NMLS Frequently Missed Questions Flashcards
Which Act includes Red Flag Rules?
FACTA
How many days must a Mortgage Servicer wait before submitting for foreclosure if the borrower has not submitted an application for assistance?
120 days
What legislation simplifies tracking the servicing rights of mortgages?
MERS
What are promissory notes that are freely transferable called?
Negotiable Instruments
What are package mortgages
They allow personal property to be included in the property sale and financed as 1 loan
What loan commonly uses extended rate locks?
New construction loans
Adverse Possesion
gaining ownership rights to a piece of property through open/hostile occupancy for a prescribed number of years
How many months are credit inquiries considered in a FICO score?
12 months
What is the correct terminology when asking a loan applicant about their marital status?
Are you married, unmarried, or separated?
What is a mechanics lien?
Contractor/suppliers may file a lien on the property when they provided services and have not been paid
Can licensed MLOs be employed by more than 1 mortgage broker or lender at the same time?
NO
FCRA is regulated by what regulation?
Regulation V
What is the purpose of the Mortgage Servicing Disclosure Statement?
Inform the consumer of the likelihood of their mortgage being sold
Are escrow deposits for property taxes considered in the Finance Charge/APR calculation?
No
Reg Z applies to all residential loans that are….?
Greater than 4 installments
Equity Participation Mortgage
loan that permits lenders to share profits from real estate projects
Can funding fees be financed in a VA loan?
Yes
Does the closing disclosure require property appraisal value?
No
Who manages the Do Not Call Registry
FTC
What regulation requires by law escrow requirements for HPMLs?
Regulation Z (TILA)
Alienation Clause (Do on Sale Clause)
Lenders demand full payment if the borrower sells the mortgage property or partial interest in a mortgaged property
Who funds FHA loans
Qualified lending institutions
How many years does TILA require you to keep MLO compensation records?
3 years
Who regulates guidelines for renting/financing/selling properties?
FHA
With what mortgage is counseling mandatory?
HECM (reverse mortgage)
How many days prior must a closing disclosure be given?
7 days prior to closing
Yield Spread Premium (YSP)
lender pays the broker for selling a higher rate than the wholesale rate offered to the broker
Who issues the clear to close?
lenders
What act was passed in 1977 to reduce discrimatory practices?
Community Reinvestment Act
What section are HECM loans?
Section 255
Lis Peddens
recorded notice of pending lawsuit that title for the property is in litigation
Mortgage servicers must establish contact how many days after delinquency?
36 days
