NMLS PRACTICE TEST EXAM PROFIENCY HARD QUESTIONS / NATIONWIDE MORTGAGE LICENSING SYSTEM PRACTICE TEST HARD QUESTIONS WITH CORRECT ANSWERS|53% AND ABOVE PASSRATE GUARANTEE

NMLS PRACTICE TEST EXAM PROFIENCY HARD QUESTIONS 2022- 2024 / NATIONWIDE MORTGAGE LICENSING SYSTEM PRACTICE TEST HARD QUESTIONS WITH CORRECT ANSWERS|53% AND ABOVE PASSRATE GUARANTEE MUST NOT MISS  FEDERAL MORTGAGE RELATED LAW  UNIFORM STATE CONTENT  GENERAL MORTGAGE LAW  MORTGAGE LOAN ORIGINATION  ETHICS An annual escrow analysis is used to do which of the following? A. Ensure the loan is properly amortized B. Prevent escrow overages C. Reduce burden on the servicer D. Report underwriting errors -CORRECT ANSWER -- B. Prevent escrow overages The disclosure requirements of RESPA would apply to which of the following loans? A. A loan to purchase 75 acres of land B. A farm loan C. A loan to purchase a property that includes a gas station and convenience store D. A loan to purchase a duplex and rehabilitate it into a single family dwelling - CORRECT ANSWER-- D. A loan to purchase a duplex and rehabilitate it into a single family dwelling According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA data collection purposes? A. If they plan to have more than one child B. If they will stop working once they have children C. Their religion D. Their race -CORRECT ANSWER-- D. Their race A customer with an excellent credit score submits a loan application. When does ECOA require that the applicant be advised of the status of the application? A. Within 30 days B. Within 90 days C. Within three days D. Within one week -CORRECT ANSWER-- A. Within 30 days The amount of the down payment, the amount of the finance charge, or the number of payments needed are all examples of _______________ under TILA. A. Components of the finance charge B. Trigger terms C. Prohibited disclosures D. Components of the APR -CORRECT ANSWER-- B. Trigger terms Which of the following is not included in calculating the APR? A. Discount points B. Underwriting fees C. PMI D. Escrow fees -CORRECT ANSWER-- D. Escrow fees A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal residence. His rescission period is over at midnight on Friday. According to the provisions specified under federal law, what is the first possible day the loan could fund? A. Monday, the following week B. Friday C. Saturday D. Tuesday -CORRECT ANSWER-- C. Saturday The mandatory waiting period between issuance of disclosures and consummation may be waived: A. Using a pre-printed form from the lender B. If the loan is a qualified mortgage C. If the consumer requests a waiver due to a bona fide financial emergency D. If the loan originator waives it for the consumer -CORRECT ANSWER-- C. If the consumer requests a waiver due to a bona fide financial emergency If a creditor denies an application for a first lien mortgage, a copy of the appraisal: A. Must be provided within 30 days of the decision to deny B. Is not required to be provided to the consumer C. Is not required to be provided unless requested in writing D. Must be included with the notice of adverse action -CORRECT ANSWER-- A. Must be provided within 30 days of the decision to deny HOEPA would not apply to: A. A bridge loan to finance construction B. A purchase money mortgage loan C. An adjustable-rate mortgage loan D. A closed-end home equity loan -CORRECT ANSWER-- A. A bridge loan to finance construction HOEPA was enacted as a part of: A. ECOA B. HMDA C. TILA D. RESPA -CORRECT ANSWER-- C. TILA Closed-end loans with rates that exceed the average prime offer rate, but are not high enough to trigger protections under HOEPA, are known as: A. Subprime mortgage loans B. Reverse mortgages C. Higher-priced mortgage loans D. Qualified high-cost mortgages -CORRECT ANSWER-- C. Higher-priced mortgage loans This Rule applies to commercial communications used to market mortgage loan products and services to consumers. A. MAP Rule B. RESPA Rule C. Truth in Advertising Rule D. Safeguards Rule -CORRECT ANSWER-- A. MAP Rule Under the Gramm-Leach-Bliley Act, which of the following is considered nonpublic information? A. The street address of the property a borrower intends to purchase B. The assessed value of a subject property C. Former owners of a particular property D. A borrower's current loan balances -CORRECT ANSWER-- D. A borrower's current loan balances If a loan applicant chooses not to disclose his or her race on a loan application, what recourse does a mortgage professional have? A. Provide the applicant with an Adverse Action Notice B. Inform the applicant of the implications of the FBI Mortgage Fraud Warning Notice C. Note that the applicant has declined to answer and select a race based on visual observation D. Inform the applicant that the lender will