NMLS - Putting It All Together Flashcards
The TILA/Respa Intergraded Disclosure Rule amends RESPA Sections_____and_____.
4/5
Source
TRID
A change that makes the APR inaccurate by increasing it more than 1/8th for a regular loan after the initial disclosure will require a new_____day waiting period.
3
Source
TRID
The Closing Disclosure must be provided to the applicant at least _____days prior to consummation.
3
Source
TRID
A revised Loan Estimate must be delivered to the applicant no later than_____days prior to consummation.
4
Source
TRID
How much can the creditor or closing agent charge the borrower for preparing the Closing Disclosure?
Zero
Source
TRID
The origination fee on the Loan Estimate has a_____tolerance.
Zero
Source
TRID
The period to provide a refund for a tolerance violation on the Loan Estimate is_____days after consummation
60
Source
TRID
The borrower has the right to review the Closing Disclosure_____day(s) before consummation.
1
Source
TRID
Most third party fees on the Loan Estimate have a_____% tolerance.
10%
Source
TRID
The Loan Estimate has_____pages.
3
Source
TRID
RESPA and TRID require that early disclosures be provided to the consumer no later than_____business days after receiving the loan application unless the loan is denied within_____days.
3/3
Source
RESPA/TRID
The civil penalty for violating RESPA section 8 is_____times the amount of the money received.
3
Source
RESPA
Escrow collection and other requirements are covered under RESPA section:
10
Source
RESPA
An analysis of an escrow account must be done_____a year.
Once
Source
RESPA
The section of RESPA that addresses kickbacks and excessive fees is RESPA section:
8
Source
RESPA
RESPA records must be retained for a period of______years.
5
Source
RESPA
The criminal penalty for violating RESPA is up to a $______and_____year in prison or both.
$10,000/1
Source
RESPA
The lender is allowed to collect a_____month cushion reserve on an escrow account.
2
Source
RESPA
After an annual escrow account analysis if there is a surplus of greater than______the lender has_____days to send a check to the borrower for the surplus amount.
$50/30
Source
RESPA
If there is a shortage in the escrow account, after the annual analysis, greater than one month escrow, the lender can add the amount to the total escrow amount and collect it over a_____month period.
12
Source
RESPA
The servicing disclosure requirements are covered under RESPA section:
6
Source
RESPA
For_____days from the date of transfer the new servicer may not charge the borrower a late fee or report a negative rating to the consumer reporting agency.
60
Source
RESPA
RESPA does not cover loans on properties that are_____acres or more.
25
Source
RESPA
A servicer must acknowledge a written request from a borrower within_____days and respond to the issue within_____days.
5/30
Source
RESPA
A servicer who transfers a loan to another servicer must notify the borrower in writing of the impending transfer within_____days prior to the transfer.
15
Source
RESPA
A servicer receiving the transferred loan must notify the borrower in writing within_____days of receiving the transferred loan.
15
Source
RESPA
A “Higher Priced Mortgage Loan” HPML uses the “Average Prime Offer Rate” APOR as a threshold. If the APR for a first lien loan exceeds the APOR by_____% or greater or by_____% or greater for a second subordinate lien loan then the loan is subject to the requirements of section 1026.35 of TILA/REG Z
1.5% / 3.5%
Source
TILA/REG Z
If a loan is a HPML loan then the minimum period to escrow for taxes and insurance, regardless of the LTV, is_____years.
5
Source
TILA/Reg Z
The criminal penalty for violating Reg Z/TILA is up to $_____fine and or_____years in prison.
$5,000/1
Source
TILA/Reg Z
The individual civil penalty for violating TILA/Reg Z is a minimum of $______up to a maximum of $
$400/$4,000
Source
TILA/Reg Z
The penalty for a class action suit is $_____or_____% of net worth which is less.
$500,000 and 1%
Source
TILA/Reg Z
If a person on title does not receive the notice of the right to rescind, then the right to rescind the transaction extends to______years.
3
Source
TILA/Reg Z
If a borrower rescinds a loan the lender has_____days to return all monies paid in connection with the loan and cancel the security instrument.
