NMLS Study Guide 3

  1. Based on 2013 updates to Mortgage Servicing Rules, mortgage servicers are required to establish or make good faith effort to contact borrowers by Day ___ of their delinquency on a loan to inform them of available options to avoid foreclosure.
  2. Regulation C implements
    Home Mortgage Disclosure Act.
  3. Which law requires a loan servicer to notify a borrower before the servicing of that loan is transferred to someone else?
  4. Regulations under Dodd-Frank amendment to subsection (c) of TILA prohibit mortgage loan originators from steering any consumer to a residential mortgage loan that
    the consumer lacks a reasonable ability to repay.
  5. Under the FCRA, consumers do NOT have the right to
    require bankruptcies be removed from their credit report after five years, if credit has been reestablished.
  6. Which federal legislation allows a borrower three business days to reconsider an owner-occupied refinance transaction?
  7. What type of loan requires reporting under the Home Mortgage Disclosure Act?
    home equity lines of credit
  8. The TILA/RESPA rule does not apply to persons that make _____or fewer mortgages a year.
    • 5
    • persons who are not considered "creditors"
  9. Lisa is applying for a loan to purchase a home. Under the terms of Reg Z, how long will Lisa have to rescind the loan after she signs off on it?
    0 - Regulation Z does not require a rescission period for a typical purchase loan.
  10. The Mortgage Disclosure Improvement Act (MDIA) amends which federal Act?
    Regulation Z -Truth in Lending Act (TILA)
  11. Which institution pools the majority of monies deposited for the purpose of making residential mortgage loans?
    savings & loans
  12. Market price is
    the amount, in dollars, actually paid for the property.
  13. Loans that do NOT meet Fannie Mae/Freddie Mac guidelines and cannot be sold to them are called
  14. The term that is used to describe the event that happens at the expiration of the three business-day right of rescission in a refinance transaction is
  15. For which transaction on a single family property would the Closing Disclosure NOT be required?
    cash sale
  16. Section 32 of Regulation Z addresses
    high-cost loans.
  17. Which mortgage clause prevents someone from assuming a loan?
    alienation clause
  18. What program has an upfront mortgage insurance premium?
  19. In order to complete an appraisal for a construction loan, what specific information does the appraiser need from the builder?
    plans and specs of the project
  20. What is the maximum seller concession for an FHA loan?
  21. Of these, which could be considered an acceptable basis for determining a borrower's ability to repay?
    credit history
  22. Most appraisals are performed
    as is
  23. There is a _____ waiting period once the initial Mortgage Disclosure Improvement Act (MDIA) is provided to the borrower before closing a home loan.
    7 business day
  24. Which of the following is true regarding adjustable rate mortgages under the Ability to Repay rules?
    Lenders must use the higher of either the fully indexed rate or introductory rate.
  25. A Home Ownership and Equity Protection Act (HOEPA) loan is triggered when the total points and fees paid by the consumer exceed the larger of $______, for 2014, or 8% of the loan amount. (These figures are adjusted annually).
    • $1000
    • For loans less than $20,000, points and fees cannot exceed the lesser of 8% or $1,000. For $20,000 or more, points and fees cannot exceed 5% of the loan. These two costs are known as HOEPA "triggering terms."
  26. Larry's current credit score would not qualify him for a conforming loan, but he is eager to purchase a house. Which lender practice would be the most likely indication of predatory lending?
    bundling other products into the mortgage
  27. What federal legislation prohibits the exchange of information between consumer creditors under certain criteria?
    Gramm-Leach-Bliley Act
  28. Bill is attempting to get licensed in Texas, which has adopted UST. He has already taken and passed the retired National Test Component, but never passed the Texas State Test Component, having failed three times prior to April 1, 2014. What are his requirements after April 1, 2014?
    Bill must take and pass the National Test with Uniform State Content.
  29. A Latina applies to a mortgage company for a home loan. She is refused based on her race. This is an example of what illegal practice?
  30. Within ___ days after receipt of a loan application, a mortgage broker must fully disclose to the borrower total compensation that the broker would receive from any loan options that the lender or mortgage broker presents to the borrower.
Card Set
NMLS Study Guide 3