NMLS Laws and Regulations Practice Test

These questions are part of the practice quiz. Start practicing

• Soft Prepayment Penalty
• Which type of loan cannot be required to be repurchased?
• The ratio obtained when the PITI payment is divided by gross monthly income is known as the:
• When do refinance loans fund?
• What will the interest rate adjust to for the first adjustment on a 5/1 ARM with an initial rate of 3.25%, caps of 2/1/2, index 3%, and margin 2.5%?
• Which of the following loss mitigation strategies is a permanent change in a borrower's loan terms in response to his long term inability to make his payments?
• Taking residential mortgage loan applications for compensation represents the functions of which professional?
• Which fees can only change by 10% on the Loan Estimate?
• Title insurance protects against which issue?
• What is the qualifying HER and TOR ratio for FHA loans?
• When trigger terms are used in a credit offer, what must be disclosed to the borrower?
• Which definition best describes steering in mortgage lending?
• What information do MLOs record as part of Government Monitoring Information?
• Which of the following is a risk associated with a non-traditional ARM loan?
• Which of the following is not a trigger term in mortgage advertising?
• The primary market is where loans are ___________, the secondary market is where loans are ____________.
• How many hours of prelicensing education are required under the SAFE Act?
• What is TLTV used for and how do you calculate it?
• Define Pre-qualification.
• Which agency handles advertising under TILA?
• Under the TILA HPM escrow rule, lenders must establish and maintain an escrow account for borrowers who accept a first lien higher-priced mortgage loan for a minimum number of years.
• FACTA includes which of the following requirements regarding credit scores?
• In a loan transaction, which term describes compensation paid by the lender to the broker based on the loan's interest rate?
• PMI automatically drops off at what loan-to-value ratio?
• Which entity is responsible for monitoring compliance with advertising rules?
• Which loss mitigation option temporarily pauses payments but does not permanently change the loan terms?
• If the NMLS test is failed three times, what is the waiting period before retaking?
• What is a Commitment?
• Dodd-Frank introduced new appraisal independence regulations that require that on a higher-priced loan the appraiser does which of the following?
• TILA is a part of which act?
• What is not allowed to change on the Loan Estimate?
• In mortgage lending, which verb best completes the sentence: Mortgage Lenders _______ loans?
• The acronym FHA stands for which act?
• APR is an acronym used in mortgage advertising. What does it stand for?
• Is it true that a qualified change of circumstance allows the lender to issue another Loan Estimate?
• Definition of a business day for initial disclosures includes which condition?
• Which term is an alternative name for the Front-end ratio/DTI?
• Which item is not considered when evaluating a borrower's Ability to Repay?
• In a 5/1 ARM, how long is the initial fixed-rate period?
• Are VA loans assumable?
• FACTA is an amendment to what law?
• Which statement is true about FACTA's impact on consumer disputes?
• HERA stands for which act?
• Which loan types are excluded from the 3 business day Loan Estimate requirement?
• On the 1003 mortgage application, what information is collected for government monitoring purposes?
• What is the formula for calculating interest-only payments?
• Under the CFPB, which of the following is NOT identified as a type of consumer protection law?
• Which statement best describes the Mortgagee Clause?
• Under the Truth-in-Lending Act (TILA), the term refinance applies to which of the following?
• Which entity is exempt from mortgage licensing?
• Which of the following lists the three appraisal approaches used to determine value?
• When the credit payment is not provided, what percentage of the credit balance is used to calculate DTI?
• Mortgage Back Securities (MBS) are a product of ________.
• What is the waiting period after failing the NMLS test for the first time?
• A HECM can be used to purchase a property.
• What does NFIP stand for?
• CIP stands for?
• The Loss Payee designation on an insurance policy serves to designate which party?
• An individual seeking to license as an MLO will not be approved for a license based on which of the following?
• What is the primary purpose of the Nationwide Mortgage Licensing System/Registry (NMLS/R)?
• What is an Air loan?
• Under advertising disclosures, do general advertising terms require disclosure?
• Which of the following is not a government-backed mortgage program?
• When calculating TLTV, what assumption is made about the HELOC?
