NMLS MLO TEST-with 100% verified solutions-2024-2025.docx, Exams of Advanced Education

Download NMLS MLO TEST-with 100% verified solutions-2024-2025.docx and more Exams Advanced Education in PDF only on Docsity! NMLS MLO TEST-with 100% verified solutions-2024-2025 362 Q&A Regulation Z Which law ensures lenders use an annual percentage rate (APR) so that the borrowers have the information they need to make informed comparisons? Regulation Z Which law ensures that some borrowers have the right of rescission for three business days after a loan contract is signed? Home Mortgage Disclosure Act While it is unlawful to consider race when underwriting a loan, what federal legislation requires that this information be included on the loan application? Federal Reserve Board Who does NOT share responsibility for enforcing the provisions of the National Do Not Call Registry? Yes, gross up all non-taxable income if it is verified and likely to continue for three years. Your applicant receives child support for her seven-year-old son. Can you gross up the child support payments she receives? the loan is temporary or a bridge loan for 12 months or less The Homeownership Equity Protection Act does not require a lender to verify a borrower's ability to repay the loan if the higher-priced loan. A loan on a borrower's primary dwelling where the APR exceeds at least 1.5% of the applicable average prime offer rate for a first lien loan is known as a Purchase Loan Each of these loans would be excluded under the definition of a higher-priced loan EXCEPT Credit report fee Which fee can be collected prior to delivery of a Loan Estimate and Closing Disclosure? before disclosing information to non-affiliated third parties. The Privacy Rule of the Gramm-Leach-Bliley Act requires financial institutions to provide the borrower with a Consumer Privacy policy Dodd-Frank Act Which federal act created the Consumer Financial Protection Bureau? RESPA (Real Estate Settlement Procedures Act) The Consumer Financial Protection Bureau on October 3, 2015, implemented the newly combined disclosure that meets the disclosure requirements of TILA and __________. 00:0201:47 Safeguards Rule Which rule requires all financial institutions to design, implement, and maintain safeguards to protect customer information while it is in the custody and control of the institution and its agents? will remain in place throughout the life of the loan if the beginning loan balance is higher than 90% of its appraised value. FHA's Annual Mortgage Insurance Premium (MIP) interest-only loan offerings. The Dodd-Frank Act definition of a qualified mortgage includes all of these features except MARS Rule Which rule prohibits mortgage relief companies from collecting any advance fees until they have provided consumers with a written offer from their lender or servicer that the consumer decides is acceptable? Financial Privacy Rule Which rule allows consumers to opt out of having their private information shared? MARS Rule The rule that bans providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they decide is acceptable is the temporary transaction Which financial arrangement is EXEMPT from the Real Estate Settlement Procedures Act? Consumer Financial Protection Bureau Which government agency monitors compliance with the ECOA? Regulation V Which federal regulation limits the length of time that adverse collection information may appear in a consumer's credit report? income not expected to continue What source of income can always be excluded when qualifying a borrower for a mortgage loan? Home Ownership and Equity Protection Act (HOEPA) Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high- cost" mortgages? Equal Credit Opportunity Act Which act requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application? ECOA (Equal Credit Opportunity Act) Which federal law is NOT primarily intended to address issues of privacy and identity protection relating to credit? size of loan Which factor is NOT considered when determining "average charge" calculations for settlement services? Home Mortgage Disclosure Act The portion of the ARM that cannot change and is used to compute the interest rate on a variable rate mortgage is known as the Which is NOT a purpose of an alienation clause? protect borrowers from being charged excessive interest rates by lenders Note Rate The rate that is used to amortize the mortgage loan and determine the monthly loan payments is known as the eminent domain The right of the government to acquire private property for public use by condemnation and just compensation is chain of title. The succession of conveyances of the title to real property is known as the Float The act of allowing an interest rate and discount points to fluctuate with changes in the market is known as Location Survey The type of survey done to show encroachments is the Draws Partial payments for progress to the builder are called 3% of the loan value What is the maximum allowable amount of points and fees on a Qualified Mortgage transaction for a loan amount greater than $150,000? Closing Disclosure RESPA requires that all real estate broker and mortgage broker compensation be disclosed in what document? TILA Section 32, which governs high cost/high interest loans, is implemented by which federal legislation? Three The record retention requirement outlined by LE is how many years? Housing and Economic Recovery Act of 2008 The SAFE Act is part of the SAFE