NMLS FINAL EXAM | LATEST UPDATE| ULTIMATE SOLUTION

Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer? A.The creditor B.The loan processor C.The consumer D. The CFPB - CORRECT ANSWER A. the creditor Which law restricts the sharing of information given when a consumer applies for a mortgage loan? A. Fair Credit Reporting Act B. FTC Disposal Rules C. Gramm-Leach-Bliley Act D. Consumer Regulatory Protection Act - CORRECT ANSWER C. Gramm-Leach-Bliley Act Which document actually contains the borrower's promise to repay the loan? A. The deed B. The mortgage C. The note D. The TIL Disclosure - CORRECT ANSWER C. The note The practice of intentionally targeting borrowers in poor or underserved areas with predatory loans is known as: A. Redlining B. Steering C. Misappropriation D. Reverse redlining - CORRECT ANSWER D. Reverse redlining If a lender wants to obtain copies of a borrower's tax returns, the borrower is asked to sign what? A. 4506-T B. A waiver of financial information C. 1003 D. 1040 - CORRECT ANSWER A. 4506-T An increase in fees and issuance of a revised Loan Estimate to reflect the new amounts is permitted in which of the following cases? A. The creditor failed to provide an accurate estimate of transfer taxes and wants to issue a revised Loan Estimate showing actual costs B. The consumer is not allowed to shop for flood zone determination services and the actual costs are more than the estimated costs C. The title company affiliated with the lender decides to charge more for its services than initially disclosed D. The consumer has failed to respond to a loan officer within ten business days and the lending terms have changed - CORRECT ANSWER D. The consumer has failed to respond to a loan officer within ten business days and the lending terms have changed All of the following are true of FHA fixed-rate loans, except: A. They require upfront MIP on all loans NMLS FINAL EXAM | LATEST UPDATE| ULTIMATE SOLUTION 2 | P a g e B. They are available in 15- and 30-year terms C. The borrower is only required to carry MIP until the LTV reaches 78% D. The borrower must make at least a 3.50% investment - CORRECT ANSWER C. The borrower is only required to carry MIP until the LTV reaches 78% Previously used as compensation for mortgage professionals, yield spread premiums must now be used: A.As referral fees paid to the broker by a settlement service provider B. As credits to the borrower to help pay settlement costs C. As commissions paid in addition to mortgage broker compensation D. As credits off of the interest rate of the loan - CORRECT ANSWER B. As credits to the borrower to help pay settlement costs On which portion of the loan application would one find a street address and legal description of the property? A. Section X B. Section II C. Section XV D. Section III - CORRECT ANSWER B. Section II Which of the following best describes the legal consequences of providing an inflated description of income on a loan application? A. It is not an illegal act, but may impact the consumer's credit score B. It is a violation of multiple federal lending laws and constitutes fraud C. It is not a violation of criminal laws, and any penalties imposed are civil, not criminal D. It is not illegal if the applicant inflates his or her income to secure approval for the loan but fully intends to repay the obligation - CORRECT ANSWER B. It is a violation of multiple federal lending laws and constitutes fraud Which of the following is permitted as a result of a referral? A. A free monthly pass to the gym with each closing B. A well-written thank you note C. A coffee card for each client D. The names, phone numbers, and annual incomes of clients who have applied for loans - CORRECT ANSWER B. A well-written thank you note What agency ensures that GSEs are using sound financial practices and have adequate capital to engage in the mortgage business? A. The Federal Housing Finance Agency B. The Department of Housing and Urban Development C. The Office of the Comptroller of the Treasury D. The Office of Federal Housing Enterprise Oversight - CORRECT ANSWER A. The Federal Housing Finance Agency What is the maximum fee that may be charged for preparation of the Closing Disclosure? A. $50