NMLS (NMLS)

RESPA disclosures? due dates? Correct Answer: 3 days after application: Home loan tool kit Loan estimate List of HUD counselors Mortgage Servicing Disclosure Statement Know before you owe booklet Special Info Booklet 3 days before consummation: Initial Closing Disclosure AfBA disclosure At consummation: Final Closing Disclosure Initial Escrow Statement (45 days after closing) After closing: Annual Escrow Statement Servicing Transfer Statement (sent 15 days before transfer...

Acceleration Clause Correct Answer: Allows lenders to demand payment in full if the borrower defaults on the loan (can be construed as predatory lending) Alienation Clause (Due on Sale Clause) Correct Answer: Says you must repay your mortgage if you sell your home to a new owner (loan is not assumable) Appraiser Independance Requirements replaced HVCC Correct Answer: home valuation code of conduct Due on Demand Clause Correct Answer: (Considered a predatory practice) The lender can ...

A graduated payment buydown where the payments are subsidized for only two years, usually 2% the first year and 1% the second year. Correct Answer: 2-1 Buydown A provision of the Truth in Lending Act related to required disclosures and waiting periods. Initial disclosure to be delivered within three business days of applying; earliest to close a loan is the seventh business day after disclosures are provided; a three business-day waiting period imposed after borrower receives redisclosures b...

On dealing with an appraiser, a mortgage loan originator is permitted to Correct Answer: Ask the appraiser to provide further detail regarding the results of an appraisal The designated responsible party must maintain copies of all advertisements for: Correct Answer: Four years The Colorado loan modification services contract must be completed: Correct Answer: At the time of application Which of the following is a true stamens regarding recordkeeping requirements? Correct Answer: Re...

Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. Correct Answer: Predatory Lending. RESPA-Real Estate Settlement Procedures Act Correct Answer: The Federal Statute that deals with the settlement of residential mortgage loans. RESPA's section 9 Prohibits Correct Answer: Home sellers from requiring home buyers to purch...

Uniform state test Correct Answer: Regulation H Secure and a Fair Enforcement for mortgage licensing act of 2008 Correct Answer: Require licensing for LO's HERA (housing and recovery act of 2008) Correct Answer: Focused on Subprime lending practices NMLS Correct Answer: Nationwide mortgage licensing system and registry State licensing agencies Correct Answer: Laws include Loan originator licensing requirements, requirement for effective supervision of those who are licensed, a ...

What must a borrower do to avoid having late payments reported to a credit bureau? Correct Answer: Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? Correct Answer: 3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? Correct Answer: Credit scores Max prepayment penalty on residential mortgages in the first year of the loan Correct Answer: 3% What must condominium as...

What are the penalties for violation of RESPA/Section 8? Correct Answer: Section 8 of RESPA prohibits referral fees and other forms of kickbacks/fee splitting. Penalties includes fines of up to $10,000 and up to one year in prison. Disclosures due within three business days of loan application... Correct Answer: Loan Estimate Your Home Loan Toolkit CHARM Booklet Variable-rate program disclosures Home equity plan disclosures Notice of Right to Receive an Appraisal Report Definition o...

CFPB Correct Answer: Consumer Financial Protection Bureau What does the CFPB do? Correct Answer: Regulates RESPA, TILA, ECOA, and HMDA FTC Correct Answer: Federal Trade Commission What does the FTC do? Correct Answer: Monitors Red Flag Rules RESPA Correct Answer: Real Estate Settlement Procedures Act What does RESPA do? Correct Answer: •Protects homeowners of Single, 1-4 family dwellings, condos, & homes manufactured on lot. •Educates borrowers costs of loan • Elimi...

An application must be accompanied by fingerprints when applying for a. Licensed MLO b. Registered MLO c. not required d. required for both licensed and registered MLO Correct Answer: d Quarterly mortgage call reports must be filed a. within 30 days of the end of the calendar quarter b. within 30 days of the end of the fiscal quarter c. within 45 days of the end of the calendar quarter d. within 45 days of the end of the fiscal quarter Correct Answer: c. within45 days of the end o...