Act Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the Late fee of 4% Which of the following fees is not prohibited to be included in the criteria of a loan meeting the requirements of Section 32 and/or Section 35 of the Truth-In-Lending Act? An APR which is 5.5% greater than the APOR for a nonconforming loan Which of these is not a trigger for a High-Cost loan? APR +2.5% > APOR for a secondary lien Which of these is not a trigger for a Higher-Priced Mortgage Loan? Temporary bridge loan. HOEPA does not apply to which of the following transactions? Home Mortgage Disclosure Act On Form 1003, Section X: Information for Government Monitoring Purposes is used in order to comply with which federal law? FACT Act Red Flag Rules are part of what federal law? ECOA (Equal Credit Opportunity Act) Regulation B is also known as Fair Credit Reporting Act (FCRA) Regulation V is also known as the personal real estate credit transactions. Regulation Z applies to all Bankruptcy Seven years is the maximum length of time information can be reported on a credit report according to the Fair Credit Reporting Act, EXCEPT for 30 The duty to investigate a consumer dispute falls to the information furnishers. According to the FCRA, how many days do they usually have to respond to the consumer from the receipt of notice of a dispute? Mortgage insurance Which of these is not a requirement for a loan subject to the terms and provisions of Section 32 of HOEPA? Mandatory Escrow Account Which of these is not a prohibited loan term for a high-cost loan? $25,000 per violation What is the maximum civil penalty which can be assessed by the CFPB or appropriate civil regulatory agency under the SAFE Act? Pleading "nolo contendere" to petty theft. Which of the following would prevent someone from obtaining their registration as an MLO working for a qualified depository institution? 10 business days For how many days must the settlement charges detailed in a Loan Estimate be available? once a year How often must a lender perform an escrow account analysis to ensure that excess funds are NOT being kept? three business days including Saturday, and excluding Sunday and holidays. Karen is refinancing her house. The length of the rescission period for this mortgage loan is after 18 months Laura's name is on the National Do Not Call Registry. At what point after she closes a loan with ABC Mortgage must ABC stop contacting her to solicit new business? 5 years The final rule on high cost mortgage loans (as defined under HOEPA regulations) requires an originating lender to establish and maintain an escrow (impound) account for property taxes and insurance for a minimum of ___ years. 30 If an event related to the settlement occurs during the _________calendar-day period after consummation that causes the closing disclosure to become inaccurate and results in a change to an amount paid by the consumer from what was previously disclosed. Date the form is delivered to the consumer On the closing disclosure form, the date issued is the: Services borrower did not shop for When a consumer chooses a provider that was on the Written List of Providers for a service, that service is listed as: Regulation Z. HOEPA is an addendum of Loan Estimate (LE) Which disclosure does TRID require the lender provide to the borrower at the time of application? guides borrowers through the home-buying process. The Home Loan Toolkit initial monthly payment owed Which includes the combined charges of principal, interest, and mortgage insurance? Loan Originator Compensation Rule Which rule prohibits compensation based on loan terms or conditions such as interest rate, annual percentage rate (APR), loan-to-value (LTV)? Foreclosure Mortgage servicing rules instituted by the CFPB provide additional consumer protections related to 30 A lender has how many business days to notify the borrower of an underwriting decision? Loan/Application Register According to HMDA, what must be forwarded to the regulator by March 1 of each year? at or prior to the time a referral is made, if there is an AfBA. According to RESPA, an Affiliated Business Arrangement (AfBA) disclosure must be provided a woman who changes her name after a divorce According to the FACT Act, which situation would NOT be a reason for a consumer to add an ID alert to a credit report? must be registered. According to the SAFE Act, a mortgage loan originator employed by a federally insured depository institution give full disclosure to the client at, or prior to, the time the referral is made. Adrian, a mortgage broker, referred her client to A&A Title, a company that both she and her husband Andy own. According to RESPA, Adrian must RESPA A Mortgage Servicing Disclosure Statement is required by what law? consistent with RESPA and could therefore be enforced by the state. A state law that requires payment of interest on an escrow account is $80,000 ABC Mortgage Company has been accused of inappropriately calling two consumers on the National Do No Call Registry. What is the total maximum fine ABC could incur for this? 3.5% In order for a junior mortgage on a primary residence to be considered a higher- priced loan, the APR must exceed the applicable average prime offer rate by at least a purchase loan. Each of these loans would be excluded under the definition of a higher-priced loan EXCEPT Secure and Fair Enforcement Mortgage Licensing Act Which act provides a specific definition of a nontraditional loan?