NMLS Practice Test with correct
solutions
Regulation b ✅✅Equal Credit Opportunity Act / 1974
Regulation C ✅✅Home Mortgage Disclosure Act / 1975
Regulation V ✅✅Fair Credit Reporting Act / 1968
Regulation X ✅✅Real Estate Settlement Procedures Act / 1974
Regulation Z ✅✅Truth in Lending Act/ 1968
Safe ✅✅Secure and Fair Enforcement /2008
Fact ✅✅Fair and Accurate credit transactions/ 2003
GLB ✅✅Gramm-Leach-Bliley Act /1999
Higher Priced Loans ✅✅1.5,2.5,3.5% / 2008
HOEPA - Home Ownership and Equity Protection Act ✅✅Home Ownership and
Equity Protection Act, Section 32 , 1994
Fair Housing Act ✅✅1968
HPA ✅✅Homeowners Protection Act: PMI /1998
Civil Rights Act ✅✅Race 1866
Section 1 ✅✅Type of mortgage
Section 2 ✅✅Property Info
Section 3 ✅✅Borrowers information
Section 4 ✅✅Employment Information
Section 5 ✅✅Income
Section 6 ✅✅Assets & liabilities
,Section 7 ✅✅Details of transaction
Section 8 ✅✅Declarations
Section 9 ✅✅Acknowledgement and Agreement
Section 10 ✅✅Information for government
Regulation H ✅✅Uniform State Test
Code of Federal Regulations 1938 ✅✅Codification of the general and permanent
rules and regulations published in the Federal Register by the executive departments
and agencies of the federal government of the United States.
Consumer Financial Protection Bureau 2011 ✅✅An independent bureau within the
Federal Reserve that helps consumers make financial decisions and is responsible for
consumer protection in the financial sector.
Federal Reserve System 1913 ✅✅A Federal charter for banks that permits them to
make real estate loans
Federal Home Loan Bank Act 1932 ✅✅Established Federal Home Loan Banks and
gives authority to lend money to banks
Banking Act of 1933 ✅✅The law that established the Federal Deposit Insurance
Corporation (FDIC) to insure bank deposits. It also prohibited commercial banks from
selling insurance or acting as investment banks. Also Known as the Glass Steagall Act
Federal Deposit Insurance Corporation (FDIC) ✅✅An agency created in 1933 to
insure individuals' bank accounts, protecting people against losses due to bank failures,
Insures up to $250k
National Housing act of 1934 ✅✅Created Federal Housing Administration to insure
loans by private lending agencies for upgrading farms and small businesses
Federal Savings and Loan Insurance Corporation (FSLIC) ✅✅Abolished in 1988 by
Financial Institution Reform Recovery and Enforcement Act, it was an institution that
administered deposit insurance for savings and loan institutions in the United States
Financial Institution Reform Recovery and Enforcement Act 1989 ✅✅Established the
Resolution Trust Corporation to close hundreds of insolvent thrifts and provided funds to
pay out insurance to their depositors.
,Savings Association Insurance Fund (SAIF) 1989 ✅✅Part of the FDIC that insures
holders of accounts in savings and loan associations
Federal Home Loan Banks (FHL Banks) 1932 ✅✅12 regional Banks that the U.S.
Lending institutions use to finance housing & economic development
Affordable Housing Program (AHP) 1990 ✅✅Profit 10% of the FHL Banks Income
Federal Housing Administration (FHA) 1934 ✅✅Created by the national housing act
to provide mortgage insurance
FHA Loans Have ✅✅No Income Limits
FHA Reimbursement ✅✅Banks are Reimbursed when Borrowers become default on
their loan
Government Sponsored Enterprises (GSEs) ✅✅Organizations created by the federal
government (Fannie Mae, Freddie Mac, Farmer Mac, Ginnie Mae) to help increase loan
opportunities for homebuyers.
Office of Thrift Supervision (OTS) 1989 ✅✅Division Of the U.S. Department of
treasury that chartered, supervised, and regulated all federally chartered and state-
chartered savings banks and savings and loans associations
Office of the Comptroller of the Currency (OCC) 1863 ✅✅Charters, regulates, and
supervises all national banks and thrift institutions and the federally licensed branches
and agencies of foreign banks in the United States.
Established by the National Currency Act of 1863 ✅✅Office of the Comptroller of the
Currency
National Credit Union Administration (NCUA) 1970 ✅✅The federal agency that
regulates credit unions and administers the insurance fund that insures member credit
unions' deposits. Depositors' accounts with member credit unions are insured up to
$250,000..
