NMLS Flashcards
(125 cards)
1
Q
A limit on the amount of interest or loan fees a creditor may change is imposed by
A
State usury laws
2
Q
What is NOT protected by the Fair Housing Act
A
Receipt of income from a public source
3
Q
The truth in lending act is within which law
A
Consumer Credit Protection Act
4
Q
A Wraparound mortgage
A
Occurs when a new mortgage plus an existing mortgage is structured as a single obligation
5
Q
What is another name for blockbusting, an illegal activity according to the Fair Housing Act
A
Panic selling
6
Q
When the originating lender sells the rights to collect the payments, including interest, to another lender, the price charged in the sale is called
A
A service release premium
7
Q
The SAFE Act is part of the
A
Housing and Economic Recovery Act
8
Q
According to the Real Estate Settlement Procedures Act (RESPA) which of the following relationships between a lender and a settlement service provider does NOT require disclosure on the Good Faith Estimate
A
The lender and the provider use the same attorney for legal services
9
Q
The Safe Act is part of the Act
A
Housing & Economic Recovery
10
Q
If service is transferred, notification must be given in—-days
A
15 days
11
Q
The Fair Housing Act allows a complaint to be filed within
A
One year
12
Q
Businesses must truncate receipts on credit card transaction is part of the
A
FACT ACT
13
Q
HMDA Data allows government agencies to do what ?
A
Evaluate lender compliance with anti-discrimination laws
14
Q
HOEPA is an addendum to what law?
A
TILA
15
Q
The regulation passed in 2009 to regulate appraisals is
A
Home Valuation Code of conduct
16
Q
Section 32 refers to
A
HOEPA
17
Q
A lender who does not cancel PMI when the LTV reaches 78% is in violation of which federal law
A
Homeowner Protection Act
18
Q
Race must be included on a loan application because of
A
HMDA
19
Q
Value of the whole is more than the parts
A
Pottage
20
Q
What’s another name for blockbusting?
A
Panic Selling
21
Q
A mortgage lending company refuses to make loans for homes in a minority neighborhood is known as this illegal action called
A
Redlining
22
Q
Disclosure of financial information to a non-affiliate third parties is restricted by which act?
A
Gramm Leach Bliley Act
RED FLAF RULES
23
Q
Which is NOT a purpose for the mortgage loan disclosure statement
A
To inform the consumer the likelyhood the mortgage could be sold
24
Q
When using the sale comparison approach to arrive at an option of value an appraiser looks
A
Into recent past to analyze similar sales
25
HOEPA stands for
Home Ownership & Equity Protection Act
26
ECOA is also known as Regulation
Regulation B
27
ECOA was implemented by
Federal Trade Commission
28
Consumers receiving a copy of an appraisal report are covered under
ECOA
29
I can dispute a credit report because of
Fair Credit Reporting Act
30
HMDA information is complied by
FFIEC
| Federal Financial Institutions Examination Council
31
HPA stands for
Homeowners Protection Act
32
The Fair Credit Reporting Act states that no negative information on a credit report after _____years and bankruptcies after___ years
7 & 10
33
HOEPA trigger for a second_____is what percentage
10%
34
If a finance charge is overstated, how long is the right to rescind under TILA?
No right
35
Which act allows a consumer to a free credit report?
Fair Credit Reporting Act
36
The FACT amended the
Fair Credit Reporting Act
37
TILA is administered by the
Board of Governors of Federal reserve
38
Which act proscribes a tolerance between preliminary APR and Final APR?
