NMLS Practice Exam #5 2022/2023 with 100% correct answers

The purpose of the S.A.F.E. Act is to: - Protect consumers by ensuring that the mortgage lending industry operates without unfair and deceptive practices - Provide the opportunity for credit to all creditworthy applicants - Provide information about closing costs to the consumer - Protect consumers by creating privacy provisions for mortgage lenders Marketing campaigns for the solicitation of credit are covered by the provisions of: - GLB - TILA - RESPA - ECOA Which of the following inquiries is considered lawful when asked for the purposes of credit approval as governed by ECOA? - Years on the job - Race - Marital status - Age The Telemarketing Sales Rule prohibits calls: - Made to a customer after 8:00 a.m. or before 9:00 p.m. - Made to consumers who have specifically asked a mortgage professional not to contact them - To consumers not listed on the Do-Not-Call Registry - To customers who established a business relationship within the last 12 months In most cases, a mortgage loan requires monthly payments. All of the following loan types require monthly payments, except: - HECMs - ARMs - Fixed-rate loans - HELOCs The first step in the closing process is: - Rescission - Funding - Application - Steering An underwriter would expect to see _____ in order to document the income of a commissioned borrower. - Two years' tax returns if the borrower's commissions represent 20% of his/her income - 1099s from the previous year - Profit and loss statement and two years' tax returns - Two years' tax returns and all schedules if the commission income is more than 25% of income Which of the following is considered a loan primarily for personal, family, or household use that is secured by a mortgage or deed of trust?