NMLS Frequently Missed Questions

Question 1

Which Act includes Red Flag Rules?

Answer 1

FACTA

Question 2

How many days must a Mortgage Servicer wait before submitting for foreclosure if the borrower has not submitted an application for assistance?

Answer 2

120 days

Question 3

What legislation simplifies tracking the servicing rights of mortgages?

Answer 3

MERS

Question 4

What are promissory notes that are freely transferable called?

Answer 4

Negotiable Instruments

Question 5

What are package mortgages

Answer 5

They allow personal property to be included in the property sale and financed as 1 loan

Question 6

What loan commonly uses extended rate locks?

Answer 6

New construction loans

Question 7

Adverse Possesion

Answer 7

gaining ownership rights to a piece of property through open/hostile occupancy for a prescribed number of years

Question 8

How many months are credit inquiries considered in a FICO score?

Answer 8

12 months

Question 9

What is the correct terminology when asking a loan applicant about their marital status?

Answer 9

Are you married, unmarried, or separated?

Question 10

What is a mechanics lien?

Answer 10

Contractor/suppliers may file a lien on the property when they provided services and have not been paid

Question 11

Can licensed MLOs be employed by more than 1 mortgage broker or lender at the same time?

Answer 11

NO

Question 12

FCRA is regulated by what regulation?

Answer 12

Regulation V

Question 13

What is the purpose of the Mortgage Servicing Disclosure Statement?

Answer 13

Inform the consumer of the likelihood of their mortgage being sold

Question 14

Are escrow deposits for property taxes considered in the Finance Charge/APR calculation?

Answer 14

No

Question 15

Reg Z applies to all residential loans that are….?

Answer 15

Greater than 4 installments

Question 16

Equity Participation Mortgage

Answer 16

loan that permits lenders to share profits from real estate projects

Question 17

Can funding fees be financed in a VA loan?

Answer 17

Yes

Question 18

Does the closing disclosure require property appraisal value?

Answer 18

No

Question 19

Who manages the Do Not Call Registry

Answer 19

FTC

Question 20

What regulation requires by law escrow requirements for HPMLs?

Answer 20

Regulation Z (TILA)

Question 21

Alienation Clause (Do on Sale Clause)

Answer 21

Lenders demand full payment if the borrower sells the mortgage property or partial interest in a mortgaged property

Question 22

Who funds FHA loans

Answer 22

Qualified lending institutions

Question 23

How many years does TILA require you to keep MLO compensation records?

Answer 23

3 years

Question 24

Who regulates guidelines for renting/financing/selling properties?

Answer 24

FHA

Question 25

With what mortgage is counseling mandatory?

Answer 25

HECM (reverse mortgage)

Question 26

How many days prior must a closing disclosure be given?

Answer 26

7 days prior to closing

Question 27

Yield Spread Premium (YSP)

Answer 27

lender pays the broker for selling a higher rate than the wholesale rate offered to the broker

Question 28

Who issues the clear to close?

Answer 28

lenders

Question 29

What act was passed in 1977 to reduce discrimatory practices?

Answer 29

Community Reinvestment Act

Question 30

What section are HECM loans?

Answer 30

Section 255

Question 31

Lis Peddens

Answer 31

recorded notice of pending lawsuit that title for the property is in litigation

Question 32

Mortgage servicers must establish contact how many days after delinquency?

Answer 32

36 days