NMLS QUESTIONS AND ANSWERS
Which of the following is NOT a TILA or RESPA mandated disclosure?
Select one:
A. Closing Disclosure
B. Loan Estimate
C. Mortgage Servicing Disclosure
D. An Adverse Action Statement
D. An Adverse Action Statement
Which type of property or transaction is not covered or protected under RESPA?
Select one:
A. Condominium
B. An owner-occupied duplex
C. 6-unit apartment complex
D. Home equity line of credit on residence
C. 6-unit apartment complex
Which of the following would restrict the CRA from supplying prescreened consumer
report information on a potential borrower?
Select one:
A. Working for a licensed broker and not a licensed lender
B. Attempting to order the report to just determine if the borrower is credit worthy
C. The borrower had elected to opt out from being included on prescreened lists
D. The borrower had already allowed another mortgage loan originator to order the
report
C. The borrower had elected to opt out from being included on prescreened lists
How often is a financial institution required to report data regarding its applications,
origination, and purchases of home purchase loans, home improvement loans and
refinancing?
Select one:
A. Every sixty (60) days
B. Every six (6) months
C. Every twenty-four (24) months
D. Every twelve (12) months or annually
D. Every twelve (12) months or annually
,Under the Dodd-Frank Act appraisal independence rules, is a there a restriction for a
lender attempting to break into a new market from paying an appraisal company 50%
more than the customary charge to get good service?
Select one:
A. Yes, the law dictates that fees be customary and reasonable for the geographic
market
B. No, the appraisal companies can negotiate openly for the fees they collect
C. Yes, the new law establishes appraisal fee rates geographically across the country
D. No, the Dodd-Frank Act allows this for the first year in a new market to improve the
housing market
A. Yes, the law dictates that fees be customary and reasonable for the geographic
market
Assume you have a customer who has a fixed income and does not show any prospect
of additional earnings in the next few years. Which of the following would be an
appropriate product for this customer?
Select one:
A. A 2/1 Buydown Loan
B. A 5/1 ARM Loan
C. A payment option loan
D. A 30-year fixed rate loan
D. A 30-year fixed rate loan
How many APRs are there for a loan?
Select one:
A. Two (2) APRs
B. One (1) APR
C. Three (3) APRs
D. It depends on the risk of the loan
B. One (1) APR
What type of loan requires reporting under the Home Mortgage Disclosure Act?
Select one:
A. HELOC's
B. Loans purchased for the purpose of servicing those loans
C. New construction loans
D. Vacant land loans
B. Loans purchased for the purpose of servicing those loans
,What form does an Appraiser use to certify construction is complete?
Select one:
A. 1008
B. 1004
C. 4506T
D. 442
D. 442
No creditor may make a residential mortgage loan unless the creditor first does which of
the following?
Select one:
A. Establishes and maintains a net worth of a minimum of five hundred thousand dollars
($500,000)
B. Posts a surety bond with the federal government in an amount not less than one
million dollars ($1,000,000)
C. Determines that the consumer has a reasonable ability to repay the loan according to
its terms
D. Discloses to the borrower the contact information for the national consumer
complaint center within the Bureau of Consumer Financial Protection
C. Determines that the consumer has a reasonable ability to repay the loan according to
its terms
Which of the following does not affect a Veterans Funding fee?
Select one:
A. Loan Amount
B. Prior Service (Active/ Reserve)
C. Marital Status
D. Prior Use of Entitlement
C. Marital Status
FACTA requires that if a lender uses credit scores in making or arranging loans that it
must provide certain information. Which of the following is not required?
Select one:
A. The range of possible credit scores under the model used
, B. If any factors adversely affected the consumer's score, up to 4 key factors that
adversely affected the score (including inquiries)
C. Suggestions on how to improve credit scores
D. The date the credit score was created
C. Suggestions on how to improve credit scores
Under TILA, a consumer lawsuit must begin within ___ year(s) of the actual violation?
Select one:
A. 1
B. 2
C. 3
D. 5
A. 1
The Federal National Mortgage Association is which of the following?
Select one:
A. FEMA
B. FHLMC
C. GSE
D. Freddie Mac
C. GSE
Which of the following best describes the Home Mortgage Disclosure Act?
Select one:
A. HMDA is a disclosure law that relies upon public scrutiny for its effectiveness
B. For HMDA to be effective it relies on strict quotas for MSAs
Which of the following is NOT a TILA or RESPA mandated disclosure?