• In what order do the following get paid: Past Due, Interest, Principal?
• To certify construction completion, what form must the appraiser complete under FNMA?
• Which item is NOT a HOEPA trigger?
• Which action would increase the LTV for a given property value?
• What is the maximum seller concessions allowed on VA loans?
• Which HOEPA disclosure occurs 3 days before closing?
• Which is a key aspect of NMLS/R?
• Conforming loans follow underwriting guidelines of which two entities?
• What happens if borrowers who are refinancing do not receive their decision disclosures or their APR is off by max variance?
• Which party can face criminal penalties for submitting a fraudulent loan file to law enforcement?
• PMI is required on conforming loans when the loan-to-value exceeds what percentage?
• Which businesses are required to comply with TILA?
• Hard Prepayment Penalty
• The Dodd-Frank Act updated TILA to require _________?
• What information is listed on the debt report?
• Which items may change on appraisal reports without violating the rules?
• For Owner Occupied purchases, within how many days after closing must the borrower occupy the property per FNMA/FHLMC guidelines?
• In a 'Table Funded' loan, in whose name is the loan closed?
• How is the fully indexed rate on an ARM loan calculated?
• Which entity issues the unique MLO identifier required by the SAFE Act?
• HMDA data collection is primarily intended to monitor what?
• Which of the following is NOT a type of verification used in underwriting?
• How long must records be kept under TILA?
• Which term describes the index rate prevailing at origination, plus the margin that will apply after the expiration of an introductory interest rate?
• Which organization identifies floodplains and creates the Flood Insurance Rate Map?
• Who oversees the USA Patriot Act?
• Which rate is used to calculate the Ability to Repay, choosing the higher between the two?
• What is the primary subject of RESPA?
• Which type of income cannot be used or is a reason to decline a mortgage?
• What is it called when borrowers are charged above the legally set rate, for example, for recording the mortgage transaction?
• Under the 3/7/3 rule, the lender may issue another Loan Estimate if there is a qualified change of circumstance.
• How many copies of the right to rescind notice are provided to owners?
• What is the maximum adjustment percentage allowed when calculating net adjustments on a comparable?
• Which loan type would heighten a borrower's reliance on sale or refinancing once amortization begins?
• The Cost Approach is usually used for which type of property?
• What best describes the fundamental reasons for the creation of the Home Mortgage Disclosure Act?
• Semi-monthly salary of $2,100 yields what gross monthly income?
• In relation to PITI, which statement is true about the front-end ratio?
• If the borrower lets the insurance lapse, what action may the lender take?
• The kickback prohibition in RESPA is intended to prevent what for consumers?
• Which property type is commonly classified as residential real estate for mortgage lending purposes?
• Title XIV is primarily concerned with regulations of RESPA and TILA.
• FinCEN is part of which U.S. department?
• Which item is not found on the market conditions addendum that accompanies an appraisal?
• Which term best describes the purpose of a 125% piggyback loan?
• If a borrower is incapacitated for some reason, a representative may be appointed to take care of financial affairs. What is this representative called?
• The CFPB identifies which of the following as a consumer protection law category?
• What does the margin represent in ARM calculations?
• Which term is associated with the transfer of title from one person to another?
• The lender asks the borrower to address a shortfall after appraisal. The best action for the MLO is to:
• Under ECOA, which scenario best reflects joint account reporting to lenders?
• In an ARM loan, what is the meaning of the teaser rate?
• Which appraisal requirement is linked to higher-priced loans under the appraisal independence rules?
• Right of rescission does apply to which of the following transactions?
• Which item is not required to be kept for 24 months by a mortgage licensee?
• ________ loans are loans that 'conform' to FNMA, FHLMC standards.
• TILA is designed to protect borrowers in which area?
• Which statement describes a feature of a reverse mortgage (HECM)?
• What does FIRM stand for?
• A lender advertises "7.25%" APR. Which information must be provided in the same advertisement?
• For purchases, a borrower must have what duration of prepaid insurance policy to close?
• Reg Z is the regulation governing which law?
• What is the form used to request a copy of a tax transcript?
