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NMLS > NMLS - Putting It All Together > Flashcards

NMLS - Putting It All Together Flashcards

1
Q

The TILA/Respa Intergraded Disclosure Rule amends RESPA Sections_____and_____.

A

4/5

Source
TRID

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2
Q

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.

A

3

Source
TRID

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3
Q

The Closing Disclosure must be provided to the applicant at least _____days prior to consummation.

A

3

Source
TRID

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4
Q

A revised Loan Estimate must be delivered to the applicant no later than_____days prior to consummation.

A

4

Source
TRID

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5
Q

How much can the creditor or closing agent charge the borrower for preparing the Closing Disclosure?

A

Zero

Source
TRID

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6
Q

The origination fee on the Loan Estimate has a_____tolerance.

A

Zero

Source
TRID

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7
Q

The period to provide a refund for a tolerance violation on the Loan Estimate is_____days after consummation

A

60

Source
TRID

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8
Q

The borrower has the right to review the Closing Disclosure_____day(s) before consummation.

A

1

Source
TRID

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9
Q

Most third party fees on the Loan Estimate have a_____% tolerance.

A

10%

Source
TRID

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10
Q

The Loan Estimate has_____pages.

A

3

Source
TRID

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11
Q

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.

A

3/3

Source
RESPA/TRID

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12
Q

The civil penalty for violating RESPA section 8 is_____times the amount of the money received.

A

3

Source
RESPA

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13
Q

Escrow collection and other requirements are covered under RESPA section:

A

10

Source
RESPA

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14
Q

An analysis of an escrow account must be done_____a year.

A

Once

Source
RESPA

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15
Q

The section of RESPA that addresses kickbacks and excessive fees is RESPA section:

A

8

Source
RESPA

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16
Q

RESPA records must be retained for a period of______years.

A

5

Source
RESPA

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17
Q

The criminal penalty for violating RESPA is up to a $______and_____year in prison or both.

A

$10,000/1

Source
RESPA

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18
Q

The lender is allowed to collect a_____month cushion reserve on an escrow account.

A

2

Source
RESPA

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19
Q

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.

A

$50/30

Source
RESPA

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20
Q

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.

A

12

Source
RESPA

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21
Q

The servicing disclosure requirements are covered under RESPA section:

A

6

Source
RESPA

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22
Q

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.

A

60

Source
RESPA

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23
Q

RESPA does not cover loans on properties that are_____acres or more.

A

25

Source
RESPA

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24
Q

A servicer must acknowledge a written request from a borrower within_____days and respond to the issue within_____days.

A

5/30

Source
RESPA

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25
Q

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.

A

15

Source
RESPA

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26
Q

A servicer receiving the transferred loan must notify the borrower in writing within_____days of receiving the transferred loan.

A

15

Source
RESPA

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27
Q

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

A

1.5% / 3.5%

Source
TILA/REG Z

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28
Q

If a loan is a HPML loan then the minimum period to escrow for taxes and insurance, regardless of the LTV, is_____years.

A

5

Source
TILA/Reg Z

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29
Q

The criminal penalty for violating Reg Z/TILA is up to $_____fine and or_____years in prison.

A

$5,000/1

Source
TILA/Reg Z

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30
Q

The individual civil penalty for violating TILA/Reg Z is a minimum of $______up to a maximum of $

A

$400/$4,000

Source
TILA/Reg Z

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31
Q

The penalty for a class action suit is $_____or_____% of net worth which is less.

A

$500,000 and 1%

Source
TILA/Reg Z

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32
Q

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.

A

3

Source
TILA/Reg Z

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33
Q

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.

A

20

Source
TILA/Reg Z

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34
Q

The record retention period for retaining the TILA disclosures is_____years.

A

2

Source
TILA/Reg Z

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35
Q

A borrower has until midnight of the _____business day rescind a loan a primary residence. Saturday is included in the rescission days.

A

3rd

Source
TILA/Reg Z

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36
Q

The Truth-in-Lending Act is Title_____of the Consumer Credit Protection Act.

A

1

Source
TILA/Reg Z

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37
Q

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.

A

3

Source
TILA/Reg Z

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38
Q

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.

A

1/8th

Source
TILA/Reg Z

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39
Q

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.

A

3,7,3

7,3

Source
MDIA/TILA/Reg Z

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40
Q

Under HOEPA if the points and fees charged by the lender exceed_____% of the loan amount then the loan is a “high cost loan.”

A

5%

Source
HOEPA/TILA/Reg Z

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41
Q

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.”

A

32/32

Source
HOEPA/TILA/Reg Z

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42
Q

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.”

A

6.5% / 8.5%

Source
HOEPA / TILA / Reg Z

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43
Q

The SAFE Act passing Score is_____.

A

75%

Source
SAFE Act

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44
Q

The SAFE Act pre-license education requirements includes_____hrs federal law, _____hrs Ethics,_____hrs non-traditional lending products, and_____hrs electives.

A

3/3/2/12

Source
SAFE Act

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45
Q

The SAFE Act annual renewal education requirements are_____hrs federal law, _____hrs ethics,_____hrs non-traditional lending, and_____hour elective.

