NMLS TEST FINAL EXAM QUESTIONS AND ANSWERS
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
What law deals with credit, APR & Advertising of consumer loans? -
CORRECT ANSWER TILA
Which regulation prohibits kickbacks? - CORRECT ANSWER RESPA
Which regulations require the lender to cancel PMI when the loan
reaches 78% LTV? - CORRECT ANSWER HPA-Homeowners
Protection Act
Which Regulation prohibits fee splitting? - CORRECT ANSWER
RESPA
Regulation X is the letter used to describe which law? - CORRECT
ANSWER RESPA
RESPA is the acronym used to describe which law? - CORRECT
ANSWER Real Estate Settlement Procedures Act
What type of mortgage requires a non-refundable funding fee? -
CORRECT ANSWER 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 Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full
repayment if the borrower TRANSFERS the loan? - CORRECT
ANSWER Alienation Clause
What does CFPB stand for? - CORRECT ANSWER Consumer
Financial Protection Bureau
What two laws created the CFBP? - CORRECT ANSWER Dodd Frank
Act and Consumer Finance Protection Act
Which regulation is designed to help meet the Credit needs of the
Communities in which it operates? - CORRECT ANSWER CRA-
Community Reinvestment Act
Under ECOA rules and regulations, how many days the borrower have
to request a copy of an appraisal report? - CORRECT ANSWER 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 30
,If a loan application is APPROVED, Under ECOA rules & regulations,
when MUST a copy of the appraisal be provided to the borrower? -
CORRECT ANSWER 3 business days
Conforming loans follow guidelines of which regulators? - CORRECT
ANSWER Fannie Mae and Freddie Mac
Which regulation requires the lenders to "BE EQUAL" when extending
credit to borrowers? - CORRECT ANSWER ECOA
How old must a borrower be to qualify for a Reverse Mortgage? -
CORRECT ANSWER 62 years old
Which regulation has the primary function of preventing Identity Theft?
- CORRECT ANSWER FACT Act
Which regulation has Section 114 Rules? - CORRECT ANSWER
FACT Act
Which regulation requires the creditor to verify the VALIDITY of any
change of address received? - CORRECT ANSWER 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 Tenure Method
, What is the fraud scheme where a borrower uses someone else's name to
purchase the property, but the person WILL NOT be living at the
property? - CORRECT ANSWER Straw Borrower
What government lender "insures" mortgages? - CORRECT ANSWER
FHA
What government lender "Guarantees" Mortgages? - CORRECT
ANSWER VA Loans
What government lender loans money to fund purchases in rural areas? -
CORRECT ANSWER USDA/ Dept. of Agriculture
What is the value remaining in property after all liens and debts have
been paid? - CORRECT ANSWER Equity
A borrower is refinancing his home. How much time does Reg Z give
him to change his mind? - CORRECT ANSWER 3 days
Which regulation established the 3-day right of rescission rule? -
CORRECT ANSWER TILA
Redlining is part of which regulation/Law? - CORRECT ANSWER
Fair Housing Act
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
What law deals with credit, APR & Advertising of consumer loans? -
CORRECT ANSWER TILA
Which regulation prohibits kickbacks? - CORRECT ANSWER RESPA
Which regulations require the lender to cancel PMI when the loan
reaches 78% LTV? - CORRECT ANSWER HPA-Homeowners
Protection Act
Which Regulation prohibits fee splitting? - CORRECT ANSWER
RESPA
Regulation X is the letter used to describe which law? - CORRECT
ANSWER RESPA
RESPA is the acronym used to describe which law? - CORRECT
ANSWER Real Estate Settlement Procedures Act
What type of mortgage requires a non-refundable funding fee? -
CORRECT ANSWER 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 Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full
repayment if the borrower TRANSFERS the loan? - CORRECT
ANSWER Alienation Clause
What does CFPB stand for? - CORRECT ANSWER Consumer
Financial Protection Bureau
What two laws created the CFBP? - CORRECT ANSWER Dodd Frank
Act and Consumer Finance Protection Act
Which regulation is designed to help meet the Credit needs of the
Communities in which it operates? - CORRECT ANSWER CRA-
Community Reinvestment Act
Under ECOA rules and regulations, how many days the borrower have
to request a copy of an appraisal report? - CORRECT ANSWER 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 30
,If a loan application is APPROVED, Under ECOA rules & regulations,
when MUST a copy of the appraisal be provided to the borrower? -
CORRECT ANSWER 3 business days
Conforming loans follow guidelines of which regulators? - CORRECT
ANSWER Fannie Mae and Freddie Mac
Which regulation requires the lenders to "BE EQUAL" when extending
credit to borrowers? - CORRECT ANSWER ECOA
How old must a borrower be to qualify for a Reverse Mortgage? -
CORRECT ANSWER 62 years old
Which regulation has the primary function of preventing Identity Theft?
- CORRECT ANSWER FACT Act
Which regulation has Section 114 Rules? - CORRECT ANSWER
FACT Act
Which regulation requires the creditor to verify the VALIDITY of any
change of address received? - CORRECT ANSWER 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 Tenure Method
, What is the fraud scheme where a borrower uses someone else's name to
purchase the property, but the person WILL NOT be living at the
property? - CORRECT ANSWER Straw Borrower
What government lender "insures" mortgages? - CORRECT ANSWER
FHA
What government lender "Guarantees" Mortgages? - CORRECT
ANSWER VA Loans
What government lender loans money to fund purchases in rural areas? -
CORRECT ANSWER USDA/ Dept. of Agriculture
What is the value remaining in property after all liens and debts have
been paid? - CORRECT ANSWER Equity
A borrower is refinancing his home. How much time does Reg Z give
him to change his mind? - CORRECT ANSWER 3 days
Which regulation established the 3-day right of rescission rule? -
CORRECT ANSWER TILA
Redlining is part of which regulation/Law? - CORRECT ANSWER
Fair Housing Act
