NMLS National Exam Questions and
Answers
1.The practice of getting people to sell their
homes at bargain prices by suggesting that
certain ethnic groups are going to move
into the area is nicknamed
Answer Blockbusting
2.You and the borrower believe an
Adjustable Rate Mortgage would be best for
the borrower. What is the name of the booklet
you are required to give?
Answer CHARM Booklet
3.How many days in advance of transferring
a loan to another lender must the current
mortgage servicer inform that customer of
the transfer to another lender who will
subsequently be servicing the loan?
Answer 15
4.After meeting with the borrowers to
complete a loan application, you return
,to your office and order a Tri-Merged
credit report. Now that you have a credit
report, what Loan Disclosure must you
now
prepare and mail (or give) to them?
Answer Notice to Home Loan Applicant
5.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 fill out the information based on
visual
observation.
6.Dodd-Frank mandated which of the
following rules that now appear under TILA
Answer Qualified Mortgage
7.Which is not a disclosure required within 3
business days of receiving an application?
Answer Environmental hazard disclosure
8.In compliance with the general provisions
,of Regulation Z, how long is a lender required
to maintain records?
Answer 3 years
9.What is NOT likely to happen if the
lender/investor finds fraud?
Answer A 1% interest rate increase on the loan
10.What is the maximum penalty for
providing false information on a federally
related
loan?
Answer Up to $1,000,000 fine
and jail time
11.What law requires the lender to collect
a borrower's demographic information for
first mortgages and home improvement
loans?
Answer HMDA
12.HMDA requires the lenders to obtain what
information for each borrower?
Answer Race and Sex
, 13.An MLO purchases tickets for a
sporting event and provides those tickets
to a local real estate agent as a thank you
for a referral and also in the hopes that that
real estate agent will continue to send
clients, this would be considered
Answer An illegal practice
14.RESPA does not apply to
Answer Vacant Land
15.What are the penalties for violating
Section 8 of RESPA?
Answer $10,000 per incident plus
one year jail time
16.Which rule dictates how instructions
are required to dispose of consumer's
information?
Answer The Disposal Rule
17.The Borrower is entitled to the disclosure
of the costs of a mortgage loan through the
Loan Estimate
Answer within three business days of
Answers
1.The practice of getting people to sell their
homes at bargain prices by suggesting that
certain ethnic groups are going to move
into the area is nicknamed
Answer Blockbusting
2.You and the borrower believe an
Adjustable Rate Mortgage would be best for
the borrower. What is the name of the booklet
you are required to give?
Answer CHARM Booklet
3.How many days in advance of transferring
a loan to another lender must the current
mortgage servicer inform that customer of
the transfer to another lender who will
subsequently be servicing the loan?
Answer 15
4.After meeting with the borrowers to
complete a loan application, you return
,to your office and order a Tri-Merged
credit report. Now that you have a credit
report, what Loan Disclosure must you
now
prepare and mail (or give) to them?
Answer Notice to Home Loan Applicant
5.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 fill out the information based on
visual
observation.
6.Dodd-Frank mandated which of the
following rules that now appear under TILA
Answer Qualified Mortgage
7.Which is not a disclosure required within 3
business days of receiving an application?
Answer Environmental hazard disclosure
8.In compliance with the general provisions
,of Regulation Z, how long is a lender required
to maintain records?
Answer 3 years
9.What is NOT likely to happen if the
lender/investor finds fraud?
Answer A 1% interest rate increase on the loan
10.What is the maximum penalty for
providing false information on a federally
related
loan?
Answer Up to $1,000,000 fine
and jail time
11.What law requires the lender to collect
a borrower's demographic information for
first mortgages and home improvement
loans?
Answer HMDA
12.HMDA requires the lenders to obtain what
information for each borrower?
Answer Race and Sex
, 13.An MLO purchases tickets for a
sporting event and provides those tickets
to a local real estate agent as a thank you
for a referral and also in the hopes that that
real estate agent will continue to send
clients, this would be considered
Answer An illegal practice
14.RESPA does not apply to
Answer Vacant Land
15.What are the penalties for violating
Section 8 of RESPA?
Answer $10,000 per incident plus
one year jail time
16.Which rule dictates how instructions
are required to dispose of consumer's
information?
Answer The Disposal Rule
17.The Borrower is entitled to the disclosure
of the costs of a mortgage loan through the
Loan Estimate
Answer within three business days of