20
Source
TILA/Reg Z
The record retention period for retaining the TILA disclosures is_____years.
2
Source
TILA/Reg Z
A borrower has until midnight of the _____business day rescind a loan a primary residence. Saturday is included in the rescission days.
3rd
Source
TILA/Reg Z
The Truth-in-Lending Act is Title_____of the Consumer Credit Protection Act.
1
Source
TILA/Reg Z
If there is an ARM loan, the CHARM booklet and the specific ARM program disclosure are considered early disclosures and are required to be delivered to the borrower within_____business days of receiving the application.
3
Source
TILA/Reg Z
As a general rule, the APR is considered accurate if it is not more than_____of 1% above or below the previously disclosed APR on regular transactions.
1/8th
Source
TILA/Reg Z
The Mortgage Disclosure Improvement Act (MDIA) has a ___,____,____rule. Only the credit report may be charged before the application has received the GFE, the lender must wait_____days before closing the loan after the GFE has been delivered and if there has been an APR tolerance violation the lender must re-disclose the TILA statement and wait_____days to close.
3,7,3
7,3
Source
MDIA/TILA/Reg Z
Under HOEPA if the points and fees charged by the lender exceed_____% of the loan amount then the loan is a “high cost loan.”
5%
Source
HOEPA/TILA/Reg Z
A loan that exceeds the HOEPA thresholds for APR and points and fees is subject to the section CFR 1026.___of TILA/Reg Z. Also known as a section______loan and a “high” cost loan.”
32/32
Source
HOEPA/TILA/Reg Z
The Home Owners Equity Protection Act (HOEPA) has established the “annual prime offer rate” APOR, as the basis for determining if a loan is a high cost loan. If the APR exceeds the APOR by more than_____% for the first lien loan and_____% for a second lien loan, the loan is a “high cost loan.”
6.5% / 8.5%
Source
HOEPA / TILA / Reg Z
The SAFE Act passing Score is_____.
75%
Source
SAFE Act
The SAFE Act pre-license education requirements includes_____hrs federal law, _____hrs Ethics,_____hrs non-traditional lending products, and_____hrs electives.
3/3/2/12
Source
SAFE Act
The SAFE Act annual renewal education requirements are_____hrs federal law, _____hrs ethics,_____hrs non-traditional lending, and_____hour elective.
3/2/2/1
Source
SAFE Act
The national test has_____questions and_____are scored.
125/115
Source
SAFE Act
The regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $_____per violation.
$25,000
Source
SAFE Act
The SAFE Act defines a non-traditional mortgage as any product other than a ____ year fixed rate mortgage.
30
Source
SAFE Act
The Telemarketing Sales Rules requirement for businesses that communicate with consumers that are on the Do-Not-Call registry are the following: A business can contact a consumer up to_____months after the final transaction, _____months if only an inquiry was made, and never if the consumer contacts the business to not call them.
18/3
Source
TSR
The potential criminal penalty for mortgage fraud is up to $______and______in prison, or both.
1,000,000 / 30 years
Mortgage loan compensation agreement must be retained for_____years
3
Source
Dodd Frank Act
The Dodd Frank Act Title_____regulates the mortgage industry.
IV
Source
Dodd Frank Act
The Dodd Frank Act requires the lender to provide a copy of appraisal prior to_____days of closing a loan.
3
Source
Dodd Frank Act
The maximum loan term for a qualified mortgage is:
30 years
Source
Dodd Frank/CFPB
The maximum points and fees for a $100,000 loan or greater qualified mortgage is:
3%
Source
Dodd Frank/CFPB
The maximum DTI for a General Qualified Mortgage is:
43%
Dodd Frank/CFPB
The minimum time a creditor must keep a loan and not sell to maintain QM status for Small Creditor QM and Balloon QM is:
3 years
Source
Dodd Frank/CFPB
The Home Mortgage Disclosure Act (HMDA) requires reporting data by March_____of the following year.
1
Source
HMDA
Violation of the Fair Housing Act could result in criminal penalties up to $_____and or _____years in prison.
100,000/1
Source
FH Act
A Consumer Reporting Agency (CRA) must address disputes within_____days.
