NMLS
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Which law regulates the activities of consumer reporting agencies and users of consumer credit reports? - Answer-FCRA 
 
Which agency manages the National Do Not Call Registry? - Answer-Federal Trade Commission 
 
Which act led to the Nationwide Mortgage Licensing System and Registry for the residential mortgage industry? - Answer-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 considered? - Answ...
Annual Percentage Rate (APR) - Answer-Consumer's true annual cost of borrowing funds according to the Federal Truth-in-Lending Act. Calculates an effective interest rate based on most of a loan's up-front fees and the stated annual interest rate. 
 
Closing - Answer-Process whereby a seller delivers ownership rights in real property to the buyer. May also describe the completion of the loan process where the borrower receives use of the funds from the lender in return for promising to repay th...
What are the penalties for violation of RESPA/Section 8 - Answer-Section 8 of RESPA prohibits referral fees and other forms of kickbacks/fee splitting. Penalties include fines of up to 10,000 and up to one year in prison 
 
Disclosures due within three business days of loan application - Answer-Loan Estimate 
Your Home Loan Toolkit: A Step By Step Guide 
CHARM Booklet 
Variable-rate program disclosures 
Home equity plan disclosures 
Notice of Right to Receive an Appraisal Report 
 
What can resu...
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 __________________________. - Answer-Predatory Lending. 
 
RESPA-Real Estate Settlement Procedures Act - Answer-The Federal Statute that deals with the settlement of residential mortgage loans. 
 
RESPA's section 9 Prohibits - Answer-Home sellers from requiring home buyers to purchase title insurance from...
"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 - Answer-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? 
 
A. The...
which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA? - Answer-FEDERAL RESERVE SYSTEM 
 
the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the - Answer-Acceleration Clause 
 
at closing a borrower may deposit funds to establish reserves for which of the following? - Answer-TAXES AND INSURANCE 
 
in a qualification of an applicant who receives child support and alimony - Answer-CHILD...
1) Seller can Sell property at a premium/profit with Fannie Mae financing after? 
30 days 
•60 days 
•90 days - Answer-•90 days 
 
2) A COFI index is defined as? 
 
Cost of funds index 
•Cost of financial index 
•Cost of funding insurance - Answer-cost of fund index 
 
3) Subordinate financing relates to 
 
•seller financing. 
•second mortgages. 
•financing in the secondary mortgage market. 
•subprime loans. - Answer-second mortgage 
 
4) Explain what Investors with non-recour...
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 - Answer-A.) A lender to decrease the interest rate on the mortgage loan 
 
A buyer has made an earnest money payment of $5,000. The buyer pays an additional $2,000 in option money to be c...
Enhancing protection and reducing fraud by directing states to adopt minimum uniform standards for the licensing and registration of residential mortgage loan originators was the purpose of the federal act known as the: 
 
a. S.A.F.E. Act 
b. Federal Trade Act 
c. Consumer Financial Protection Act 
d. Dodd-Frank Act - Answer-a. S.A.F.E. Act 
 
Loan processors and underwriters may not: 
 
a. Communicate with consumers to obtain information necessary for loan processing 
b. Collect information req...
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 ...