NATIONAL AND UST MORTGAGE PRACTICE EXAM 7 |
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
Which of the following is responsible for determining whether to issue a license
approval?
The NMLS
The Governor
The Legislature
The Commissioner - Answer: The Commissioner
The Commissioner or state regulator for financial institutions determines licensing
eligibility.
Under ECOA, a broker is defined as:
A person who regularly refers applicants to creditors, or selects or offers to select
creditors to whom requests for credit can be made
Any person who sells mortgage loans in the secondary market
Any person who regularly extends, renews, or continues credit
A natural person or entity who regularly extends closed-end or open-end credit -
Answer: A person who regularly refers applicants to creditors, or selects or offers to
select creditors to whom requests for credit can be made
A broker does not technically extend credit. However, ECOA specifically addresses the
broker by including persons who "regularly refer applicants to creditors, or selects or
offers to select creditors to whom requests for credit can be made."
Which of the following fees is not included in the calculation of the finance charge for a
mortgage?
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Origination fees charged by the creditor
Charges for title work by an affiliate of the creditor
Use of a closing attorney required by the creditor
Fees charged by an unaffiliated appraiser - Answer: Fees charged by an unaffiliated
appraiser
Finance charges always include fees charged by the crediotr, charges by an affiliate of
the creditor, and fees charged by a third-party provider required by the creditor. Fees
charged for real estate-related services, such as appraisal, are not included in the
finance charge if they are reasonable, are not charged by affiliates, and the creditor
does not receive a direct or indirect fee for those services.
A mortgage lender regularly shares loan applicants' nonpublic personal information with
an underwriter who works as an independent contractor. What must the lender do to
comply with the GLB Act?
The lender must require the underwriter to contractually agree that it will only share the
nonpublic personal information with affiliated companies
The lender must provide an opt-out notice to its loan applicants, because the
underwriter is a nonaffiliated service provider
The lender must offer its loan applicants a choice of providers for underwriting services
The lender must require the underwriter to contractually agree that it will only use the
nonpublic personal information to perform the services requested - Answer: The lender
must require the underwriter to contractually agree that it will only use the nonpublic
personal information to perform the services requested
When sharing nonpublic personal information with third party settlement service
providers, a mortgage lender must require that the service providers enter a contract
agreeing to use the information only for the performance of requested services.
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
Which of the following is responsible for determining whether to issue a license
approval?
The NMLS
The Governor
The Legislature
The Commissioner - Answer: The Commissioner
The Commissioner or state regulator for financial institutions determines licensing
eligibility.
Under ECOA, a broker is defined as:
A person who regularly refers applicants to creditors, or selects or offers to select
creditors to whom requests for credit can be made
Any person who sells mortgage loans in the secondary market
Any person who regularly extends, renews, or continues credit
A natural person or entity who regularly extends closed-end or open-end credit -
Answer: A person who regularly refers applicants to creditors, or selects or offers to
select creditors to whom requests for credit can be made
A broker does not technically extend credit. However, ECOA specifically addresses the
broker by including persons who "regularly refer applicants to creditors, or selects or
offers to select creditors to whom requests for credit can be made."
Which of the following fees is not included in the calculation of the finance charge for a
mortgage?
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Origination fees charged by the creditor
Charges for title work by an affiliate of the creditor
Use of a closing attorney required by the creditor
Fees charged by an unaffiliated appraiser - Answer: Fees charged by an unaffiliated
appraiser
Finance charges always include fees charged by the crediotr, charges by an affiliate of
the creditor, and fees charged by a third-party provider required by the creditor. Fees
charged for real estate-related services, such as appraisal, are not included in the
finance charge if they are reasonable, are not charged by affiliates, and the creditor
does not receive a direct or indirect fee for those services.
A mortgage lender regularly shares loan applicants' nonpublic personal information with
an underwriter who works as an independent contractor. What must the lender do to
comply with the GLB Act?
The lender must require the underwriter to contractually agree that it will only share the
nonpublic personal information with affiliated companies
The lender must provide an opt-out notice to its loan applicants, because the
underwriter is a nonaffiliated service provider
The lender must offer its loan applicants a choice of providers for underwriting services
The lender must require the underwriter to contractually agree that it will only use the
nonpublic personal information to perform the services requested - Answer: The lender
must require the underwriter to contractually agree that it will only use the nonpublic
personal information to perform the services requested
When sharing nonpublic personal information with third party settlement service
providers, a mortgage lender must require that the service providers enter a contract
agreeing to use the information only for the performance of requested services.
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
