NMLS TEST FINAL EXAM QUESTIONS AND ANSWERS
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
Under the CFPB, the following groups are identified as types of consumer and
protection laws EXCEPT
a) Credit Authorization and Security.
b) Financial Disclosure.
c) Privacy Protection and Consumer identification.
d) Prohibition of Predatory Lending. - ...(ANSWERS)....a) Credit Authorization and
Security
According to the GLB Act, an individual who obtains or has obtained a financial
product or service from a financial institution is known as a what? -
...(ANSWERS)....consumer
Conforming loans follow the underwriting guidelines of which of the following:
a) Fannie Mae and Freddie Mac
b) FHA and VA
c) Freddie Mac and Ginnie Mae
d) Ginnie Mae and HUD - ...(ANSWERS)....a) Fannie Mae and Freddie Mac
Which federal law requires that the good faith estimate be provided to the
borrower within three business days of the time a loan application is taken? -
...(ANSWERS)....RESPA
,True of False: If there are multiple borrowers, the Home Loan tool kit booklet is
only required to be given to one of them - ...(ANSWERS)....True
For the purposes of issuing a revised Loan Estimate, "changed circumstances"
must involve a change that caused estimated amounts to increase by at least:
a) 20%
b) 15%
c) 10%
d) 25% - ...(ANSWERS)....c) 10%
As a result of provisions included in the Dodd-Frank Act, HOEPA was revised to
extend its provisions to: - ...(ANSWERS)....open-ended transactions & purchase
money mortgages
The Gramm-Leach-Bliley Act contains all of the following provisions EXCEPT:
a) Financial Privacy Rule
b) National Do Not Call Registry
c) Pretexting Provisions Rule
d) Safeguards Rule - ...(ANSWERS)....b) National Do Not Call Registry
Which regulation encourages financial institutions to help meet the credit needs
of their communities, including low and moderate-income neighborhoods,
consistent with safe and sound lending practices? - ...(ANSWERS)....CRA
,According to ECOA, a borrower can request a copy of the appraisal report used in
the decision process within ___ days of a credit decision. - ...(ANSWERS)....90
What type of scam entails homeowners who are encouraged to refinance their
property over and over until little or no equity remains? - ...(ANSWERS)....loan
flipping
The Fraud Enforcement and Recovery Act was adopted by congress in 2009 to: -
...(ANSWERS)....facilitate the prosecution of those who commit mortgage fraud
After a loan closing, funds are disbursed. When are the funds disbursed for an
owner-occupied, residential refinance? - ...(ANSWERS)....After the three business-
day recession period
What is the adjustable number to compute the interest rate on an ARM called?
a) prepayment
b) index
c) margin
d) cap - ...(ANSWERS)....b) index
A borrower is buying a house for $180,000. He provides a down payment of
$40,000. If he pays three discount points, what is the total cost of the points?
a) $4,200
, b) $6,000
c) $5,400
d) $4,667 - ...(ANSWERS)....a) $4,200
The late fee for a conventional loan is:
A) 3% of principal and interest
B) 4% of principal and interest
C) 5% of principal and interest
D) 10% of principal and interest - ...(ANSWERS)....c) 5% of principal and interest
The requirement for private mortgage insurance is generally discontinued when
the loan to value ratio falls below:
a) 90%
b) 75%
c) 60%
d) 80% - ...(ANSWERS)....d) 80%
Which document itemizes all settlement costs including lender charges? -
...(ANSWERS)....HUD-1 / Closing Disclosure
What does a loan originator use to determine the estimated value of a property
based on an analytical comparison of similar property sales?
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
Under the CFPB, the following groups are identified as types of consumer and
protection laws EXCEPT
a) Credit Authorization and Security.
b) Financial Disclosure.
c) Privacy Protection and Consumer identification.
d) Prohibition of Predatory Lending. - ...(ANSWERS)....a) Credit Authorization and
Security
According to the GLB Act, an individual who obtains or has obtained a financial
product or service from a financial institution is known as a what? -
...(ANSWERS)....consumer
Conforming loans follow the underwriting guidelines of which of the following:
a) Fannie Mae and Freddie Mac
b) FHA and VA
c) Freddie Mac and Ginnie Mae
d) Ginnie Mae and HUD - ...(ANSWERS)....a) Fannie Mae and Freddie Mac
Which federal law requires that the good faith estimate be provided to the
borrower within three business days of the time a loan application is taken? -
...(ANSWERS)....RESPA
,True of False: If there are multiple borrowers, the Home Loan tool kit booklet is
only required to be given to one of them - ...(ANSWERS)....True
For the purposes of issuing a revised Loan Estimate, "changed circumstances"
must involve a change that caused estimated amounts to increase by at least:
a) 20%
b) 15%
c) 10%
d) 25% - ...(ANSWERS)....c) 10%
As a result of provisions included in the Dodd-Frank Act, HOEPA was revised to
extend its provisions to: - ...(ANSWERS)....open-ended transactions & purchase
money mortgages
The Gramm-Leach-Bliley Act contains all of the following provisions EXCEPT:
a) Financial Privacy Rule
b) National Do Not Call Registry
c) Pretexting Provisions Rule
d) Safeguards Rule - ...(ANSWERS)....b) National Do Not Call Registry
Which regulation encourages financial institutions to help meet the credit needs
of their communities, including low and moderate-income neighborhoods,
consistent with safe and sound lending practices? - ...(ANSWERS)....CRA
,According to ECOA, a borrower can request a copy of the appraisal report used in
the decision process within ___ days of a credit decision. - ...(ANSWERS)....90
What type of scam entails homeowners who are encouraged to refinance their
property over and over until little or no equity remains? - ...(ANSWERS)....loan
flipping
The Fraud Enforcement and Recovery Act was adopted by congress in 2009 to: -
...(ANSWERS)....facilitate the prosecution of those who commit mortgage fraud
After a loan closing, funds are disbursed. When are the funds disbursed for an
owner-occupied, residential refinance? - ...(ANSWERS)....After the three business-
day recession period
What is the adjustable number to compute the interest rate on an ARM called?
a) prepayment
b) index
c) margin
d) cap - ...(ANSWERS)....b) index
A borrower is buying a house for $180,000. He provides a down payment of
$40,000. If he pays three discount points, what is the total cost of the points?
a) $4,200
, b) $6,000
c) $5,400
d) $4,667 - ...(ANSWERS)....a) $4,200
The late fee for a conventional loan is:
A) 3% of principal and interest
B) 4% of principal and interest
C) 5% of principal and interest
D) 10% of principal and interest - ...(ANSWERS)....c) 5% of principal and interest
The requirement for private mortgage insurance is generally discontinued when
the loan to value ratio falls below:
a) 90%
b) 75%
c) 60%
d) 80% - ...(ANSWERS)....d) 80%
Which document itemizes all settlement costs including lender charges? -
...(ANSWERS)....HUD-1 / Closing Disclosure
What does a loan originator use to determine the estimated value of a property
based on an analytical comparison of similar property sales?
