NMLS exam Questions and Answers all 100%
Correct| Latest update 2024-2025
There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the
actual closing costs if the consumer is allowed to shop for his/her own settlement
service provider. - ✔✔10%
The disclosure requirements of RESPA would apply to which of the following loans? -
✔✔A loan to purchase a duplex and rehabilitate it into a single family dwelling
Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice? - ✔✔his credit score
MAP rule - ✔✔This Rule applies to commercial communications used to market
mortgage loan products and services to consumers.
credit reporting agency - ✔✔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 borrower's current loan balances - ✔✔Under the Gramm-Leach-Bliley Act, which of
the following is considered nonpublic information?
Note that the applicant has declined to answer and select a race based on visual
observation - ✔✔If a loan applicant chooses not to disclose his or her race on a loan
application, what recourse does a mortgage professional have?
,80%; 78% - ✔✔Under the Homeowners Protection Act, borrowers can request that
lenders cancel PMI when their loan balance is less than ____, or a lender may collect
PMI until ____ loan-to-value is reached.
The penalties for paying or accepting an illegal referral fee are: - ✔✔Fines of up to
$10,000 and up to one year in prison
The consumer is purchasing a home located in a neighborhood primarily occupied by
minorities - ✔✔All but which of the following may serve as a legal, non-
discriminatory basis for denying a mortgage loan application?
steering - ✔✔The Loan Originator Compensation Rule is intended to discourage
which of the following practices?
The Do-Not-Call Registr - ✔✔The Do-Not-Call Implementation Act authorized the
implementation and enforcement of:
Mortgage broker fee - ✔✔Finance charges always include which of the following?
escrow fees - ✔✔Which of the following is not included in calculating the APR?
The broker should obtain access to the Do-Not-Call Registry - ✔✔If a mortgage
broker decides to use telemarketing to establish leads for loan origination, which of the
following should occur?
The third business day after the Closing Disclosure is mailed - ✔✔XYZ Mortgage
Company just mailed a Closing Disclosure to a consumer. The waiting period prior to
closing will begin:
,Within 30 days - ✔✔A customer with an excellent credit score submits a loan
application. When does ECOA require that the applicant be advised of the status of the
application?
Prevent escrow overages - ✔✔An annual escrow analysis is used to do which of the
following?
HMDA - ✔✔Lenders must report detailed information about loan transactions and
demographic information concerning borrowers in order to prove they are not
discriminating. Which of the following laws creates that reporting requirement?
Money laundering - ✔✔Suspicious Activity Reports (SARs) are used to help detect
and prevent:
30 days - ✔✔If a consumer opens an account online, the Gramm-Leach-Bliley Act
states that what period of time constitutes a "reasonable opportunity" to opt out of
information sharing?
RESPA - ✔✔regulation X
RESPA - ✔✔real estate settlement procedure act
ECOA - ✔✔regulation B
ECOA - ✔✔equal credit opportunity act
TILA - ✔✔truth in lending act
, TILA - ✔✔regulation Z
RESPA - ✔✔protects consumers from unearned fees such as kickbacks and fee
splitting
The Federal Housing Administration: - ✔✔insures loans
USDA loans are primarily for properties located in: - ✔✔rural areas
FHA loan - ✔✔MIP would be used for which of the following?
reverse mortgage - ✔✔Which of the following loan programs does not require credit
or income documentation and does not require repayment as long as the owner lives in
the home?
Annual percentage rate - ✔✔What does "APR" mean?
A loan-level price adjustment (LLPA) is best described as - ✔✔GSE charges that result
in higher interest rates when consumer eligibility or loan features present a higher risk
of default
PFC - ✔✔prepaid finance charge
A loan with a balloon payment provision - ✔✔Which of the following loan types is
best described as a loan with a payment schedule made up of a series of small periodic
payments and a larger lump sum due upon maturity?
Correct| Latest update 2024-2025
There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the
actual closing costs if the consumer is allowed to shop for his/her own settlement
service provider. - ✔✔10%
The disclosure requirements of RESPA would apply to which of the following loans? -
✔✔A loan to purchase a duplex and rehabilitate it into a single family dwelling
Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice? - ✔✔his credit score
MAP rule - ✔✔This Rule applies to commercial communications used to market
mortgage loan products and services to consumers.
credit reporting agency - ✔✔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 borrower's current loan balances - ✔✔Under the Gramm-Leach-Bliley Act, which of
the following is considered nonpublic information?
Note that the applicant has declined to answer and select a race based on visual
observation - ✔✔If a loan applicant chooses not to disclose his or her race on a loan
application, what recourse does a mortgage professional have?
,80%; 78% - ✔✔Under the Homeowners Protection Act, borrowers can request that
lenders cancel PMI when their loan balance is less than ____, or a lender may collect
PMI until ____ loan-to-value is reached.
The penalties for paying or accepting an illegal referral fee are: - ✔✔Fines of up to
$10,000 and up to one year in prison
The consumer is purchasing a home located in a neighborhood primarily occupied by
minorities - ✔✔All but which of the following may serve as a legal, non-
discriminatory basis for denying a mortgage loan application?
steering - ✔✔The Loan Originator Compensation Rule is intended to discourage
which of the following practices?
The Do-Not-Call Registr - ✔✔The Do-Not-Call Implementation Act authorized the
implementation and enforcement of:
Mortgage broker fee - ✔✔Finance charges always include which of the following?
escrow fees - ✔✔Which of the following is not included in calculating the APR?
The broker should obtain access to the Do-Not-Call Registry - ✔✔If a mortgage
broker decides to use telemarketing to establish leads for loan origination, which of the
following should occur?
The third business day after the Closing Disclosure is mailed - ✔✔XYZ Mortgage
Company just mailed a Closing Disclosure to a consumer. The waiting period prior to
closing will begin:
,Within 30 days - ✔✔A customer with an excellent credit score submits a loan
application. When does ECOA require that the applicant be advised of the status of the
application?
Prevent escrow overages - ✔✔An annual escrow analysis is used to do which of the
following?
HMDA - ✔✔Lenders must report detailed information about loan transactions and
demographic information concerning borrowers in order to prove they are not
discriminating. Which of the following laws creates that reporting requirement?
Money laundering - ✔✔Suspicious Activity Reports (SARs) are used to help detect
and prevent:
30 days - ✔✔If a consumer opens an account online, the Gramm-Leach-Bliley Act
states that what period of time constitutes a "reasonable opportunity" to opt out of
information sharing?
RESPA - ✔✔regulation X
RESPA - ✔✔real estate settlement procedure act
ECOA - ✔✔regulation B
ECOA - ✔✔equal credit opportunity act
TILA - ✔✔truth in lending act
, TILA - ✔✔regulation Z
RESPA - ✔✔protects consumers from unearned fees such as kickbacks and fee
splitting
The Federal Housing Administration: - ✔✔insures loans
USDA loans are primarily for properties located in: - ✔✔rural areas
FHA loan - ✔✔MIP would be used for which of the following?
reverse mortgage - ✔✔Which of the following loan programs does not require credit
or income documentation and does not require repayment as long as the owner lives in
the home?
Annual percentage rate - ✔✔What does "APR" mean?
A loan-level price adjustment (LLPA) is best described as - ✔✔GSE charges that result
in higher interest rates when consumer eligibility or loan features present a higher risk
of default
PFC - ✔✔prepaid finance charge
A loan with a balloon payment provision - ✔✔Which of the following loan types is
best described as a loan with a payment schedule made up of a series of small periodic
payments and a larger lump sum due upon maturity?