• Which item is not a component of an ARM loan?
• How long does Chapter 11 Bankruptcy stay on a credit report?
• Which of the following is NOT one of the 3 C's of underwriting?
• What is provided to owners who receive rights to rescission?
• ECOA primary purpose is to prevent discrimination in lending based on which factors?
• Under the 3/7/3 rule, how long must the lender wait from application to close?
• If a creditor did not inform the borrower within 30 days of a credit decision that was adverse, which law is violated?
• Who oversees RESPA?
• Which items are subject to change on the Loan Estimate?
• Which regulation governs ECOA?
• Within how many business days must the Your Home Loan Toolkit be provided after receiving the application?
• ________ backs all government loans (FHA, VA, USDA)
• How many hours of annual continuing education are required under the SAFE Act?
• HELOC is what kind of credit?
• ECOA stands for which act?
• Under FHLMC, which program is used by lenders and brokers?
• A borrower must make a 10% down payment on a purchase transaction to qualify for the loan. The borrower made a $1,000 good faith deposit at the time of acceptance of the offer to purchase on a home sold for $172,000. The seller agreed to pay closing costs for up to 1% of the sales price. The buyer's closing costs totaled $2,100, and the broker is being paid one percent yield spread premium by the lender. How much more money does the buyer need to bring to closing?
• On what date do SAFE Act licenses expire?
• Which party is primarily responsible for ensuring TILA advertising disclosures are included by a lender?
• Which rate typically applies after the teaser period ends on an ARM?
• One stated purpose of RESPA is to educate borrowers about which of the following?
• Which items are not allowed to change on appraisals?
• Which document is commonly used to collect borrower financial information for a loan application?
• What is the 3/7/3 rule?
• For closings, which days are not counted as business days due to potential mail delays?
• Which HOEPA requirement concerns disclosure to borrowers 3 days before closing?
• Which of the following transactions are not covered under the TILA?
• On which type of property would a rental analysis be done in conjunction with completing the appraisal of the property?
• TCPA stands for?
• Which of the following represents a major consumer protection adopted in the Dodd-Frank Act?
• Where must a Satisfaction of Mortgage be filed?
• With an initial rate of 3.75%, index of 2.5%, and a margin of 2.25% in a cap structure of 2/1/2, what is the rate at the first adjustment?
• Which provides the best definition of the average prime offer rate?
• What term describes a temporary introductory rate used at loan origination in an ARM?
• Conforming loans are underwritten according to the guidelines of which two agencies?
• If positives total 12 and negatives total 3, and the comparable sale price is 120, what is the net adjustment?
• Under HERA, states are allowed to refinance subprime loans using what instrument?
• Which statement best describes the purpose of HMDA?
• The Bureau of Consumer Financial Protection will be under the direction of which entity?
• If the finance charge is $9,000 and the loan amount is $150,000, what is the total interest percentage?
• What does the Federal Trade Commission monitor?
• What is the minimum percent of dwelling value required by flood insurance?
• What is the amount of the individual penalty for ECOA violations?
• Conventional loans are not backed by _________.
• Which of the following methods of disclosure does NOT meet the Equal Credit Opportunity Act requirements?
• Which statement best describes the purpose of option money in the scenario?
• Which statement about CFPB creation is correct?
• The SAFE Act was created by which statute?
• Loans that do not require a Loan Estimate use which document instead?
• If an MLO is underwriting a HECM and the client moves into a retirement community before closing, what should the MLO do?
• Which factors are NOT included when calculating DTI ratios?
• Under Dodd-Frank, who is responsible for approving or denying mortgage license applications?
• Given a first loan of $150,000 and a lesser of sale price or appraised value of $450,000, what is the LTV?
• In HMDA reporting, LAR stands for which term?
• RHS in mortgage program terminology stands for which?
• Front-end DTI percentage example: PITI $1,500 and gross monthly income $5,000. What is the front-end DTI percentage?
• Which document itemizes all settlement costs including lender charges?
• Which definition describes packing in the context of mortgage lending?
• What are the 3 C's of Underwriting?
• The LAR acronym is used as a mnemonic; its three letters correspond to a retention period of how many years?
