NMLS 2023/2024 Essential Test Toolkit Exam Questions and Approved with Distinction Marking Scheme
How often must lenders perform an escrow account analysis under Section 10 of RESPA? - correct answer Once a year.
What are the three CRA (credit reporting agencies)? - correct answer Equifax...
NMLS 2023/2024 Essential Test Toolkit Exam
Questions and Approved with Distinction
Marking Scheme
How often must lenders perform an escrow account analysis
under Section 10 of RESPA? - correct answer Once a year.
What are the three CRA (credit reporting agencies)? - correct
answer Equifax, Transunion, and Experian
What regulation is FCRA? - correct answer You want to have
a Very good report. (Reg V)
FCRA (Fair Credit Reporting Act) does what? - correct
answer Requires reporting agencies to verify information that
is under dispute and limits how long negative information can
remain on a credit report.
What law allows consumers the right to dispute information on
your credit report? - correct answer FCRA (Fair Credit
Reporting Act)
What are the five rights under FCRA? - correct answer 1.
Adverse Action Notice
2. Copy of Credit File/Report
3. Right to request Credit Score
4. Right to dispute negative or inaccurate information
,5. Right to limit prescreened offers
What is adverse action notice? - correct answer Fancy word
for denial. If denied, you have the right to get a notice in writing.
(FCRA)
What law requires that lenders give you a free copy of your
credit report? - correct answer FCRA
What law requires that the lender give you a free copy of your
credit score? - correct answer There is now law. Credit
score is not free.
What is a mortgage? - correct answer A written instrument
used in real property to secure repayment of a debt.
What is the primary market? - correct answer Borrower and
lenders come together to negotiate terms for a mortgage. This is
where consumers get loans.
What is a mortgage banker? - correct answer Company,
individual, or entity that originates, processes, underwrites,
closes/funds, and services a loan. They have their own money to
lend. They have bank.
What is a mortgage broker? - correct answer Company or
individual who, for a fee, places loans with lenders, but does not
service the loan. They connect the gap to the lender. They don't
have their own money to lend.
, What is the secondary market? - correct answer Existing
mortgage loans are bought and sold.
Who plays in the secondary market? - correct answer Fannie
Mae, Freddie Mac, Ginnie Mae, Federal Home Loan Banking
System, private lenders.
What is Fannie Mae (FNMA)? - correct answer Federal
National Mortgage Association
What kind of loans will Fannie Mae purchase? - correct
answer FHA, VA, and conventional loans from commercial
banks.
Who is the largest investor in the secondary market? - correct
answer Fannie Mae (FNMA)
What kind of loans does Freddie Mac purchase? - correct
answer Mortgages originated by savings and loan assocations.
What is Ginnie Mae? - correct answer Government National
Mortgage Association
What is Freddie Mac? - correct answer Federal Home Loan
Mortgage Corporation (FHLMC)
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