NMLS Test Prep CompuCram Test Questions
Answers| 100% Solved
Why are documents recorded with the county government? to provide notice of who holds
an interest in a piece of property
Mary finally is building that dream home in the country on the five acres she has owned for
seven years. Can she use the equity in the land in lieu of cash for a down payment? yes,
regardless if the land is free and clear, as long as there is equity
The type of survey used to determine if a home is in flood zone when part of the property is
located in a flood zone is called what? topographical survey.
According to the Fair Credit Reporting Act, when is a consumer entitled to get a free copy of his
credit score from a credit reporting agency (assuming there has been no fraud)? Never
The borrower can request a Final Closing Disclosure how many business days prior loan
closing? 1
What two regulations require financial disclosures be provided to the applicant within three
business days of a mortgage loan application? Regulation X and Regulation Z
A Loan Estimate must be given to a consumer no later than ________ business days prior to
closing a home loan. 7
,Which of the following is not prohibited as part of a Qualified Mortgage? Ballon Payment
The TILA/RESPA rule does not apply to persons that make _____or fewer applications a year.
5
Which law requires lenders to disclose consumer credit costs related to adjustable rate
mortgages? TILA
Which law prohibits MLOs from influencing an appraiser to overstate the value of a home in
order to get a closed-end loan on the borrower's primary residence approved? Regulation
Z
(TILA)
When a lender quotes an interest rate to a consumer, what must also be disclosed? the
APR
Which federal act introduced the idea of a qualified mortgage? Dodd-Frank Act
Which factor is not considered when determining "average charge" calculations for settlement
services? size of the loan
, What government agency oversees TILA? CFPB
Which is a voluntary lien? mortgage
The difference between the index value and the interest rate charged to the borrower on an
adjustable rate mortgage (ARM) is called a what? margin
The Real Estate Settlement Procedures Act includes all of the following provisions EXCEPT
requirements to cancel private mortgage insurance (PMI).
Which statement about the MIP on FHA loans is TRUE? A portion of it could be refunded
if the loan is refinanced within three years.
A verification of deposit verifies what? down payment and/or reserves
A document that conveys ownership of real property from the grantor to the grantee is known as
a what? deed
Which of the following is not a covered transaction under RESPA? all-cash sale
What must be prominently displayed in all branch offices of a lender? Equal Housing
Opportunity Poster
Answers| 100% Solved
Why are documents recorded with the county government? to provide notice of who holds
an interest in a piece of property
Mary finally is building that dream home in the country on the five acres she has owned for
seven years. Can she use the equity in the land in lieu of cash for a down payment? yes,
regardless if the land is free and clear, as long as there is equity
The type of survey used to determine if a home is in flood zone when part of the property is
located in a flood zone is called what? topographical survey.
According to the Fair Credit Reporting Act, when is a consumer entitled to get a free copy of his
credit score from a credit reporting agency (assuming there has been no fraud)? Never
The borrower can request a Final Closing Disclosure how many business days prior loan
closing? 1
What two regulations require financial disclosures be provided to the applicant within three
business days of a mortgage loan application? Regulation X and Regulation Z
A Loan Estimate must be given to a consumer no later than ________ business days prior to
closing a home loan. 7
,Which of the following is not prohibited as part of a Qualified Mortgage? Ballon Payment
The TILA/RESPA rule does not apply to persons that make _____or fewer applications a year.
5
Which law requires lenders to disclose consumer credit costs related to adjustable rate
mortgages? TILA
Which law prohibits MLOs from influencing an appraiser to overstate the value of a home in
order to get a closed-end loan on the borrower's primary residence approved? Regulation
Z
(TILA)
When a lender quotes an interest rate to a consumer, what must also be disclosed? the
APR
Which federal act introduced the idea of a qualified mortgage? Dodd-Frank Act
Which factor is not considered when determining "average charge" calculations for settlement
services? size of the loan
, What government agency oversees TILA? CFPB
Which is a voluntary lien? mortgage
The difference between the index value and the interest rate charged to the borrower on an
adjustable rate mortgage (ARM) is called a what? margin
The Real Estate Settlement Procedures Act includes all of the following provisions EXCEPT
requirements to cancel private mortgage insurance (PMI).
Which statement about the MIP on FHA loans is TRUE? A portion of it could be refunded
if the loan is refinanced within three years.
A verification of deposit verifies what? down payment and/or reserves
A document that conveys ownership of real property from the grantor to the grantee is known as
a what? deed
Which of the following is not a covered transaction under RESPA? all-cash sale
What must be prominently displayed in all branch offices of a lender? Equal Housing
Opportunity Poster
