NMLS TEST FINAL EXAM 2 VERSIONS (VERSION A AND B) 202
2025 ACTUA EXAM COMPLETE ACCURATE EXAM QUESTION
WITH DETAILED VERIFIED ANSWERS
1. How long should you keep mortgage loan records under ECOA?: 25 months
2. How long is the Do Not Call Registry good?: When the number is disconnected,
reassigned, or when the consumer chooses to remove it
3. How many months cushion are allowed under the escrow account rules?: 2 months
cushion
4. When are escrow accounts reviewed and what amount of overage could
cause a refund to the borrower?: Renewed annually and if the account has more than $50
in overage it will be refunded
5. What properties are covered under RESPA?: Single, 1-4 family dwellings, condos, and
manu-
factured homes placed on a lot
6. RESPA imposes restriction on ___________?: Amount collected for escrow accounts
7. When advertising, the APR must be present when __________?: A rate is quoted or
present
8. RESPA was put in place to?: Limit amounts in escrow, eliminate kickbacks , and educate
the borrowers on the closing cost, it does NOT regulate interest rates
9. According to RESPA guidelines, failure to comply with Section 8 could result in a penalty
of?: $10,000 and/or 1 year prison terms for each incident
10. Redlining is best defined as:: Failing to end to certain geographic areas
11. Who created and monitors a companies Red Flag Rules?: Federal Trade Commission
(FTC Red Flag Rules)
12. At what point in a conventional will the PMI be removed?: When the principal
balance reaches 78% of the original value or purchase price
13. When does a referring party have to provide the ABA form to the borrower?-
: Before or at the time of the referral
14. Advertising a mortgage loan product that a lender is not able to offer is a violation of
what federal law?: TILA/reg Z
, .
15. What is the Act that requires a financial entity to provide customers with a privacy
notice, as well as an "opt out notice", regarding the customer's personal information?:
Gramm-Leach Bliley Act
16 Under the GLB Act, nonpublic information can only be shared with affiliates of the
financial institution or affiliates of related third parties, even if the customer does not opt
out. (T/F): TRUE
17. What information must be provided to the borrower when referrals take
place between affiliated businesses?: An Affiliated Business Disclosure Statement as
mandated by RESPA
18. What is the primary purpose of the Gramm-Leach Bliley Act?: Notice of right to
financial privacy and right to opt out of sharing personal information
19. Along with the Fair and Accurate Credit Transactions Act Disposal Rule, what GLB Act
provision ensures that customer's information is not handled or maintained carelessly
and is disposed of properly?: GLB Act's Safeguards rule
20. What is the difference between the GLB Act Safeguards Rule and the FACT
Act Disposal Rule?: GLB Act's Safeguards Rule requires all companies to design, implement,
and maintain safeguards to protect customer 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 Loan"?: Loans secured by a first or subordinate 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 actions result due to section 8 of RESPA. What
is addressed in Section 8?: Prohibited against giving or receiving a fee, kickback, or anything
of value pursuant to an agreement or understanding for the referral of settlement business
23. What is an affiliated business arrangement?: An arrangement in which one person
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 Section 10 of RESPA provide?: Protect consumers
, .
by ensuring borrowers know the amount they are to deposit into escrow by preventing
lenders from overcharging borrowers for escrow deposits
25. What are the consequences for violating Section 8 of RESPA?: Up to $10,000 and/or
one year in prison
26. What is the primary aim of Regulation B?: ECOA is intended to promote availability
of credit to all creditworthy applicants and prohibit discrimination
27 A copy of the Closing Disclosure must be provided to the borrower how many days prior
to closing?: 3 days prior to closing
28. Under the ECOA, is it lawful to turn down an applicant because part of his/her income
is derived from public assistance?: It is unlawful not to accept an application due to the
type of income it is not however unlawful to turn them down if the income is not enough
to qualify them for the repayment
29. What is the letter of the regulation by which the ECOA is also referred?: Regulation
B (B for Borrower is protected)
30. To whom does the TIL Act apply?: All businesses and individuals that regularly extend
consumer credit that is primarily for family or household purposes. Regularly extend
credit means more than 5 mortgages per year
31. What is the RESPA prohibition on "mark ups" designed to prevent?: A lender or
service provider marking up 3rd party costs for the purpose of retaining the additional
funds
32. Under the ECOA, you must notify an applicant of Notice of Action Taken within what
time period?: 30 days from receipt of a loan application
33. TILA requires that mortgage broker fees are ______________ included in the finance
charge?: ALWAYS
34. Credit denial letters do not require the disclosure of _________________?: Credit
Scores
35. Which lending law provides that consumers get a free copy of their credit bureau
report annually?: FCRA (Fair Credit Reporting Act)
36. Which law prohibits discrimination in resident real estate transactions?: Fair
