NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS

NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS Practice questions for this set Learn 1 / 7 Study with Learn When the number is disconnected, reassigned, or when the consumer chooses to remove it Choose matching term 1 What is a subprime loan? 2 How long is the Do Not Call Registry good? 12/15/24, 10:31 AM NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUE… Terms in this set (310) How long should you keep mortgage loan records under ECOA? 25 months How long is the Do Not Call Registry good? When the number is disconnected, reassigned, or when the consumer chooses to remove it How many months cushion are allowed under the escrow account rules? 2 months cushion When are escrow accounts reviewed and what amount of overage could cause a refund to the borrower? Renewed annually and if the account has more than $50 in overage it will be refunded What properties are covered under RESPA? Single, 1-4 family dwellings, condos, and manufactured homes placed on a lot RESPA imposes restriction on ___________? Amount collected for escrow accounts 3 What is the maximum origination fee that can be charged to a veteran on a VA loan? 4 Which non-conventional loan is made for the purpose of assisting low-income borrowers purchasing homes in rural areas? Don't know? 12/15/24, 10:31 AM NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUE… When advertising, the APR must be present when __________? A rate is quoted or present RESPA was put in place to? Limit amounts in escrow, eliminate kickbacks , and educate the borrowers on the closing cost, it does NOT regulate interest rates According to RESPA guidelines, failure to comply with Section 8 could result in a penalty of? $10,000 and/or 1 year prison terms for each incident Redlining is best defined as: Failing to end to certain geographic areas Who created and monitors a companies Red Flag Rules? Federal Trade Commission (FTC Red Flag Rules) At what point in a conventional will the PMI be removed? When the principal balance reaches 78% of the original value or purchase price When does a referring party have to provide the ABA form to the borrower? Before or at the time of the referral Advertising a mortgage loan product that a lender is not able to offer is a violation of what federal law? TILA/reg Z 12/15/24, 10:31 AM NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUE… What is the Act that requires a financial entity to provide customers with a privacy notice, as well as an "opt out notice", regarding the customer's personal information? Gramm-Leach Bliley Act Under the GLB Act, nonpublic information can only be shared with affiliates of the financial institution or affiliates of related third parties, even if the customer does not opt out. (T/F) TRUE What information must be provided to the borrower when referrals take place between affiliated businesses? An Affiliated Business Disclosure Statement as mandated by RESPA What is the primary purpose of the Gramm- Leach Bliley Act? Notice of right to financial privacy and right to opt out of sharing personal information 12/15/24, 10:31 AM NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUE… Along with the Fair and Accurate Credit Transactions Act Disposal Rule, what GLB Act provision ensures that customer's information is not handled or maintained carelessly and is disposed of properly? GLB Act's Safeguards rule What is the difference between the GLB Act Safeguards Rule and the FACT Act Disposal Rule? GLB Act's Safeguards Rule requires all companies to design, implement, and maintain safeguards to protect customer information from theft... FACT Act requires businesses to take appropriate measures to safeguard from theft in the disposal of consumer report What is a "Federally Related Loan"? Loans secured by a first or subordinate lien on a residential property that meets stated RESPA criteria. The definition is so broad it covers virtually every home loan secured by a mortgage. Most of HUD's enforcement actions result due to section 8 of RESPA. What is addressed in Section 8? Prohibited against giving or receiving a fee, kickback, or anything of value pursuant to an agreement or understanding for the referral of settlement business What is an affiliated business arrangement? An arrangement in which one person refers applicants to a settlement service provider with whom the referring person has an ownership interest of 1% or more 12/15/24, 10:31 AM NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) ACTUAL EXAM COMPLETE ACCURATE EXAM QUE… What customer protection does Section 10 of RESPA provide? Protect consumers by ensuring borrowers know the amount they are to deposit into escrow by preventing lenders from overcharging borrowers for escrow deposits What are the consequences for violating Section 8 of RESPA? Up to $10,000 and/or one year in prison What is the primary aim of Regulation B? ECOA is intended to promote availability of credit to all creditworthy applicants and prohibit discrimination A copy of the Closing Disclosure must be provided to the borrower how many days prior to closing? 3 days prior to closing Under the ECOA, is it lawful to turn down an applicant because part of his/her income is derived from public assistance? It is unlawful not to accept an application due to the type of income it is not however unlawful to turn them down if the income is not enough to qualify them for the repayment