A

3/2/2/1

Source
SAFE Act

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46
Q

The national test has_____questions and_____are scored.

A

125/115

Source
SAFE Act

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47
Q

The regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $_____per violation.

A

$25,000

Source
SAFE Act

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48
Q

The SAFE Act defines a non-traditional mortgage as any product other than a ____ year fixed rate mortgage.

A

30

Source
SAFE Act

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49
Q

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.

A

18/3

Source
TSR

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50
Q

The potential criminal penalty for mortgage fraud is up to $______and______in prison, or both.

A

1,000,000 / 30 years

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51
Q

Mortgage loan compensation agreement must be retained for_____years

A

3

Source
Dodd Frank Act

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52
Q

The Dodd Frank Act Title_____regulates the mortgage industry.

A

IV

Source
Dodd Frank Act

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53
Q

The Dodd Frank Act requires the lender to provide a copy of appraisal prior to_____days of closing a loan.

A

3

Source
Dodd Frank Act

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54
Q

The maximum loan term for a qualified mortgage is:

A

30 years

Source
Dodd Frank/CFPB

55
Q

The maximum points and fees for a $100,000 loan or greater qualified mortgage is:

A

3%

Source
Dodd Frank/CFPB

56
Q

The maximum DTI for a General Qualified Mortgage is:

A

43%

Dodd Frank/CFPB

57
Q

The minimum time a creditor must keep a loan and not sell to maintain QM status for Small Creditor QM and Balloon QM is:

A

3 years

Source
Dodd Frank/CFPB

58
Q

The Home Mortgage Disclosure Act (HMDA) requires reporting data by March_____of the following year.

A

1

Source
HMDA

59
Q

Violation of the Fair Housing Act could result in criminal penalties up to $_____and or _____years in prison.

A

100,000/1

Source
FH Act

60
Q

A Consumer Reporting Agency (CRA) must address disputes within_____days.

A

30

Source
FCRA

61
Q

The Fair Credit Reporting Act (FCRA) is Title_____of the Consumer Credit Protection Act.

A

VI

Source
FCRA

62
Q

Under FCRA, a bankruptcy may be reported on a credit report for yeras and other derogatory credit for a period of_____years.

A

10/7

Source
FCRA

63
Q

FCRA was permanently exteneded by the Fair and Accurate Credit Transaction Act (FACTA) In______.

A

2003

Source
FCRA/FACTA

64
Q

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.

A

1/7

Source
FCRA/FACTA

65
Q

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.

A

4

Source
FCRA/FACTA

66
Q

The range for credit scores is:

A

300-850

67
Q

Payment history makes up what percentage of a credit history?

A

35%

Source
FCRA/FACTA

68
Q

The Red Flag identity theft program is a mandatory program and includes_____ red flag items created by the FTC.

A

26

Source
FCRA/FACTA

69
Q

The Equal Credit Opportunity Act (ECOA) is Title_____of the Consumer Credit Protection Act.

A

VII

Source
ECOA

70
Q

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.

A

30

Source
ECOA

71
Q

ECOA requires a notice of action taken within_____days of a counter offer that is not accepted.

A

90

Source
ECOA

72
Q

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.

A

3/30

Source
ECOA

73
Q

ECOA record retention is_____months.

A

25

Source
ECOA

74
Q

Liability for violating ECOA could result in a penalty up to $_____, and in a class action suit $))))) and )))))% of net worth whichever is less

A

10,000 / 500,000 / 1%

Source
ECOA

75
Q

Conventional conforming loan limit for a single family unit is:

A

$510,400 (2020)

Source
Conventional

76
Q

Private mortgage insurance and escrow required when loan-to-value is greater than:

A

80%

Conventional

77
Q

The housing payment and total debt ratios as a percentage of gross monthly income for standard conventional financing are:

A

28/36

Source
Conventional

78
Q

One discount point is equal to_____% of the loan.

A

1%

Source
Residential financing

79
Q

_____basis points equal_____discount point.

A

100/1

Source
Residential financing

80
Q

The housing payment and total debt ratios as a percentage of gross monthly income for standard FHA finance are:

A

31/43

Source
Residential financing

81
Q

The housing payment and total debt ratios as a percentage of gross monthly income for standard VA financing are:

A

41/41

Source
Residential financing

82
Q

Number of units allowed in residential mortgage financing are:

A

1 - 4

Source
Residential financing

83
Q

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______.

A

5/1
1/8th

Source
Residential financing

84
Q

A fully amortized 30 year loan would be payments based on______months and the loan is due in_____months.

A

360/360

Source
Residential financing

85
Q

A 30 year mortgage with a 15 year balloon would have payments based on______months and the loan would be due in______months.

A

360/180

Source
Residential financing

86
Q

A bi-weekly payment plan has_____monthly payments in the year.

A

13

Source
Residential financing

87
Q

A temporary 2/1 buy down loan means that the note rate is reduced by_____% in year one and_____% in year two.

A

2% / 1%

Source
Residential financing

88
Q

Seasoned funds have been in the bank for______days or more.