• For child support income to be counted for the payee, there must be continuity of this income for how long?
• Under the GLBA, which notice is provided to consumers who are not customers when the institution does not plan to share their nonpublic personal information?
• What is the penalty for violating TCPA?
• Which statement about a lock-in agreement is true?
• Which statement best describes a straw buyer as defined in the material?
• Class action penalties under TILA are capped at?
• Which item is NOT required to be maintained for 24 months?
• Which statement correctly differentiates jumbo loans from conforming loans?
• Terrorist screening is conducted through which program/office mentioned in the Patriot Act?
• HOEPA applies only to which type of property?
• Which is a stated purpose of the Dodd-Frank Act?
• Under the Equal Credit Opportunity Act (ECOA), how long must records be kept?
• FNMA/FHLMC ________ loans
• If a borrower chooses not to provide the Government Monitoring Information and the application was taken face-to-face, what must the MLO do?
• According to ECOA, how quickly must the appraisal be delivered to the borrower when they have waived the early disclosure and the loan is denied?
• Which item would you typically find on a debt report?
• GNMA stands for which entity?
• What was a major concern of the industry regulators when they authored the Interagency Guidance for nontraditional mortgages?
• What term describes a fraud scenario where a borrower commits fraud to purchase a home for personal use?
• With APOR of 4.25% on a $200,000 loan, which APR would trigger HOEPA?
• What regulation is associated with the Fair Credit Reporting Act (FCRA)?
• What does WVOE stand for in underwriting verifications?
• Which document is typically provided for ARM disclosures?
• For FHA loans greater than 90% LTV, how long does MIP stay on?
• What is the purpose of the Loan Estimate?
• Penalties for violating RESPA include which of the following?
• What is the maximum class action penalty for ECOA violations?
• The Income Approach is typically used for which property category?
• Which entity is primarily responsible for regulating consumer financial products and services in the United States?
• A borrower earns $15 per hour, works 40 hours per week, for 52 weeks per year. What is the gross monthly income?
• Which statement accurately describes the outcome of the 'No loan will be made without the determination of the borrower's ability to repay' provision?
• What does PFC stand for?
• APR disclosures may vary by how much for fixed-rate and ARMs respectively?
• What underwriting program(s) does FNMA use?
• Which statement correctly describes the two standard title insurance policies?
• What type of loan has a rate of 5% for 5 years, and a rate of 6% for the remaining 25 years?
• What is the qualifying HER and TOR ratio for conventional loans?
• PMI allows buyers to purchase with as little as 5% down because the PMI company is accepting some of the risk.
• Who oversees NMLS/R?
• What regulation implements the Truth in Lending Act?
• RESPS protects homeowners of which types of properties?
• The Dodd-Frank Act is overseen by whom?
• Definition of a business day for closings includes which condition?
• Who oversees ECOA?
• What is a finance charge?
• Which statement best defines Pre-Approval?
• What are the two types of mortgage insurance charged on an FHA loan?
• In the scenario, with a sale price of 160,000, earnest money 5,000, option money 2,000 credited at closing, and a 20% down payment, how much will be required toward the down payment at closing?
• HMDA data must be reported on the LAR and submitted by which date?
• Which of the following is a NMLS background/qualification requirement?
• Mortgage brokers _______ loans?
• SRR stands for?
• Title X refers to which act that established the framework for consumer financial protection?
• Notice of adverse action under ECOA must be provided within how many days?
• The requirement for private mortgage insurance is generally discontinued when the loan-to-value ratio reaches:
• AARMR stands for which organization?
• Acquisition cost is the total amount needed to purchase the property, including the down payment, loan amount, and any allowable buyer-paid closing costs. If down payment is $40,000, loan amount is $260,000, and buyer-paid closing costs are $8,000, what is the acquisition cost?
• What is meant by minimum investment in mortgage terms?
• A Subordination Agreement is best described as?
• What is the form used to authorize tax information?
• Under FNMA, which program is used by lenders?
• Which of the following is considered residential real estate?
• Can a VA loan be assumed by a borrower who is not a veteran?