reject the loan application since it is incomplete -CORRECT ANSWER-- C. Note that the applicant has declined to answer and select a race based on visual observation Suspicious Activity Reports (SARs) are used to help detect and prevent: A. Discriminatory lending practices B. Loan flipping C. Subprime lending D. Money laundering -CORRECT ANSWER-- D. Money laundering If a consumer opens an account online, the Gramm-Leach-Bliley Act states that what period of time constitutes a "reasonable opportunity" to opt out of information sharing? A. 60 days B. 30 days C. Opt-out must occur immediately D. No specified period -CORRECT ANSWER-- B. 30 days Name at least one practice is prohibited under section 8 of RESPA. -CORRECT ANSWER-- Section 8 of RESPA prohibits a person from giving or accepting any thing of value for referrals of settlement service business related to a federally related mortgage loan. It also prohibits a person from giving or accepting any part of a charge for services that are not performed. List at least three categories under ECOA on which creditors may not base credit decisions. -CORRECT ANSWER-- Race, ethnicity, and age Define rescission -CORRECT ANSWER-- The revocation or cancellation of an agreement. The borrower has 3 days after closing to request to cancel their loan. List at least two practices that are not prohibited with regard to appraisers. - CORRECT ANSWER-- • Failing to compensate an appraiser because the appraiser does not value a consumer's principal dwelling at or above a certain amount • Conditioning an appraiser's compensation on loan consummation Which of the following is it a change or correction to the CD that would cause a new 3 business day waiting period. A. The addition of a prepayment penalty B. An additional $500 seller credit C. A change in the APR D. A change in the loan type -CORRECT ANSWER-- B. An additional $500 seller credit When a client applies for loans and requests referrals to a title company, you must: -CORRECT ANSWER-- Immediately provide an affiliated business arrangement disclosure if you refer them to the title company in which you have an ownership interest If a creditor violates ECOA, how many years does a consumer have in which to take civil action? a) Two b) Five c) One d) Ten -CORRECT ANSWER-- Five What lending term is not prohibited for a high-cost loan regulated under HOEPA? -CORRECT ANSWER-- An adjustable interest rate HOEPA creates protections for high-cost loans under: -CORRECT ANSWER-- TILA Prepayment penalties for high-cost mortgages are -CORRECT ANSWER-- Prohibited The Fraud Enforcement and Recovery Act was adopted by Congress in 09 to - CORRECT ANSWER-- Facilitate the prosecution of those who commit mortgage fraud If a consumer opens an account online, the Gramm-Leach-Bliley Act states that what period of time constitutes a "reasonable opportunity" to opt out of information sharing? -CORRECT ANSWER-- 60 days All of the following features are prohibited for a qualified mortgage -CORRECT ANSWER-- 40 year term, negative amortization, and interest-only payments What is allowed for a qualified mortgage? -CORRECT ANSWER-- Adjustable interest rates Subprime loans with interest rates that are not high enough to trigger protections under HOEPA but which are subject to some protections under Reg Z are known as -CORRECT ANSWER-- Higher-prices mortgage loans The penalties for paying or accepting an illegal referral fee are: -CORRECT ANSWER-- Fines of up to $10,000 and up to one year in prison When a CD is mailed, the waiting period begins: -CORRECT ANSWER-- On the date that the CD is mailed Refinance transaction rescission period -CORRECT ANSWER-- 3 years An affiliated business arrangement disclosure is due -CORRECT ANSWER-- At the time a referral is made Federal agency responsible for the USA PATRIOT ACT -CORRECT ANSWER-- The treasury department If a creditor violates ECOA, how many years does a consumer have in which to take civil action? a) Two b) Five c) One d) Ten -CORRECT ANSWER-- b) Five What is Regulation B? -CORRECT ANSWER-- Equal Credit Opportunity Act What is not included on an adverse action notice as required by ECOA? - CORRECT ANSWER-- His credit score what is a qualified mortgage? -CORRECT ANSWER-- •The periodic payments are sufficient to pay the principal and interest due and will not result in negative amortization •The loan does not allow the borrower to defer repayment of the principal (e.g. interest-only loans) •The loan does not include a balloon payment feature (with some limited exceptions) •The loan's term does not exceed 30 years •The points and fees for the loan do not exceed 3% of the total loan amount (with some limited exceptions), and •The borrower's debt-to-income ratio does not exceed 43% can be fixed or adjustable rate