NMLS UST Mortgage Exam Questions With Verified Answers
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Course
NMLS UST
Institution
NMLS UST
NMLS UST Mortgage Exam Questions With
Verified Answers
A consumer calls to ask about a loan product. How does TILA require you to quote an interest
rate to him? - answerThe APR and the interest rate
A wraparound mortgage: - answerOccurs when a new mortgage plus an existing mortgage is
structur...
NMLS UST Mortgage Exam Questions With
Verified Answers
A consumer calls to ask about a loan product. How does TILA require you to quote an interest
rate to him? - answer✔The APR and the interest rate
A wraparound mortgage: - answer✔Occurs when a new mortgage plus an existing mortgage is
structured as a single obligation
Which of the following is true of an FHA borrower? - answer✔Only 75% of rental income
counts as qualifying income
A mortgage on personal property is a(n): - answer✔Chattel Mortgage
In which way does the federal VA participate in mortgage financing? - answer✔It guarantees
lender against loss in the case of foreclosure
An FHA-insured loan is an example of: - answer✔Government financing
Amortization is best described as: - answer✔Amount of interest payment decreasing and
principle payment increasing
According to Fannie Mae and Freddie Mac, the ideal debt ratios for a conforming loan are: -
answer✔28/36
Which federal legislation requires that, in cases where the borrower does not wish to provide
information as to race or national origin, the loan officer must use a surname as the basis for this
determination? - answer✔Home mortgage disclosure act
Net worth is defined as: - answer✔Assets minus liabilities
Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the: -
answer✔The SAFE act
The Fair Credit Reporting Act is enforced by: - answer✔The Federal Trade Commission
Under which federal legislation does the consumer have the right to receive a copy of the
appraisal report on a dwelling that is to be used as collateral for a loan? - answer✔ECOA
A limit on the amount of interest or loan fees a creditor may charge is imposed by: -
answer✔State Usury Laws
A Mortgage Servicing Disclosure Statement is required by what law? - answer✔RESPA
Seven years is the maximum length of time information can be reported on a credit report
according to the Fair Credit Reporting Act, EXCEPT for: - answer✔Criminal convictions
All of the following may be included in calculation of the APR EXCEPT: - answer✔Property
insurance Premiums
What law covers Settlement services? - answer✔Respa Section 6
What Law covers kickbacks, splitting fees and unearned fees? - answer✔Respa section 8
What covers Title insurance? - answer✔Respa Section 9
What law covers Escrow accounts? - answer✔Respa Section 10
What law says a borrower can sue for 3x the tremble damages? - answer✔Respa Section 6
A mortgage servicer may not file any type of foreclosure action against a delinquent borrower
until the mortgage loan is _____ days delinquent. - answer✔120 days
An MLO is required to provide _____ loan options to a consumer at the time of inquiry for each
type of transaction in which the consumer expresses an interest. - answer✔3 types
ECOA states that an MLO may inquire about a borrower's - answer✔Citizenship
A Suspicious Activity Report must be filed within ______ days. - answer✔30 calendar days
A SAR report must be retained for ______ years from the date of filing. - answer✔5 years
When a lender tells a 70-year-old borrower he cannot have a 30-year loan because of his age but
that he does qualify for a 15-year loan, this is an example of - answer✔Overt disparate treatment
To comply with Regulation N, Mortgage Acts and Practices regulations, a lender must keep
proof of its advertising for - answer✔2 years
Sally Thompson applied to XYZ Mortgage for an interest-only loan. Because Sally ran her own
hairstyling business out of her home, she was unable to provide income documentation and
chose instead to utilize a stated income program offered by XYZ. The combination of an
interest-only loan with stated income is an example of - answer✔Risk layering
A loan contains prepayment penalties. Which of the following documents would a borrower
review to confirm this? - answer✔Servicing Agreement and Promissary more
Documents are recorded at the courthouse to prove: - answer✔Constructive Notice
Which of the following addresses principle and interest payments on a mortgage loan? -
answer✔Amortization Schedule
What types of loans are assumable? - answer✔Va loans
What's the report called that a loan servicer gives to the borrower that explains an increase in
hazard insurance or real estate taxes? - answer✔Annual Escrow statement
What is it called when both title insurance policies are issued at the same time? -
answer✔Simultaneous issue
Under TILA all of the following are included in the finance charges except? - answer✔Appraisal
fee
What is the name of the issuer of mortgage-backed securities that is backed by the full faith and
credit of the United States Treasury? - answer✔Ginnie mae
According to FNMA, housing expense ratios are determined by: - answer✔Dividing principle,
interest, taxes and insurance by gross monthly income
Which of the following are optional on a loan application? - answer✔Race and sex of a borrower
What law and regulation gives the borrower the ability to challenge the value in an appraisal -
answer✔ECOA
What law gives the ability to C where discrimination is coming from? - answer✔HMDA
What law covers section X of the 1003? - answer✔HMDA
What Law deals with credit, apr and advertisement of consumer loans? - answer✔TILA Reg Z
What law deals with PMI? - answer✔HPA Homeowners protection Act
Who does PMI protect? - answer✔Lender
What law creates the SAFE Act - answer✔Home equity Recovery Act (HERA)
What law deals with a credit application? - answer✔ECOA
What law deals with Credit reports and Credit reporting agencies? - answer✔Fair Credit
Reporting Act
What Law covers Identity Theft? - answer✔The FACT Act
What Law has section 114 rules? - answer✔The Fact act FACTA
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