• Under GLB, what must companies provide to customers regarding sharing personal information?
• Which HOEPA protection statement is incorrect?
• In a 5/1 ARM with a cap structure of 2/1/2, what is the maximum first-adjustment increase allowed?
• APOR, used in HOEPA determinations, stands for what?
• If a lender turns a fraudulent file over to law enforcement authorities, a mortgage broker who submitted it could be arrested, tried and convicted. For committing loan fraud against the lender, what is the maximum sentence the broker could face?
• The term Junior Lien is also known as which?
• Which loan type typically carries rescission rights?
• Which of the following describes FACTA's disposal safeguards?
• Under Reg Z advertising rules, if the APR can increase, what must be stated in the ad?
• For VA loans, what are the qualifying HER and TOR?
• Which formula yields daily interest according to the given rule?
• Which of the following best represents the role of the Consumer Financial Protection Bureau?
• Which scenario is most closely associated with foreclosure abuses?
• Who created the CFPB?
• How do you determine income for a borrower with non-taxed, fixed income for qualification purposes?
• Which statement accurately describes transactions with rescission rights?
• What is an Exculpatory Clause?
• For FHA loans at 90% LTV or lower, MIP stays on for how long?
• If a borrower has a front-end ratio of 28% and a back-end ratio of 36%, which loan type would most likely qualify?
• Under the Dodd-Frank appraisal independence rules, is there a restriction on paying 50% more than the customary charge to enter a new market?
• All of the following documents would show the Company name, MLO name and NMLS ID #, except?
• In the secondary mortgage market, what is the typical activity?
• For how long must a mortgage banking licensee maintain employee background checks after termination?
• What amount does flood insurance cover?
• Packing involves which of the following scenarios?
• Which of the following cannot be accepted as a form of down payment?
• Which of the following is not typically associated with a subprime loan?
• Do Not Call registry is effective indefinitely unless what happens?
• How long must HMDA records be kept?
• Which loans do not require a Loan Estimate?
• Which statement about FACTA is true?
• What is the VA funding fee for active duty borrowers?
• Which statement describes HECM disbursement options?
• Flood insurance is provided by which type of carriers?
• Bi-weekly pay of $1,200 results in what gross monthly income?
• Which flood zones require flood insurance?
• Under advertising rules, which item would most likely trigger additional disclosures when financing is mentioned?
• In a HECM loan, which item is the borrower required to pay?
• RESPA establishes rules for which area?
• What is a lock-in agreement?
• When was the SAFE Act created?
• Under the FHA, discrimination in residential real estate transactions is prohibited based on which characteristics?
• Which federal department oversees the Fair Housing Act?
• Which of the following is a characteristic of a balloon mortgage?
• Right of rescission does not apply to which type of property?
• Penalties for violating GLB can include which of the following?
• FHA stands for which government agency?
• Which entity purchases mortgage-backed securities from USDA, FHA, and VA loan programs?
• In the given scenario, earnest money is credited toward the down payment at closing.
• Which professional is primarily responsible for originating mortgage loans for compensation?
• FEMA stands for which agency?
• If a borrower claims tip income that is not fully reported on tax returns, what step should the MLO take when the income is supported by the tax return?
• To certify construction completion, what form must the appraiser complete under FHLMC?
• How long must records of loan estimate compliance be kept by brokers?
• ________ are non-conforming loans because they exceed the FNMA loan limit of $____________.
• The Dodd-Frank Act imposed requirements on which of the following?
• Under the 3/7/3 rule, what may be collected with the Loan Estimate within 3 business days?
• In the purchase scenario, what down payment percentage is required?
• How do you calculate the finance charge?
• If the premium was .94% on a $150,000 loan, what is the monthly cost of PMI?
• How do you calculate Front-end DTI/HER?
• How does child support and alimony affect the borrower's ability to obtain a loan?
• Which act created the Consumer Financial Protection Bureau (CFPB)?
• A creditor must notify an applicant of its intended action on an application within how many days after the application is received?
• Suspicious Activity Reports can be submitted to which agency?
• What does VOM stand for in underwriting verifications?
