NMLS Exam Cheat Sheet

Question 1

How does ECOA differ from the Fair Housing Act?

Answer 1

1. FHA includes family status and handicap

2. FHA does NOT include CCPA and public assistance income

Question 2

How many years is the statute of limitations for ECOA actions?

Answer 2

5 years

Question 3

When do you receive the copy of an appraisal?

Answer 3

Within 3 business days of application (if borrower receives Adverse Action, borrower gets appraisal within 30 days)

Question 4

How many days to receive disclosures regarding monitoring programs?

Answer 4

Within 3 days of application

Question 5

What is the LAR?

Answer 5

Loan application register (spreadsheet to report HMDA data)

Question 6

What is the MSA?

Answer 6

Metropolitan Statistical Area (pop over 50,000)

Question 7

RESPA

Answer 7

protects consumers from excessive costs/fees, and allows them to shop for settlement services

Question 8

What is section 6 of RESPA

Answer 8

Transfer of Servicing

Question 9

How many days notice do you need to give when servicers are being transferred?

Answer 9

15

Question 10

After how many days are borrowers considered late when making payments to their older servicer?

Answer 10

60

Question 11

What is section 8 of RESPA

Answer 11

No kickbacks/referral fees

Question 12

What is section 10 of RESPA

Answer 12

Escrow Account

Question 13

How many days to receive an initial escrow statement

Answer 13

within 45 days

Question 14

How many months cushion can an escrow account demand?

Answer 14

2 months or 1/6 annual escrows

Question 15

What RESPA disclosure is included for purchases only?

Answer 15

Settlement Costs Book

Question 16

When is an Affiliated Business Arrangement disclosure needed?

Answer 16

at time of referral

Question 17

When is a HUD 1 settlement statement required?

Answer 17

For purchase money mortgages/refinance

Question 18

When are HUD-1A needed?

Answer 18

Refi only

Question 19

When can a preliminary HUD-1/HUD-1A be requested?

Answer 19

can be requested by the borrower 1 day prior to settlement

Question 20

How many days old can a list of housing counseling organizations be?

Answer 20

No more than 30 days old

Question 21

If a revised GFE provided, how many days must it be issued?

Answer 21

Within 3 days of the LO becoming aware of the info that constitutes changed circumstances.

Question 22

GFE charges that cannot exceed 10%

Answer 22

government recording charges, title services, title insurance

Question 23

What is the acronym/description of a completed loan application?

Answer 23

ALIENS: 
A-address
L-loan amount
I-income
E-estimate of value
N-name of borrower
S-SSN

Question 24

Which disclosures need 5 year record retention

Answer 24

Servicing Disclosure
HUD1
AFBA Disclosure

Question 25

Cost Disclosure will replace what?

Answer 25

Final TIL and HUD 1

Question 26

Notice of the Right to Rescind is given to whom and how many copies?

