NMLS TEST QUESTIONS Latest 2022 complete questions & answers

Quiz Questions Module 1 1. A customer with an excellent credit score submits a loan application. When does ECOA require that the applicant be advised of the status of the application? a. Within 30 days i. Page 250 under “Disclosure Terms” 2. The penalties for paying or accepting an illegal referral fee are: a. Fines of up to $10,000 and up to one year in prison i. As previously mentioned, RESPA and Regulation X are intended to keep consumers informed of settlement costs and to prevent mortgage lenders from obtaining unearned fees. There are various practices prohibited by RESPA and Regulation X, including those related to referral fees and fee-splitting, as well as sham affiliated business arrangements. Whether unearned fees are the result of fee-splitting, kickbacks, or the use of sham affiliated business arrangements to exchange referral fees, the penalties are severe. Each violation of these prohibitions may lead to criminal penalties of up to $10,000 and/or imprisonment for up to one year. (Page 12) 3. The amount of the down payme v v v nt, the amount of the finance charge, or the number of payments needed are all examples of _______________ under TILA. a. Trigger terms i. Trigger terms for open-end mortgages, such as home equity plans include references to any of the following: ▪ Finance charge ▪ Other charges, such as late payment charges, title, appraisal, and credit report fees (Official Interpretations to §1026.32(b)(1)(iii)-1) ▪ Taxes imposed on the credit transaction, and ▪ Payment terms of the home equity plan (Page 49) 4. Finance charges always include which of the following? a. Mortgage broker fee i. a mortgage broker’s fees are always included in the finance charge, even if the lender does not require the use of the broker’s services and does not retain a portion of the charge (page 32) 5. According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA data collection purposes? a. Their Race i. The Home Mortgage Disclosure Act (HMDA) is a federal fair lending law that was enacted with the goal of discouraging redlining. HMDA accomplishes this by monitoring the mortgage lending practices of depository and non-depository institutions. Data about loan applicants is collected, and that data is used to determine whether financial institutions are sufficiently meeting the borrowing and depositing needs of the communities in which they are located. The first step in this process involves inquiries by loan officers and originators regarding the personal characteristics of credit applicants. Therefore, in every credit transaction that is secured by a dwelling, creditors are obligated to request information on the applicant’s ethnicity, race, sex, marital status, and age