NMLS
Latest uploads at NMLS. Looking for notes at NMLS? We have lots of notes, study guides and study notes available for your school.
-
1098
- 0
-
74
All courses for NMLS
Latest notes & summaries NMLS
Primary goals of TILA - correct answer Protect consumers by disclosing the costs and terms of 
credit 
Create uniform standards for stating the cost of credit, thereby encouraging consumers to 
compare the costs of loans offered by different creditors 
Ensure that advertising for credit is truthful and not misleading 
Provide borrowers with the right to rescind certain types of mortgage transactions 
TILA's four conditions of credit - correct answer The credit is offered to consumers 
The offer...
CFPB - ANSWER-Consumer Financial Protection Bureau: Part of the Dodd-Frank Act passed in 
2010. It is focused on one goal: watching out for American consumers in the market for 
consumer financial products and services. This includes ensuring that consumers get the 
information they need to make the financial decisions they believe are best for themselves and 
their families by making sure prices are clear upfront, risks are visible, and that nothing is 
concealed in fine print. 
Responsibilitie...
RESPA - ANSWER-Real Estate Settlement Procedures Act; Allows borrowers to receive 
pertinent and timely disclosure regarding the nature and costs of the real estate settlement 
(closing) process; Enacted in 1974, the law was originally proposed to add more transparency to 
costs associated with certain real estate transactions and to eliminate abusive practices, such as 
kickbacks, which artificially increase the cost of settlement services. 
When RESPA must be obeyed - ANSWER-When a loan is a f...
Acceleration Clause correct answers Allows lenders to demand payment in full if the borrower 
defaults on the loan (can be construed as predatory lending) 
Alienation Clause (Due on Sale Clause) correct answers Says you must repay your mortgage if 
you sell your home to a new owner (loan is not assumable) 
Appraiser Independance Requirements replaced HVCC correct answers home valuation code of 
conduct
What must a borrower do to avoid having late payments reported to a credit bureau? correct 
answers Pay within 30 days of due date 
Max penalty if a borrower is required to use a specific title company or settlement agent? correct 
answers 3 times the fee 
What should not be over-weighted in an analysis of borrower repayment capacity? correct 
answers Credit score
The Mortgage Lending Industry - ANSWER-Segment 1 
Which one of the following is NOT an alternative term used to refer to a savings and loan 
institution? 
-Mutual savings bank 
-Thrift institution 
-Mortgage banker 
-Savings and loan association - ANSWER-Mortgage banker 
A non-institutional lender would be: 
-a seller of collateralized mortgage obligations 
-a seller offering a purchase money mortgage to a buyer 
-an insurance company 
-a mutual savings bank - ANSWER-a seller offering a purchase...
Payments for qualified mortgages must be based on - Answer the maximum interest rate that 
will apply during the first five years after the date of the first payment. 
Which of the following fees is not included in the calculation of the finance charge for a 
mortgage? - Answer fees charged by an unaffiliated appraiser. Finance charges always 
include fees charged by the creditor, charges by an affiliate of the creditor, and fees charged 
by a third-party provider required by the creditor. Fees ...
Fraud for money Laundering - answer-Criminal uses scheme known as value tampering 
-Criminal offers to buy house at reduced rate 
-Seller must sell at appraised value on paper, but after closing, seller give the criminal the 
difference in cash. 
Adverse Action - answerAn unfavorable credit decision rendered against a consumer made on 
the basis of information contained on the credit application. If a lender takes adverse 
action against an applicant, the lender must notify the applicant in writ...
Federal banking agencies" include: 
Answers 
A. The Director of the Office of Thrift Supervision, the Board of Governors of the Federal 
Reserve System, and FDIC 
B. Fannie Mae and Freddie Mac 
C. The Comptroller of the Currency and the National Credit Union Administration 
D. A and C correct answers D.
NMLS Safe Test Mortgage Licensing 
Practice Exam Questions With Verified 
Answers 
Which federal law requires that the Loan Estimate be provided to the borrower within three 
business days of the time of loan application is taken? - answerTILA 
What type of scam entails homeowners who are encouraged to refinance their property over and 
over until little or no equity remains? - answerLoan flipping or churning 
After a loan closing, funds are disbursed. When are the funds disbursed for an owner-o...