NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
1. How long should you keep 25 months
mortgage loan records under
ECOA?
2. How long is the Do Not Call When the number is disconnected, reas-
Registry good? signed, or when the consumer chooses to
remove it
3. How many months cushion are 2 months cushion
allowed under the escrow ac-
count rules?
4. When are escrow accounts re- Renewed annually and if the account has
viewed and what amount of more than $50 in overage it will be refund-
overage could cause a refund ed
to the borrower?
5. What properties are covered Single, 1-4 family dwellings, condos, and
under RESPA? manufactured homes placed on a lot
6. RESPA imposes restriction on Amount collected for escrow accounts
___________?
7. When advertising, the APR A rate is quoted or present
must be present when
__________?
8. RESPA was put in place to? Limit amounts in escrow, eliminate kick-
backs , and educate the borrowers on the
closing cost, it does NOT regulate interest
rates
9. According to RESPA guide- $10,000 and/or 1 year prison terms for
lines, failure to comply with each incident
Section 8 could result in a
penalty of?
10. Redlining is best defined as: Failing to end to certain geographic areas
, NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
11. Who created and monitors a Federal Trade Commission (FTC Red
companies Red Flag Rules? Flag Rules)
12. At what point in a conventional When the principal balance reaches 78%
will the PMI be removed? of the original value or purchase price
13. When does a referring party Before or at the time of the referral
have to provide the ABA form to
the borrower?
14. Advertising a mortgage loan TILA/reg Z
product that a lender is not able
to offer is a violation of what
federal law?
15. What is the Act that requires a Gramm-Leach Bliley Act
financial entity to provide cus-
tomers with a privacy notice, as
well as an "opt out notice", re-
garding the customer's person-
al information?
16. Under the GLB Act, nonpublic TRUE
information can only be shared
with affiliates of the financial in-
stitution or affiliates of related
third parties, even if the cus-
tomer does not opt out. (T/F)
17. What information must be pro- An Affiliated Business Disclosure State-
vided to the borrower when re- ment as mandated by RESPA
ferrals take place between affil-
iated businesses?
18. What is the primary purpose of Notice of right to financial privacy and
the Gramm-Leach Bliley Act? right to opt out of sharing personal infor-
mation
, NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
19. Along with the Fair and Ac- GLB Act's Safeguards rule
curate Credit Transactions Act
Disposal Rule, what GLB Act
provision ensures that cus-
tomer's information is not han-
dled or maintained carelessly
and is disposed of properly?
20. What is the difference between GLB Act's Safeguards Rule requires all
the GLB Act Safeguards Rule companies to design, implement, and
and the FACT Act Disposal maintain safeguards to protect customer
Rule? information from theft... FACT Act requires
businesses to take appropriate measures
to safeguard from theft in the disposal of
consumer report
21. What is a "Federally Related Loans secured by a first or subordinate
Loan"? lien on a residential property that meets
stated RESPA criteria. The definition is so
broad it covers virtually every home loan
secured by a mortgage.
22. Most of HUD's enforcement ac- Prohibited against giving or receiving a
tions result due to section 8 of fee, kickback, or anything of value pur-
RESPA. What is addressed in suant to an agreement or understanding
Section 8? for the referral of settlement business
23. What is an affiliated business An arrangement in which one person
arrangement? refers applicants to a settlement service
provider with whom the referring person
has an ownership interest of 1% or more
24. What customer protection does Protect consumers by ensuring borrowers
Section 10 of RESPA provide? know the amount they are to deposit into
escrow by preventing lenders from over-
charging borrowers for escrow deposits
25. Up to $10,000 and/or one year in prison
, NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
What are the consequences for
violating Section 8 of RESPA?
26. What is the primary aim of Reg- ECOA is intended to promote availability
ulation B? of credit to all creditworthy applicants and
prohibit discrimination
27. A copy of the Closing Disclo- 3 days prior to closing
sure must be provided to the
borrower how many days prior
to closing?
28. Under the ECOA, is it lawful It is unlawful not to accept an application
to turn down an applicant be- due to the type of income it is not however
cause part of his/her income unlawful to turn them down if the income
is derived from public assis- is not enough to qualify them for the re-
tance? payment
29. What is the letter of the regula- Regulation B (B for Borrower is protected)
tion by which the ECOA is also
referred?
30. To whom does the TIL Act ap- All businesses and individuals that regu-
ply? larly extend consumer credit that is pri-
marily for family or household purposes.
Regularly extend credit means more than
5 mortgages per year
31. What is the RESPA prohibition A lender or service provider marking up
on "mark ups" designed to pre- 3rd party costs for the purpose of retaining
vent? the additional funds
32. Under the ECOA, you must noti- 30 days from receipt of a loan application
fy an applicant of Notice of Ac-
tion Taken within what time pe-
riod?
33. ALWAYS
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
1. How long should you keep 25 months
mortgage loan records under
ECOA?
