NATIONAL AND UST MORTGAGE PRACTICE EXAM 3 |
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
When would a license be suspended without a hearing?
A. A licensee fails to renew
B. A request for a hearing is never made with the state regulator
C. A licensee has failed to complete pre-licensing requirements
D. The licensee has already executed a right to a hearing for a previous violation -
Answer: B. A request for a hearing is never made with the state regulator
The NMLS does not require a hearing. Under most circumstances, the licensee has the
right to request a hearing. If one is not requested, a hearing is not conducted.
After a borrower allows the assumption of his or her VA loan, he or she may use his or
her VA privilege again only after:
A. Five years have passed
B. The home is sold to a new owner
C. The original VA loan is satisfied
D. The original VA loan is moved from his or her name into the name of the assuming
borrower - Answer: C. The original VA loan is satisfied
A VA loan is assumable; however, the veteran's VA eligibility is no longer available until
the original VA loan has been satisfied. This means that it is paid off, either over the
remaining amortization time period, sale of the home, or refinancing out of the VA loan.
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
1
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,A. Twelve months
B. Three years
C. Two years
D. Five years - Answer: B. Three years
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for three years.
Conrad began his pre-licensing education in one state and ended up moving to another
state prior to actually submitting an application for a mortgage loan originator license.
What happens to the courses he has completed?
A. NMLS-approved courses are accepted towards credit in any state
B. He must retake them under the requirements of the state in which he currently
resides
C. He can petition the state licensing agency for permission to submit those courses
towards the requirement
D. The courses may or may not be accepted towards pre-licensing credit, depending on
the requirements of the new state - Answer: A. NMLS-approved courses are accepted
towards credit in any state
Any pre-licensing education course in federal law and regulations, ethics, or lending
standards for the nontraditional mortgage product approved by the NMLS for any state
may be accepted as credit towards completion of pre-licensing education requirements
in the licensing state.
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
A. For sale by owner (FSBO)
B. Seller carry-back
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, C. Seller concessions
D. Seller self-financed - Answer: B. Seller carry-back
In a purchase transaction involving an assumable mortgage, when the party selling the
property provides all or part of the financing, it is referred to as a seller carry-back.
Which section of the URLA contains questions which, depending on the applicant's
answer, could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - Answer: B. Declarations
The "Declarations" section of the URLA contains questions which, depending on the
applicant's answer, could result in immediate rejection of the application.
If a financial institution intends to share consumer information with nonaffiliated third
parties, an initial privacy notice is due to a consumer at what point?
A. Within seven business days of a customer providing nonpublic personal information
sufficient to pull a credit report
B. Within three business days of initial contact between the consumer and the financial
institution
C. No later than three business days prior to settlement
D. No later than the time at which a customer relationship is established - Answer: D.
No later than the time at which a customer relationship is established
If a financial institution intends to share consumer information with nonaffiliated third
parties, an initial privacy notice is due to a consumer no later than the time at which a
customer relationship is established.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
When would a license be suspended without a hearing?
A. A licensee fails to renew
B. A request for a hearing is never made with the state regulator
C. A licensee has failed to complete pre-licensing requirements
D. The licensee has already executed a right to a hearing for a previous violation -
Answer: B. A request for a hearing is never made with the state regulator
The NMLS does not require a hearing. Under most circumstances, the licensee has the
right to request a hearing. If one is not requested, a hearing is not conducted.
After a borrower allows the assumption of his or her VA loan, he or she may use his or
her VA privilege again only after:
A. Five years have passed
B. The home is sold to a new owner
C. The original VA loan is satisfied
D. The original VA loan is moved from his or her name into the name of the assuming
borrower - Answer: C. The original VA loan is satisfied
A VA loan is assumable; however, the veteran's VA eligibility is no longer available until
the original VA loan has been satisfied. This means that it is paid off, either over the
remaining amortization time period, sale of the home, or refinancing out of the VA loan.
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A. Twelve months
B. Three years
C. Two years
D. Five years - Answer: B. Three years
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for three years.
Conrad began his pre-licensing education in one state and ended up moving to another
state prior to actually submitting an application for a mortgage loan originator license.
What happens to the courses he has completed?
A. NMLS-approved courses are accepted towards credit in any state
B. He must retake them under the requirements of the state in which he currently
resides
C. He can petition the state licensing agency for permission to submit those courses
towards the requirement
D. The courses may or may not be accepted towards pre-licensing credit, depending on
the requirements of the new state - Answer: A. NMLS-approved courses are accepted
towards credit in any state
Any pre-licensing education course in federal law and regulations, ethics, or lending
standards for the nontraditional mortgage product approved by the NMLS for any state
may be accepted as credit towards completion of pre-licensing education requirements
in the licensing state.
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
A. For sale by owner (FSBO)
B. Seller carry-back
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, C. Seller concessions
D. Seller self-financed - Answer: B. Seller carry-back
In a purchase transaction involving an assumable mortgage, when the party selling the
property provides all or part of the financing, it is referred to as a seller carry-back.
Which section of the URLA contains questions which, depending on the applicant's
answer, could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - Answer: B. Declarations
The "Declarations" section of the URLA contains questions which, depending on the
applicant's answer, could result in immediate rejection of the application.
If a financial institution intends to share consumer information with nonaffiliated third
parties, an initial privacy notice is due to a consumer at what point?
A. Within seven business days of a customer providing nonpublic personal information
sufficient to pull a credit report
B. Within three business days of initial contact between the consumer and the financial
institution
C. No later than three business days prior to settlement
D. No later than the time at which a customer relationship is established - Answer: D.
No later than the time at which a customer relationship is established
If a financial institution intends to share consumer information with nonaffiliated third
parties, an initial privacy notice is due to a consumer no later than the time at which a
customer relationship is established.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
