NMLS MLO Exam Questions and Answers

NMLS MLO Exam Questions and Answers Max prepayment penalty on residential mortgages in the first year of the loan - Answer-3% What must condominium associations do with respect to property insurance? - Answer-Keep a "blanket" policy that protects the entire structure If a lender is planning on referring a borrower to a title company that the lender has ownership in, when must the AFBA must be provided to the borrower? - Answer-Before the referral to the title company is made Website to obtain copy of your credit report that the credit bureaus are required to provide once per year at no charge - A 2/3/6 caps - Answer-ARM initial adjustment max is 2%, subsequent adjustment period max is 3%, and lifetime cap of 6% What does FHLB stand for and what do they provide? - Answer-Federal Home Loan Bank, and they provide advances to financial institutions for residential mortgage loans According to the Dodd-Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - Answer-5% On a purchase transaction, what document contains the purchase price for a property? - Answer-Sales Contract After a loan has been closed and funded, the creditor notices a tolerance violation with a fee between the LE and CD. How long does the creditor have to reimburse the borrower for the overcharge before being considered in violation of the TRID rule? - Answer-60 days after closing