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NMLS Test > NMLS > Flashcards

NMLS Flashcards

1
Q

A limit on the amount of interest or loan fees a creditor may change is imposed by

A

State usury laws

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2
Q

What is NOT protected by the Fair Housing Act

A

Receipt of income from a public source

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3
Q

The truth in lending act is within which law

A

Consumer Credit Protection Act

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4
Q

A Wraparound mortgage

A

Occurs when a new mortgage plus an existing mortgage is structured as a single obligation

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5
Q

What is another name for blockbusting, an illegal activity according to the Fair Housing Act

A

Panic selling

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6
Q

When the originating lender sells the rights to collect the payments, including interest, to another lender, the price charged in the sale is called

A

A service release premium

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7
Q

The SAFE Act is part of the

A

Housing and Economic Recovery Act

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8
Q

According to the Real Estate Settlement Procedures Act (RESPA) which of the following relationships between a lender and a settlement service provider does NOT require disclosure on the Good Faith Estimate

A

The lender and the provider use the same attorney for legal services

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9
Q

The Safe Act is part of the Act

A

Housing & Economic Recovery

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10
Q

If service is transferred, notification must be given in—-days

A

15 days

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11
Q

The Fair Housing Act allows a complaint to be filed within

A

One year

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12
Q

Businesses must truncate receipts on credit card transaction is part of the

A

FACT ACT

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13
Q

HMDA Data allows government agencies to do what ?

A

Evaluate lender compliance with anti-discrimination laws

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14
Q

HOEPA is an addendum to what law?

A

TILA

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15
Q

The regulation passed in 2009 to regulate appraisals is

A

Home Valuation Code of conduct

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16
Q

Section 32 refers to

A

HOEPA

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17
Q

A lender who does not cancel PMI when the LTV reaches 78% is in violation of which federal law

A

Homeowner Protection Act

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18
Q

Race must be included on a loan application because of

A

HMDA

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19
Q

Value of the whole is more than the parts

A

Pottage

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20
Q

What’s another name for blockbusting?

A

Panic Selling

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21
Q

A mortgage lending company refuses to make loans for homes in a minority neighborhood is known as this illegal action called

A

Redlining

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22
Q

Disclosure of financial information to a non-affiliate third parties is restricted by which act?

A

Gramm Leach Bliley Act

RED FLAF RULES

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23
Q

Which is NOT a purpose for the mortgage loan disclosure statement

A

To inform the consumer the likelyhood the mortgage could be sold

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24
Q

When using the sale comparison approach to arrive at an option of value an appraiser looks

A

Into recent past to analyze similar sales

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25
Q

HOEPA stands for

A

Home Ownership & Equity Protection Act

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26
Q

ECOA is also known as Regulation

A

Regulation B

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27
Q

ECOA was implemented by

A

Federal Trade Commission

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28
Q

Consumers receiving a copy of an appraisal report are covered under

A

ECOA

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29
Q

I can dispute a credit report because of

A

Fair Credit Reporting Act

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30
Q

HMDA information is complied by

A

FFIEC

Federal Financial Institutions Examination Council

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31
Q

HPA stands for

A

Homeowners Protection Act

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32
Q

The Fair Credit Reporting Act states that no negative information on a credit report after _____years and bankruptcies after___ years

A

7 & 10

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33
Q

HOEPA trigger for a second_____is what percentage

A

10%

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34
Q

If a finance charge is overstated, how long is the right to rescind under TILA?

A

No right

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35
Q

Which act allows a consumer to a free credit report?

A

Fair Credit Reporting Act

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36
Q

The FACT amended the

A

Fair Credit Reporting Act

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37
Q

TILA is administered by the

A

Board of Governors of Federal reserve

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38
Q

Which act proscribes a tolerance between preliminary APR and Final APR?

