©THESTAR 2025 ALL RIGHTS RESERVED
Module 1 NMLS Exam Questions and
Answers 100% Pass
What are the penalties for violation of RESPA/Section 8 - ANS Section 8 of RESPA prohibits
referral fees and other forms of kickbacks/fee splitting. Penalties include fines of up to 10,000
and up to one year in prison
Disclosures due within three business days of loan application - ANS Loan Estimate
Your Home Loan Toolkit: A Step By Step Guide
CHARM Booklet
Variable-rate program disclosures
Home equity plan disclosures
Notice of Right to Receive an Appraisal Report
What can result in a 1,000,000 fine and 30 years in prison? - ANS Acts of mortgage fraud
Definition of the term "creditor" - ANS The Equal Credit Opportunity Act (ECOA), the Fair
Credit Reporting Act (FCRA), and the Fair and Accurate Credit Transactions Act (FACTA) all use
the same definition for creditor. A creditor is any person who regulary extends, renews, or
continues credit. Loan originators, lenders, and other mortgage progessionals are included in
this definition.
Transactions reported under HMDA.. - ANS Purchases
Refinances
, ©THESTAR 2025 ALL RIGHTS RESERVED
Home improvement loans
Pre-qualifications must also be reported, along with their disposition
When a borrowers LTV reaches 80%... - ANS He/she is permitted to request discontinuation
of PMI. The Homeowners Protection Act sets the requirements for discontinuation of PMI. It is
at the lenders discretion to permit discontinuation - the borrower must be current on payments
An initial privacy notice is due.. - ANS At the time that a customer relationship is established.
the Gramm-Leach Bliley Act requires financial institution (including mortgage brokers) to
provide and intial privacy notice " not later than when you establish a customer relationship..."
The initial privacy notice should also be accompanied by the opt-out noitce
HMDA requires loan originators to... - ANS Request information on and applicants race,
ethnicity, and sex. The applicant may decline to answer, in which case the loan originator must
make a best guess based on visual observation. This information is necessary to meet the
reporting requirements of HMDA
A permissible purpose is required... - ANS When obtaining a credit report. Under FCRA,
lenders and mortgage progessionals must provide the consumer reporting agency with a
certification of permissible purpose in order to pull credit. Loan qualification is considered a
permissible purpose.
The Gramm-Leach Bliley Act does not protect... - ANS Publicly-available information. This
includes information that can be found in government real estate records, information available
from the phonebook, and information included on a public unrestricted website.
The loan estimate must be provide... - ANS No later than 3 business days after receiving a
completed application.
No later than 7 business days prior to consummation
Module 1 NMLS Exam Questions and
Answers 100% Pass
What are the penalties for violation of RESPA/Section 8 - ANS Section 8 of RESPA prohibits
referral fees and other forms of kickbacks/fee splitting. Penalties include fines of up to 10,000
and up to one year in prison
Disclosures due within three business days of loan application - ANS Loan Estimate
Your Home Loan Toolkit: A Step By Step Guide
CHARM Booklet
Variable-rate program disclosures
Home equity plan disclosures
Notice of Right to Receive an Appraisal Report
What can result in a 1,000,000 fine and 30 years in prison? - ANS Acts of mortgage fraud
Definition of the term "creditor" - ANS The Equal Credit Opportunity Act (ECOA), the Fair
Credit Reporting Act (FCRA), and the Fair and Accurate Credit Transactions Act (FACTA) all use
the same definition for creditor. A creditor is any person who regulary extends, renews, or
continues credit. Loan originators, lenders, and other mortgage progessionals are included in
this definition.
Transactions reported under HMDA.. - ANS Purchases
Refinances
, ©THESTAR 2025 ALL RIGHTS RESERVED
Home improvement loans
Pre-qualifications must also be reported, along with their disposition
When a borrowers LTV reaches 80%... - ANS He/she is permitted to request discontinuation
of PMI. The Homeowners Protection Act sets the requirements for discontinuation of PMI. It is
at the lenders discretion to permit discontinuation - the borrower must be current on payments
An initial privacy notice is due.. - ANS At the time that a customer relationship is established.
the Gramm-Leach Bliley Act requires financial institution (including mortgage brokers) to
provide and intial privacy notice " not later than when you establish a customer relationship..."
The initial privacy notice should also be accompanied by the opt-out noitce
HMDA requires loan originators to... - ANS Request information on and applicants race,
ethnicity, and sex. The applicant may decline to answer, in which case the loan originator must
make a best guess based on visual observation. This information is necessary to meet the
reporting requirements of HMDA
A permissible purpose is required... - ANS When obtaining a credit report. Under FCRA,
lenders and mortgage progessionals must provide the consumer reporting agency with a
certification of permissible purpose in order to pull credit. Loan qualification is considered a
permissible purpose.
The Gramm-Leach Bliley Act does not protect... - ANS Publicly-available information. This
includes information that can be found in government real estate records, information available
from the phonebook, and information included on a public unrestricted website.
The loan estimate must be provide... - ANS No later than 3 business days after receiving a
completed application.
No later than 7 business days prior to consummation
