1|Page
NMLS EXAM 1|| LATEST AND FULLY COVERED
UPDATE (VERSION 1&2) ALL QUESTIONS AND
CORRECT ANSWERS 100% ALREADY GRADED
A+|| ASSURED PASS!!!
Which federal regulation limits the length of time that adverse collection
information may appear in a consumer's credit report?
Regulation Z
M
Regulation C
Regulation V
ED
Regulation B - ANSWER: Regulation V - under FCRA (fair credit reporting act)
The agency responsible for administering the Equal Credit Opportunity Act is the
ST
Office of the Comptroller of the Currency.
Department of HUD.
U
Consumer Financial Protection Bureau.
D
Equal Opportunity Commission. - ANSWER: Consumer Financial Protection
Bureau
Y
Which act requires the lender to provide the borrower a reason for rejection of
credit in writing within 30 days of loan application?
Real Estate Settlement Procedures Act
Equal Credit Opportunity Act
Community Reinvestment Act of 1977
MEDSTUDY.COM
,2|Page
Federal Fair Housing Act - ANSWER: Equal Credit Opportunity Act
Which data is a lender NOT required to record in order to comply with HMDA?
HOEPA status
applicant gross income
loan decision
familial status - ANSWER: familial status
M
What regulation forbids the seller to require the use of a particular title company as
ED
a condition of sale?
Regulation C
ST
Regulation Z
Regulation X
Regulation B - ANSWER: Regulation X (under RESPA)
U
D
The record retention requirement outlined by LE is how many years?
Y
three
four
six
seven - ANSWER: 3 years
Which of the following individuals is exempt from licensure under the SAFE Act?
MEDSTUDY.COM
,3|Page
An individual who manages an internal sales team and occasionally takes
applications
An independently contracted processor who solely provides clerical or
administrative support duties
A licensed MLO working for a qualified lender
M
A registered MLO who takes applications for a depository institution - ANSWER:
A registered MLO who takes applications for a depository institution
ED
What is the maximum civil penalty which can be assessed by the CFPB or
appropriate civil regulatory agency under the SAFE Act?
ST
$25,000 per violation
$1,000,000 and/or 30 years' incarceration
$16,000 per violation
U
$10,000 per violation - ANSWER: $25,000 per violation
D
What source of income can always be excluded when qualifying a borrower for a
Y
mortgage loan?
welfare
alimony
child support
income not expected to continue - ANSWER: income not expected to continue
MEDSTUDY.COM
, 4|Page
The right of rescission provided under Regulation Z is the right to
forfeit interest.
pay discount points.
cancel a contract.
practice usury. - ANSWER: cancel a contract
Which of the following occurrences would not prevent a person from obtaining a
M
license as an MLO under Reg H?
ED
A felony conviction 8 years ago for battery.
A gross misdemeanor conviction 8 years ago for theft.
A revocation of a real estate license.
ST
A felony conviction 5 years ago for assault. - ANSWER: A felony conviction 8
years ago for battery.
U
What's another name for Regulation Z?
Title VIII
D
ECOA
Y
RESPA
TILA - ANSWER: TILA
When taking an application for a mortgage loan, what are creditors NOT permitted
to ask?
Are you required to pay child support?
MEDSTUDY.COM
NMLS EXAM 1|| LATEST AND FULLY COVERED
UPDATE (VERSION 1&2) ALL QUESTIONS AND
CORRECT ANSWERS 100% ALREADY GRADED
A+|| ASSURED PASS!!!
Which federal regulation limits the length of time that adverse collection
information may appear in a consumer's credit report?
Regulation Z
M
Regulation C
Regulation V
ED
Regulation B - ANSWER: Regulation V - under FCRA (fair credit reporting act)
The agency responsible for administering the Equal Credit Opportunity Act is the
ST
Office of the Comptroller of the Currency.
Department of HUD.
U
Consumer Financial Protection Bureau.
D
Equal Opportunity Commission. - ANSWER: Consumer Financial Protection
Bureau
Y
Which act requires the lender to provide the borrower a reason for rejection of
credit in writing within 30 days of loan application?
Real Estate Settlement Procedures Act
Equal Credit Opportunity Act
Community Reinvestment Act of 1977
MEDSTUDY.COM
,2|Page
Federal Fair Housing Act - ANSWER: Equal Credit Opportunity Act
Which data is a lender NOT required to record in order to comply with HMDA?
HOEPA status
applicant gross income
loan decision
familial status - ANSWER: familial status
M
What regulation forbids the seller to require the use of a particular title company as
ED
a condition of sale?
Regulation C
ST
Regulation Z
Regulation X
Regulation B - ANSWER: Regulation X (under RESPA)
U
D
The record retention requirement outlined by LE is how many years?
Y
three
four
six
seven - ANSWER: 3 years
Which of the following individuals is exempt from licensure under the SAFE Act?
MEDSTUDY.COM
,3|Page
An individual who manages an internal sales team and occasionally takes
applications
An independently contracted processor who solely provides clerical or
administrative support duties
A licensed MLO working for a qualified lender
M
A registered MLO who takes applications for a depository institution - ANSWER:
A registered MLO who takes applications for a depository institution
ED
What is the maximum civil penalty which can be assessed by the CFPB or
appropriate civil regulatory agency under the SAFE Act?
ST
$25,000 per violation
$1,000,000 and/or 30 years' incarceration
$16,000 per violation
U
$10,000 per violation - ANSWER: $25,000 per violation
D
What source of income can always be excluded when qualifying a borrower for a
Y
mortgage loan?
welfare
alimony
child support
income not expected to continue - ANSWER: income not expected to continue
MEDSTUDY.COM
, 4|Page
The right of rescission provided under Regulation Z is the right to
forfeit interest.
pay discount points.
cancel a contract.
practice usury. - ANSWER: cancel a contract
Which of the following occurrences would not prevent a person from obtaining a
M
license as an MLO under Reg H?
ED
A felony conviction 8 years ago for battery.
A gross misdemeanor conviction 8 years ago for theft.
A revocation of a real estate license.
ST
A felony conviction 5 years ago for assault. - ANSWER: A felony conviction 8
years ago for battery.
U
What's another name for Regulation Z?
Title VIII
D
ECOA
Y
RESPA
TILA - ANSWER: TILA
When taking an application for a mortgage loan, what are creditors NOT permitted
to ask?
Are you required to pay child support?
MEDSTUDY.COM