Answer 26

``` All parties (anyone with title) 2 copies ```

Question 27

Rescission extends from 3 days to how long if not everyone receives 2 copies?

Answer 27

3 years

Question 28

What are the 3 TILA disclosures?

Answer 28

Truth in Lending Special Information Books ARM Disclosures .

Question 29

How many days must a borrower wait to settle after the initial TIL disclosure?

Answer 29

7 days (3 days to settle after re-disclosure)

Question 30

When is the CHARM booklet issued?

Answer 30

Purchase & Refis for ARMs | Also includes early arm program disclosures

Question 31

What information booklet is issued with HELOCs?

Answer 31

When Your Home is On the Line-What You Should Know About Equity

Question 32

Initial Rate Adjustment Disclosure provided within how many days?

Answer 32

210-240 before first adjusted payment.

Question 33

Subsequent rate adjustment disclosure provided within how many days?

Answer 33

60-120 days | 25-120 days before adjustments that occur every 60 days or less

Question 34

HOEPA rate thresholds

Answer 34

6.5/8.5% above APOR

Question 35

HOEPA fee thresholds

Answer 35

5%/8% (+- 20K)

Question 36

HOEPA PPP thresholds

Answer 36

36 mos/2%

Question 37

What did Dodd Frank expand HOEPA to include?

Answer 37

HELOCS | Purchase Money Mortgages

Question 38

HPML rate thresholds

Answer 38

1. 5% for 1st liens over APOR 2. 5% for jumbo first liens over APOR 3. 5% for subordinate liens

Question 39

Can HPMLs have PPP?

Answer 39

No

Question 40

How many minimum years do mandatory escrow accounts for taxes and insurance exist?

Answer 40

5 years minimum | Can request cancellation after 5 years if LTV >=80%

Question 41

What kind of appraisals do HPMLs require?

Answer 41

Full appraisal to include physical visit AND interior inspection

Question 42

What do additional appraisal requirements intend to curb?

Answer 42

Property flipping

Question 43

HPML 2nd appraisal requirements

Answer 43

0-90 days: 10-19.99% | 91-180 days: 20%+

Question 44

What does GBL protect

Answer 44

nonpublic personal and financial info of consumers

Question 45

When is a privacy notice due?

Answer 45

when the consumer becomes a customer

Question 46

What does the HPA do?

Answer 46

borrowers can cancel PMI on CONFORMING LOANS

Question 47

FTC Red Flag rule

Answer 47

ID theft, must update program regularly

Question 48

Who created the SAFE Act?

Answer 48

Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)

Question 49

Registration vs Licensing

Answer 49

Depository vs Non Depository

Question 50

Pre Licensing Education hours breakdown

Answer 50

20, L/E/N=3/3/2 rest is electives

Question 51

Continuing Education hours breakdown

Answer 51

8 hours annually, 3/2/2 (1 elective)

Question 52

NMLS form MU1

Answer 52

Business Entity Registration

Question 53

NMLS form MU2

Answer 53

Business Ownership Registration

Question 54

NMLS form MU3

Answer 54

Branch Registration

Question 55

NMLS form MU4

Answer 55

MLO registration

Question 56

How many days to CRAs have to resolve credit disputes

Answer 56

30 days

Question 57

How many years are unpaid/paid tax liens on credit reporting?

Answer 57

15 years/7 years

Question 58

How many years are public records kept?

Answer 58

10 years

Question 59

What does MARS stand for?

Answer 59

Mortgage Assistance Relief Services

Question 60

What types of loan modifications MARS offer?

Answer 60

term, IR, payment, principal, short sale, forbearance, deed in lieu of foreclosure

Question 61

In regards to MARS, how many months are records retained?

Answer 61

24 months

Question 62

What agency regulates interstate call?

Answer 62

FTC

Question 63

What agency regulates intrastate calls?

Answer 63

FCC

Question 64

When do you have to update the Do not call list?

Answer 64

every 31 days

Question 65

How much is a violation under the Do not call act?

Answer 65

16K

Question 66

How many months can you contact a borrower after closing?

Answer 66

18 months

Question 67

How many months can you contact a consumer who inquires about your business?

Answer 67

3 months

Question 68

In regards to the Do not Call Act, how many months must records be retained?

Answer 68

24 months

Question 69

Fair Housing Act

Answer 69

prohibits discrimination in housing activities (sale, rental, and financing)

Question 70

How does the FHA diver from ECOA?

Answer 70

FHA covers marital status/disability | FHA DOES NOT cover public assistance income or CCPA

Question 71

What US department is FinCEN within?

Answer 71

US Treasury Department

Question 72

How many days do you have to make a suspicious activity report? And how many years must you keep records?

Answer 72

30 days/5 years

Question 73

How many months banks statements are required when documenting a conforming loan?

Answer 73

2 months bank/asset statements

Question 74

How many months reserves does a O/O need for a conforming loan?

Answer 74

2 months PITI

Question 75

How many months PITI reserves for a Non O/O for a conforming loan?

Answer 75

6 months PITI

Question 76

For FHA loans with borrowers that have credit scores 579-500, what is the minimum down payment?

Answer 76

10%

Question 77

What is the max % of seller concessions for FHA loans?

Answer 77

6%

Question 78

How much in capital reserves does the Mutual Mortgage Insurance Fund?

Answer 78

30 year loss estimates +2%

Question 79

What do title theory states convey?

Answer 79

deed of trust

Question 80

What do lien theory states retain?

Answer 80

borrower retains title to property. A MORTGAGE evidences lien against the property

Question 81

Fee Simple

Answer 81

ownership of house and land

Question 82

Leasehold or "Ground Rent"

Answer 82

Ownership of HOUSE ONLY

Question 83

Joint Tenancy

Answer 83

share equal and undivided ownership and rights to the property (rights of survivorship)

Question 84

Tenants in Common

Answer 84

separate and undivided interest in the property. NO SURVIVORSHIP RIGHTS

Question 85

Tenants by the Entirety

Answer 85

Similar to Joint Tenancy, but reserved to lawfully married couples

Question 85

What act includes pmi regulations?

Answer 85

Hpa