NMLS EXAM 2025/2026 Prac ce terms, defini ons, and
ques ons for the NMLS exam 100% VERIFIED CORRECT
GUARANTEED SUCCESS
Reg C - Correct Answers HMDA (Home Mortgage Disclosure Act)
Why were HMDA laws wri en? - Correct Answers Laws were wri en in response to the public
concerns that lenders were "redlining"
Under HMDA how o$en do ins%tu%ons need to report public loan data? Regarding what kind of
data? - Correct Answers Annually, reports due every year in March. Data is in regards to
ethnicity, race, and sex of ALL applicants.
What is the log of applicants that a creditor must keep and provide to the federal gov? How
long must they be maintained? - Correct Answers Loan Applicant Register (LAR). 3 Years.
HMDA data must be maintained and available upon request for how many years? - Correct
Answers 3 Years
What is the community reinvestment act (CRA)? - Correct Answers Regula%on to help meet
credit needs of communi%es
Federal Financial Ins%tu%ons Examina%on Council (FFIEC) - Correct Answers Composed of 5
banking regulators. Compiles informa%on as individual disclosure statements for EACH
ins%tu%on in the form of aggregate reports.
Gramm-Leach-Bliley Act (GLBA) - Correct Answers Provisions to protect consumer's personal
financial informa%on held by financial ins%tu%ons
, Another name for GLBA - Correct Answers Financial Services Moderniza%on Act of 1999
(FSMA)
What must a borrower receive at first contact, then yearly if they are a remaining customer? -
Correct Answers Private Policy No%ce
What right do customers have under the GLBA regarding their informa%on? - Correct Answers
Right to opt out of having info shared with certain third par%es
What does SPF stand for under GLBA? - Correct Answers Safeguarding policies, Pretex%ng
policies, Financial Privacy policies
Safeguarding - Correct Answers Policy how companies keep our credit cards and info safe
when used at their company
Pretex%ng - Correct Answers Keep others from ge>ng access to informa%on under false
pretenses "PREtenders"
Financial Privacy - Correct Answers Policy that governs collec%on of non-public info and how
its shared with affiliates. (opt in and opt out)
GLBA difference between a consumer and a customer - Correct Answers Consumer is an
individual who has obtained a financial product or service. A customer is a consumer with a
con%nuing rela%onship with the financial ins%tu%on.
How long of a penalty is it for fraudulently obtaining personal informa%on? - Correct Answers
5 years in prison and a fine
ques ons for the NMLS exam 100% VERIFIED CORRECT
GUARANTEED SUCCESS
Reg C - Correct Answers HMDA (Home Mortgage Disclosure Act)
Why were HMDA laws wri en? - Correct Answers Laws were wri en in response to the public
concerns that lenders were "redlining"
Under HMDA how o$en do ins%tu%ons need to report public loan data? Regarding what kind of
data? - Correct Answers Annually, reports due every year in March. Data is in regards to
ethnicity, race, and sex of ALL applicants.
What is the log of applicants that a creditor must keep and provide to the federal gov? How
long must they be maintained? - Correct Answers Loan Applicant Register (LAR). 3 Years.
HMDA data must be maintained and available upon request for how many years? - Correct
Answers 3 Years
What is the community reinvestment act (CRA)? - Correct Answers Regula%on to help meet
credit needs of communi%es
Federal Financial Ins%tu%ons Examina%on Council (FFIEC) - Correct Answers Composed of 5
banking regulators. Compiles informa%on as individual disclosure statements for EACH
ins%tu%on in the form of aggregate reports.
Gramm-Leach-Bliley Act (GLBA) - Correct Answers Provisions to protect consumer's personal
financial informa%on held by financial ins%tu%ons
, Another name for GLBA - Correct Answers Financial Services Moderniza%on Act of 1999
(FSMA)
What must a borrower receive at first contact, then yearly if they are a remaining customer? -
Correct Answers Private Policy No%ce
What right do customers have under the GLBA regarding their informa%on? - Correct Answers
Right to opt out of having info shared with certain third par%es
What does SPF stand for under GLBA? - Correct Answers Safeguarding policies, Pretex%ng
policies, Financial Privacy policies
Safeguarding - Correct Answers Policy how companies keep our credit cards and info safe
when used at their company
Pretex%ng - Correct Answers Keep others from ge>ng access to informa%on under false
pretenses "PREtenders"
Financial Privacy - Correct Answers Policy that governs collec%on of non-public info and how
its shared with affiliates. (opt in and opt out)
GLBA difference between a consumer and a customer - Correct Answers Consumer is an
individual who has obtained a financial product or service. A customer is a consumer with a
con%nuing rela%onship with the financial ins%tu%on.
How long of a penalty is it for fraudulently obtaining personal informa%on? - Correct Answers
5 years in prison and a fine