• The USA Patriot Act requires that information collected be kept for at least how many years after the account closes?
• Which statement best describes a goal of TCPA?
• Under the SAFE Act, which professionals must be certified?
• What act works in conjunction with HMDA to ensure that all customers have equal access to credit and banking by institutions?
• In HOEPA determinations, HOEPA uses the threshold where APR is how many percentage points over APOR?
• The Lenders Title Insurance Policy has which characteristic?
• You may refer to the borrower as all of the following except?
• Which statement correctly describes how to determine the maximum mortgage amount?
• Which item is not one of the six data points that trigger a Loan Estimate?
• If the front-end and back-end calculations produce different maximum PITI values, which value should be used?
• What is the most common way income is falsified?
• How do you calculate monthly MIP in the example provided?
• Which statement correctly defines a non-traditional loan according to the material?
• Express 25 basis points as a percentage.
• Definition of a Business Day for disclosures and closings.
• What measure did the Dodd-Frank Act enact to eliminate predatory loan originator compensation practices?
• Which regulation governs HMDA?
• HOEPA is codified as Section 32 of which act?
• What must a lender file once the borrower pays off a loan?
• The SAFE Act licensing requirements apply to which groups?
• Some factors private mortgage insurance companies consider when they set their rates and coverage parameters include all of the following except:
• What law was amended to adopt the provisions for loan originator compensation?
• Where on the mortgage application does an MLO collect the Government Monitoring Information required by HMDA?
• What will be the interest rate on the first adjustment for a 5/1 ARM with an initial rate of 3.25%, a cap structure of 2/1/2, given an index of 3.0% and a margin of 2.5% at adjustment time?
• Under ECOA, which statement is correct regarding protected classes?
• Under ECOA, a borrower can request a copy of the appraisal report used in the decision within how many days of a credit decision?
• What does the Demand Feature indicate in a loan agreement?
• Under the Equal Credit Opportunity Act (ECOA), how many years does a consumer have to file civil action against a creditor suspected of discrimination?
• What underwriting program(s) does FHLMC use?
• HMDA was created by which entity?
• Due on Sale
• When is the creditor required to provide the initial Loan Estimate disclosure?
• What are the four ways a loan application can be taken?
• A construction loan requires the payment of
• Which of the following are NOT APR impacting fees?
• What document verifies VA loan eligibility?
• The patterns, practices, or activities indicating the possibility of identity theft are called what?
• Which of the following lists are the six items that make an application and require a Loan Estimate?
• What is the maximum rescission period after closing?
• What does PFC stand for in lending terminology?
• Which statement accurately reflects the use of tip income documented on tax returns for loan qualification?
• Which term describes the rate stated on the loan note at origination?
• Subprime loans are typically associated with which risk characteristic?
• Which item is NOT typically a required part of the mortgage broker's book of records?
• Which of the following is a stated function of the USA Patriot Act?
• APOR stands for which concept?
• Under RESPA, what is the maximum monetary penalty that can be imposed for a violation?
• What are the four components of an ARM loan?
• What does TOR stand for in mortgage terminology?
• What does the Truth in Lending Act require creditors to disclose?
• What is the minimum term allowed on a balloon loan?
• What does CFPB stand for?
• When can rescission rights be waved?
• Which of the following is a pay structure change introduced by the Dodd-Frank Act for MLOs?
• CLTV example: First loan $100,000, second loan $50,000, appraised value $170,000. What is the CLTV?
• Which statement about TILA-required广告 disclosures is most accurate?
• Under the CSBS Guidance on Subprime Mortgage Loans, which of the following is NOT considered a predatory lending practice?
• The term "Red Flags" refers to patterns suggesting which risk?
• Which feature is a right of the Truth in Lending Act?
• Under ECOA, when a consumer reporting agency inquires about a joint account of a borrower and their spouse, what information may be collected?
• A discount point is BEST described as a charge the borrower pays to:
• Which of the following best describes the practice of purchasing a property then selling it very quickly for a higher price using an inflated appraisal?
• What Act is the TILA a part of?
• Who oversees TCPA?
• What does the index represent in adjustable-rate mortgage pricing?
