NMLS exam Questions and Answers all 100%
Correct| Latest update 2024-2025
The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of _______________ under TILA.
A. Components of the finance charge
B. Trigger terms
C. Prohibited disclosures
D. Components of the APR - ✔✔B. Trigger terms
Which of the following is not included in calculating the APR?
A. Discount points
B. Underwriting fees
C. PMI
D. Escrow fees - ✔✔D. Escrow fees
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the
provisions specified under federal law, what is the first possible day the loan could
fund?
A. Monday, the following week
B. Friday
C. Saturday
,D. Tuesday - ✔✔C. Saturday
The mandatory waiting period between issuance of disclosures and consummation may
be waived:
A. Using a pre-printed form from the lender
B. If the loan is a qualified mortgage
C. If the consumer requests a waiver due to a bona fide financial emergency
D. If the loan originator waives it for the consumer - ✔✔C. If the consumer requests
a waiver due to a bona fide financial emergency
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
A. Must be provided within 30 days of the decision to deny
B. Is not required to be provided to the consumer
C. Is not required to be provided unless requested in writing
D. Must be included with the notice of adverse action - ✔✔A. Must be provided
within 30 days of the decision to deny
HOEPA would not apply to:
A. A bridge loan to finance construction
B. A purchase money mortgage loan
C. An adjustable-rate mortgage loan
D. A closed-end home equity loan - ✔✔A. A bridge loan to finance construction
HOEPA was enacted as a part of:
A. ECOA
B. HMDA
, C. TILA
D. RESPA - ✔✔C. TILA
Closed-end loans with rates that exceed the average prime offer rate, but are not high
enough to trigger protections under HOEPA, are known as:
A. Subprime mortgage loans
B. Reverse mortgages
C. Higher-priced mortgage loans
D. Qualified high-cost mortgages - ✔✔C. Higher-priced mortgage loans
This Rule applies to commercial communications used to market mortgage loan
products and services to consumers.
A. MAP Rule
B. RESPA Rule
C. Truth in Advertising Rule
D. Safeguards Rule - ✔✔A. MAP Rule
Under the Gramm-Leach-Bliley Act, which of the following is considered nonpublic
information?
A. The street address of the property a borrower intends to purchase
B. The assessed value of a subject property
C. Former owners of a particular property
D. A borrower's current loan balances - ✔✔D. A borrower's current loan balances
If a loan applicant chooses not to disclose his or her race on a loan application, what
recourse does a mortgage professional have?
A. Provide the applicant with an Adverse Action Notice
Correct| Latest update 2024-2025
The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of _______________ under TILA.
A. Components of the finance charge
B. Trigger terms
C. Prohibited disclosures
D. Components of the APR - ✔✔B. Trigger terms
Which of the following is not included in calculating the APR?
A. Discount points
B. Underwriting fees
C. PMI
D. Escrow fees - ✔✔D. Escrow fees
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the
provisions specified under federal law, what is the first possible day the loan could
fund?
A. Monday, the following week
B. Friday
C. Saturday
,D. Tuesday - ✔✔C. Saturday
The mandatory waiting period between issuance of disclosures and consummation may
be waived:
A. Using a pre-printed form from the lender
B. If the loan is a qualified mortgage
C. If the consumer requests a waiver due to a bona fide financial emergency
D. If the loan originator waives it for the consumer - ✔✔C. If the consumer requests
a waiver due to a bona fide financial emergency
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
A. Must be provided within 30 days of the decision to deny
B. Is not required to be provided to the consumer
C. Is not required to be provided unless requested in writing
D. Must be included with the notice of adverse action - ✔✔A. Must be provided
within 30 days of the decision to deny
HOEPA would not apply to:
A. A bridge loan to finance construction
B. A purchase money mortgage loan
C. An adjustable-rate mortgage loan
D. A closed-end home equity loan - ✔✔A. A bridge loan to finance construction
HOEPA was enacted as a part of:
A. ECOA
B. HMDA
, C. TILA
D. RESPA - ✔✔C. TILA
Closed-end loans with rates that exceed the average prime offer rate, but are not high
enough to trigger protections under HOEPA, are known as:
A. Subprime mortgage loans
B. Reverse mortgages
C. Higher-priced mortgage loans
D. Qualified high-cost mortgages - ✔✔C. Higher-priced mortgage loans
This Rule applies to commercial communications used to market mortgage loan
products and services to consumers.
A. MAP Rule
B. RESPA Rule
C. Truth in Advertising Rule
D. Safeguards Rule - ✔✔A. MAP Rule
Under the Gramm-Leach-Bliley Act, which of the following is considered nonpublic
information?
A. The street address of the property a borrower intends to purchase
B. The assessed value of a subject property
C. Former owners of a particular property
D. A borrower's current loan balances - ✔✔D. A borrower's current loan balances
If a loan applicant chooses not to disclose his or her race on a loan application, what
recourse does a mortgage professional have?
A. Provide the applicant with an Adverse Action Notice