Federal Financial Institutions Examination Council (FFIEC) 1979 ✅✅Federal
Examination of financial institutions by the board of governors of the Federal Reserve
Federal Housing Finance Agency ✅✅Created by the federal housing finance
regulatory reform act of 2008. Has Oversight go the 14 Related GSE's
Department of Housing and Urban Development (HUD) ✅✅A federal cabinet
department active in national housing programs. Among its many programs are urban
, renewal, public housing, model cities, rehabilitation loans, FHA subsidies, fair housing
enforcement, and water and sewer grants.
Commercial Banks ✅✅Financial Institutions that provide a variety of financial
services including loans
Demand Deposits ✅✅A deposit of money that can be withdrawn without prior notice.
Certificate of Deposit ✅✅A certificate issued by a bank to a person depositing money
for a specified length of time.
savings and loan association (S&Ls) ✅✅A depository institution that has traditionally
obtained most of its funds by accepting savings deposits, which have been used
primarily to make mortgage loans
Disintermediation ✅✅The loss of deposits to competing investments that offer much
higher returns
Mortgage banking companies: ✅✅Institutions that specialize in making only mortgage
loans to consumers
Mortgage Banker ✅✅Company, or individual, that originates mortgage loans, sells
them to other investors, services the monthly payments, keeps related records, and acts
as escrow agen to disperse funds for taxes and insurance.
Mini-Correspondents ✅✅Small Corresponding Lenders with lesser net worth but
have relations to investors
Mortgage Broker ✅✅A company or individual who, for a fee, places loans with
wholesale lenders, but does not service such loans
Credit Unions ✅✅Financial institutions owned and controlled by their members in
order to pool deposits thus offering better interest rates among its members
Finance Companies ✅✅Organizations that specially in high risk loans at bigger
interest rates
Mutual Savings Banks ✅✅State/Federally-chartered financial institutions operated by
trustees for the benefit of depositors
Portfolio Lending ✅✅A term to describe the strategy where financial institutions that
make real estate loans keep and service those loans in-house as part of their
investment portfolios, instead of selling on the secondary market.
solutions
Regulation b ✅✅Equal Credit Opportunity Act / 1974
Regulation C ✅✅Home Mortgage Disclosure Act / 1975
Regulation V ✅✅Fair Credit Reporting Act / 1968
Regulation X ✅✅Real Estate Settlement Procedures Act / 1974
Regulation Z ✅✅Truth in Lending Act/ 1968
Safe ✅✅Secure and Fair Enforcement /2008
Fact ✅✅Fair and Accurate credit transactions/ 2003
GLB ✅✅Gramm-Leach-Bliley Act /1999
Higher Priced Loans ✅✅1.5,2.5,3.5% / 2008
HOEPA - Home Ownership and Equity Protection Act ✅✅Home Ownership and
Equity Protection Act, Section 32 , 1994
Fair Housing Act ✅✅1968
HPA ✅✅Homeowners Protection Act: PMI /1998
Civil Rights Act ✅✅Race 1866
Section 1 ✅✅Type of mortgage
Section 2 ✅✅Property Info
Section 3 ✅✅Borrowers information
Section 4 ✅✅Employment Information
Section 5 ✅✅Income
Section 6 ✅✅Assets & liabilities
,Section 7 ✅✅Details of transaction
Section 8 ✅✅Declarations
Section 9 ✅✅Acknowledgement and Agreement
Section 10 ✅✅Information for government
Regulation H ✅✅Uniform State Test
Code of Federal Regulations 1938 ✅✅Codification of the general and permanent
rules and regulations published in the Federal Register by the executive departments
and agencies of the federal government of the United States.
Consumer Financial Protection Bureau 2011 ✅✅An independent bureau within the
Federal Reserve that helps consumers make financial decisions and is responsible for
consumer protection in the financial sector.
