NMLS EXAM PART 4 Flashcards
1
Q
- HOEPA is federal legislation enacted by Congress through amendments to:
A
- TILA – amended in 1994 and found in section 32 of regulation Z
2
Q
- What types of income are not taxed, and may be grossed-up? What IS taxed (and NOT grossed-up?
___________________________________
A
- Social Security, public assistance, and disability; ALIMONY is taxed, and therefore cannot be grossed-up!
3
Q
- RESPA applies to:___________________________________
A
- Federally related mortgage loans
4
Q
- When does a VA loan require two appraisals?
A
- Never- servicemembers are exempt from this requirement.
5
Q
- If a seller is offering a max concession to the buyer, and the buyer is putting more than 10% down, does the 6% come from the sale price or the loan amount?
A
- The sale amount
6
Q
- Who is responsible to pay for my surety bond? Me or AMC?
A
- Either
7
Q
- If a third-party affiliate charges $500 for a service, but the originator charges the client $800 and keeps the difference for himself,
a. is this legal?
b. Is it a violation?
c. Of what rule?
A
- This is a unilateral markup, which is legal, but may be a violation of RESPA and its fee-splitting rules.
8
Q
- If an ad states a simple annual rate of interest and more than one simple annual rate of interest will apply over the term of the loan, the ad must:
a. __________________________
b. __________________________
c. __________________________
A
- If an ad states a simple annual rate of interest and more than one simple annual rate of interest will apply over the term of the loan, the ad must:
a. clearly and conspicuously disclose each applicable simple annual interest rate,
b. the period of time during which each rate will apply, and
c. the annual percentage rate for the loan.
9
Q
- RESPA applies to what kind of reverse loan?:
A
- Single purpose reverse mortgage
10
Q
- A type of reverse mortgage offered to low-income borrowers for a designated purpose, such as to pay taxes or to complete a home repair, is known as a:
A
- Single purpose reverse mortgage
11
Q
- Entities that have obligations under the Fair Credit Reporting Act include:
A
- Entities that have obligations under the Fair Credit Reporting Act include:
a. Credit Reporting Agencies;
b. Furnishers of information to the Credit Reporting Agencies; and
c. Users of Consumer Reports
12
Q
- When would a license be suspended without a hearing?
A
- If a licensee fails to request a hearing with the state regulator.
13
Q
- If a buyer allows assumption of their VA loan, they may only use their VA privilege again after:
A
- The original VA loan is satisfied
14
Q
- Which section of the URLA contains questions which, depending on the applicant’s answer, could result in immediate rejection of the application?
A
- The Declarations Section, which contains questions that have to do with other judgments, lawsuits, other financial obligations, alimony or child support, etc.
15
Q
- The cheapest kind of reverse mortgage is called:
A
- “Single Purpose” Reverse Mortgage (for low-income families to pay taxes, etc.)
16
Q
- Notice of Adverse Action taken on a URLA that has been submitted is a disclosure of
A
- ECOA, not RESPA
17
Q
- Can a state licensing agency close down someone’s business while they look into possible problems with some loans the person originated?
A
- No
18
Q
- The Dodd-Frank Act listed the creation of financial education programs as one of the primary functions of:
A
- The CFPB
19
Q
- If a consumer files a complaint about an originator to a state licensing agency, how many days does the lender have to respond before the complaint is made public?
A
- 15 days
20
Q
- Under ECOA, what does an underwriter do if they see that child support payments have only been made sporadically?
A
- Refuse to consider them as part of the income being considered for repayment ability.
21
Q
- A Loan Estimate is required for:
A
- All closed-end, federally related mortgage loans.
22
Q
- Federal Agency that implements and enforces rules related to the origination of FHA loans:
A
- HUD
23
Q
- Loan origination fees, PMI premium, and commitment fees are all examples of:
A
- Prepaid finance charges
24
Q
- Homeowners Protection Act requires a disclosure for high-risk loans that essentially says:
A
- Termination of PMI is automatic at the midpoint of the amortization schedule as long as the borrower is current on their payments
25
Q
- What is the difference between state-licensed and registered loan originators?
A
- Unlike state-licensed loan originators, registered loan originators are exempt from licensing requirements
26
Q
- Which regulation specifies current disclosure requirements under TRID?
A
- Regulation Z – TILA
27
Q
- Do FHA loans have a due-on-sale clause?
A
- No, because FHA loans are assumable.
28
Q
- Which finance charge would NOT be calculated when determining the APR?
A
- Title Insurance
29
Q
- A lender’s Prime Rate is determined by whom?
A
- The lender himself
30
Q
- What document would CONVEY a property?
A
- Warranty Deed
31
Q
- What tax documents should be used to verify a self-employed person’s income?
A
- Two years’ worth of 1040’s
32
Q
- Under Regulation X, the term “loan originator” can be used to describe:
A
- It can be either the originator or the mortgage broker
33
Q
- Paying compensation for referrals is ______________,and a violation of __________ Law.
A
- Unethical; federal
34
Q
- When calculating the maximum loan amount available to a VA borrower, _________ is the term that would apply.
A
- Entitlement
35
Q
- The term “predominant value” on an appraisal refers to:
A
- The most common sales price for the neighborhood
36
Q
- In the Closing Disclosure, what question is required for each of the items in the Loan Terms table?
A
- “Can this amount increase after closing?”
37
Q
- A misleading representation, omission, act, or practice is considered deceptive when, among other conditions, it is:
A
- Material