30
Source
FCRA
The Fair Credit Reporting Act (FCRA) is Title_____of the Consumer Credit Protection Act.
VI
Source
FCRA
Under FCRA, a bankruptcy may be reported on a credit report for yeras and other derogatory credit for a period of_____years.
10/7
Source
FCRA
FCRA was permanently exteneded by the Fair and Accurate Credit Transaction Act (FACTA) In______.
2003
Source
FCRA/FACTA
A one phone call fraud alert request can include an alert on a credit file for_____year and_____years if a police report is filed and submitted to the CRA.
1/7
Source
FCRA/FACTA
If a lender collects credit scores on a borrower, the lender discloses the scores to the borrower and must also give_____reasons for each score.
4
Source
FCRA/FACTA
The range for credit scores is:
300-850
Payment history makes up what percentage of a credit history?
35%
Source
FCRA/FACTA
The Red Flag identity theft program is a mandatory program and includes_____ red flag items created by the FTC.
26
Source
FCRA/FACTA
The Equal Credit Opportunity Act (ECOA) is Title_____of the Consumer Credit Protection Act.
VII
Source
ECOA
ECOA requires a notice of action taken to be provided within______days of receiving an application for credit, denying an application, or denying an incomplete application.
30
Source
ECOA
ECOA requires a notice of action taken within_____days of a counter offer that is not accepted.
90
Source
ECOA
ECOA requires a copy of an apprasial or any evaluation of the subject property within_____days prior to the loan closing and______days after it is determined the loan will not close.
3/30
Source
ECOA
ECOA record retention is_____months.
25
Source
ECOA
Liability for violating ECOA could result in a penalty up to $_____, and in a class action suit $))))) and )))))% of net worth whichever is less
10,000 / 500,000 / 1%
Source
ECOA
Conventional conforming loan limit for a single family unit is:
$510,400 (2020)
Source
Conventional
Private mortgage insurance and escrow required when loan-to-value is greater than:
80%
Conventional
The housing payment and total debt ratios as a percentage of gross monthly income for standard conventional financing are:
28/36
Source
Conventional
One discount point is equal to_____% of the loan.
1%
Source
Residential financing
_____basis points equal_____discount point.
100/1
Source
Residential financing
The housing payment and total debt ratios as a percentage of gross monthly income for standard FHA finance are:
31/43
Source
Residential financing
The housing payment and total debt ratios as a percentage of gross monthly income for standard VA financing are:
41/41
Source
Residential financing
Number of units allowed in residential mortgage financing are:
1 - 4
Source
Residential financing
An adjustable rate morgage that has a fixed rate for 5 years and can change annually is a_____ARM. The rate is rounded to the nearest______.
5/1
1/8th
Source
Residential financing
A fully amortized 30 year loan would be payments based on______months and the loan is due in_____months.
360/360
Source
Residential financing
A 30 year mortgage with a 15 year balloon would have payments based on______months and the loan would be due in______months.
360/180
Source
Residential financing
A bi-weekly payment plan has_____monthly payments in the year.
13
Source
Residential financing
A temporary 2/1 buy down loan means that the note rate is reduced by_____% in year one and_____% in year two.
2% / 1%
Source
Residential financing
Seasoned funds have been in the bank for______days or more.
50
Source
Residential financing
The IRS form number for a lender to obtain a copy of the borrower’s tax transcript is:
4506T
Source
Residential financing
Non-taxable can be grossed up
25%
Source
Residential financing
If a debt has no payment associated with the debt, the underwriter will allocate_____of the debt as a qualifying payment.
5%
Source
Residential financing
The number of months non-traditional credit is evaluated, for loan approval is:
12
Source
Residential financing
The Uniform Residential Loan Application is a Fannie Mae form number:
1003
Source
Fannie Mae
The 1003 loan application has_____sections.
10
Source
Fannie Mae
Verification of employment (VOE) covers the most recent_____years.
2
Source
Fannie Mae
Verification of deposit (VOD) covers the most recent_____days.
60
Source
Fannie Mae
A verification of rental (VOR) and a verification of mortgage (VOM) covers the most recent____months.