2. How long is the Do Not Call When the number is disconnected, reas-
Registry good? signed, or when the consumer chooses to
remove it
3. How many months cushion are 2 months cushion
allowed under the escrow ac-
count rules?
4. When are escrow accounts re- Renewed annually and if the account has
viewed and what amount of more than $50 in overage it will be refund-
overage could cause a refund ed
to the borrower?
5. What properties are covered Single, 1-4 family dwellings, condos, and
under RESPA? manufactured homes placed on a lot
6. RESPA imposes restriction on Amount collected for escrow accounts
___________?
7. When advertising, the APR A rate is quoted or present
must be present when
__________?
8. RESPA was put in place to? Limit amounts in escrow, eliminate kick-
backs , and educate the borrowers on the
closing cost, it does NOT regulate interest
rates
9. According to RESPA guide- $10,000 and/or 1 year prison terms for
lines, failure to comply with each incident
Section 8 could result in a
penalty of?
10. Redlining is best defined as: Failing to end to certain geographic areas
, NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
11. Who created and monitors a Federal Trade Commission (FTC Red
companies Red Flag Rules? Flag Rules)
12. At what point in a conventional When the principal balance reaches 78%
will the PMI be removed? of the original value or purchase price
13. When does a referring party Before or at the time of the referral
have to provide the ABA form to
the borrower?
14. Advertising a mortgage loan TILA/reg Z
product that a lender is not able
to offer is a violation of what
federal law?
15. What is the Act that requires a Gramm-Leach Bliley Act
financial entity to provide cus-
tomers with a privacy notice, as
well as an "opt out notice", re-
garding the customer's person-
al information?
16. Under the GLB Act, nonpublic TRUE
information can only be shared
with affiliates of the financial in-
stitution or affiliates of related
third parties, even if the cus-
tomer does not opt out. (T/F)
17. What information must be pro- An Affiliated Business Disclosure State-
vided to the borrower when re- ment as mandated by RESPA
ferrals take place between affil-
iated businesses?
18. What is the primary purpose of Notice of right to financial privacy and
the Gramm-Leach Bliley Act? right to opt out of sharing personal infor-
mation
, NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
19. Along with the Fair and Ac- GLB Act's Safeguards rule
curate Credit Transactions Act
Disposal Rule, what GLB Act
provision ensures that cus-
tomer's information is not han-
dled or maintained carelessly
and is disposed of properly?
20. What is the difference between GLB Act's Safeguards Rule requires all
the GLB Act Safeguards Rule companies to design, implement, and
and the FACT Act Disposal maintain safeguards to protect customer
Rule? information from theft... FACT Act requires
businesses to take appropriate measures
to safeguard from theft in the disposal of
consumer report
21. What is a "Federally Related Loans secured by a first or subordinate
Loan"? lien on a residential property that meets
stated RESPA criteria. The definition is so
broad it covers virtually every home loan
secured by a mortgage.
22. Most of HUD's enforcement ac- Prohibited against giving or receiving a
tions result due to section 8 of fee, kickback, or anything of value pur-
RESPA. What is addressed in suant to an agreement or understanding
Section 8? for the referral of settlement business
23. What is an affiliated business An arrangement in which one person
arrangement? refers applicants to a settlement service
provider with whom the referring person
has an ownership interest of 1% or more
24. What customer protection does Protect consumers by ensuring borrowers
Section 10 of RESPA provide? know the amount they are to deposit into
escrow by preventing lenders from over-
charging borrowers for escrow deposits
25. Up to $10,000 and/or one year in prison
, NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 2024-2025
TUAL EXAM COMPLETE ACCURATE EXAM QUESTIONS WITH DETAILE
VERIFIED ANSWERS
Study online at https://quizlet.com/_g6he9z
What are the consequences for
violating Section 8 of RESPA?
26. What is the primary aim of Reg- ECOA is intended to promote availability
ulation B? of credit to all creditworthy applicants and
prohibit discrimination
27. A copy of the Closing Disclo- 3 days prior to closing
sure must be provided to the
borrower how many days prior
to closing?
28. Under the ECOA, is it lawful It is unlawful not to accept an application
to turn down an applicant be- due to the type of income it is not however
cause part of his/her income unlawful to turn them down if the income
is derived from public assis- is not enough to qualify them for the re-
tance? payment
29. What is the letter of the regula- Regulation B (B for Borrower is protected)
tion by which the ECOA is also
referred?
30. To whom does the TIL Act ap- All businesses and individuals that regu-
ply? larly extend consumer credit that is pri-
marily for family or household purposes.
Regularly extend credit means more than
5 mortgages per year
31. What is the RESPA prohibition A lender or service provider marking up
on "mark ups" designed to pre- 3rd party costs for the purpose of retaining
vent? the additional funds
32. Under the ECOA, you must noti- 30 days from receipt of a loan application
fy an applicant of Notice of Ac-
tion Taken within what time pe-
riod?
33. ALWAYS