• Which describes a primary function of the FCRA?
• In the rental income calculation, what percentage of gross rental income is used before subtracting the mortgage payment?
• Which statement best expresses why net adjustments are divided by the sale price of the comparable?
• A loan that encumbers multiple properties is called a ______ loan.
• In the Sales Comparison Approach, how many comparables are usually used and within what distance?
• Who created NMLS/R?
• An applicant is paid weekly at $900. What is the gross monthly income?
• Selling a home without the borrower being given the opportunity to cure a default is an example of which of the following?
• Which items are collected in the assets and liabilities section?
• The main purpose of the FTC Disposal Rule is to regulate which of the following?
• What is the 'know before you owe' rule?
• How do you calculate back-end DTI/TOR?
• How do you calculate the total interest percentage?
• In an advertisement stating '425 Monthly payments, 5% down, and 3.1% APR,' what piece of required information is missing?
• Which of the following is not exempt from mortgage licensing?
• Under HOEPA, which prepayment penalty would trigger high-cost status?
• What is the best way to describe a 2nd mortgage?
• Which payment option involves negative amortization on a pay option loan?
• What is another term for Permanent Financing?
• Which other federal law has similar advertising rules relating to advertising other than MAAPS?
• What does a Defeasance Clause allow when a borrower defaults?
• If the sale price is $200,000, the down payment remains 20%, and earnest money is $5,000 with option money $2,000 credited at closing, what is the down payment due at closing?
• Who oversees HMDA enforcement?
• Which statement best describes the role of the interest rate cap structure in an ARM loan?
• True or false: Age is a protected class under ECOA.
• To compute CLTV, you divide (1st loan + 2nd loan) by the lesser of sale price or appraised value. If 1st loan is $100,000 and 2nd loan is $50,000, and the lesser of sale price or appraised value is $150,000, what is the CLTV?
• The annual continuing education requirements include which categories?
• Which term describes the act of transferring the secured property back to the lender while keeping the loan?
• Which statement describes a table-funded loan closing?
• Steering is best described as which practice?
• Penalties for violating TILA may include?
• Higher-Priced Mortgage Loans must have an Escrow account except when?
• An air loan describes a loan on which of the following?
• FACTA requires borrowers to be informed how many days prior to posting negative information to their credit report?
• Who has the authority to fine violators of NMLS/R?
• What is another name for back end ratio/DTI?
• For RESPA-purchase and refi transactions, within how many business days must the Loan Estimate be provided to the borrower?
• What agency was created by the Housing and Economic Recovery Act (HERA)?
• Which act regulates and oversees the SAFE Act?
• Financial institutions should not report certain loan data. Which of the following is not on the excluded data list for financial institutions reporting?
• How do you calculate gross adjustments on an appraisal?
• RESPA eliminates kickbacks and referral fees under which section?
• RESPA stands for which act?
• Which description best captures the meaning of 'Credit terms for the transaction' under TILA disclosures?
• HMDA stands for which act?
• NMLS/R stands for?
• In the context of Dodd-Frank, which phrase best describes the restriction on compensation sources for originators?
• Regularly extends credit is defined as doing more than how many mortgage loans per year?
• Which of the following is true regarding private mortgage insurance (PMI) and loan-to-value ratios?
• What does a title search primarily do in the mortgage process?
• Which statement best describes title insurance protection?
• What is the maximum VA loan origination fee?
• What is the minimum number of years of employment and residence history needed on a 1003 form?
• Which disclosures are required for variable or adjustable rate loans?
• How long must RESPA records be kept?
• Which option would best help an appraiser determine a home value?
• What is interim financing?
• Chapter 7 bankruptcy stays on a credit report for how long?
• Which statement about subprime loans is most accurate in terms of documentation?
• Under TCPA, how long must records be kept?
• What is the maximum seller concession allowed on a conventional loan?
• Which regulation governs RESPA?
• Which statement best describes conforming loans?
• How do you calculate rental income?
• Which rate is calculated as the index rate prevailing at origination plus the margin?
• How long does MIP stay on an FHA loan when the borrower puts 10% down at purchase?