12
Source
Fannie Mae
If the LTV is equal to or greater than 90% the maximum seller contribution is______% of the lower of the sales price or appraised value.
3%
Source
Fannie Mae
The maximum seller contributions for an investment property is:
2%
Source
Fannie Mae
A limited cash-out refinance allows the borrower to get cash back, the lower of $_____or______%
$2,000 / 2%
Source
Fannie Mae
The full appraisal form for an interior and exterior inspection of a single unit property is the Fannie Mae form number_____.
1004
Source
Fannie Mae
The exterior only appraisal for a single family unit is a Fannie Mae form number_____.
2055
Source
Fannie Mae
Maximum age for credit documentation is______days when the promissory note is signed.
120
Source
Fannie Mae
The minimum credit score for Fannie Mae and Freddie Mac is:
620
Source
Fannie Mae
To be used in loan qualification, income must meet the _____year likelihood of continuance test.
3
Source
Fannie Mae
Income qualifying requires the verification of the most recent______days of earnings.
30
Source
Fannie Mae
A borrower who has more than_____% in commission earnings or who owns more than_____% of a company is considered self-employed.
25% / 25%
Source
Fannie Mae
A representative credit score is the middle of_____scores of the lower of_____scores and the lender will not underwrite a loan with_____score.
3/2/1
Source
Fannie Mae
A borrower can use_____of a stock portfolio account of reserves.
100%
Source
Fannie Mae
A borrower can use______of the vested interest in a retirement account for reserves.
60%
Source
Fannie Mae
Fannie Mae requires insurance coverage equal to the lessor of_____% of the insurance value of the improvements as determined by the issuer or the unpaid principal balance as long as it equals_____% of the insurable value.
100% / 80%
Source
Fannie Mae
Fannie Mae allows_____% of the face amount of the insurance police as the deductible.
5%
Source
Fannie Mae
If a borrower is using rental income to qualify and the amounts are not already included on the tax return only_____% of the actual rental income can be considered. There is a_____% of the actual rental income can considered. There is a_____% deduction for vacancy and maintenance.
75/25
Source
Fannie Mae
After a borrower closes on a loan transaction they have_____days to move in.
60
Source
Fannie Mae
The minimum age to get a reverse mortgage is:
62
Source
FHA
If a FHA borrower defaults, the lender will receive_____% of the loss.
100
Source
FHA
The minimum cash investment form a borrower on a FHA loan is:
3.5%
Source
FHA
FHA allows_____of the funds needed at closing to be a gift.
100%
Source
FHA
Maximum seller contributions towards closing costs and prepaid items on a FHA loan are:
6%
Source
FHA
The most popular FHA loan program is the Section_____insured mortgage.
203B
Source
FHA
The up-front mortgage ins on a full qualifying FHA loan is: 1.75%
FHA
Source
FHA
A borrower can get a prorated refund of FHA mortgage insurance for_____years when refinancing from one FHA loan to another.
3
Source
FHA
VA allows_____% financing.
100%
Source
VA
On a VA guaranteed loan the maximum entitlement that is reflected on the certificate of eligibility is:
$36,000
Source
VA
If a borrower has already left the military, the borrower must have a_____reflecting on honorable discharge.
DD214
Source
VA
In the event of default, the VA will guarantee up to_____of$_____.
25% / $510,400
Source
VA
VA charges an upfront funding fee for most borrowers. The funding fee for a borrower using their entitlement for the first time putting down less than 5% is:
2.3
Source
VA
The USDA Rural Housing Service loans will guarantee____% in the event of the borrowers default.
90%
Source
USDA/RHS
The USDA/RHS loans allow_____% financing
100%
Source
USDA/RHS
USDA/RHS loans have income limits based on_____% of the US median income.
115%
Source
USDA/RHS
Home Owners Protection Act requires lenders to automatically terminate mortgage insurance when the loan reaches_____of the original value.
78%
Source
HPA
Home Owners Protection Act allows a borrower to request cancellation of the mortgage insurance when the borrower can prove a_____% equity position.
20 %
Source
HPA
A good payment history under Home Owners Protection Act means no_____lates in the last 24 months and no______lates in the past 12 months.
60/30
Source
HPA
