NCCO Exam 3 || Most Recent Exam 2026-2027 Actual
Complete Real Exam Questions And Correct Answers
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A credit union is working with a member who is determined to
be a "covered borrower" under the Military Lending Act. Which
of the following products is a covered loan that is subject to the
limitations of the MLA?
a. A loan to refinance a motor
vehicle
b. A loan to purchase a
jet ski
c. A home mortgage
loan
d. A home equity loan - ANSWER-a. A loan to refinance a
motor vehicle
Which of these is *not* a valuation for the purposes of
Regulation B's appraisal
requirements?
a. A report prepared by an appraiser (whether or not
licensed or certified) including the appraiser's estimate or
opinion of the property's value.
b. A document prepared by the credit union's staff that
assigns value to the property.
,c. Internal documents that merely restate the estimated
value of the dwelling contained in an appraisal or written
valuation being provided to the applicant. d. A broker price
opinion prepared by a real estate broker, agent, or sales person
to estimate the property's value. - ANSWER-c. Internal
documents that merely restate the estimated value of the
dwelling contained in an appraisal or written valuation being
provided to the applicant.
When a credit union modifies a member's loan, the credit
union must provide
the member with new Regulation Z disclosures. Choose
the best answer,
a. True, the member's original obligation has been satisfied and
is replaced with a new obligation.
b. True, this is a subsequent change in terms.
c. False, if the terms of an existing loan obligation are modified
without the obligation being satisfied and replaced. Whether
a subsequent change in terms is considered a "loan
modification" or "refinance" will depend on how state law
addresses loan modifications.
d. False, the terms of an existing loan obligation are modified
without the obligation being satisfied and replaced. -
ANSWER-a. True, the member's original obligation has been
satisfied and is replaced with a new obligation.
The credit union plans a billboard advertisement featuring a
generic message about the credit union's home mortgage
,lending program. Does the Equal Housing Lending logo and
statement need to be included on the billboard? Choose the
best answer.
a. Yes, but it can be included in small font because the
credit union's advertisement does not state an annual
percentage rate (APR).
b. Yes, the Equal Housing Lending logo and statement must
be included on all advertisements for real estate loans.
c. No, the Equal Housing Lending logo is only required to be
disclosed in the credit union's lobby.
d. No, billboards are not considered advertisements. -
ANSWER-b. Yes, the Equal Housing Lending logo and
statement must be included on all advertisements for real
estate loans.
Regulation Z's requirements depend on which type of credit is
being extended
as well as the terms of the credit
union's product.
a. True, a credit union needs to review the specific rules
applicable to its loan product in order to determine the
requirements.
b. True, but only with regard to the advertising requirements.
The disclosure requirements are the same for all loan products.
c. False, credit unions cannot create unique products and
must follow Regulation Z's "plain vanilla" requirement.
, d. False, Regulation Z only applies to dwelling-secured
credit and credit card accounts. - ANSWER-a. True, a credit
union needs to review the specific rules applicable to its loan
product in order to determine the requirements.
When may a credit union issue a revised Loan Estimate and
use that Loan Estimate for determining whether costs charged
to a borrower are in good faith - meaning, within tolerance
limitations? Choose the best answer.
a. An extraordinary event beyond any party's control or other
unexpected event
specific to the borrower or
transaction
b. A change is requested by the
borrower
c. The Loan Estimate
expires
d. All of the above - ANSWER-b. A change is requested by
the borrower
Page 264
If the credit union uses a credit report to make a decision to
reduce a member's credit card limit, the credit union need only
send the Fair Credit Reporting Act adverse action notice. The
Regulation B notice is *not* required. Choose the best answer.
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Newest Exam | Just Released!!
A credit union is working with a member who is determined to
be a "covered borrower" under the Military Lending Act. Which
of the following products is a covered loan that is subject to the
limitations of the MLA?
a. A loan to refinance a motor
vehicle
b. A loan to purchase a
jet ski
c. A home mortgage
loan
d. A home equity loan - ANSWER-a. A loan to refinance a
motor vehicle
Which of these is *not* a valuation for the purposes of
Regulation B's appraisal
requirements?
a. A report prepared by an appraiser (whether or not
licensed or certified) including the appraiser's estimate or
opinion of the property's value.
b. A document prepared by the credit union's staff that
assigns value to the property.
,c. Internal documents that merely restate the estimated
value of the dwelling contained in an appraisal or written
valuation being provided to the applicant. d. A broker price
opinion prepared by a real estate broker, agent, or sales person
to estimate the property's value. - ANSWER-c. Internal
documents that merely restate the estimated value of the
dwelling contained in an appraisal or written valuation being
provided to the applicant.
When a credit union modifies a member's loan, the credit
union must provide
the member with new Regulation Z disclosures. Choose
the best answer,
a. True, the member's original obligation has been satisfied and
is replaced with a new obligation.
b. True, this is a subsequent change in terms.
c. False, if the terms of an existing loan obligation are modified
without the obligation being satisfied and replaced. Whether
a subsequent change in terms is considered a "loan
modification" or "refinance" will depend on how state law
addresses loan modifications.
d. False, the terms of an existing loan obligation are modified
without the obligation being satisfied and replaced. -
ANSWER-a. True, the member's original obligation has been
satisfied and is replaced with a new obligation.
The credit union plans a billboard advertisement featuring a
generic message about the credit union's home mortgage
,lending program. Does the Equal Housing Lending logo and
statement need to be included on the billboard? Choose the
best answer.
a. Yes, but it can be included in small font because the
credit union's advertisement does not state an annual
percentage rate (APR).
b. Yes, the Equal Housing Lending logo and statement must
be included on all advertisements for real estate loans.
c. No, the Equal Housing Lending logo is only required to be
disclosed in the credit union's lobby.
d. No, billboards are not considered advertisements. -
ANSWER-b. Yes, the Equal Housing Lending logo and
statement must be included on all advertisements for real
estate loans.
Regulation Z's requirements depend on which type of credit is
being extended
as well as the terms of the credit
union's product.
a. True, a credit union needs to review the specific rules
applicable to its loan product in order to determine the
requirements.
b. True, but only with regard to the advertising requirements.
The disclosure requirements are the same for all loan products.
c. False, credit unions cannot create unique products and
must follow Regulation Z's "plain vanilla" requirement.
, d. False, Regulation Z only applies to dwelling-secured
credit and credit card accounts. - ANSWER-a. True, a credit
union needs to review the specific rules applicable to its loan
product in order to determine the requirements.
When may a credit union issue a revised Loan Estimate and
use that Loan Estimate for determining whether costs charged
to a borrower are in good faith - meaning, within tolerance
limitations? Choose the best answer.
a. An extraordinary event beyond any party's control or other
unexpected event
specific to the borrower or
transaction
b. A change is requested by the
borrower
c. The Loan Estimate
expires
d. All of the above - ANSWER-b. A change is requested by
the borrower
Page 264
If the credit union uses a credit report to make a decision to
reduce a member's credit card limit, the credit union need only
send the Fair Credit Reporting Act adverse action notice. The
Regulation B notice is *not* required. Choose the best answer.