A

50

Source
Residential financing

89
Q

The IRS form number for a lender to obtain a copy of the borrower’s tax transcript is:

A

4506T

Source
Residential financing

90
Q

Non-taxable can be grossed up

A

25%

Source
Residential financing

91
Q

If a debt has no payment associated with the debt, the underwriter will allocate_____of the debt as a qualifying payment.

A

5%

Source
Residential financing

92
Q

The number of months non-traditional credit is evaluated, for loan approval is:

A

12

Source
Residential financing

93
Q

The Uniform Residential Loan Application is a Fannie Mae form number:

A

1003

Source
Fannie Mae

94
Q

The 1003 loan application has_____sections.

A

10

Source
Fannie Mae

95
Q

Verification of employment (VOE) covers the most recent_____years.

A

2

Source
Fannie Mae

96
Q

Verification of deposit (VOD) covers the most recent_____days.

A

60

Source
Fannie Mae

97
Q

A verification of rental (VOR) and a verification of mortgage (VOM) covers the most recent____months.

A

12

Source
Fannie Mae

98
Q

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.

A

3%

Source
Fannie Mae

99
Q

The maximum seller contributions for an investment property is:

A

2%

Source
Fannie Mae

100
Q

A limited cash-out refinance allows the borrower to get cash back, the lower of $_____or______%

A

$2,000 / 2%

Source
Fannie Mae

101
Q

The full appraisal form for an interior and exterior inspection of a single unit property is the Fannie Mae form number_____.

A

1004

Source
Fannie Mae

102
Q

The exterior only appraisal for a single family unit is a Fannie Mae form number_____.

A

2055

Source
Fannie Mae

103
Q

Maximum age for credit documentation is______days when the promissory note is signed.

A

120

Source
Fannie Mae

104
Q

The minimum credit score for Fannie Mae and Freddie Mac is:

A

620

Source
Fannie Mae

105
Q

To be used in loan qualification, income must meet the _____year likelihood of continuance test.

A

3

Source
Fannie Mae

106
Q

Income qualifying requires the verification of the most recent______days of earnings.

A

30

Source
Fannie Mae

107
Q

A borrower who has more than_____% in commission earnings or who owns more than_____% of a company is considered self-employed.

A

25% / 25%

Source
Fannie Mae

108
Q

A representative credit score is the middle of_____scores of the lower of_____scores and the lender will not underwrite a loan with_____score.

A

3/2/1

Source
Fannie Mae

109
Q

A borrower can use_____of a stock portfolio account of reserves.

A

100%

Source
Fannie Mae

110
Q

A borrower can use______of the vested interest in a retirement account for reserves.

A

60%

Source
Fannie Mae

111
Q

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.

A

100% / 80%

Source
Fannie Mae

112
Q

Fannie Mae allows_____% of the face amount of the insurance police as the deductible.

A

5%

Source
Fannie Mae

113
Q

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.

A

75/25

Source
Fannie Mae

114
Q

After a borrower closes on a loan transaction they have_____days to move in.

A

60

Source
Fannie Mae

115
Q

The minimum age to get a reverse mortgage is:

A

62

Source
FHA

116
Q

If a FHA borrower defaults, the lender will receive_____% of the loss.

A

100

Source
FHA

117
Q

The minimum cash investment form a borrower on a FHA loan is:

A

3.5%

Source
FHA

118
Q

FHA allows_____of the funds needed at closing to be a gift.

A

100%

Source
FHA

119
Q

Maximum seller contributions towards closing costs and prepaid items on a FHA loan are:

A

6%

Source
FHA

120
Q

The most popular FHA loan program is the Section_____insured mortgage.

A

203B

Source
FHA

121
Q

The up-front mortgage ins on a full qualifying FHA loan is: 1.75%

A

FHA

Source
FHA

122
Q

A borrower can get a prorated refund of FHA mortgage insurance for_____years when refinancing from one FHA loan to another.

A

3

Source
FHA

123
Q

VA allows_____% financing.

A

100%

Source
VA

124
Q

On a VA guaranteed loan the maximum entitlement that is reflected on the certificate of eligibility is:

A

$36,000

Source
VA

125
Q

If a borrower has already left the military, the borrower must have a_____reflecting on honorable discharge.

A

DD214

Source
VA

126
Q

In the event of default, the VA will guarantee up to_____of$_____.

A

25% / $510,400

Source
VA

127
Q

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:

A

2.3

Source
VA

128
Q

The USDA Rural Housing Service loans will guarantee____% in the event of the borrowers default.

A

90%

Source
USDA/RHS

129
Q

The USDA/RHS loans allow_____% financing

A

100%

Source
USDA/RHS

130
Q

USDA/RHS loans have income limits based on_____% of the US median income.

A

115%

Source
USDA/RHS

131
Q

Home Owners Protection Act requires lenders to automatically terminate mortgage insurance when the loan reaches_____of the original value.

A

78%

Source
HPA

132
Q

Home Owners Protection Act allows a borrower to request cancellation of the mortgage insurance when the borrower can prove a_____% equity position.

A

20 %

Source
HPA

133
Q

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.

A

60/30

Source
HPA

NMLS (3 decks)

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