A

TILA

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39
Q

Which act prohibits negative amortization

A

HOEPA

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40
Q

The right of the 3 day rescission after closure of an owner-occupied refinance is covered under

A

TILA

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41
Q

A mortgage servicing disclosure statement is required by what law

A

RESPA

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42
Q

Advertising triggers are covered by

A

Regulation z

Truth in Lending

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43
Q

The total gross Value of appraisal adjustments can be no more than

A

25%

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44
Q

Total net value of appraisal adjustments can be no more than

A

15%

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45
Q

The main purpose of the safe act was

A

Set minimum standards for licensing & registration of loan officers

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46
Q

The SAFE acronym stands for

A

Safe And Fair Enforcemen

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47
Q

Which act encourages financial institutions to meet the needs of the community credit needs

A

Community Reinvestment Act

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48
Q

HMDA requires what information goes to regulator yearly

A

Loan Application Register

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49
Q

The first civil rights act prohibits discrimination in ONLY

A

Sale and rental of property

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50
Q

Which act is know as regulation z

A

TILA

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51
Q

The HMDA act applies to lenders with assets in access of

A

Ten million dollars

52
Q

HOEPA is also known as

A

Section 32

53
Q

HMDA stands for

A

Home Mortgage Disclosure Act

54
Q

The National Do Not Call Registry is managed by

A

Federal Trade Commission

55
Q

Prime Rate is set by

A

The Market

56
Q

Truth In Lending is most concerned with

A

Cost of borrowing

57
Q

Adjustments during an appraisal are made to the comp property or the subject property

58
Q

RESPA stands for

A

Real Estate Settlement Procedures Act

59
Q

The RESPA act is known as

A

Regulation X

60
Q

Safeguarding consumer information is mandated by

A

Gramm Leach Bliley Act

61
Q

Kickbacks are prohibited under the

62
Q

Federal Reserve Board sets

A

The discount rate

63
Q

The privacy rule of the Gramm leach Bliley act requires that the financial institution provide the consumer with a Consumer Privacy Policy BEFORE

A

Disclosing information to non-affiliate third parties

64
Q

By which date must a credit report be finished to the NMLS registry

65
Q

Under HPA a borrower can request PMI cancellation when the LTV reaches

A

80% PMI is automatically terminated at 78%

66
Q

Percent to “gross up” tax free income for qualifying?

67
Q

Maximum percent tolerance for APR errors on variable loans

68
Q

HUD 1 and HUD 1A are called

A

Settlement statements

69
Q

Maximum percent tolerance for APR error on fixed rate loans is

70
Q

An adverse action must be given with

A

30 days notice

71
Q

Under HOEPA, a high cost first mortgage triggers when an APR exceeds Treasury securities rate by more than

72
Q

Number of years before a Chapter 7 bankruptcy falls off your credit report?

A

10 years for Chapter 7

7 years for a chapter 13

73
Q

The RESPA act is most concerned with

A

Closing cost

74
Q

Lenders must submit a loan application log because of

A

HMDA Home Mortgage Disclosure Act

75
Q

Mortgage back securities are backed by the full faith and cdit of the United States when guaranteed by

76
Q

The 3 day right of rescission on a refinanced owner-occupied residence is business or calendar days

77
Q

Which of the following terms specifically refers to a loan that is NOT obtained througght a program of the federal government

A

Conventional

78
Q

The good faith estimate is covered under which act?

79
Q

HMDA is known as

A

Regulation C

80
Q

Discrimination by religion, sex disability, ect. Is prohibited by

A

Fair Housing Act

81
Q

Identity theft is addressed in which act

A

FACT

Fair Accurate credit transactions Act

82
Q

Written identity theft prevention program required of financial institutions is required by the ____ act and known as _____.

A

FACT ACT Red Flag Rules

83
Q

Fair credit reporting act provides additional rights for

A

Identity theft victims and the military

84
Q

The Gramm-Bliley Act is also known as

A

Privacy Act

85
Q

The tool for cost comparison is the

A

Good Faith Estimate

86
Q

If I had a transaction with a consumer, I can call for

87
Q

The Home Mortgage Disclosure Act - Regulation C (HMDA) was passed in 1975 and is overseen by what entity

A

Federal Reserve Board

88
Q

Under RESPA what is the maximum fine that can be imposed for each kickback

89
Q

APR disclosure is covered by

90
Q

Age discrimination is addressed in

A

The Equal Credit Opportunity Act

91
Q

Escrow account limits are set by

92
Q

Another name for the SAFE Act is

93
Q

The fact the a seller can insist on a buyer using a particular title company is addressed

94
Q

FCRA is also known as

A

Regulation V

95
Q

Prepayment regulations are limited by

96
Q

TILA rules apply to loans with more than

A

4 installments

97
Q

RESPA is administered by

98
Q

A discount point is best described as a charge the borrower pays to

A

A lender to DECREASE the interest rate on the mortgage loan

99
Q

If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicants monthly income?

