NMLS UST Mortgage Exam Questions With Verified Answers
2 views 0 purchase
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brainbarter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