TILA
39
Which act prohibits negative amortization
HOEPA
40
The right of the 3 day rescission after closure of an owner-occupied refinance is covered under
TILA
41
A mortgage servicing disclosure statement is required by what law
RESPA
42
Advertising triggers are covered by
Regulation z
| Truth in Lending
43
The total gross Value of appraisal adjustments can be no more than
25%
44
Total net value of appraisal adjustments can be no more than
15%
45
The main purpose of the safe act was
Set minimum standards for licensing & registration of loan officers
46
The SAFE acronym stands for
Safe And Fair Enforcemen
47
Which act encourages financial institutions to meet the needs of the community credit needs
Community Reinvestment Act
48
HMDA requires what information goes to regulator yearly
Loan Application Register
49
The first civil rights act prohibits discrimination in ONLY
Sale and rental of property
50
Which act is know as regulation z
TILA
51
The HMDA act applies to lenders with assets in access of
Ten million dollars
52
HOEPA is also known as
Section 32
53
HMDA stands for
Home Mortgage Disclosure Act
54
The National Do Not Call Registry is managed by
Federal Trade Commission
55
Prime Rate is set by
The Market
56
Truth In Lending is most concerned with
Cost of borrowing
57
Adjustments during an appraisal are made to the comp property or the subject property
Comp
58
RESPA stands for
Real Estate Settlement Procedures Act
59
The RESPA act is known as
Regulation X
60
Safeguarding consumer information is mandated by
Gramm Leach Bliley Act
61
Kickbacks are prohibited under the
RESPA Act
62
Federal Reserve Board sets
The discount rate
63
The privacy rule of the Gramm leach Bliley act requires that the financial institution provide the consumer with a Consumer Privacy Policy BEFORE
Disclosing information to non-affiliate third parties
64
By which date must a credit report be finished to the NMLS registry
March 1st
65
Under HPA a borrower can request PMI cancellation when the LTV reaches
80% PMI is automatically terminated at 78%
66
Percent to "gross up" tax free income for qualifying?
125%
67
Maximum percent tolerance for APR errors on variable loans
1/4 %
68
HUD 1 and HUD 1A are called
Settlement statements
69
Maximum percent tolerance for APR error on fixed rate loans is
1/8 %
70
An adverse action must be given with
30 days notice
71
Under HOEPA, a high cost first mortgage triggers when an APR exceeds Treasury securities rate by more than
8%
72
Number of years before a Chapter 7 bankruptcy falls off your credit report?
10 years for Chapter 7
7 years for a chapter 13
73
The RESPA act is most concerned with
Closing cost
74
Lenders must submit a loan application log because of
HMDA Home Mortgage Disclosure Act
75
Mortgage back securities are backed by the full faith and cdit of the United States when guaranteed by
GNMA
76
The 3 day right of rescission on a refinanced owner-occupied residence is business or calendar days
Business
77
Which of the following terms specifically refers to a loan that is NOT obtained througght a program of the federal government
Conventional
78
The good faith estimate is covered under which act?
RESPA
79
HMDA is known as
Regulation C
80
Discrimination by religion, sex disability, ect. Is prohibited by
Fair Housing Act
81
Identity theft is addressed in which act
FACT
| Fair Accurate credit transactions Act
82
Written identity theft prevention program required of financial institutions is required by the ____ act and known as _____.
FACT ACT Red Flag Rules
83
Fair credit reporting act provides additional rights for
Identity theft victims and the military
84
The Gramm-Bliley Act is also known as
Privacy Act
85
The tool for cost comparison is the
Good Faith Estimate
86
If I had a transaction with a consumer, I can call for
18 months
87
The Home Mortgage Disclosure Act - Regulation C (HMDA) was passed in 1975 and is overseen by what entity
Federal Reserve Board
88
Under RESPA what is the maximum fine that can be imposed for each kickback
$10,000
89
APR disclosure is covered by
TILA
90
Age discrimination is addressed in
The Equal Credit Opportunity Act
91
Escrow account limits are set by
RESPA
92
Another name for the SAFE Act is
TITLE V
93
The fact the a seller can insist on a buyer using a particular title company is addressed
By RESPA
94
FCRA is also known as
Regulation V
95
Prepayment regulations are limited by
HOEPA
96
TILA rules apply to loans with more than
4 installments
97
RESPA is administered by
HUD
98
A discount point is best described as a charge the borrower pays to
A lender to DECREASE the interest rate on the mortgage loan
99
If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicants monthly income?
