NMLS EXAM 2021
Fraud for money Laundering - ANS-Criminal uses scheme known as value tampering
-Criminal offers to buy house at reduced rate
-Seller must sell at appraised value on paper, but after closing, seller give the criminal the
difference in cash.
Adverse Action - ANSAn unfavorable credit decision rendered against a consumer made on
the basis of information contained on the credit application. If a lender takes adverse
action against an applicant, the lender must notify the applicant in writing. If the adverse
action is taken as a result of information contained on the credit report, the notice must
also provide the name, address and toll-free phone number of the credit bureau that
supplied the information.
American Association of Residential Mortgage Regulators (AARMR): - ANSA national
association of individuals who are charged with administering and regulating various aspects
of residential mortgage lending. It played a major role in the formation of the NMLS-R and in
the drafting of the model licensing law.
Annual percentage rate (APR): - ANSDoes NOT include...TEN ACT-
(Title,Escrow,Notary,Appraisal,Credit Report,Termite)A measurement of the total cost of the
credit, expressed as an annual rate. The APR includes those paid at the time of closing and
those paid over the term of the loan. It includes all items that are part of the finance charge,
such as interest, discount points, mortgage insurance premiums and administrative fees.
Application - ANSA request for a residential mortgage loan and includes the
borrower-related information that lenders commonly use when considering the request.
Someone who takes an application from a consumer is generally considered to be acting as
a loan originator, even when gathering application information over the phone or Internet
ARM Disclosure: - ANSA disclosure required to be presented to the applicant within three
days of application on any ARM loan. This disclosure provides the applicant with information
about the specific ARM product for which they are applying, such as a historical index value
Balloon mortgage: - ANSA type of fixed-rate mortgage loan with monthly payments based on
a 30-year amortization schedule, setting a maturity date for a shorter period of time - usually
five, seven, 10 or 15 years. This allows the borrower to make lower monthly payments for
that shorter period of time, with a large payment of the full remaining principal balance and
interest due at the maturity date
Bank Secrecy Act (BSA): - ANSA federal law requiring that financial institutions take steps to
prevent and report cases of money laundering.
, Bridge loan: - ANSA bridge loan is a loan for a short duration of time and can be used when
one is purchasing one property but is dependent on the equity from another property that
has not yet been sold. Once the property is sold then the bridge loan is repaid.
Business day: - ANSMonday through Saturday except holidays.For the LE, when creditor is
open to the public for carrying on substantially all of the creditor's business functions
Certificate of Reasonable Value (CRV): - ANSA form indicating the appraised value of a
property being financed with a VA loan.
Changed circumstance: - ANSA material event or piece of information that is discovered
after the issuance of a Loan Estimate and has an impact on either the borrower's settlement
costs or the borrower's eligibility for a loan. A changed circumstance allows a loan originator
to reissue the Loan Estimate to reset applicable tolerances.
Chapter 7 bankruptcy: - ANSA common kind of bankruptcy in which a borrower might need
to liquidate assets in order to satisfy creditors
Chapter 13 bankruptcy: - ANSa reorganization form of bankruptcy for individuals that allows
the debtors to keep their property and use their income to pay a portion of their debts over
three to five years
Character - ANSIn mortgage lending, the borrower's willingness to repay the debt.
Closing costs: - ANSAll of the costs related to closing except
the prepaid or escrow items. Examples of closing costs are the origination fee, discount
points, real estate sales commission, attorney fees, survey charges, title insurance
premiums, agency closing fees, appraisal fees, credit report fees, termite report fees,
recording fees, mortgage insurance premiums, loan transfer or assumption fees, etc.
Commercial bank: - ANSA financial institution organized to accumulate funds primarily
through time and demand deposits and to make these funds available to finance the
nation's commerce and industry.
Conference of State Bank Supervisors (CSBS): - ANSA national organization of state bank
supervisors who are charged with ensuring that state banking institutions adhere to certain
standards. The organization played a major role in the formation of the NMLS-R and in the
drafting of the model licensing law.
Conforming loans: - ANSLoans that can be sold to Fannie Mae and Freddie Mac.
Consumer Financial Protection Bureau (CFPB): - ANSA federal regulator created under
authority of the Dodd-Frank Act. This agency is housed under and funded directly by the
Federal Reserve, and has been tasked with rule-making for and enforcement of the majority
of U.S. mortgage laws.
