NMLS

NMLS Practice Test Hard Questions with Verified Answers A discount point is BEST described as a charge the borrower pays to: A.) A lender to decrease the interest rate on the mortgage loan B.) A mortgage broker at the time of application to obtain a favorable rate C.) The seller as part of the closing costs of a loan D.) A lender to ensure against foreclosure A.) A lender to decrease the interest rate on the mortgage loan A buyer has made an earnest money payment of $5,000. The b...

Primary goals of TILA - correct answer Protect consumers by disclosing the costs and terms of credit Create uniform standards for stating the cost of credit, thereby encouraging consumers to compare the costs of loans offered by different creditors Ensure that advertising for credit is truthful and not misleading Provide borrowers with the right to rescind certain types of mortgage transactions TILA's four conditions of credit - correct answer The credit is offered to consumers The offer...

Primary goals of TILA - correct answer Protect consumers by disclosing the costs and terms of credit Create uniform standards for stating the cost of credit, thereby encouraging consumers to compare the costs of loans offered by different creditors Ensure that advertising for credit is truthful and not misleading Provide borrowers with the right to rescind certain types of mortgage transactions TILA's four conditions of credit - correct answer The credit is offered to consumers The offer...

The Mortgage Lending Industry - ANSWER-Segment 1 Which one of the following is NOT an alternative term used to refer to a savings and loan institution? -Mutual savings bank -Thrift institution -Mortgage banker -Savings and loan association - ANSWER-Mortgage banke

CFPB - ANSWER-Consumer Financial Protection Bureau: Part of the Dodd-Frank Act passed in 2010. It is focused on one goal: watching out for American consumers in the market for consumer financial products and services. This includes ensuring that consumers get the information they need to make the financial decisions they believe are best for themselves and their families by making sure prices are clear upfront, risks are visible, and that nothing is concealed in fine print. Responsibilitie...

RESPA - ANSWER-Real Estate Settlement Procedures Act; Allows borrowers to receive pertinent and timely disclosure regarding the nature and costs of the real estate settlement (closing) process; Enacted in 1974, the law was originally proposed to add more transparency to costs associated with certain real estate transactions and to eliminate abusive practices, such as kickbacks, which artificially increase the cost of settlement services. When RESPA must be obeyed - ANSWER-When a loan is a f...

Payments for qualified mortgages must be based on - Answer the maximum interest rate that will apply during the first five years after the date of the first payment. Which of the following fees is not included in the calculation of the finance charge for a mortgage? - Answer fees charged by an unaffiliated appraiser. Finance charges always include fees charged by the creditor, charges by an affiliate of the creditor, and fees charged by a third-party provider required by the creditor. Fees ...

What law deals with credit, APR & Advertising of consumer loans? - correct answer TILA Which regulation prohibits kickbacks? - correct answer RESPA Which regulations require the lender to cancel PMI when the loan reaches 78% LTV? - correct answer HPA-Homeowners Protection Act Which Regulation prohibits fee splitting? - correct answer RESPA Regulation X is the letter used to describe which law? - correct answer RESPA RESPA is the acronym used to describe which law? - correct answer Real Est...

Federal banking agencies" include: Answers A. The Director of the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, and FDIC B. Fannie Mae and Freddie Mac C. The Comptroller of the Currency and the National Credit Union Administration D. A and C correct answers D. A borrower approaches a lender to refinance their existing negative amortization loan, which was originated by that same lender. Which of the following statements is incorrect?

Which law regulates the activities of consumer reporting agencies and users of consumer credit reports? correct answers FCRA Which agency manages the National Do Not Call Registry? correct answers Federal Trade Commission Which act led to the Nationwide Mortgage Licensing System and Registry for the residential mortgage industry? correct answers The SAFE Act Under ECOA, providing different terms of financing for a potential borrower who has poor credit scores due to a recent bankruptcy is...