2024 NMLS STUDY GUIDE | LATEST UPDATE| 215 QAs VERIFIED

1. Which of the following is NOT a TILA or RESPA mandated disclosure? Select one: A. Closing Disclosure B. Loan Estimate C. Mortgage Servicing Disclosure D. An Adverse Action Statement: D.An Adverse Action Statement 2. Which of the following does not affect a Veterans Funding fee? Select one: A. Loan Amount B. Prior Service (Active/ Reserve) C. Marital Status D. Prior Use of Entitlement: C. Marital Status 3. FACTA requires that if a lender uses credit scores in making or arranging loans that it must provide certain information. Which of the following is not required? Select one: A. The range of possible credit scores under the model used B. If any factors adversely affected the consumer's score, up to 4 key factors that adversely affected the score (including inquiries) C. Suggestions on how to improve credit scores D.The date the credit score was created: C.Suggestions on how to improve credit scores 4. Under TILA, a consumer lawsuit must begin within year(s) of the actual violation? Select one: A. 1 B. 2 C. 3 D. 5: A. 1 5. The Federal National Mortgage Association is which of the following? Select one: A. FEMA B. FHLMC C. GSE D. Freddie Mac: C.GSE 6. Which of the following best describes the Home Mortgage Disclosure Act? Select one: A. HMDA is a disclosure law that relies upon public scrutiny for its effectiveness 2 / 47 2024 NMLS STUDY GUIDE | LATEST UPDATE| 215 QAs VERIFIED B. For HMDA to be effective it relies on strict quotas for MSAs C. For HMDA to be effective, lenders must provide excess services to under- served communities D. For HMDA to be effective, it must provide that certain disclosures go out to customers within three (3) days of application: A. HMDA is a disclosure law that relies upon public scrutiny for its effectiveness 7. Which type of property or transaction is not covered or protected under RESPA? Select one: A. Condominium B. An owner-occupied duplex C. 6-unit apartment complex D. Home equity line of credit on residence: C. 6-unit apartment complex 8. Which of the following would restrict the CRA from supplying prescreened consumer report information on a potential borrower? Select one: A. Working for a licensed broker and not a licensed lender B. Attempting to order the report to just determine if the borrower is credit worthy C. The borrower had elected to opt out from being included on prescreened lists D.The borrower had already allowed another mortgage loan originator to order the report: C. The borrower had elected to opt out from being included on prescreened lists 9. How often is a financial institution required to report data regarding its applications, origination, and purchases of home purchase loans, home im- provement loans and refinancing? Select one: A. Every sixty (60) days B. Every six (6) months C. Every twenty-four (24) months D. Every twelve (12) months or annually: D.Every twelve (12) months or annually 10. Under the Dodd-Frank Act appraisal independence rules, is a there a restriction for a lender attempting to break into a new market from paying an appraisal company 50% more than the customary charge to get good service? Select one: A.Yes, the law dictates that fees be customary and reasonable for the geo- graphic market B. No, the appraisal companies can negotiate openly for the fees they collect C.Yes, the new law establishes appraisal fee rates geographically across the country D. No, the Dodd-Frank Act allows this for the first year in a new market to improve the housing 3 / 47 2024 NMLS STUDY GUIDE | LATEST UPDATE| 215 QAs VERIFIED market: A.Yes, the law dictates that fees be customary and reasonable for the geographic market 11. Assume you have a customer who has a fixed income and does not show any prospect of additional earnings in the next few years. Which of the following would be an appropriate product for this customer? Select one: A. A 2/1 Buydown Loan B. A 5/1 ARM Loan C. A payment option loan D. A 30-year fixed rate loan: D.A 30-year fixed rate loan 12. How many APRs are there for a loan? Select one: A. Two (2) APRs B. One (1) APR C. Three (3) APRs D. It depends on the risk of the loan: B.One (1) APR 13. What type of loan requires reporting under the Home Mortgage Disclosure Act? Select one: A. HELOC's B. Loans purchased for the purpose of servicing those loans C. New construction loans D.Vacant land loans: B.Loans purchased for the purpose of servicing those loans 14. What form does an Appraiser use to certify construction is complete? Select one: A. 1008 B. 1004 C. 4506T D. 442: D.442 15. No creditor may make a residential mortgage loan unless the creditor first does which of the following? Select one: A. Establishes and maintains a net worth of a minimum of five hundred thousand dollars ($500,000) B. Posts a surety bond with the federal government in an amount not less than one million dollars ($1,000,000) C. Determines that the consumer has a reasonable ability to repay the loan according to its 4 / 47 2024 NMLS STUDY GUIDE | LATEST UPDATE| 215 QAs VERIFIED terms D.Discloses to the borrower the contact information for the national consumer complaint center within the Bureau of Consumer Financial Protection: C. De- termines that the consumer has a reasonable ability to repay the loan according to its terms 16. Which of the following is not typically an element of predatory lending? Select one: A. Engaging in fraud or deception to conceal the true nature of the mortgage loan obligation, or ancillary products, from an unsuspecting or unsophisticat- ed borrower B. Making loans based predominantly on the foreclosure or liquidation value of a borrower's collateral rather than on the borrower's ability to repay the mortgage according to its terms C. Inducing a borrower to repeatedly refinance a loan in order to charge high points and fees each time the loan is refinanced D. Communicate to consumers, clear and balanced information about relative benefits and risks of the products offered: D. Communicate to consumers, clear and balanced information about relative benefits and risks of the products offered 17. Which of the following terms best describe a loan that would heighten the need for a borrower to rely on the sale of, or refinancing of a property once amortization begins? Select one: A. Soft Money Loan B. FHA Loan C. 125% Piggyback Loan D. Hard Money Loan: D.Hard Money Loan 18. The Truth in Lending Act requires two (2) additional disclosures for ad- justable rate mortgages on a consumer's principal dwelling with a loan term greater than twelve (12) months when the rate can change after the consum- mation of the loan. One disclosure is a booklet titled "Consumer Handbook on Adjustable Rate Mortgages." Which of the following is the other required disclosure? Select one: A. Right to convert to a fixed rate disclosure B. A disclosure for every adjustable rate program that the consumer expresses an interest C. A disclosure describing every adjustable rate program offered to the consumer in the 24 months D. A HARM disclosure: B.A disclosure for every adjustable rate program that the consumer expresses an interest 19. If an unethical mortgage loan originator has a borrower sign a blank loan application, he is possibly trying to pull what scam?