NMLS Exam Cheat Sheet Flashcards
How does ECOA differ from the Fair Housing Act?
- FHA includes family status and handicap
2. FHA does NOT include CCPA and public assistance income
How many years is the statute of limitations for ECOA actions?
5 years
When do you receive the copy of an appraisal?
Within 3 business days of application (if borrower receives Adverse Action, borrower gets appraisal within 30 days)
How many days to receive disclosures regarding monitoring programs?
Within 3 days of application
What is the LAR?
Loan application register (spreadsheet to report HMDA data)
What is the MSA?
Metropolitan Statistical Area (pop over 50,000)
RESPA
protects consumers from excessive costs/fees, and allows them to shop for settlement services
What is section 6 of RESPA
Transfer of Servicing
How many days notice do you need to give when servicers are being transferred?
15
After how many days are borrowers considered late when making payments to their older servicer?
60
What is section 8 of RESPA
No kickbacks/referral fees
What is section 10 of RESPA
Escrow Account
How many days to receive an initial escrow statement
within 45 days
How many months cushion can an escrow account demand?
2 months or 1/6 annual escrows
What RESPA disclosure is included for purchases only?
Settlement Costs Book
When is an Affiliated Business Arrangement disclosure needed?
at time of referral
When is a HUD 1 settlement statement required?
For purchase money mortgages/refinance
When are HUD-1A needed?
Refi only
When can a preliminary HUD-1/HUD-1A be requested?
can be requested by the borrower 1 day prior to settlement
How many days old can a list of housing counseling organizations be?
No more than 30 days old
If a revised GFE provided, how many days must it be issued?
Within 3 days of the LO becoming aware of the info that constitutes changed circumstances.
GFE charges that cannot exceed 10%
government recording charges, title services, title insurance
What is the acronym/description of a completed loan application?
ALIENS: A-address L-loan amount I-income E-estimate of value N-name of borrower S-SSN
Which disclosures need 5 year record retention
Servicing Disclosure
HUD1
AFBA Disclosure
Cost Disclosure will replace what?
Final TIL and HUD 1
Notice of the Right to Rescind is given to whom and how many copies?
All parties (anyone with title) 2 copies
Rescission extends from 3 days to how long if not everyone receives 2 copies?
3 years
What are the 3 TILA disclosures?
Truth in Lending
Special Information Books
ARM Disclosures .
How many days must a borrower wait to settle after the initial TIL disclosure?
7 days (3 days to settle after re-disclosure)
When is the CHARM booklet issued?
Purchase & Refis for ARMs
Also includes early arm program disclosures
What information booklet is issued with HELOCs?
When Your Home is On the Line-What You Should Know About Equity
Initial Rate Adjustment Disclosure provided within how many days?
210-240 before first adjusted payment.
Subsequent rate adjustment disclosure provided within how many days?
60-120 days
25-120 days before adjustments that occur every 60 days or less
HOEPA rate thresholds
6.5/8.5% above APOR
HOEPA fee thresholds
5%/8% (+- 20K)
HOEPA PPP thresholds
36 mos/2%
What did Dodd Frank expand HOEPA to include?
HELOCS
Purchase Money Mortgages
HPML rate thresholds
- 5% for 1st liens over APOR
- 5% for jumbo first liens over APOR
- 5% for subordinate liens
Can HPMLs have PPP?
No
How many minimum years do mandatory escrow accounts for taxes and insurance exist?
5 years minimum
Can request cancellation after 5 years if LTV >=80%
What kind of appraisals do HPMLs require?
Full appraisal to include physical visit AND interior inspection
What do additional appraisal requirements intend to curb?
Property flipping
HPML 2nd appraisal requirements
0-90 days: 10-19.99%
91-180 days: 20%+
What does GBL protect
nonpublic personal and financial info of consumers
When is a privacy notice due?
when the consumer becomes a customer
What does the HPA do?
borrowers can cancel PMI on CONFORMING LOANS
FTC Red Flag rule
ID theft, must update program regularly
Who created the SAFE Act?
Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)
Registration vs Licensing
Depository vs Non Depository
Pre Licensing Education hours breakdown
20, L/E/N=3/3/2 rest is electives
Continuing Education hours breakdown
8 hours annually, 3/2/2 (1 elective)
NMLS form MU1
Business Entity Registration
NMLS form MU2
Business Ownership Registration
NMLS form MU3
Branch Registration
NMLS form MU4
MLO registration
How many days to CRAs have to resolve credit disputes
30 days
How many years are unpaid/paid tax liens on credit reporting?
15 years/7 years
How many years are public records kept?
10 years
What does MARS stand for?
Mortgage Assistance Relief Services
What types of loan modifications MARS offer?
term, IR, payment, principal, short sale, forbearance, deed in lieu of foreclosure
In regards to MARS, how many months are records retained?
24 months
What agency regulates interstate call?
FTC
What agency regulates intrastate calls?
FCC
When do you have to update the Do not call list?
every 31 days
How much is a violation under the Do not call act?
16K
How many months can you contact a borrower after closing?
18 months
How many months can you contact a consumer who inquires about your business?
3 months
In regards to the Do not Call Act, how many months must records be retained?
24 months
Fair Housing Act
prohibits discrimination in housing activities (sale, rental, and financing)
How does the FHA diver from ECOA?
FHA covers marital status/disability
FHA DOES NOT cover public assistance income or CCPA
What US department is FinCEN within?
US Treasury Department
How many days do you have to make a suspicious activity report? And how many years must you keep records?
30 days/5 years
How many months banks statements are required when documenting a conforming loan?
2 months bank/asset statements
How many months reserves does a O/O need for a conforming loan?
2 months PITI
How many months PITI reserves for a Non O/O for a conforming loan?
6 months PITI
For FHA loans with borrowers that have credit scores 579-500, what is the minimum down payment?
10%
What is the max % of seller concessions for FHA loans?
6%
How much in capital reserves does the Mutual Mortgage Insurance Fund?
30 year loss estimates +2%
What do title theory states convey?
deed of trust
What do lien theory states retain?
borrower retains title to property. A MORTGAGE evidences lien against the property
Fee Simple
ownership of house and land
Leasehold or “Ground Rent”
Ownership of HOUSE ONLY
Joint Tenancy
share equal and undivided ownership and rights to the property (rights of survivorship)
Tenants in Common
separate and undivided interest in the property. NO SURVIVORSHIP RIGHTS
Tenants by the Entirety
Similar to Joint Tenancy, but reserved to lawfully married couples
What act includes pmi regulations?
Hpa
