NMLS Practice Exam #4| 125 Questions| Correct Answers| Verified!!

The administrative authority of the Commissioner includes all but which of the following? - Promulgate rules or regulations implementing the S.A.F.E. Act - Administer, interpret, and enforce the S.A.F.E. Act - Carry out the intentions of the Legislature - Sentencing violators of the S.A.F.E. Act to appropriate prison terms - ANSWER Sentencing violators of the S.A.F.E. Act to appropriate prison terms Which of the following forms of compensation is a violation of RESPA? - A fee paid by a title company to an originator for referral of settlement services - Borrower credit - Money earned by a title company for closing a loan - Broker fee - ANSWER A fee paid by a title company to an originator for referral of settlement services When is it legal to refuse to conduct a lending transaction with a consumer on the basis of their personal characteristics? - The consumer is a minority who may need assistance with closing costs - A large percentage of the borrower's income is from public assistance - The applicant is married but applying individually - The borrower is too young to have legal authority to enter a binding contract - ANSWER The borrower is too young to have legal authority to enter a binding contract All of the following types of information must be reported for government monitoring purposes in accordance with HMDA, except: - Identification of loans subject to HOEPA - Action taken on the loan and the location of the subject property - Ethnicity, race, sex, and income of the applicant - Ethnicity, race, sex, and religion of the applicant - ANSWER Ethnicity, race, sex, and religion of the applicant Which of the following borrowers is best suited for an HECM? - A borrower who needs money for several home improvement projects - A 62-year old borrower who just cashed in a 401k for a down payment - A borrower who was disabled during service for the military