NMLS - Practice Exam with Complete Solutions
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RESP does not apply to:
a) Loans secured by a lien on a principal dwelling
b) Federally related mortgage loans
c) Subprime mortgage loans
d) Loans for business, commercial and agricultural purposes - ANSWER d) Loans
for business, commercial and agricultural purposes
Under the Fair Credit Reporting Act, which of the following entities has the
burden of protecting a consumer's privacy when his/her credit information is
being reported?
a) Credit reporting agency
b) HUD
c) Mortgage broker
d) The consumer - ANSWER a) Credit reporting agency
An annual escrow analysis is used to do which of the following?
,NMLS - Practice Exam with Complete Solutions
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a) Report underwriting errors
b) Ensure the loan is properly amortized
c) Reduce burden on the servicer
d) Prevent escrow overages - ANSWER d) Prevent escrow overages
If a mortgage professional advertises a loan product at "7.25% APR for the first
six
months! After six months, APR is 10.5%, subject to increase based on market
conditions," What if any additional disclosures does TILA require?
a) No other information is required
b) The finance charges for the loan
c) The monthly payment for the loan
d) The APR in effect after the introductory rate expires - ANSWER a) No other
information is required
There is a ________ accuracy tolerance for amounts stated on the Loan Estimate
and the actual closing cost if the consumer is allowed to shop for his/her own
, NMLS - Practice Exam with Complete Solutions
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settlement service provider.
a) 5% c) 10%
B) 15% d) 0% - ANSWER c) 10%
The USA PATRIOT Act is a federal law that Congress adopted in response to:
a) The need to revitalize the economy in 2008
b) The meltdown of the mortgage lending market in 2007
c) The terrorist attacks on September 11, 2001
d) The need to make HAMP loans available to more Americans - ANSWER c) The
terrorist attacks on September 11, 2001
What federal statute primarily serves to control the settlement costs of
residential
mortgage loans?
a) TILA b) ECOA
c) RESPA d) HMDA - ANSWER c) RESPA
The disclosure requirements of RESPA would apply to which of the following
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RESP does not apply to:
a) Loans secured by a lien on a principal dwelling
b) Federally related mortgage loans
c) Subprime mortgage loans
d) Loans for business, commercial and agricultural purposes - ANSWER d) Loans
for business, commercial and agricultural purposes
Under the Fair Credit Reporting Act, which of the following entities has the
burden of protecting a consumer's privacy when his/her credit information is
being reported?
a) Credit reporting agency
b) HUD
c) Mortgage broker
d) The consumer - ANSWER a) Credit reporting agency
An annual escrow analysis is used to do which of the following?
,NMLS - Practice Exam with Complete Solutions
100% Verified
a) Report underwriting errors
b) Ensure the loan is properly amortized
c) Reduce burden on the servicer
d) Prevent escrow overages - ANSWER d) Prevent escrow overages
If a mortgage professional advertises a loan product at "7.25% APR for the first
six
months! After six months, APR is 10.5%, subject to increase based on market
conditions," What if any additional disclosures does TILA require?
a) No other information is required
b) The finance charges for the loan
c) The monthly payment for the loan
d) The APR in effect after the introductory rate expires - ANSWER a) No other
information is required
There is a ________ accuracy tolerance for amounts stated on the Loan Estimate
and the actual closing cost if the consumer is allowed to shop for his/her own
, NMLS - Practice Exam with Complete Solutions
100% Verified
settlement service provider.
a) 5% c) 10%
B) 15% d) 0% - ANSWER c) 10%
The USA PATRIOT Act is a federal law that Congress adopted in response to:
a) The need to revitalize the economy in 2008
b) The meltdown of the mortgage lending market in 2007
c) The terrorist attacks on September 11, 2001
d) The need to make HAMP loans available to more Americans - ANSWER c) The
terrorist attacks on September 11, 2001
What federal statute primarily serves to control the settlement costs of
residential
mortgage loans?
a) TILA b) ECOA
c) RESPA d) HMDA - ANSWER c) RESPA
The disclosure requirements of RESPA would apply to which of the following
