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50 NMLS Practice Questions > 50 Practice Test Questions > Flashcards

50 Practice Test Questions Flashcards

1
Q

What law deals with credit,APR & advertising of consumer loans ?

A

TILA/Reg Z

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2
Q

Which Regulation Prohibits Kickbacks

A

RESPA(8)

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3
Q

Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV

A

HPA- Homeowners Protection Act

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4
Q

Which regulation prohibits fee splitting

A

RESPA(8)

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5
Q

“X” is the letter used to describe which Regulation

A

RESPA

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6
Q

RESPA is the acronym used to describe which law

A

Real Estate Settlement Procedures Act

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7
Q

What type of mortgage requires a non-refundable funding fee

A

VA Loan

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8
Q

What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan

A

Acceleration Clause

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9
Q

What is the provision in a mortgage enabling a lender to demand full repayment if the borrower TRANSFERS the loan

A

Alienation Clause

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10
Q

What does CFPB stand for

A

Consumer Financial Protection Bureau

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11
Q

What two laws created the CFPB

A

Dodd Frank & Consumer Finance Protection Act

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12
Q

Which regulation is designed to help meet the credit needs of the communities in which it operates

A

CRA- Community Reinvestment Act

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13
Q

Under ECOA rules and regulations how many days does the borrower have to request a copy of the appraisal report if the application was denied

A

90 days

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14
Q

Under ECOA rules and regulations how many days does the lender have to provide a copy of an appraisal report once requested by the borrower

A

30 days

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15
Q

If a loan application is APPROVED under ECOA rules and regulations when must a copy of the appraisal be provided to the borrower

A

3 business days

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16
Q

Conforming loans follow guidelines of which regulations

A

Fannie Mae and Freddie Mac

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17
Q

Which regulations requires the lenders to “BE EQUAL” when extending credit to borrowers

A

ECOA -Reg B

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18
Q

How old must a borrower be to qualify for a Reverse Mortgage

A

62 years or older

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19
Q

Which regulations has the primary function of preventing Identity Theft

A

FACTA- FACT Act

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20
Q

Which Regulation has the SECTION 114 Rules

A

FACTA- FACT Act

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21
Q

Which regulation requires the creditor to verify the VALIDITY of any Change of address received

A

SECTION 114 of the FACTA- FACT Act

22
Q

What is the payment method used in a reverse Mortgage that allows the homeowners to receive a monthly check while living in the property

A

TENURE Method

23
Q

What is the fraud scheme where a borrower uses someone else’s name to purchase the property but that person will not be living in the property

A

Straw Borrower

24
Q

What government lender “insures” mortgages

A

FHA

25
Q

What government lender “guarantees” mortgages

A

VA Loans

26
Q

What government lender loans money to fund purchases in rural areas

A

USDA/DEPT. of Agriculture

27
Q

What is the value remaining in the property after all liens and debts have been paid

A

Equity

28
Q

A borrower is refinancing a home. How much time does Reg Z give him to change his/her mind

A

3 days

29
Q

Which regulation establishes the 3 day right of rescission rule

A

TILA Reg Z

30
Q

Redlining is part of which regulation/Law

A

Fair Housing Act

31
Q

Blockbusting is part of which regulation/law

A

Fair Housing Act

32
Q

Steering is part of which regulation/law

A

Fair Housing Act

33
Q

Trying to convince q homeowner to sell his home by implying that another race/ethnicity is moving in the neighborhood is called

A

blockbusting

34
Q

trying to convince a homeowner to purchase in a particular neighborhood based on his race religion or ethnicity is called

A

Steering

35
Q

Refusing to make loans on a property in a certain neighborhood for disrriminatinatory reasons is called

A

Redlining

36
Q

What does HOEPA stand for

A

Home Ownership Equity Protection Act

37
Q

HOEPA Loans are part of which larger regulation

A

Reg Z/TILA

38
Q

High Cost Loans are part of which larger regulation

A

Reg Z/ TILA

39
Q

High Priced Loans are part of which larger regulation

A

Reg Z/ TILA

40
Q

SECTION 32 Loans are part of which larger regulation

A

Reg Z/ TILA

41
Q

Section 35 Loans are part of which larger regulation

A

Reg Z/TILA

42
Q

MDIA ACT is part of which larger regulation

A

Reg Z/TILA

43
Q

Mortgage Disclosure Improvement Act is part of which larger regulation

A

Reg Z/TILA

44
Q

What is another name for annual percentage rate

A

effective rate

45
Q

What is another name for Interest Rate

A

Note/ Nominal Rate

46
Q

PITI divided by Gross Monthly income is referred to as what

A

Housing Ratio Or Front End DTI Ratio

47
Q

PITI + monthly debt divided by gross Monthly income is referred to as what

A

Total Obligation Ratio or Back End Ratio

48
Q

How long must TILA Disclosures be kept

A
  • Generally 2 years
  • LE for 3 years
  • CD for 5 years
49
Q

What is the maximum amount of time that negative info can remain on a credit report

A

7 years

50
Q

What is the maximum amount of time that a bankruptcy can remain on a credit report

A

10 years

50 NMLS Practice Questions (1 decks)

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