Select one:
A. Closing Disclosure
B. Loan Estimate
C. Mortgage Servicing Disclosure
D. An Adverse Action Statement
D. An Adverse Action Statement
Which type of property or transaction is not covered or protected under RESPA?
Select one:
A. Condominium
B. An owner-occupied duplex
C. 6-unit apartment complex
D. Home equity line of credit on residence
C. 6-unit apartment complex
Which of the following would restrict the CRA from supplying prescreened consumer
report information on a potential borrower?
Select one:
A. Working for a licensed broker and not a licensed lender
B. Attempting to order the report to just determine if the borrower is credit worthy
C. The borrower had elected to opt out from being included on prescreened lists
D. The borrower had already allowed another mortgage loan originator to order the
report
C. The borrower had elected to opt out from being included on prescreened lists
How often is a financial institution required to report data regarding its applications,
origination, and purchases of home purchase loans, home improvement loans and
refinancing?
Select one:
A. Every sixty (60) days
B. Every six (6) months
C. Every twenty-four (24) months
D. Every twelve (12) months or annually
D. Every twelve (12) months or annually
,Under the Dodd-Frank Act appraisal independence rules, is a there a restriction for a
lender attempting to break into a new market from paying an appraisal company 50%
more than the customary charge to get good service?
Select one:
A. Yes, the law dictates that fees be customary and reasonable for the geographic
market
B. No, the appraisal companies can negotiate openly for the fees they collect
C. Yes, the new law establishes appraisal fee rates geographically across the country
D. No, the Dodd-Frank Act allows this for the first year in a new market to improve the
housing market
A. Yes, the law dictates that fees be customary and reasonable for the geographic
market
Assume you have a customer who has a fixed income and does not show any prospect
of additional earnings in the next few years. Which of the following would be an
appropriate product for this customer?
Select one:
A. A 2/1 Buydown Loan
B. A 5/1 ARM Loan
C. A payment option loan
D. A 30-year fixed rate loan
D. A 30-year fixed rate loan
How many APRs are there for a loan?
Select one:
A. Two (2) APRs
B. One (1) APR
C. Three (3) APRs
D. It depends on the risk of the loan
B. One (1) APR
What type of loan requires reporting under the Home Mortgage Disclosure Act?
Select one:
A. HELOC's
B. Loans purchased for the purpose of servicing those loans
C. New construction loans
D. Vacant land loans
B. Loans purchased for the purpose of servicing those loans
,What form does an Appraiser use to certify construction is complete?
Select one:
A. 1008
B. 1004
C. 4506T
D. 442
D. 442
No creditor may make a residential mortgage loan unless the creditor first does which of
the following?
Select one:
A. Establishes and maintains a net worth of a minimum of five hundred thousand dollars
($500,000)
B. Posts a surety bond with the federal government in an amount not less than one
million dollars ($1,000,000)
C. Determines that the consumer has a reasonable ability to repay the loan according to
its terms
D. Discloses to the borrower the contact information for the national consumer
complaint center within the Bureau of Consumer Financial Protection
C. Determines that the consumer has a reasonable ability to repay the loan according to
its terms
Which of the following does not affect a Veterans Funding fee?
Select one:
A. Loan Amount
B. Prior Service (Active/ Reserve)
C. Marital Status
D. Prior Use of Entitlement
C. Marital Status
FACTA requires that if a lender uses credit scores in making or arranging loans that it
must provide certain information. Which of the following is not required?
Select one:
A. The range of possible credit scores under the model used
, B. If any factors adversely affected the consumer's score, up to 4 key factors that
adversely affected the score (including inquiries)
C. Suggestions on how to improve credit scores
D. The date the credit score was created
C. Suggestions on how to improve credit scores
Under TILA, a consumer lawsuit must begin within ___ year(s) of the actual violation?
Select one:
A. 1
B. 2
C. 3
D. 5
A. 1
The Federal National Mortgage Association is which of the following?
Select one:
A. FEMA
B. FHLMC
C. GSE
D. Freddie Mac
C. GSE
Which of the following best describes the Home Mortgage Disclosure Act?
Select one:
A. HMDA is a disclosure law that relies upon public scrutiny for its effectiveness
B. For HMDA to be effective it relies on strict quotas for MSAs
