NMLS MLO TEST| 362 questions| with complete solutions

Which law ensures lenders use an annual percentage rate (APR) so that the borrowers have the information they need to make informed comparisons? Correct Answer: Regulation Z Which law ensures that some borrowers have the right of rescission for three business days after a loan contract is signed? Correct Answer: Regulation Z While it is unlawful to consider race when underwriting a loan, what federal legislation requires that this information be included on the loan application? Correct Answer: Home Mortgage Disclosure Act Who does NOT share responsibility for enforcing the provisions of the National Do Not Call Registry? Correct Answer: Federal Reserve Board Your applicant receives child support for her seven-year-old son. Can you gross up the child support payments she receives? Correct Answer: Yes, gross up all non-taxable income if it is verified and likely to continue for three years. The Homeownership Equity Protection Act does not require a lender to verify a borrower's ability to repay the loan if the Correct Answer: the loan is temporary or a bridge loan for 12 months or less A loan on a borrower's primary dwelling where the APR exceeds at least 1.5% of the applicable average prime offer rate for a first lien loan is known as a Correct Answer: higher-priced loan. Each of these loans would be excluded under the definition of a higher-priced loan EXCEPT Correct Answer: Purchase Loan Which fee can be collected prior to delivery of a Loan Estimate and Closing Disclosure? Correct Answer: Credit report fee The Privacy Rule of the Gramm-Leach-Bliley Act requires financial institutions to provide the borrower with a Consumer Privacy policy Correct Answer: before disclosing information to non-affiliated third parties. Which federal act created the Consumer Financial Protection Bureau? Correct Answer: Dodd-Frank Act The Consumer Financial Protection Bureau on October 3, 2015, implemented the newly combined disclosure that meets the disclosure requirements of TILA and __________. Correct Answer: RESPA (Real Estate Settlement Procedures Act) Which rule requires all financial institutions to design, implement, and maintain safeguards to protect customer information while it is in the cu