NMLS Safe Test Mortgage Licensing Practice Exam Q's with Complete Solutions

NMLS Safe Test Mortgage Licensing Practice Exam Q's with Complete Solutions Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? Loan flipping or churning After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied, residential refinance? After 3 business-day rescission period What is the adjustable number used to compute the interest rate on an ARM called? Index A borrower is buying a house for $180,000. He provides a down payment of $40,000. If he pays three discount points, what is the total cost of the points? $4200 Which day is counted as part of the CD three business day delivery period? Monday- Saturday A Latina applies to a mortgage company for a home loan. She is refused based on the reputation of the neighborhood for a high number of foreclosures. This is an example of what illegal practice? Redlining Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high cost" mortgages? Home Ownership and Equity Protection Act (HOEPA) The type of mortgage that can provide the borrower with a monthly check instead of the borrower paying a monthly payments is known as Reverse mortgage According to the Fair Credit Reporting Act, if adverse action is taken against a credit applicant because of information on a credit report, the lender who used that report is required to provide to the consumer the name, address, and telephone number of the consumer reporting agency that furnished the report and the credit score used At closing, the buyers realizes that the lender changed the terms of the loan, but since he was facing foreclosure, he felt he had no choice but to go ahead with the refinance or lose the house. This could be an example of Predatory lending