$2,343.47
100
Which of the following documents itemizes all the settlement cost including lender charges?
HUD 1 form
101
According to the Truth in lending Act TILA the term refinance applies to
The satisfaction of an existing obligation and it's replacement of a new obligation
102
What does a loan originator use to determine the estimated value of a property based on an ANALYTICAL comparison of similar property sales
An Appraisal
103
Which of the following methods of disclosure does NOT meet requirements of the Equal Credit Opportunity Act
Telephone
104
According to the Truth and Lending Act TILA which of the following fees is EXCLUDED from the calculation of the ANNUAL percentage rate
Hazard insurance
105
TILA is overseen by
FBR federal reserve Boad
106
What three RESPA federally required disclosures must be provided within three days of receipt of the loan application for a PURCHASE money loan
GFE. MDSS Mortgage Disclosure Servicing Statement. And a SPECIAL Information booklet which contains consumer information regarding various real estate settlement services
107
Equal Credit Opportunity Act is overseen by which agency
FTC. Federal Trade Commission for mortgage broker and the
| OCC the office of the Comptroller of CURRENCY for mortgage brokers
108
Reg B Section 202.5 of the Equal Opportunity Act States that you cannot discourage an application for the following reasons
```
Information regarding
SPOUSE
Marital Status
income from alimony/ child support
Sex
Dependent
Race, color, religion and origin
SMIS DR CRO
```
109
The Fair and Accurate Transactions Act of 2003 ( FACT ACT) amended the Fair Credit Reporting.
This regulation is overseen by
FTC Federal Trade Comission
110
The entities regulated by the fair and accurate transaction act are
Consumer reporting agencies CRA's USERS of consumer reports
| And FURNISHERS of information of consumer reporting agencies
111
The Truth in Lending Act regulates the following disclosure requirements
```
Truth In Lending Disclosure
Adjustable Rate Disclosures
right of Rescission. TARHH
High Priced Mortgage section 35
High Fee Mortgages Section 32
```
112
The Truth In Lending Act requires the the disclosures MUST BE
Clear and Conspicuous, in writing RETAINABLE by the consumer, reflect the term of the legal obligation, use of estimates appropriately and provided within 3 days after receipt of application
113
The Home Mortgage Disclosure Act - Regulation C (HMDA) was passed in 1975 and is overseen by what entity
Federal Reserve Board
114
What type of loans are exempt from RESPA
Loan on property with 25 acres or more
115
National Flood Insurance Reform Act is overseen by
Federal Reserve Board
116
Violations for NOT determining FLOOD status, not notifying the borrower of the status and insurance requirements, failing to escrow premium if an escrow account is required for the other payments and/ or falling to place insurance when required are
$360 for each violation and $100,000 per calendar year
117
When the APR is OUT of tolerance, the creditor must do what
Disclose the changes or provide a completely new disclosure statement so it is received at least three (3) business days before consummation
118
Each early TILA disclosure must include what statement?
You are Not required to complete this agreement MERELY because you have received these disclosures or signed a loan application
119
HMDA data allows government agencies to do what
EVALUATE lender compliance with ANTI DISCRIMINATION laws
120
How is the the conforming loan limit set each year?
The Federal Housing Finance agency uses the October to October percentage
121
Mortgage Fraud is investigated by the Federal Bureau of investigation and is punishable by up to
30 years in federal prison and $1,000,000 of BOTH
122
HOEPA is an addendum to what law
TILA
123
Which law allows a consumer who has had her credit card used by an identity thief to place a freeze on her credit report?
FACT Act
124
Fannie Mae may require what to protect lenders against loan defaults by borrowers
Private mortgage insurance
125
Which law requires notification to a borrower before the servicing of a loan is transferred to someone else?
RESPA