Federal Reserve System 1913 ✅✅A Federal charter for banks that permits them to
make real estate loans
Federal Home Loan Bank Act 1932 ✅✅Established Federal Home Loan Banks and
gives authority to lend money to banks
Banking Act of 1933 ✅✅The law that established the Federal Deposit Insurance
Corporation (FDIC) to insure bank deposits. It also prohibited commercial banks from
selling insurance or acting as investment banks. Also Known as the Glass Steagall Act
Federal Deposit Insurance Corporation (FDIC) ✅✅An agency created in 1933 to
insure individuals' bank accounts, protecting people against losses due to bank failures,
Insures up to $250k
National Housing act of 1934 ✅✅Created Federal Housing Administration to insure
loans by private lending agencies for upgrading farms and small businesses
Federal Savings and Loan Insurance Corporation (FSLIC) ✅✅Abolished in 1988 by
Financial Institution Reform Recovery and Enforcement Act, it was an institution that
administered deposit insurance for savings and loan institutions in the United States
Financial Institution Reform Recovery and Enforcement Act 1989 ✅✅Established the
Resolution Trust Corporation to close hundreds of insolvent thrifts and provided funds to
pay out insurance to their depositors.
,Savings Association Insurance Fund (SAIF) 1989 ✅✅Part of the FDIC that insures
holders of accounts in savings and loan associations
Federal Home Loan Banks (FHL Banks) 1932 ✅✅12 regional Banks that the U.S.
Lending institutions use to finance housing & economic development
Affordable Housing Program (AHP) 1990 ✅✅Profit 10% of the FHL Banks Income
Federal Housing Administration (FHA) 1934 ✅✅Created by the national housing act
to provide mortgage insurance
FHA Loans Have ✅✅No Income Limits
FHA Reimbursement ✅✅Banks are Reimbursed when Borrowers become default on
their loan
Government Sponsored Enterprises (GSEs) ✅✅Organizations created by the federal
government (Fannie Mae, Freddie Mac, Farmer Mac, Ginnie Mae) to help increase loan
opportunities for homebuyers.
Office of Thrift Supervision (OTS) 1989 ✅✅Division Of the U.S. Department of
treasury that chartered, supervised, and regulated all federally chartered and state-
chartered savings banks and savings and loans associations
Office of the Comptroller of the Currency (OCC) 1863 ✅✅Charters, regulates, and
supervises all national banks and thrift institutions and the federally licensed branches
and agencies of foreign banks in the United States.
Established by the National Currency Act of 1863 ✅✅Office of the Comptroller of the
Currency
National Credit Union Administration (NCUA) 1970 ✅✅The federal agency that
regulates credit unions and administers the insurance fund that insures member credit
unions' deposits. Depositors' accounts with member credit unions are insured up to
$250,000..
Federal Financial Institutions Examination Council (FFIEC) 1979 ✅✅Federal
Examination of financial institutions by the board of governors of the Federal Reserve
Federal Housing Finance Agency ✅✅Created by the federal housing finance
regulatory reform act of 2008. Has Oversight go the 14 Related GSE's
Department of Housing and Urban Development (HUD) ✅✅A federal cabinet
department active in national housing programs. Among its many programs are urban
, renewal, public housing, model cities, rehabilitation loans, FHA subsidies, fair housing
enforcement, and water and sewer grants.
Commercial Banks ✅✅Financial Institutions that provide a variety of financial
services including loans
Demand Deposits ✅✅A deposit of money that can be withdrawn without prior notice.
Certificate of Deposit ✅✅A certificate issued by a bank to a person depositing money
for a specified length of time.
savings and loan association (S&Ls) ✅✅A depository institution that has traditionally
obtained most of its funds by accepting savings deposits, which have been used
primarily to make mortgage loans
Disintermediation ✅✅The loss of deposits to competing investments that offer much
higher returns
Mortgage banking companies: ✅✅Institutions that specialize in making only mortgage
loans to consumers
Mortgage Banker ✅✅Company, or individual, that originates mortgage loans, sells
them to other investors, services the monthly payments, keeps related records, and acts
as escrow agen to disperse funds for taxes and insurance.
Mini-Correspondents ✅✅Small Corresponding Lenders with lesser net worth but
have relations to investors
Mortgage Broker ✅✅A company or individual who, for a fee, places loans with
wholesale lenders, but does not service such loans
Credit Unions ✅✅Financial institutions owned and controlled by their members in
order to pool deposits thus offering better interest rates among its members
Finance Companies ✅✅Organizations that specially in high risk loans at bigger
interest rates
Mutual Savings Banks ✅✅State/Federally-chartered financial institutions operated by
trustees for the benefit of depositors
Portfolio Lending ✅✅A term to describe the strategy where financial institutions that
make real estate loans keep and service those loans in-house as part of their
investment portfolios, instead of selling on the secondary market.
