NMLS TEST COMPILATION BUNDLE

Fraud for profit is a complex scheme involving... Correct Answer: multiple parties, including mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money. If a lender sells, transfers, or otherwise disposes of its interest in a mortgage and d...

The interest rate given by banks to their customers is called the: Correct Answer: Prime rate A borrower applies for a loan. After accessing the borrower's credit, the loan is denied. Which of the following must occur? Correct Answer: A loan denial letter (Adverse Action Notice) must be sent t...

1) Mortgage loan fraud is reported at what level? A. State B. Federal C. County D. City Correct Answer: B. Mortgage Fraud is reported to the FBI and to HUD ( The United States Department of Housing and Urban Development is a Cabinet department in the executive branch of the U.S. federal gove...

CFPB Correct Answer: Consumer Financial Protection Bureau What does the CFPB do? Correct Answer: Regulates RESPA, TILA, ECOA, and HMDA FTC Correct Answer: Federal Trade Commission What does the FTC do? Correct Answer: Monitors Red Flag Rules RESPA Correct Answer: Real Estate Settlem...

What are the penalties for violation of RESPA/Section 8? Correct Answer: Section 8 of RESPA prohibits referral fees and other forms of kickbacks/fee splitting. Penalties includes fines of up to $10,000 and up to one year in prison. Disclosures due within three business days of loan application.....

What must a borrower do to avoid having late payments reported to a credit bureau? Correct Answer: Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? Correct Answer: 3 times the fee What should not be over-weighted in an ...

Uniform state test Correct Answer: Regulation H Secure and a Fair Enforcement for mortgage licensing act of 2008 Correct Answer: Require licensing for LO's HERA (housing and recovery act of 2008) Correct Answer: Focused on Subprime lending practices NMLS Correct Answer: Nationwide mort...

What is the pass rate for the NMLS Test and how long is it? Correct Answer: 75% of 115 questions, 125 questions long with 10 ungraded What is the biggest thing to remember about taking the test? Correct Answer: Read the questions twice, slowly, but do not take over 30 seconds per question the f...

While reviewing a Closing Disclosure during an internal audit, the compliance department of Oops Mortgage Company notices that the aggregate costs for services the borrower could shop for increased by 4.077% more than the allowed aggregate 10% tolerance above the charges disclosed in the Loan Estima...

AfBA/ABA stands for? -What is it? Correct Answer: -Affiliated Business Arrangement -If referring client to another business of yours (1%) then you must disclose ASAP Other ways to say "Doc Signing" Correct Answer: -Loan consummation -Loan Settlement -Loan Closing What is an escrow acco...

Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. Correct Answer: Predatory Lending. RESPA-Real Estate Settlement Procedures ...

A graduated payment buydown where the payments are subsidized for only two years, usually 2% the first year and 1% the second year. Correct Answer: 2-1 Buydown A provision of the Truth in Lending Act related to required disclosures and waiting periods. Initial disclosure to be delivered within t...

RESPA disclosures? due dates? Correct 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 disclosur...

A borrower receives $1,000 per month in rental income. How much of the income may be used to qualify the borrower for a loan? A. $1,000 B $800 C $750 D $1,250 Correct Answer: $750 The answer is $750. Generally, 75% of rental income may be used to qualify a borrower for a loan. This formula...