NMLS (NMLS)

On dealing with an appraiser, a mortgage loan originator is permitted to Correct Answer: Ask the appraiser to provide further detail regarding the results of an appraisal The designated responsible party must maintain copies of all advertisements for: Correct Answer: Four years The Colorado loan modification services contract must be completed: Correct Answer: At the time of application Which of the following is a true stamens regarding recordkeeping requirements? Correct Answer: Re...

TILA requires creditors to maintain records that they complied with the disclosure requirements for how many years? Correct Answer: two (2) A telemarketer can be fined how much per incident for calling someone registered on the National Do Not Call Registry? Correct Answer: $16,000 The appraiser determines the home's value based on differences between the home and recent Correct Answer: sold homes in the area One of the many tasks of the Consumer Financial Protection Bureau (CFPB) i...

An application must be accompanied by fingerprints when applying for a. Licensed MLO b. Registered MLO c. not required d. required for both licensed and registered MLO Correct Answer: d Quarterly mortgage call reports must be filed a. within 30 days of the end of the calendar quarter b. within 30 days of the end of the fiscal quarter c. within 45 days of the end of the calendar quarter d. within 45 days of the end of the fiscal quarter Correct Answer: c. within45 days of the end o...

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 is based on an industry standard that taxes, insurance, and maintenance costs will equal about 25% of the income that a property generates. In this case, 75% × $1,000 = $750. The S.A.F.E. Act app...

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 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...

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 three business days of applying; earliest to close a loan is the seventh business day after disclosures are provided; a three business-day waiting period imposed after borrower receives redisclosures b...

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 Act Correct Answer: The Federal Statute that deals with the settlement of residential mortgage loans. RESPA's section 9 Prohibits Correct Answer: Home sellers from requiring home buyers to purch...

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 account? Correct Answer: -account holding money for insurance/taxes -AKA "impound account" or "reverse account" -What's an MU4? -What are requirements? Correct Answer: -Individual application ...

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 Estimate. How many days after closing does Oops have to issue a tolerance cure to the borrower? Correct Answer: 60 days. Any tolerance violation must be refunded within 60 days of closing, assuming the fin...

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 first time through. What is the requirement under Fair Lending, Fair Housing, and ECOA? Correct Answer: All consumers have the right to apply for a loan unless they are under 18 years of age Whi...