NMLS Study Guide

Does the Fair Credit Reporting Act entitle customers to a free copy of their credit scores?

Which law was enacted to eliminate requiring the use of certain third-party settlement providers as a condition of getting a loan?

A HOEPA loan may not have

Which household does NOT qualify as a protected class under the familial status clause of the Fair Housing Act?

Which was the first major legislation to directly affect equal rights to ownership of real property?

During the application process, a mortgage loan originator asks if the borrower is widowed; the MLO is violating which law?

Alice has some credit issues and really needs a place to live. She has three dogs so she has to buy a home. Alice's friend, Jim has a debt ratio and credit that permit him to qualify for a home loan though he has no plans to move. Alice offers to give Jim the down payment for the home and she will move in and make the payments. What is this considered?

A loan originator who provides false information on a loan application regarding a borrower's receipt of disability income is

The Privacy Rule requires that financial institutions provide the consumer with a Consumer Privacy Policy

Are third party processing companies required to be licensed?

The Financial Services Modernization Act of 1999 is more commonly known as the

Which industry insider would be the one most likely to falsify a deed?

TILA requires creditors to maintain records that they complied with the disclosure requirements for how many years?

Hoepa amends what law?

On the loan estimate form, you are required to include how many pieces of information in the disclosure?

how long can you call a customer if they're not on the do not call list?

Borrower Finn wants to refinance his loan. What might his MLO use to determine who is servicing Finn's current loan?

What document would be required in order for a person to relinquish all interest and future rights to property that is jointly owned by him/her and a person other than his or her spouse?

What does the Federal Housing Administration (FHA) do?

Which is the type of loan where a seller may finance all or part of the sale of property for the buyer?

Funds for FHA loans are provided by

What is the legal clause that gives the lender certain stated rights when there is a transfer of ownership in the property?

What is the accurate term for money held on deposit (commonly known as good faith money) in a real estate purchase?

The Federal National Mortgage Association (Fannie Mae) is designed to

Dave got a mortgage loan where he pays only interest for the first 5 years, then begins paying both interest and principal for the next 25 years. This arrangement could best be referred to as a(n)

Which type of entity originates mortgages using a line of credit, WITHOUT any depositors' funds, and services the loans until a pool of loans can be sold?

When does a loan originator's obligation end in a construction loan?

An easement is

Which form documents the commission paid to a real estate broker?

According to the new FHA rules effective June 2013, mortgage insurance must be paid for at least how many years prior to cancellation?

An objective of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is to

The loan estimate and closing disclosure must be used for most _____________mortgages?

Which federal legislation requires that the lender perform an annual audit of the escrow account balance?

When is an application "taken"

RESPA requires disclosing?

RESPA does NOT require the lender to disclose

Mary, a single mother, applies for a first mortgage. What is NOT necessary to comply with Ability to Repay rules?

Which is derived from average interest rates, points, and other loan pricing terms offered to consumers by a representative sample of creditors engaged in mortgage transactions that have low risk?

Walter has been assigned the task of developing an identity theft prevention program for the owner of a new mortgage brokerage company. Compliance with which of the following requires the development and implementation of an identity theft program?

If you use this calculation while evaluating income, "PITI divided by Gross Monthly Income," you have just determined what?

In January 2013, mortgage servicing rules were instituted by the CFPB to provide additional consumer protections related to

Who manages the National Do Not Call Registry?

When a mortgage broker accepts any third party fee from a borrower, the funds must immediately be placed in a/an

A nontraditional loan is defined by the SAFE Act as

Commissions of real estate brokers or agents would be listed:

Bob meets with a loan originator at XYZ Mortgage Company to inquire about loan options. His name is on the National Do Not Call Registry. XYZ

Which fee is NOT permitted to be included in a high cost loan?

George is starting his own business in this state. Previously, George was a director, employed by a mortgage lending company in another state whose principal's lending license was revoked for violations associated with making improper disclosures and misleading statements to borrowers. George was not personally convicted. Will George likely be granted a mortgage loan originator license in this state?

A licensed mortgage loan originator may be

What is the LEAST acceptable factor in evaluating a mortgage loan application?

According to the 2013 amendment to TILA related to loan originator compensation requirements, a loan originator must retain records sufficient to evidence all compensation it pays to a loan originator for ____ years after the date of payment.

A recorded deed or recorded note and mortgage are considered to be a(n)

Which statement describes the appraisal cost approach?

Gross living area includes a(n)

PITI divided by income. What have you just determined?

In a refinance transaction of a conventional loan that has a rate reduction, what time of month has the most savings for the borrower, considering per diem interest?

Which of the following types of income will NOT require additional information, such as likelihood that it will continue, to determine if the income can be used to qualify the borrower?

What is the name of a common USDA loan program?

One of the most critical points of the Federal Reserve Loan Originator Compensation Rule is the prohibition of the practice of

A Direct Endorser is a lender who is authorized to underwrite what type of loan applications?

Rate locks for construction loans must be

Which two types of loan programs are considered traditional government agency-backed products?

The fact that a borrower's income will require verification explains what is meant by the underwriting concept of

Which activity is considered a significant stabilizing influence of the secondary mortgage market

One of the purposes of the Qualified Mortgage (QM) definition is to

A Registered mortgage loan originator refers to

A Mortgage lender is any person who

After investigating a charge of fraud against loan originator Mark, the state regulatory authority permanently withdraws his license. What is this known as?

The SAFE Act made it the responsibility of states to use unique identifiers instead of

Title VIII of the Civil Rights Act is commonly called the

The Fair Housing Act requires what to be posted in all institutions where mortgage loans are made?

Rob cuts and pastes the borrower's signature into the form and scans it to his email. What type of fraud is this?

Which is NOT a part of the Gramm-Leach-Bliley Act? What is?

Which rule allows consumers to opt out of having their private information shared?

An occupancy certificate means the

According to 2013 updates related to the qualified mortgage definition, what is the maximum percentage (%) limit on the total obligation debt-to-income (DTI) ratio for a qualified mortgage?

The interest rate stated on the financing instrument is the

There is a _____ waiting period once the initial Mortgage Disclosure Improvement Act (MDIA) is provided to the borrower before closing a home loan.

When qualifying for a residential mortgage loan, an applicant's debts are likely to be measured as a

are discount points paid on loan amount or sales price?

A credit account where the borrower places a certain amount of money on deposit with a credit card issuer is known as

Which information is NOT required to be included on the Closing Disclosure?

The acquisition cost of a property is $220,000 (sale price is $215,000 and the closing costs are $5,000) and the loan amount is $200,000. The seller is paying $2,000 of the closing costs. What is the total amount the borrower will need to bring to closing if the earnest money is $1,000 and is being credited on the Closing Disclosure at closing?

A verification of deposit verifies what?

The Fair Housing Act requires a lender to use what term in any advertisement broadcast over the airwaves?

The requirement that a borrower will have to pay a prepayment penalty must be disclosed under what federal legislation?

Under the SAFE Act, each state has the authority to

According to the Truth in Lending Act, which of these would be EXCLUDED from the finance charge?

What is the maximum length of time that collection information can be reported on a credit report according to the Fair Credit Reporting Act?

A borrower elects to lower his settlement costs by paying a slightly higher interest rate. This appears on the Loan Estimate as a

On the Loan Estimate, charges for loan origination services are

A telemarketer can be fined how much for calling someone registered on the National Do Not Call Registry?