NMLS EXAM Questions and Answers all 100%
Correct
Suspicious Activity Reports (SARs) are used to help detect and prevent:
a. Discriminatory lending practices
b. Loan flipping
c. Money laundering
d. Subprime lending - ✔✔c. Money laundering
If a mortgage broker decides to use telemarketing to establish leads for loan origination,
which of the following should occur?
a. The broker should invest in a state-of-the-art predictive dialer
b. The broker should obtain access to the Do-Not-Call registry
c. The broker should only call former and current customers to ask for referrals
d. The broker should stop calling current customers unless they have given consent -
✔✔b. The broker should obtain access to the Do-Not-Call registry
Name one practice that is prohibited under Section 8 of RESPA - ✔✔Section 8 of
RESPA prohibits a person from giving or accepting any thing of value for referrals of
settlement service business related to a federally related mortgage loan
List at least three categories under ECOA on which creditors may not base credit
decisions - ✔✔Race, color, religion, national origin, sex, marital status, age, or
borrower receiving public assistance
, Define rescission as it relates to a mortgage loan transaction - ✔✔The ability for the
borrower to cancel the loan application during a refinance or a HELOC. The borrower is
given this window 3-days prior to closing
List at least two practices that are not prohibited with regard to appraisers -
✔✔Providing information about the property, asking for more details, explanation of
value conclusion, consider other properties for comparisons, and/or correct errors in
the appraisal report
HOEPA was enacted as a part of ___ - ✔✔TILA
If an attorney and lender entered an agreement where the attorney's car loan payments
are paid by the lender, in return for names of potential loan applicants, who violated
RESPA? - ✔✔Both violated RESPA
For which of the following is a creditor permitted to charge more than it discloses on the
Loan Estimate (no tolerance limitation) and still meet the good faith requirement? -
✔✔Prepaid interest
- lenders can charge more as long as it is disclosed in the Loan Estimate
Which fees are subject to the zero tolerance category? - ✔✔Any fees that are paid to
the creditor, the mortgage broker or an affiliate of either party. Common fees imposed
are origination fees, fees with unaffiliated service providers for required services that
the consumer cannot shop for, or transfer taxes
Which fees fall within 10% tolerance? - ✔✔Recording fees, fees for required third-
party services where the consumer is permitted to shop for the provider, and the
consumer picks a provider from your Written List of Service Providers
Correct
Suspicious Activity Reports (SARs) are used to help detect and prevent:
a. Discriminatory lending practices
b. Loan flipping
c. Money laundering
d. Subprime lending - ✔✔c. Money laundering
If a mortgage broker decides to use telemarketing to establish leads for loan origination,
which of the following should occur?
a. The broker should invest in a state-of-the-art predictive dialer
b. The broker should obtain access to the Do-Not-Call registry
c. The broker should only call former and current customers to ask for referrals
d. The broker should stop calling current customers unless they have given consent -
✔✔b. The broker should obtain access to the Do-Not-Call registry
Name one practice that is prohibited under Section 8 of RESPA - ✔✔Section 8 of
RESPA prohibits a person from giving or accepting any thing of value for referrals of
settlement service business related to a federally related mortgage loan
List at least three categories under ECOA on which creditors may not base credit
decisions - ✔✔Race, color, religion, national origin, sex, marital status, age, or
borrower receiving public assistance
, Define rescission as it relates to a mortgage loan transaction - ✔✔The ability for the
borrower to cancel the loan application during a refinance or a HELOC. The borrower is
given this window 3-days prior to closing
List at least two practices that are not prohibited with regard to appraisers -
✔✔Providing information about the property, asking for more details, explanation of
value conclusion, consider other properties for comparisons, and/or correct errors in
the appraisal report
HOEPA was enacted as a part of ___ - ✔✔TILA
If an attorney and lender entered an agreement where the attorney's car loan payments
are paid by the lender, in return for names of potential loan applicants, who violated
RESPA? - ✔✔Both violated RESPA
For which of the following is a creditor permitted to charge more than it discloses on the
Loan Estimate (no tolerance limitation) and still meet the good faith requirement? -
✔✔Prepaid interest
- lenders can charge more as long as it is disclosed in the Loan Estimate
Which fees are subject to the zero tolerance category? - ✔✔Any fees that are paid to
the creditor, the mortgage broker or an affiliate of either party. Common fees imposed
are origination fees, fees with unaffiliated service providers for required services that
the consumer cannot shop for, or transfer taxes
Which fees fall within 10% tolerance? - ✔✔Recording fees, fees for required third-
party services where the consumer is permitted to shop for the provider, and the
consumer picks a provider from your Written List of Service Providers
