NMLS (MLO) FEDERAL LAW QUIZ
QUESTIONS AND CORECT DETAILED
ANSWERS (VERIFIED ANSWERS) |
ALREADY SCORED A+ | NEW UPDATE 2025
In compliance with the general provisions of Regulation Z, how long is a lender
required to maintain records? - ANSWER 2 years (correct)
5 years
7 years
4 years
If a loan originator is in a face-to-face loan interview with the applicant, and the
applicant does not wish to answer the questions in Section 10 on the 1003 , the
loan officer must: - ANSWER research and obtain the information.
end the process.
check the box "I do not wish to furnish this information".
fill out the information based on visual observation. (correct)
- HMDA requires that if an MLO is doing a face-to-face interview and the applicant
does not wish to answer the demographic questions on the 1003 that the MLO fill
in the information based on their own visual observation.
What is not likely to happen if the lender/investor finds fraud? - ANSWER A 1%
interest rate increase on the loan (correct)
, - When a lender finds fraud on a loan and they did not originate it, most of the
time the originating lender will have to retake possession of the loan and deal
with the fraud. Finding of fraud does not constitute any change in the terms of the
loan but can cause the loan to become due and payable.
The lender and/or broker will be required to repurchase the loan
The entire loan can be called due and payable
The loan officer must pay back any premium made on the loan
What law requires the lender to collect a borrower's demographic information for
first mortgages and home improvement loans? - ANSWER HOEPA
TILA
ECOA
HMDA (correct)
- HMDA requires the collection of a borrower's demographic information. HMDA
known also as Regulation C, requires this information to help prevent things like
redlining, reverse redlining and blockbusting.
According to the Fair and Accurate Credit Transaction Act, when are borrowers
entitled to get a copy of their credit scores? - ANSWER Once a year
QUESTIONS AND CORECT DETAILED
ANSWERS (VERIFIED ANSWERS) |
ALREADY SCORED A+ | NEW UPDATE 2025
In compliance with the general provisions of Regulation Z, how long is a lender
required to maintain records? - ANSWER 2 years (correct)
5 years
7 years
4 years
If a loan originator is in a face-to-face loan interview with the applicant, and the
applicant does not wish to answer the questions in Section 10 on the 1003 , the
loan officer must: - ANSWER research and obtain the information.
end the process.
check the box "I do not wish to furnish this information".
fill out the information based on visual observation. (correct)
- HMDA requires that if an MLO is doing a face-to-face interview and the applicant
does not wish to answer the demographic questions on the 1003 that the MLO fill
in the information based on their own visual observation.
What is not likely to happen if the lender/investor finds fraud? - ANSWER A 1%
interest rate increase on the loan (correct)
, - When a lender finds fraud on a loan and they did not originate it, most of the
time the originating lender will have to retake possession of the loan and deal
with the fraud. Finding of fraud does not constitute any change in the terms of the
loan but can cause the loan to become due and payable.
The lender and/or broker will be required to repurchase the loan
The entire loan can be called due and payable
The loan officer must pay back any premium made on the loan
What law requires the lender to collect a borrower's demographic information for
first mortgages and home improvement loans? - ANSWER HOEPA
TILA
ECOA
HMDA (correct)
- HMDA requires the collection of a borrower's demographic information. HMDA
known also as Regulation C, requires this information to help prevent things like
redlining, reverse redlining and blockbusting.
According to the Fair and Accurate Credit Transaction Act, when are borrowers
entitled to get a copy of their credit scores? - ANSWER Once a year
