NMLS Test Outline Questions and
Answers
1.RESPA disclosures?
due dates
Answer 3 days after application:
Home loan tool kit
Loan estimate
List of HUD counselors
Mortgage Servicing Disclosure
Statement Know before you owe
booklet
Special Info Booklet
3 days before consummation:
Initial Closing
Disclosure AfBA
disclosure
At consummation:
Final Closing Disclosure
Initial Escrow Statement (45 days after closing)
After closing:
Annual Escrow Statement
,Servicing Transfer Statement (sent 15 days before transfer)
2.RESPA covers which loan types?
exempt loan types
Answer FHA, VA, conventional, USDA, purchase loans, REFI, HELOC
all cash sales
3.RESPA 4 sections:
Answer Section 6: Mortgage Servicing Disclosure Statement: mort- gage
servicers are required to correct errors and work with home buyers if
payments aren't being made.
Section 8: No kickbacks/referral fees
Section 9: Seller cannot require borrower use a specific title insurance
company Section 10: limits amounts a lender can require a borrower to
put into escrow account to 1/12 disbursement and 2 reserves. Requires
annual escrow analysis.
4.RESPA properties types?
exempt
Answer owner occupied 1-4 unit residential property
Agricultural 25+
acres Businesses
Commercial
,Temporary
Financing
Vacant Land
Assumes existing 1st lien
5.The Loan Estimate combines which old disclosures
Answer GFE and Initial TIL Statement
6.How long are Loan Estimate terms available
Answer 10 business days
7.What if the changed circumstance causes third party charges subject
to a cumulative 10% tolerance to increase
Answer creditor must send a revised Loan Estimate and refund
excess money within 60 days
8.Are there any restrictions on how many days before consummation a re-
vised Loan Estimate may be provided
Answer - receives revised LE at least 4 business days before
consummation
- cannot provide revised LE after providing closing disclosure
9.What is a "changed circumstance"
Answer Event beyond the control Inaccurate info used in
Loan Estimate
, New info that creditor didn't know when providing Loan Estimate
10.Mailbox Rule:
Answer creditor needs to place Loan Estimate in mail 3 days after
application and 7 days before consummation
11.The Closing Disclosure combines which old disclosures
Answer HUD-1 and Final TIL Statement
12.Who is responsible for providing the closing disclosure to
the: borrower? when?
seller? when
Answer creditor to borrower
settlement/title agent to seller
13.Name some valid change in circumstances that require you to revise
the Closing Disclosures
Answer changes before consummation that require 3 day waiting
period
- change in APR
- change loan product
- add prepayment penalty
changes before consummation that do not require 3 day waiting period
- consumer requests revised CD - at consummation
- any other changes
Answers
1.RESPA disclosures?
due dates
Answer 3 days after application:
Home loan tool kit
Loan estimate
List of HUD counselors
Mortgage Servicing Disclosure
Statement Know before you owe
booklet
Special Info Booklet
3 days before consummation:
Initial Closing
Disclosure AfBA
disclosure
At consummation:
Final Closing Disclosure
Initial Escrow Statement (45 days after closing)
After closing:
Annual Escrow Statement
,Servicing Transfer Statement (sent 15 days before transfer)
2.RESPA covers which loan types?
exempt loan types
Answer FHA, VA, conventional, USDA, purchase loans, REFI, HELOC
all cash sales
3.RESPA 4 sections:
Answer Section 6: Mortgage Servicing Disclosure Statement: mort- gage
servicers are required to correct errors and work with home buyers if
payments aren't being made.
Section 8: No kickbacks/referral fees
Section 9: Seller cannot require borrower use a specific title insurance
company Section 10: limits amounts a lender can require a borrower to
put into escrow account to 1/12 disbursement and 2 reserves. Requires
annual escrow analysis.
4.RESPA properties types?
exempt
Answer owner occupied 1-4 unit residential property
Agricultural 25+
acres Businesses
Commercial
,Temporary
Financing
Vacant Land
Assumes existing 1st lien
5.The Loan Estimate combines which old disclosures
Answer GFE and Initial TIL Statement
6.How long are Loan Estimate terms available
Answer 10 business days
7.What if the changed circumstance causes third party charges subject
to a cumulative 10% tolerance to increase
Answer creditor must send a revised Loan Estimate and refund
excess money within 60 days
8.Are there any restrictions on how many days before consummation a re-
vised Loan Estimate may be provided
Answer - receives revised LE at least 4 business days before
consummation
- cannot provide revised LE after providing closing disclosure
9.What is a "changed circumstance"
Answer Event beyond the control Inaccurate info used in
Loan Estimate
, New info that creditor didn't know when providing Loan Estimate
10.Mailbox Rule:
Answer creditor needs to place Loan Estimate in mail 3 days after
application and 7 days before consummation
11.The Closing Disclosure combines which old disclosures
Answer HUD-1 and Final TIL Statement
12.Who is responsible for providing the closing disclosure to
the: borrower? when?
seller? when
Answer creditor to borrower
settlement/title agent to seller
13.Name some valid change in circumstances that require you to revise
the Closing Disclosures
Answer changes before consummation that require 3 day waiting
period
- change in APR
- change loan product
- add prepayment penalty
changes before consummation that do not require 3 day waiting period
- consumer requests revised CD - at consummation
- any other changes
