NMLS Exam 2025 — Comprehensive Test Bank
Questions and Answers
‘What law deals with credit, APR & advertising of consumer loans?- CORRECT ANSWER v/
TILA/REGULATION Z
‘Which regulation prohibits kickbacks?- CORRECT ANSWER v RESPA
‘Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV?-
CORRECT ANSWER v HPA - Homeowners Protection Act
‘Which regulation prohibits fee splitting?- CORRECT ANSWER v RESPA
Regulation X is the letter used to describe which Law?- CORRECT ANSWER v RESPA
RESPA is the acronym used to describe which law?- CORRECT ANSWER v Real Estate
Settlement Procedures Act
‘What type of mortgage requires a non-refundable funding fee?- CORRECT ANSWER v VA
Loan
‘What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
DEFAULTS on the loan?- CORRECT ANSWER v Acceleration Clause
‘What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
TRANSFERS the loan?- CORRECT ANSWER v Alienation Clause
‘What does CFPB stand for?- CORRECT ANSWER v Consumer Financial Protection Bureau
,What two laws created the CFBP?- CORRECT ANSWER v Dodd Frank Act and Consumer
Finance Protection Act
‘Which regulations is designed to help meet the Credit Needs of the Communities in which it
operates?- CORRECT ANSWER v CRA - Community Reinvestment Act
Under ECOA rules and regulations, how many days does the borrower have to request a copy of
an appraisal report?- CORRECT ANSWER v 90
Under ECOA rules and regulations, how many days does the lender have to provide a copy of an
appraisal report, once requested by the borrower?- CORRECT ANSWER v 30
If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of
the appraisal be provided to the borrower?- CORRECT ANSWER v 3 business days
Conforming Loans follow the guidelines of which regulators?- CORRECT ANSWER v Fannie
Mae and Freddie Mac
‘Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers?-
CORRECT ANSWER v ECOA - Regulation B
How old must a borrower be to qualify for a Reverse Mortgage?- CORRECT ANSWER v 62
years old
‘Which regulation has the primary function of preventing Identity Theft?- CORRECT ANSWER
Vv FACT Act
‘Which regulation has SECTION 114 Rules?- CORRECT ANSWER v FACT Act
, ‘Which regulation requires the creditor to verify the VALIDITY of any change of address
received?- CORRECT ANSWER v 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?- CORRECT ANSWER v TENURE Method
‘What is the fraud scheme where a borrower uses someone else's name to purchase the property,
but that person WILL NOT be living at the property?- CORRECT ANSWER ' Straw Borrower
‘What government lender "insures" mortgages"?- CORRECT ANSWER v FHA
‘What government lender "guarantees" mortgages?- CORRECT ANSWER v VA Loans
‘What government lender loans money to fund purchases in rural areas?- CORRECT ANSWER
v USDA/Dept. of Argriculture
‘What is the value remaining in property after all liens and debts have been paid?- CORRECT
ANSWER v Equity
A borrower is refinancing his home. How much time does Reg Z give him to change his mind?-
CORRECT ANSWER vV 3 days
‘Which Regulation established the 3-day right of recession rule?- CORRECT ANSWER v/
TILA/REG Z
Redlining is part of which regulation/Law?- CORRECT ANSWER v Fair Housing Act
Questions and Answers
‘What law deals with credit, APR & advertising of consumer loans?- CORRECT ANSWER v/
TILA/REGULATION Z
‘Which regulation prohibits kickbacks?- CORRECT ANSWER v RESPA
‘Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV?-
CORRECT ANSWER v HPA - Homeowners Protection Act
‘Which regulation prohibits fee splitting?- CORRECT ANSWER v RESPA
Regulation X is the letter used to describe which Law?- CORRECT ANSWER v RESPA
RESPA is the acronym used to describe which law?- CORRECT ANSWER v Real Estate
Settlement Procedures Act
‘What type of mortgage requires a non-refundable funding fee?- CORRECT ANSWER v VA
Loan
‘What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
DEFAULTS on the loan?- CORRECT ANSWER v Acceleration Clause
‘What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
TRANSFERS the loan?- CORRECT ANSWER v Alienation Clause
‘What does CFPB stand for?- CORRECT ANSWER v Consumer Financial Protection Bureau
,What two laws created the CFBP?- CORRECT ANSWER v Dodd Frank Act and Consumer
Finance Protection Act
‘Which regulations is designed to help meet the Credit Needs of the Communities in which it
operates?- CORRECT ANSWER v CRA - Community Reinvestment Act
Under ECOA rules and regulations, how many days does the borrower have to request a copy of
an appraisal report?- CORRECT ANSWER v 90
Under ECOA rules and regulations, how many days does the lender have to provide a copy of an
appraisal report, once requested by the borrower?- CORRECT ANSWER v 30
If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of
the appraisal be provided to the borrower?- CORRECT ANSWER v 3 business days
Conforming Loans follow the guidelines of which regulators?- CORRECT ANSWER v Fannie
Mae and Freddie Mac
‘Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers?-
CORRECT ANSWER v ECOA - Regulation B
How old must a borrower be to qualify for a Reverse Mortgage?- CORRECT ANSWER v 62
years old
‘Which regulation has the primary function of preventing Identity Theft?- CORRECT ANSWER
Vv FACT Act
‘Which regulation has SECTION 114 Rules?- CORRECT ANSWER v FACT Act
, ‘Which regulation requires the creditor to verify the VALIDITY of any change of address
received?- CORRECT ANSWER v 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?- CORRECT ANSWER v TENURE Method
‘What is the fraud scheme where a borrower uses someone else's name to purchase the property,
but that person WILL NOT be living at the property?- CORRECT ANSWER ' Straw Borrower
‘What government lender "insures" mortgages"?- CORRECT ANSWER v FHA
‘What government lender "guarantees" mortgages?- CORRECT ANSWER v VA Loans
‘What government lender loans money to fund purchases in rural areas?- CORRECT ANSWER
v USDA/Dept. of Argriculture
‘What is the value remaining in property after all liens and debts have been paid?- CORRECT
ANSWER v Equity
A borrower is refinancing his home. How much time does Reg Z give him to change his mind?-
CORRECT ANSWER vV 3 days
‘Which Regulation established the 3-day right of recession rule?- CORRECT ANSWER v/
TILA/REG Z
Redlining is part of which regulation/Law?- CORRECT ANSWER v Fair Housing Act
