NMLS Exam with Complete Solutions 100% Pass
There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual
closing costs if the consumer is allowed to shop for his/her own settlement service provider.
CORRECT ANS-10%
The disclosure requirements of RESPA would apply to which of the following loans?
CORRECT ANS-A loan to purchase a duplex and rehabilitate it into a single family dwelling
Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice? CORRECT ANS-his credit score
MAP rule CORRECT ANS-This Rule applies to commercial communications used to market
mortgage loan products and services to consumers.
credit reporting agency CORRECT ANS-Under the Fair Credit Reporting Act, which of the
following entities has the burden of protecting a consumer's privacy when his/her credit
information is being reported?
, NMLS Exam with Complete Solutions 100% Pass
A borrower's current loan balances CORRECT ANS-Under the Gramm-Leach-Bliley Act,
which of the following is considered nonpublic information?
Note that the applicant has declined to answer and select a race based on visual observation
CORRECT ANS-If a loan applicant chooses not to disclose his or her race on a loan
application, what recourse does a mortgage professional have?
80%; 78% CORRECT ANS-Under the Homeowners Protection Act, borrowers can request
that lenders cancel PMI when their loan balance is less than ____, or a lender may collect PMI
until ____ loan-to-value is reached.
The penalties for paying or accepting an illegal referral fee are: CORRECT ANS-Fines of up
to $10,000 and up to one year in prison
The consumer is purchasing a home located in a neighborhood primarily occupied by
minorities CORRECT ANS-All but which of the following may serve as a legal, non-
discriminatory basis for denying a mortgage loan application?
, NMLS Exam with Complete Solutions 100% Pass
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the provisions
specified under federal law, what is the first possible day the loan could fund? CORRECT
ANS-Saturday
The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of _______________ under TILA. CORRECT ANS-Trigger
Terms
Which of the following is not included in calculating the APR? CORRECT ANS-Escrow Fees
According to fair lending laws, which of the following may loan applicants be asked to disclose
for HMDA data collection purposes? CORRECT ANS-Their race
Finance charges always include which of the following? CORRECT ANS-Mortgage broker
fee
HOEPA was enacted as a part of: CORRECT ANS-TILA
, NMLS Exam with Complete Solutions 100% Pass
HOEPA would not apply to: CORRECT ANS-A bridge loan to finance construction
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
CORRECT ANS-Must be provided within 30 days of the decision to deny
The Loan Originator Compensation Rule defines compensation to include all of the following,
except: CORRECT ANS-Payments collected by a mortgage company for services other than
loan origination services
Closed-end loans with rates that exceed the average prime offer rate, but are not high enough
to trigger protections under HOEPA, are known as: CORRECT ANS-Higher-priced mortgage
loans
The mandatory waiting period between issuance of disclosures and consummation may be
waived: CORRECT ANS-If the consumer requests a waiver due to a bona fide financial
emergency
There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual
closing costs if the consumer is allowed to shop for his/her own settlement service provider.
CORRECT ANS-10%
The disclosure requirements of RESPA would apply to which of the following loans?
CORRECT ANS-A loan to purchase a duplex and rehabilitate it into a single family dwelling
Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice? CORRECT ANS-his credit score
MAP rule CORRECT ANS-This Rule applies to commercial communications used to market
mortgage loan products and services to consumers.
credit reporting agency CORRECT ANS-Under the Fair Credit Reporting Act, which of the
following entities has the burden of protecting a consumer's privacy when his/her credit
information is being reported?
, NMLS Exam with Complete Solutions 100% Pass
A borrower's current loan balances CORRECT ANS-Under the Gramm-Leach-Bliley Act,
which of the following is considered nonpublic information?
Note that the applicant has declined to answer and select a race based on visual observation
CORRECT ANS-If a loan applicant chooses not to disclose his or her race on a loan
application, what recourse does a mortgage professional have?
80%; 78% CORRECT ANS-Under the Homeowners Protection Act, borrowers can request
that lenders cancel PMI when their loan balance is less than ____, or a lender may collect PMI
until ____ loan-to-value is reached.
The penalties for paying or accepting an illegal referral fee are: CORRECT ANS-Fines of up
to $10,000 and up to one year in prison
The consumer is purchasing a home located in a neighborhood primarily occupied by
minorities CORRECT ANS-All but which of the following may serve as a legal, non-
discriminatory basis for denying a mortgage loan application?
, NMLS Exam with Complete Solutions 100% Pass
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the provisions
specified under federal law, what is the first possible day the loan could fund? CORRECT
ANS-Saturday
The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of _______________ under TILA. CORRECT ANS-Trigger
Terms
Which of the following is not included in calculating the APR? CORRECT ANS-Escrow Fees
According to fair lending laws, which of the following may loan applicants be asked to disclose
for HMDA data collection purposes? CORRECT ANS-Their race
Finance charges always include which of the following? CORRECT ANS-Mortgage broker
fee
HOEPA was enacted as a part of: CORRECT ANS-TILA
, NMLS Exam with Complete Solutions 100% Pass
HOEPA would not apply to: CORRECT ANS-A bridge loan to finance construction
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
CORRECT ANS-Must be provided within 30 days of the decision to deny
The Loan Originator Compensation Rule defines compensation to include all of the following,
except: CORRECT ANS-Payments collected by a mortgage company for services other than
loan origination services
Closed-end loans with rates that exceed the average prime offer rate, but are not high enough
to trigger protections under HOEPA, are known as: CORRECT ANS-Higher-priced mortgage
loans
The mandatory waiting period between issuance of disclosures and consummation may be
waived: CORRECT ANS-If the consumer requests a waiver due to a bona fide financial
emergency
