NMLS TEST PAPERS ANSWERS AND QUESTIONS SET
A+
✔✔FACTA - Fair and Accurate Credit Transaction Act - credit card number truncation -
✔✔No more than 5 digits of credit card on a receipt
✔✔FACTA - Fair and Accurate Credit Transaction Act - security and disposal -
✔✔Requires businesses to take measures to secure and dispose of sensitive personal
info.
Including:
Burning or shredding
Destroying or erasing electronic files
Placing all pending loan documents in locked desks, cabinets, or storage rooms at the
end of the work day
✔✔FACTA - Fair and Accurate Credit Transaction Act - Red Flag Rules require: -
✔✔Written identity theft prevention program
Card issuers validate change of address requests
Users of consumer reports to verify identity of subject in the event of address
discrepancy
According to the FTC, red flags fall into these categories:
✔✔FACTA - Fair and Accurate Credit Transaction Act - according to the FTC, red flags
fall into these categories: - ✔✔Alerts, notifications, or warnings from a consumer
reporting agency
Suspicious documents
Suspicious personally identifying information, such as suspicious address
Unusual use of-or suspicious activity relating to-a covered account
Notices from customers, victims of identity theft, law enforcement authorities, or other
businesses about possible identity theft in connection to covered accts.
✔✔Do Not Call Registry is managed by: - ✔✔The FTC and enforced by the FTC, FCC
and state law enforcement officials
, ✔✔Do not Call Registry rules apply to: - ✔✔Any plan, program or campaign to sell
goods or services through interstate phone calles.
✔✔Do not Call Registry rules does not apply to: - ✔✔Political organizations, charities, or
telephone surveyors
✔✔Do not Call Registry rules requires: - ✔✔Companies to maintain national and
internal lists of customers and prospects and keep them updated regularly
national list: 90 days
Internal list: 30 days
Companies not call NLT 31 days after consumer asks to be on the DNC registry
allows consumers who receive telemarketing calls despite being on the registry to file a
complaint
Fine is up to $16,000 per incident
✔✔Do not Call Registry & established business relationships - ✔✔A telemarketer or
seller may call a consumer with whom it has an established business relationship (EBR)
for up to 18 months after the consumers last purchase, delivery or payment, even if the
consumer is on the DNC registry.
A company may call for up to 3 months after the consumer makes an inquiry or submits
an application to the company.
Written consent includes: Name phone number and signature.
If the consumer asks to be put on a company's internal DNC list, even if there is an EBR
the company may not call for sales or business solicitation purposes.
✔✔Non-traditional Mortgages SAFE definition - ✔✔Anything other than a 30-year fixed
rate mortgage
✔✔Conventional Loan - ✔✔One that is usually made by a bank and not insured or
guaranteed by a government entity like FHA, VA or USDA
Most conventional loans are bought in the secondary market by Freddie Mac and
Fannie Mae
✔✔Traditionally, Conventional loans are: - ✔✔Long Term - 30 years or longer
Fully Amortizing or self-liquidating
Fixed Rate
Conforming Loans - meet Fannie Mae/Freddie Mac standards
✔✔Nonconforming loans - ✔✔Do not meet the standards necessary to be sold on the
secondary market
Size of Loan - Jumbo loans - in 2011 over $417,000
Credit Quality of Buyer - B or C borrower - credit problems, such as bankruptcy in past 7
to 10 yrs, low credit scores cause of too much investment property or self-employed for
too short a time
A+
✔✔FACTA - Fair and Accurate Credit Transaction Act - credit card number truncation -
✔✔No more than 5 digits of credit card on a receipt
✔✔FACTA - Fair and Accurate Credit Transaction Act - security and disposal -
✔✔Requires businesses to take measures to secure and dispose of sensitive personal
info.
Including:
Burning or shredding
Destroying or erasing electronic files
Placing all pending loan documents in locked desks, cabinets, or storage rooms at the
end of the work day
✔✔FACTA - Fair and Accurate Credit Transaction Act - Red Flag Rules require: -
✔✔Written identity theft prevention program
Card issuers validate change of address requests
Users of consumer reports to verify identity of subject in the event of address
discrepancy
According to the FTC, red flags fall into these categories:
✔✔FACTA - Fair and Accurate Credit Transaction Act - according to the FTC, red flags
fall into these categories: - ✔✔Alerts, notifications, or warnings from a consumer
reporting agency
Suspicious documents
Suspicious personally identifying information, such as suspicious address
Unusual use of-or suspicious activity relating to-a covered account
Notices from customers, victims of identity theft, law enforcement authorities, or other
businesses about possible identity theft in connection to covered accts.
✔✔Do Not Call Registry is managed by: - ✔✔The FTC and enforced by the FTC, FCC
and state law enforcement officials
, ✔✔Do not Call Registry rules apply to: - ✔✔Any plan, program or campaign to sell
goods or services through interstate phone calles.
✔✔Do not Call Registry rules does not apply to: - ✔✔Political organizations, charities, or
telephone surveyors
✔✔Do not Call Registry rules requires: - ✔✔Companies to maintain national and
internal lists of customers and prospects and keep them updated regularly
national list: 90 days
Internal list: 30 days
Companies not call NLT 31 days after consumer asks to be on the DNC registry
allows consumers who receive telemarketing calls despite being on the registry to file a
complaint
Fine is up to $16,000 per incident
✔✔Do not Call Registry & established business relationships - ✔✔A telemarketer or
seller may call a consumer with whom it has an established business relationship (EBR)
for up to 18 months after the consumers last purchase, delivery or payment, even if the
consumer is on the DNC registry.
A company may call for up to 3 months after the consumer makes an inquiry or submits
an application to the company.
Written consent includes: Name phone number and signature.
If the consumer asks to be put on a company's internal DNC list, even if there is an EBR
the company may not call for sales or business solicitation purposes.
✔✔Non-traditional Mortgages SAFE definition - ✔✔Anything other than a 30-year fixed
rate mortgage
✔✔Conventional Loan - ✔✔One that is usually made by a bank and not insured or
guaranteed by a government entity like FHA, VA or USDA
Most conventional loans are bought in the secondary market by Freddie Mac and
Fannie Mae
✔✔Traditionally, Conventional loans are: - ✔✔Long Term - 30 years or longer
Fully Amortizing or self-liquidating
Fixed Rate
Conforming Loans - meet Fannie Mae/Freddie Mac standards
✔✔Nonconforming loans - ✔✔Do not meet the standards necessary to be sold on the
secondary market
Size of Loan - Jumbo loans - in 2011 over $417,000
Credit Quality of Buyer - B or C borrower - credit problems, such as bankruptcy in past 7
to 10 yrs, low credit scores cause of too much investment property or self-employed for
too short a time
