MLO NMLS Flashcards 500+ Questions with
Correct Answers|Latest Update
If a loan application is APPROVED, under ECOA rules and regulations, when MUST a copy of
the appraisal be provided to the borrower? 3 business days prior to the loan closing
Conforming Loans follow the guidelines of which regulators? Fannie Mae and Freddie
Mac
Which regulation requires the lenders to
"BE EQUAL" when extending credit to borrowers? ECOA - Regulation B
How old must a borrower be to qualify for a Reverse Mortgage? 62 years old
Which regulation has the primary function ofpreventing Identity Theft? FACT Act
Which regulation has SECTION 114 Rules? FACT Act
,Which regulation requires the creditor to verify the VALIDITY of any change of address
received? SECTION 114 of the FACT Act
What is the payment method used in a reverse mortgage that allows the homeowners to receive a
monthly check while living in the property? TENURE Method
What is the fraud scheme where a borrower uses someone else'sname to purchase the property,
but that person WILL NOT be living at the property? Straw Borrower
What type of lender "insures" mortgages? FHA approved lenders
What type of lender "guarantees" mortgages? VA approved lenders and USDA approved
lenders
What is the entity that loans money to fund purchases in rural areas? USDA/Dept. of
Agriculture
What is the value remaining in property after all liens and debts have been paid? Equity
,A borrower is refinancing his home. How much time does Reg Z give him to change his mind
(rescind)? 3 days
Which Regulation established the 3-day right of rescission rule? TILA/REG Z
Redlining is part of which regulation/Law? Fair Housing Act
Blockbusting is part of which regulation/Law? Fair Housing Act
Steering is part of which regulation/Law? Fair Housing Act
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is
moving in the neighborhood is called? Blockbusting/panic selling
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race,
religion or ethnicity is called? Steering
, Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is
called? Redlining
What does HOEPA stand for? Home Ownership and Equity Protection Act
HOEPA Loans are part of which larger regulation? Regulation Z/TILA
High Cost Loans are part of which larger regulation? Regulation Z/TILA
High Priced Loans are part of which larger regulation? Regulation Z/TILA
Section 32 Loans are part of which larger regulation? Regulation Z/TILA
Section 35 Loans are part of which larger regulation? Regulation Z/TILA
MDIA ACT is part of which larger regulation? Regulation Z/TILA
Correct Answers|Latest Update
If a loan application is APPROVED, under ECOA rules and regulations, when MUST a copy of
the appraisal be provided to the borrower? 3 business days prior to the loan closing
Conforming Loans follow the guidelines of which regulators? Fannie Mae and Freddie
Mac
Which regulation requires the lenders to
"BE EQUAL" when extending credit to borrowers? ECOA - Regulation B
How old must a borrower be to qualify for a Reverse Mortgage? 62 years old
Which regulation has the primary function ofpreventing Identity Theft? FACT Act
Which regulation has SECTION 114 Rules? FACT Act
,Which regulation requires the creditor to verify the VALIDITY of any change of address
received? SECTION 114 of the FACT Act
What is the payment method used in a reverse mortgage that allows the homeowners to receive a
monthly check while living in the property? TENURE Method
What is the fraud scheme where a borrower uses someone else'sname to purchase the property,
but that person WILL NOT be living at the property? Straw Borrower
What type of lender "insures" mortgages? FHA approved lenders
What type of lender "guarantees" mortgages? VA approved lenders and USDA approved
lenders
What is the entity that loans money to fund purchases in rural areas? USDA/Dept. of
Agriculture
What is the value remaining in property after all liens and debts have been paid? Equity
,A borrower is refinancing his home. How much time does Reg Z give him to change his mind
(rescind)? 3 days
Which Regulation established the 3-day right of rescission rule? TILA/REG Z
Redlining is part of which regulation/Law? Fair Housing Act
Blockbusting is part of which regulation/Law? Fair Housing Act
Steering is part of which regulation/Law? Fair Housing Act
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is
moving in the neighborhood is called? Blockbusting/panic selling
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race,
religion or ethnicity is called? Steering
, Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is
called? Redlining
What does HOEPA stand for? Home Ownership and Equity Protection Act
HOEPA Loans are part of which larger regulation? Regulation Z/TILA
High Cost Loans are part of which larger regulation? Regulation Z/TILA
High Priced Loans are part of which larger regulation? Regulation Z/TILA
Section 32 Loans are part of which larger regulation? Regulation Z/TILA
Section 35 Loans are part of which larger regulation? Regulation Z/TILA
MDIA ACT is part of which larger regulation? Regulation Z/TILA
