NMLS FINAL EXAM QUESTIONS AND ANSWERS ALL CORRECT 2025 LATEST UPDATE

NMLS FINAL EXAM QUESTIONS AND ANSWERS ALL CORRECT 2025 LATEST UPDATE A mortgage company advertises on a real estate agent's website by paying the required fees. Which company is in violation of RESPA? A. The mortgage broker only B. The real estate agent only C. Both are in violation D. Neither are in violation - Answer-D. Neither are in violation If a consumer reporting agency makes an inquiry related to a joint credit account of a borrower and the spouse, which of the following information can be provided under the Equal Credit Opportunity Act (ECOA)? A. Information about the borrower only B. Information about the spouse only C. Information on the borrower and the spouse D. Information cannot be provided about either person - Answer-C. Information on the borrower and the spouse A homeowner's equity position reaches 20% of the original value o the property. Which of the following statements is true pertaining to the cancellation of the Private Mortgage Insurance (PMI)? A. The lender must automatically cancel the PMI B. The homeowner can request cancellation of the PMI C. The PMI gets automatically cancelled after 30 days D. The PMI gets cancelled 20 days after the request is submitted - Answer-B. The homeowner can request cancellation of the PMI The purpose of the Fair Credit Reporting Ace (FCRA) is to: A. Reduce home insurance costs B. Ensure the accuracy of the information in the consumer reports C. Help consumer receive lower interest rates D. Provide consumers with many finance options to choose from - Answer-B. Ensure the accuracy of the information in the consumer reports According to RESPA, which of the following relationships between a lender and a settlement service provider does NOT require disclosures on the Good Faith Estimate? A. Provider is an associate of the lender B. Provider has an outstanding loan with the lender C. The lender and the provider use the same attorney for legal services D. The lender has repeatedly used the services of the provider in the last 12 months - Answer-B. Provider has an outstanding loan with the lender How does Freddie Mac benefit the consumer? A. Consumers can take more than one mortgage B.Freddie Mac does not ask for PMI C. If a consumer is unable to pay the installments, they can approach Freddie Mac for time D. By making mortgage products available to consumers - Answer-D. By making mortgage products available to consumers A mortgage broker licensee charges a fee that exceeds the fee initially disclosed to the borrower. What MUST the mortgage broker provide the borrow provide the borrower three days prior to the signing of the closing documents? A. A copy of the borrower's rights under the Consumer Loan Act B. A redisclosure of the fee including a clear written explanation for the increase C. The details of the mortgage broker's trust account including subaccounts D. The details of the mortgage broker;s surety bond company and the amount of the bond - Answer-B. A redisclosure of the fee including a clear written explanation for the increase A mortgage company displays its sign at a real estate licensee's office. Who is in violation of RESPA? A. Only the mortgage company is B. Only the real estate licensee C. Both D. Neither - Answer-D. Neither A mortgage broker refers clients to a title company providing them with an Affiliated Business Disclosure. The mortgage broker owns 10% of the title company. The title company performs services and pays the mortgage broker a commission. The title company pays the mortgage broker annual dividends based on the amount of business that was referred to the title company. Which of the statements is Correct? A. Only the mortgage company is in violation of RESPA B. Only the title company is in violation of RESPA C. Both are in violation of RESPA D. Neither are in violation of RESPA - Answer-D. Neither are in violation of RESPA Truth in lending act (TILA) requires disclosure of: A. Number of days to process the loan B. Credit history of the borrower C. Key details of the property on which the loan was taken D. Key terms of the credit transaction - Answer-D. Key terms of the credit transaction In whose name is a loan closed that is "table-funded" A. Loan originator B. Independent contractor C. Mortgage broker licensee D. Designated mortgage lender - Answer-D. Designated mortgage lender Under the Fair Credit Reporting Act, who is responsible for ensuring that the reporting of consumer's credit standing and reputation protects the consumer's rights and privacy? A. Mortgage broker B. Consumer credit counseling agencies C. Credit reporting agencies D. Board of Governors of the Federal Reserve Systems - Answer-C. Credit reporting agencies TILA is designed to protect consumers in: A. property offers B. credit card transactions C. real estate practices D. property evaluations - Answer-B. credit card transactions A lender provides a borrower with an intial amortization schedule for PMI as well as the disclosure's at loan closing for a adjustable- rate mortgage. The lender MUST also provide a written notice stating the: A. borrower's right to refuse PMI B. Borrower's right to cancel PMI C. Lender's right to extend the time for monthly payments for a PMI D. Lender's right to increase the monthly payment amount for PMI - Answer-B. Borrower's right to cancel PMI A mortgage broker has advertised "$1200 down" for a house in a local newspaper. According to TILA which of the following information must be disclosed in the same advertisement? A. location of the house B. the total area of the house C. the annual percentage rate D. the annual property taxes - Answer-C. the annual percentage rate What is the purpose of a Subordination Clause found in a mortgage of deed of trust that is a junior lien? A. Provides a mechanism where the current 1st lien can be refinanced B. Allows real estate taxes to become a junior lien C. Does not allow the 1st lien to be assumed by a new buyer D. Allows the 2nd lien lender to drop back into a subordinate position if the borrower refinances the senior lien - Answer-D. Allows the 2nd lien lender to drop back into a subordinate position if the borrower refinances the senior lien What is the minimum amount of a home's appraised value required as a down payment to avoid taking PMI? A. 10% B. 15% C. 20% D. 30% - Answer-C. 20% The Homeowner's Protection Act is applicable to all but which of the following: A. Lenders B. Loan Servicers C. Appraisers D. PMI Companies - Answer-C. Appraisers