NMLS - Practice Exam Questions and Answers all
100% Correct
There is a ________ accuracy tolerance for amounts stated on the Loan Estimate and
the actual closing cost if the consumer is allowed to shop for his/her own settlement
service provider.
a) 5% c) 10%
B) 15% d) 0% - ✔✔c) 10%
The USA PATRIOT Act is a federal law that Congress adopted in response to:
a) The need to revitalize the economy in 2008
b) The meltdown of the mortgage lending market in 2007
c) The terrorist attacks on September 11, 2001
d) The need to make HAMP loans available to more Americans - ✔✔c) The terrorist
attacks on September 11, 2001
What federal statute primarily serves to control the settlement costs of residential
mortgage loans?
a) TILA b) ECOA
c) RESPA d) HMDA - ✔✔c) RESPA
The disclosure requirements of RESPA would apply to which of the following loans?
,a) A loan to purchase 75 acres of land
b) A loan to purchase a duplex & rehabilitate it into a single-family dwelling
c) A loan to purchase a property that includes a gas station and convenience store?
d) A farm loan - ✔✔b) A loan to purchase a duplex & rehabilitate it into a single-
family dwelling
Which of the following is not a duty assigned to the CFPB by the Dodd-Frank Act?
a) Monitoring the markets for consumer financial products and services
b) Granting & denying mortgage loan originator licenses
c) Taking enforcement actions for violations of federal consumer financial laws
d) Collecting & responding to consumer complaints - ✔✔b) Granting & denying
mortgage loan originator licenses
The Fraud Enforcement & Recovery Act was adopted by Congress in 2009 to?
a) Respond to the rising incidence of foreclosure scams
b) Strengthen the Red Flags Rules
c) Respond to identity theft & help victims restore their credit
d) Facilitate the prosecution of those who commit mortgage fraud - ✔✔d) Facilitate
the prosecution of those who commit mortgage fraud
Which of the following reasons for denying an applicant a loan is a violation of fair
lending laws?
a) The applicant's recent marital status may lean to a change in employment
, b) The applicant's income does not meet the required level for repayment of the loan
c) The applicant's age is below the minimum age for executing a contract
d) The applicant's credit history includes defaults on many credit payments - ✔✔a)
The applicant's recent marital status may lean to a change in employment
Which of the following payments is a violation of RESPA?
a) A title company charges a market fee for examination & evaluation of title evidence
b) Two mortgage brokers decide to split the mortgage broker fee from a residential loan
transaction
c) A mortgage broker accepts a fee for sending its customers to a title company
d) A mortgage broker pays a fee to determine if a property is located in a flood zone -
✔✔c) A mortgage broker accepts a fee for sending its customers to a title company
The federal agency that is responsible for implementation & enforcement of the USA
PATRIOT Act is:
a) The Department of Homeland Security
b) The Federal Reserve Board
c) The Department of Housing & Urban Development
d) The Treasury Department - ✔✔d) The Treasury Department
The Real Estate Settlement Procedures Act includes all of the following provisions,
except:
a) It prohibits receipt of referral fees
b) It requires the use of a uniform settlement statement
100% Correct
There is a ________ accuracy tolerance for amounts stated on the Loan Estimate and
the actual closing cost if the consumer is allowed to shop for his/her own settlement
service provider.
a) 5% c) 10%
B) 15% d) 0% - ✔✔c) 10%
The USA PATRIOT Act is a federal law that Congress adopted in response to:
a) The need to revitalize the economy in 2008
b) The meltdown of the mortgage lending market in 2007
c) The terrorist attacks on September 11, 2001
d) The need to make HAMP loans available to more Americans - ✔✔c) The terrorist
attacks on September 11, 2001
What federal statute primarily serves to control the settlement costs of residential
mortgage loans?
a) TILA b) ECOA
c) RESPA d) HMDA - ✔✔c) RESPA
The disclosure requirements of RESPA would apply to which of the following loans?
,a) A loan to purchase 75 acres of land
b) A loan to purchase a duplex & rehabilitate it into a single-family dwelling
c) A loan to purchase a property that includes a gas station and convenience store?
d) A farm loan - ✔✔b) A loan to purchase a duplex & rehabilitate it into a single-
family dwelling
Which of the following is not a duty assigned to the CFPB by the Dodd-Frank Act?
a) Monitoring the markets for consumer financial products and services
b) Granting & denying mortgage loan originator licenses
c) Taking enforcement actions for violations of federal consumer financial laws
d) Collecting & responding to consumer complaints - ✔✔b) Granting & denying
mortgage loan originator licenses
The Fraud Enforcement & Recovery Act was adopted by Congress in 2009 to?
a) Respond to the rising incidence of foreclosure scams
b) Strengthen the Red Flags Rules
c) Respond to identity theft & help victims restore their credit
d) Facilitate the prosecution of those who commit mortgage fraud - ✔✔d) Facilitate
the prosecution of those who commit mortgage fraud
Which of the following reasons for denying an applicant a loan is a violation of fair
lending laws?
a) The applicant's recent marital status may lean to a change in employment
, b) The applicant's income does not meet the required level for repayment of the loan
c) The applicant's age is below the minimum age for executing a contract
d) The applicant's credit history includes defaults on many credit payments - ✔✔a)
The applicant's recent marital status may lean to a change in employment
Which of the following payments is a violation of RESPA?
a) A title company charges a market fee for examination & evaluation of title evidence
b) Two mortgage brokers decide to split the mortgage broker fee from a residential loan
transaction
c) A mortgage broker accepts a fee for sending its customers to a title company
d) A mortgage broker pays a fee to determine if a property is located in a flood zone -
✔✔c) A mortgage broker accepts a fee for sending its customers to a title company
The federal agency that is responsible for implementation & enforcement of the USA
PATRIOT Act is:
a) The Department of Homeland Security
b) The Federal Reserve Board
c) The Department of Housing & Urban Development
d) The Treasury Department - ✔✔d) The Treasury Department
The Real Estate Settlement Procedures Act includes all of the following provisions,
except:
a) It prohibits receipt of referral fees
b) It requires the use of a uniform settlement statement