Contingent liability - ANSA liability that may be incurred as the result of a future action. A
good example of this in a mortgage transaction is the debt that is produced when a person
Fraud for money Laundering - ANS-Criminal uses scheme known as value tampering
-Criminal offers to buy house at reduced rate
-Seller must sell at appraised value on paper, but after closing, seller give the criminal the
difference in cash.
Adverse Action - ANSAn unfavorable credit decision rendered against a consumer made on
the basis of information contained on the credit application. If a lender takes adverse
action against an applicant, the lender must notify the applicant in writing. If the adverse
action is taken as a result of information contained on the credit report, the notice must
also provide the name, address and toll-free phone number of the credit bureau that
supplied the information.
American Association of Residential Mortgage Regulators (AARMR): - ANSA national
association of individuals who are charged with administering and regulating various aspects
of residential mortgage lending. It played a major role in the formation of the NMLS-R and in
the drafting of the model licensing law.
Annual percentage rate (APR): - ANSDoes NOT include...TEN ACT-
(Title,Escrow,Notary,Appraisal,Credit Report,Termite)A measurement of the total cost of the
credit, expressed as an annual rate. The APR includes those paid at the time of closing and
those paid over the term of the loan. It includes all items that are part of the finance charge,
such as interest, discount points, mortgage insurance premiums and administrative fees.
Application - ANSA request for a residential mortgage loan and includes the
borrower-related information that lenders commonly use when considering the request.
Someone who takes an application from a consumer is generally considered to be acting as
a loan originator, even when gathering application information over the phone or Internet
ARM Disclosure: - ANSA disclosure required to be presented to the applicant within three
days of application on any ARM loan. This disclosure provides the applicant with information
about the specific ARM product for which they are applying, such as a historical index value
Balloon mortgage: - ANSA type of fixed-rate mortgage loan with monthly payments based on
a 30-year amortization schedule, setting a maturity date for a shorter period of time - usually
five, seven, 10 or 15 years. This allows the borrower to make lower monthly payments for
that shorter period of time, with a large payment of the full remaining principal balance and
interest due at the maturity date
Bank Secrecy Act (BSA): - ANSA federal law requiring that financial institutions take steps to
prevent and report cases of money laundering.
, Bridge loan: - ANSA bridge loan is a loan for a short duration of time and can be used when
one is purchasing one property but is dependent on the equity from another property that
has not yet been sold. Once the property is sold then the bridge loan is repaid.
Business day: - ANSMonday through Saturday except holidays.For the LE, when creditor is
open to the public for carrying on substantially all of the creditor's business functions
Certificate of Reasonable Value (CRV): - ANSA form indicating the appraised value of a
property being financed with a VA loan.
Changed circumstance: - ANSA material event or piece of information that is discovered
after the issuance of a Loan Estimate and has an impact on either the borrower's settlement
costs or the borrower's eligibility for a loan. A changed circumstance allows a loan originator
to reissue the Loan Estimate to reset applicable tolerances.
Chapter 7 bankruptcy: - ANSA common kind of bankruptcy in which a borrower might need
to liquidate assets in order to satisfy creditors
Chapter 13 bankruptcy: - ANSa reorganization form of bankruptcy for individuals that allows
the debtors to keep their property and use their income to pay a portion of their debts over
three to five years
Character - ANSIn mortgage lending, the borrower's willingness to repay the debt.
Closing costs: - ANSAll of the costs related to closing except
the prepaid or escrow items. Examples of closing costs are the origination fee, discount
points, real estate sales commission, attorney fees, survey charges, title insurance
premiums, agency closing fees, appraisal fees, credit report fees, termite report fees,
recording fees, mortgage insurance premiums, loan transfer or assumption fees, etc.
Commercial bank: - ANSA financial institution organized to accumulate funds primarily
through time and demand deposits and to make these funds available to finance the
nation's commerce and industry.
Conference of State Bank Supervisors (CSBS): - ANSA national organization of state bank
supervisors who are charged with ensuring that state banking institutions adhere to certain
standards. The organization played a major role in the formation of the NMLS-R and in the
drafting of the model licensing law.
Conforming loans: - ANSLoans that can be sold to Fannie Mae and Freddie Mac.
Consumer Financial Protection Bureau (CFPB): - ANSA federal regulator created under
authority of the Dodd-Frank Act. This agency is housed under and funded directly by the
Federal Reserve, and has been tasked with rule-making for and enforcement of the majority
of U.S. mortgage laws.
Contingent liability - ANSA liability that may be incurred as the result of a future action. A
good example of this in a mortgage transaction is the debt that is produced when a person
