NMLS SAFE ACT MLO EXAM - FEDERAL
LAW QUESTIONS AND ANSWERS 100%
CORRECT
If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business
with you in regards to a loan, when does right to contact them expire?
A. 1 month
B. 2 months
C. 3 months
D. 4 months - ANSWER-C. 3 months
An established business relationship with a company also will be created if you make an
inquiry to the company, or submit an application to it. This kind of established business
relationship exists for three months after the inquiry or application. During this time, the
company can call you.
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below
would be considered a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
D. $200,000 loan with fees of $16,500 - ANSWER-D. $200,000 loan with fees of
$16,500
What does it mean that HUD Homes are initially offered on a "priority basis"?
A. People who are buying the home as their primary residence are given 1st priority to
make an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to
make an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage
quick sale.
D. HUD will give priority financing to initial buyers of HUD Homes. - ANSWER-A. People
who are buying the home as their primary residence are given 1st priority to make an
offer.
HUD is the Department of Housing and Urban Development: the United States federal
department that administers federal programs dealing with better housing and urban
renewal; created in 1965
,The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
C. closing costs.
D. loan servicing practices. - ANSWER-B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and
key provisions. RESPA requires disclosure of closing costs and loan servicing practices.
ECOA requires disclosure of the appraisal.
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
D. Within 1 business days after settlement - ANSWER-B. Within 30 calendar days after
settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the
amount by which the tolerance was exceeded, at settlement or within 30 calendar days
after settlement.
Which Regulation corresponds to The Real Estate Settlement Procedures Act
(RESPA) ?
A. regulation Y
B. regulation V
C. regulation Z
D. regulation X - ANSWER-D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One,
passed by the Federal Reserve Board, concerns credit extended to people who
purchase United States Treasury securities. The other, also known as the Real Estate
Settlement Procedures Act (RESPA) is concerned with the process of completing real
estate sales. People who participate in such sales are monitored by the Department of
Housing and Urban Development to determine whether or not they are adhering to
legislation such as Regulation X.
Which is a disclosure that RESPA requires creditors to give to customers at the time of
the mortgage loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE - ANSWER-B. HUD-1
, The HUD-1 Settlement Statement is a standard form in use in the United States of
America which is used to itemize services and fees charged to the borrower by the
lender or broker.
The Federal law requiring unrestricted access to public accommodations is the:
A. Fair Housing act
B. The public accommodations
C. Real Estate Settlement procedures act
D. Americans with Disabilities Act. - ANSWER-D. Americans with Disabilities Act.
The Americans with Disabilities Act which gives civil rights protection to individuals with
disabilities similar to those provided to individuals on the basis of race, color, sex,
national origin, age, and religion. It guarantees equal opportunity for individuals with
disabilities in public accommodations, employment, transportation, State and local
government services, and telecommunications.
If each of the following loans would otherwise require compliance with the Federal
Truth-in-Lending ACT, which one would be exempt on the basis of the type of loan
itself?
A. An agricultural loan by a bank
B. A VA loan from a federally-charted savings and loan association
C. $25,000 loan from a credit union for home improvement
D. $20,000 signature loan from a consumer finance company - ANSWER-A. An
agricultural loan by a bank
A creditor can retain files that are prohibited by the Equal Credit Opportunity Act
(ECOA) when the information:
A. was requested and obtained from a source after 1997
B. about an applicant was obtained from a legal firm
C. was obtained from a consumer reporting agency without the creditor requesting it
D. about an applicant was obtained from another creditor - ANSWER-C. was obtained
from a consumer reporting agency without the
A lender has how many days to notify the borrower of an underwriting decision?
A. 10
B. 60
C. 30
D. 20 - ANSWER-C. 30
LAW QUESTIONS AND ANSWERS 100%
CORRECT
If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business
with you in regards to a loan, when does right to contact them expire?
A. 1 month
B. 2 months
C. 3 months
D. 4 months - ANSWER-C. 3 months
An established business relationship with a company also will be created if you make an
inquiry to the company, or submit an application to it. This kind of established business
relationship exists for three months after the inquiry or application. During this time, the
company can call you.
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below
would be considered a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
D. $200,000 loan with fees of $16,500 - ANSWER-D. $200,000 loan with fees of
$16,500
What does it mean that HUD Homes are initially offered on a "priority basis"?
A. People who are buying the home as their primary residence are given 1st priority to
make an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to
make an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage
quick sale.
D. HUD will give priority financing to initial buyers of HUD Homes. - ANSWER-A. People
who are buying the home as their primary residence are given 1st priority to make an
offer.
HUD is the Department of Housing and Urban Development: the United States federal
department that administers federal programs dealing with better housing and urban
renewal; created in 1965
,The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
C. closing costs.
D. loan servicing practices. - ANSWER-B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and
key provisions. RESPA requires disclosure of closing costs and loan servicing practices.
ECOA requires disclosure of the appraisal.
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
D. Within 1 business days after settlement - ANSWER-B. Within 30 calendar days after
settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the
amount by which the tolerance was exceeded, at settlement or within 30 calendar days
after settlement.
Which Regulation corresponds to The Real Estate Settlement Procedures Act
(RESPA) ?
A. regulation Y
B. regulation V
C. regulation Z
D. regulation X - ANSWER-D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One,
passed by the Federal Reserve Board, concerns credit extended to people who
purchase United States Treasury securities. The other, also known as the Real Estate
Settlement Procedures Act (RESPA) is concerned with the process of completing real
estate sales. People who participate in such sales are monitored by the Department of
Housing and Urban Development to determine whether or not they are adhering to
legislation such as Regulation X.
Which is a disclosure that RESPA requires creditors to give to customers at the time of
the mortgage loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE - ANSWER-B. HUD-1
, The HUD-1 Settlement Statement is a standard form in use in the United States of
America which is used to itemize services and fees charged to the borrower by the
lender or broker.
The Federal law requiring unrestricted access to public accommodations is the:
A. Fair Housing act
B. The public accommodations
C. Real Estate Settlement procedures act
D. Americans with Disabilities Act. - ANSWER-D. Americans with Disabilities Act.
The Americans with Disabilities Act which gives civil rights protection to individuals with
disabilities similar to those provided to individuals on the basis of race, color, sex,
national origin, age, and religion. It guarantees equal opportunity for individuals with
disabilities in public accommodations, employment, transportation, State and local
government services, and telecommunications.
If each of the following loans would otherwise require compliance with the Federal
Truth-in-Lending ACT, which one would be exempt on the basis of the type of loan
itself?
A. An agricultural loan by a bank
B. A VA loan from a federally-charted savings and loan association
C. $25,000 loan from a credit union for home improvement
D. $20,000 signature loan from a consumer finance company - ANSWER-A. An
agricultural loan by a bank
A creditor can retain files that are prohibited by the Equal Credit Opportunity Act
(ECOA) when the information:
A. was requested and obtained from a source after 1997
B. about an applicant was obtained from a legal firm
C. was obtained from a consumer reporting agency without the creditor requesting it
D. about an applicant was obtained from another creditor - ANSWER-C. was obtained
from a consumer reporting agency without the
A lender has how many days to notify the borrower of an underwriting decision?
A. 10
B. 60
C. 30
D. 20 - ANSWER-C. 30