• When was the Dodd-Frank Act passed?
• GLB stands for which Act?
• Which fees are allowed to change by up to 10% on appraisals?
• The practice of sneaking a burdensome provision into the loan contract without the borrower's knowledge is known as what?
• What is the transfer period window in which no late fees can be charged to a borrower who pays to the original servicer before the due date?
• What is the USDA loan guarantee fee, and can it be financed into the loan?
• What are the three types of credit reports?
• After the specified escrow period, cancellation is allowed if the loan-to-value is under what percent?
• If the sale price is $180,000, with 20% down, earnest money $4,000, option money $3,000 credited, what is the down payment due at closing?
• If advertising a mortgage loan with a 6.99% APR under the TILA, what other information must be disclosed in the advertisement?
• TILA is an acronym used in mortgage regulation. What does it stand for?
• Which of the following best describes a conventional mortgage?
• When can an item on a credit report be excluded from DTI?
• POC, in closing costs terminology, stands for what?
• When an MLO starts an application and leaves employment, and the lender reassigns the loan to a new MLO, what should the new MLO do?
• Under the GLB Act, an individual who obtains a financial product or service from a financial institution is a what?
• What is the maximum amount of insurance an originator can require a borrower to obtain on his/her home?
• Which option is NOT a valid disbursement option for a HECM?
• When the initial loan amount is multiplied by the note rate, the result is known as the _______?
• Which of the following best describes a "Straw Buyer"?
• SAR stands for which of the following?
• What is the purpose of appraisals in lending decisions?
• What type of Loan has the features low LTV cash out, no payment for 6-12 months, accumulates interest and allows you to purchase another home?
• Under TCPA, what are the lender-specific exceptions for calling?
• Which up-front disclosures are created under the TRID framework according to the know before you owe rule?
• To calculate net adjustments on an appraisal, which sequence is correct?
• Which of the following is not part of the book of records a mortgage broker must retain and make available for evaluation?
• The CFPB regulates which of the following acts?
• What does URAR stand for?
• When a lender regularly extends credit, what is the threshold that defines this behavior?
• According to the Truth-in-Lending Act (TILA), which of the following fees is EXCLUDED from the calculation of the annual percentage rate?
• Can lenders charge fees or preparing documents that are required by law?
• If an unethical mortgage loan originator has a borrower sign a blank loan application, he is possibly trying to pull what scam?
• A tri-merged credit report provides what?
• TRID integrates which two upfront disclosures?
• Who oversees the Truth in Lending Act's disclosures?
• Which type of loan has a non-refundable funding fee?
• FHA _______ loans
• A characteristic of a HECM loan is that there is no required repayment until the borrower dies.
• The back-end ratio includes which components in its numerator?
• For USDA loans, what are the qualifying HER and TOR ratios?
• OFAC stands for?
• To calculate the Annual Interest Charge, multiply which two quantities?
• What does TILA require mortgage originators to disclose to the borrower?
• VA and USDA ______ loans
• Are VA loans available with 100% financing and no minimum borrower investment?
• Which option best reflects MAAPS-advertising compliance monitoring?
• Which are the three repositories used by credit reporting agencies to assemble credit reports?
• Which of the following would not best describe a risk associated with a non-traditional mortgage loan?
• Under FNMA, which program is used by brokers?
• Which scenario best describes the scope of TILA compliance?
• Using the LTV formula, LTV equals 1st loan amount divided by the lesser of the sale price or appraised value. If the first loan is $180,000, the sale price is $210,000, and the appraised value is $190,000, what is the LTV?
• How long must the Loan Estimate be valid for charges disclosed?
• Under the SAFE Act, which authority is NOT granted to a state?
• Under the 3/7/3 rule, when a 'qualified change of circumstances' occurs, lenders may issue another form but must wait how many days to close?
• Which statement about flood certification is true?
• Under FHA, which entity is the largest insurer of mortgage loans?
• Under GLB, what is the Safeguard Rule primarily requiring?
• What does subprime refer to?
• Which term describes a second loan used to cover part of the down payment, resulting in a total loan amount exceeding 100% of the home price?