100
Q

Which of the following documents itemizes all the settlement cost including lender charges?

A

HUD 1 form

101
Q

According to the Truth in lending Act TILA the term refinance applies to

A

The satisfaction of an existing obligation and it’s replacement of a new obligation

102
Q

What does a loan originator use to determine the estimated value of a property based on an ANALYTICAL comparison of similar property sales

A

An Appraisal

103
Q

Which of the following methods of disclosure does NOT meet requirements of the Equal Credit Opportunity Act

104
Q

According to the Truth and Lending Act TILA which of the following fees is EXCLUDED from the calculation of the ANNUAL percentage rate

A

Hazard insurance

105
Q

TILA is overseen by

A

FBR federal reserve Boad

106
Q

What three RESPA federally required disclosures must be provided within three days of receipt of the loan application for a PURCHASE money loan

A

GFE. MDSS Mortgage Disclosure Servicing Statement. And a SPECIAL Information booklet which contains consumer information regarding various real estate settlement services

107
Q

Equal Credit Opportunity Act is overseen by which agency

A

FTC. Federal Trade Commission for mortgage broker and the

OCC the office of the Comptroller of CURRENCY for mortgage brokers

108
Q

Reg B Section 202.5 of the Equal Opportunity Act States that you cannot discourage an application for the following reasons

A 
Information regarding 
SPOUSE
Marital Status
income from alimony/ child support
Sex
Dependent 
Race, color, religion and origin
SMIS DR CRO
109
Q

The Fair and Accurate Transactions Act of 2003 ( FACT ACT) amended the Fair Credit Reporting.

This regulation is overseen by

A

FTC Federal Trade Comission

110
Q

The entities regulated by the fair and accurate transaction act are

A

Consumer reporting agencies CRA’s USERS of consumer reports

And FURNISHERS of information of consumer reporting agencies

111
Q

The Truth in Lending Act regulates the following disclosure requirements

A 
Truth In Lending Disclosure
Adjustable Rate Disclosures
right of Rescission.                                     TARHH
High Priced Mortgage section 35
High Fee Mortgages Section 32
112
Q

The Truth In Lending Act requires the the disclosures MUST BE

A

Clear and Conspicuous, in writing RETAINABLE by the consumer, reflect the term of the legal obligation, use of estimates appropriately and provided within 3 days after receipt of application

113
Q

The Home Mortgage Disclosure Act - Regulation C (HMDA) was passed in 1975 and is overseen by what entity

A

Federal Reserve Board

114
Q

What type of loans are exempt from RESPA

A

Loan on property with 25 acres or more

115
Q

National Flood Insurance Reform Act is overseen by

A

Federal Reserve Board

116
Q

Violations for NOT determining FLOOD status, not notifying the borrower of the status and insurance requirements, failing to escrow premium if an escrow account is required for the other payments and/ or falling to place insurance when required are

A

$360 for each violation and $100,000 per calendar year

117
Q

When the APR is OUT of tolerance, the creditor must do what

A

Disclose the changes or provide a completely new disclosure statement so it is received at least three (3) business days before consummation

118
Q

Each early TILA disclosure must include what statement?

A

You are Not required to complete this agreement MERELY because you have received these disclosures or signed a loan application

119
Q

HMDA data allows government agencies to do what

A

EVALUATE lender compliance with ANTI DISCRIMINATION laws

120
Q

How is the the conforming loan limit set each year?

A

The Federal Housing Finance agency uses the October to October percentage

121
Q

Mortgage Fraud is investigated by the Federal Bureau of investigation and is punishable by up to

A

30 years in federal prison and $1,000,000 of BOTH

122
Q

HOEPA is an addendum to what law

123
Q

Which law allows a consumer who has had her credit card used by an identity thief to place a freeze on her credit report?

124
Q

Fannie Mae may require what to protect lenders against loan defaults by borrowers

A

Private mortgage insurance

125
Q

Which law requires notification to a borrower before the servicing of a loan is transferred to someone else?

NMLS Test (1 decks)

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