The loan officer must pay back any premium made on the loan ✔✔1. A 1% interest rate increase
on the loan
What is the maximum penalty for providing false information on a federally related loan?
1. $5,000 fine and one year jail time
2. $250,000 fine and 30 years jail time
3. Revoke license and $1,000 fine
4. Up to $1,000,000 fine and jail time ✔✔4. Up to $1,000,000 fine and jail time
What law requires the lender to collect borrower information for first mortgages and home
improvement loans?
1. HOEPA
2. TILA
3. ECOA
4. HMDA ✔✔4. HMDA
HMDA requires the lenders to obtain which of the following information for each borrower?
1.Age and Race
2.Race and Sex
3.Marital status and Sex
4.Marital status and Age ✔✔2.Race and Sex
Providing a referral fee to a realtor is?
1.An acceptable practice
, 2.An illegal practice
3.An acceptable practice as long as it is a fair price for services actually provided
4.Acceptable only if fully disclosed ✔✔2.An illegal practice
What are the penalties for giving a referral fee to a realtor?
1.There are no penalties.
2.$10,000 per incident and up to one year in jail 3.$100,000 plus up to 30 years in jail
4.$1,000,000 plus up to one year in jail ✔✔2.$10,000 per incident and up to one year in jail
What are the penalties for violating Section 8 of RESPA?
1.$5,000 per incident and up to one year in jail 2.$10,000 per incident plus one year jail time
3.$100,000 plus up to 30 years in jail
4.$1,000,000 plus up to one year in jail ✔✔2.$10,000 per incident plus one year jail time
Which of the following does RESPA require on a purchase?
1.Lead paint notice
2.A 1008
3.APR disclosure
4.Settlement cost booklet ✔✔4.Settlement cost booklet
Aggregate escrow requires that the borrower have which of the following?
1.$0 in the account or no more than 2 months impounds in reserves
2.$0 in account, or no more than 1 month impound in reserves
3.No more than 1% of the principal balance of the loan maximum in the impound account
4.$100 and no impound reserves ✔✔1.$0 in the account or no more than 2 months impounds in
reserves
What is the minimum amount of time that a lender has to inform the borrower that they are
transferring servicing?
1.15 days
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