NMLS Quiz Questions and Answers With Verified Solutions 2025
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 - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔b. The broker
should obtain access to the Do-Not-Call registry
Name one practice that is prohibited under Section 8 of RESPA - ✔✔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 - ✔✔Race,
color, religion, national origin, sex, marital status, age, or borrower receiving public assistance
Define rescission as it relates to a mortgage loan transaction - ✔✔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 - ✔✔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 ___ - ✔✔TILA
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 - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔b. The broker
should obtain access to the Do-Not-Call registry
Name one practice that is prohibited under Section 8 of RESPA - ✔✔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 - ✔✔Race,
color, religion, national origin, sex, marital status, age, or borrower receiving public assistance
Define rescission as it relates to a mortgage loan transaction - ✔✔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 - ✔✔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 ___ - ✔✔TILA
