NMLS EXAMS WITH VERIFIED
QUESTIONS AND CORRECT
ANSWERS
5 rights under FACRA
- ANSWERS-1. Right to adverse action notice 2. Free copy of credit report 3. Request
credit score 4. The right to dispute incomplete or inaccurate information 5. Limit
prescreened offers
A registered LO means any individual who is an employee of ...
- ANSWERS-*a depository institution
*A subsidiary that is-
*owned and controlled by a depository institution and
*regulated by a Federal Banking agency;or
*An institution regulated by the Farm Credit Administration
*And is registered and maintains a unique identifier
Adverse Action
- ANSWERS-An 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):
- ANSWERS-A 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):
- ANSWERS-Does 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
- ANSWERS-A 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:
- ANSWERS-A 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:
- ANSWERS-A 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):
- ANSWERS-A federal law requiring that financial institutions take steps to prevent and
report cases of money laundering.
Bridge loan:
- ANSWERS-A 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:
- ANSWERS-Monday 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):
- ANSWERS-A form indicating the appraised value of a property being financed with a
VA loan.
QUESTIONS AND CORRECT
ANSWERS
5 rights under FACRA
- ANSWERS-1. Right to adverse action notice 2. Free copy of credit report 3. Request
credit score 4. The right to dispute incomplete or inaccurate information 5. Limit
prescreened offers
A registered LO means any individual who is an employee of ...
- ANSWERS-*a depository institution
*A subsidiary that is-
*owned and controlled by a depository institution and
*regulated by a Federal Banking agency;or
*An institution regulated by the Farm Credit Administration
*And is registered and maintains a unique identifier
Adverse Action
- ANSWERS-An 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):
- ANSWERS-A 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):
- ANSWERS-Does 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
- ANSWERS-A 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:
- ANSWERS-A 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:
- ANSWERS-A 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):
- ANSWERS-A federal law requiring that financial institutions take steps to prevent and
report cases of money laundering.
Bridge loan:
- ANSWERS-A 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:
- ANSWERS-Monday 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):
- ANSWERS-A form indicating the appraised value of a property being financed with a
VA loan.