Housing Act
2025 ACTUA EXAM COMPLETE ACCURATE EXAM QUESTION
WITH DETAILED VERIFIED ANSWERS
1. How long should you keep mortgage loan records under ECOA?: 25 months
2. How long is the Do Not Call Registry good?: When the number is disconnected,
reassigned, or when the consumer chooses to remove it
3. How many months cushion are allowed under the escrow account rules?: 2 months
cushion
4. When are escrow accounts reviewed and what amount of overage could
cause a refund to the borrower?: Renewed annually and if the account has more than $50
in overage it will be refunded
5. What properties are covered under RESPA?: Single, 1-4 family dwellings, condos, and
manu-
factured homes placed on a lot
6. RESPA imposes restriction on ___________?: Amount collected for escrow accounts
7. When advertising, the APR must be present when __________?: A rate is quoted or
present
8. RESPA was put in place to?: Limit amounts in escrow, eliminate kickbacks , and educate
the borrowers on the closing cost, it does NOT regulate interest rates
9. According to RESPA guidelines, failure to comply with Section 8 could result in a penalty
of?: $10,000 and/or 1 year prison terms for each incident
10. Redlining is best defined as:: Failing to end to certain geographic areas
11. Who created and monitors a companies Red Flag Rules?: Federal Trade Commission
(FTC Red Flag Rules)
12. At what point in a conventional will the PMI be removed?: When the principal
balance reaches 78% of the original value or purchase price
13. When does a referring party have to provide the ABA form to the borrower?-
: Before or at the time of the referral
14. Advertising a mortgage loan product that a lender is not able to offer is a violation of
what federal law?: TILA/reg Z
, .
15. What is the Act that requires a financial entity to provide customers with a privacy
notice, as well as an "opt out notice", regarding the customer's personal information?:
Gramm-Leach Bliley Act
16 Under the GLB Act, nonpublic information can only be shared with affiliates of the
financial institution or affiliates of related third parties, even if the customer does not opt
out. (T/F): TRUE
17. What information must be provided to the borrower when referrals take
place between affiliated businesses?: An Affiliated Business Disclosure Statement as
mandated by RESPA
18. What is the primary purpose of the Gramm-Leach Bliley Act?: Notice of right to
financial privacy and right to opt out of sharing personal information
19. Along with the Fair and Accurate Credit Transactions Act Disposal Rule, what GLB Act
provision ensures that customer's information is not handled or maintained carelessly
and is disposed of properly?: GLB Act's Safeguards rule
20. What is the difference between the GLB Act Safeguards Rule and the FACT
Act Disposal Rule?: GLB Act's Safeguards Rule requires all companies to design, implement,
and maintain safeguards to protect customer 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 Loan"?: Loans secured by a first or subordinate 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 actions result due to section 8 of RESPA. What
is addressed in Section 8?: Prohibited against giving or receiving a fee, kickback, or anything
of value pursuant to an agreement or understanding for the referral of settlement business
23. What is an affiliated business arrangement?: An arrangement in which one person
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 Section 10 of RESPA provide?: Protect consumers
, .
by ensuring borrowers know the amount they are to deposit into escrow by preventing
lenders from overcharging borrowers for escrow deposits
25. What are the consequences for violating Section 8 of RESPA?: Up to $10,000 and/or
one year in prison
26. What is the primary aim of Regulation B?: ECOA is intended to promote availability
of credit to all creditworthy applicants and prohibit discrimination
27 A copy of the Closing Disclosure must be provided to the borrower how many days prior
to closing?: 3 days prior to closing
28. Under the ECOA, is it lawful to turn down an applicant because part of his/her income
is derived from public assistance?: It is unlawful not to accept an application due to the
type of income it is not however unlawful to turn them down if the income is not enough
to qualify them for the repayment
29. What is the letter of the regulation by which the ECOA is also referred?: Regulation
B (B for Borrower is protected)
30. To whom does the TIL Act apply?: All businesses and individuals that regularly extend
consumer credit that is primarily for family or household purposes. Regularly extend
credit means more than 5 mortgages per year
31. What is the RESPA prohibition on "mark ups" designed to prevent?: A lender or
service provider marking up 3rd party costs for the purpose of retaining the additional
funds
32. Under the ECOA, you must notify an applicant of Notice of Action Taken within what
time period?: 30 days from receipt of a loan application
33. TILA requires that mortgage broker fees are ______________ included in the finance
charge?: ALWAYS
34. Credit denial letters do not require the disclosure of _________________?: Credit
Scores
35. Which lending law provides that consumers get a free copy of their credit bureau
report annually?: FCRA (Fair Credit Reporting Act)
36. Which law prohibits discrimination in resident real estate transactions?: Fair
Housing Act
