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Flashcards in NMLS Frequently Missed Questions Deck (32)
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1

Which Act includes Red Flag Rules?

FACTA

2

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

120 days

3

What legislation simplifies tracking the servicing rights of mortgages?

MERS

4

What are promissory notes that are freely transferable called?

Negotiable Instruments

5

What are package mortgages

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

6

What loan commonly uses extended rate locks?

New construction loans

7

Adverse Possesion

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

8

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

12 months

9

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

Are you married, unmarried, or separated?

10

What is a mechanics lien?

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

11

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

NO

12

FCRA is regulated by what regulation?

Regulation V

13

What is the purpose of the Mortgage Servicing Disclosure Statement?

Inform the consumer of the likelihood of their mortgage being sold

14

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

No

15

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

Greater than 4 installments

16

Equity Participation Mortgage

loan that permits lenders to share profits from real estate projects

17

Can funding fees be financed in a VA loan?

Yes

18

Does the closing disclosure require property appraisal value?

No

19

Who manages the Do Not Call Registry

FTC

20

What regulation requires by law escrow requirements for HPMLs?

Regulation Z (TILA)

21

Alienation Clause (Do on Sale Clause)

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

22

Who funds FHA loans

Qualified lending institutions

23

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

3 years

24

Who regulates guidelines for renting/financing/selling properties?

FHA

25

With what mortgage is counseling mandatory?

HECM (reverse mortgage)

26

How many days prior must a closing disclosure be given?

7 days prior to closing

27

Yield Spread Premium (YSP)

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

28

Who issues the clear to close?

lenders

29

What act was passed in 1977 to reduce discrimatory practices?

Community Reinvestment Act

30

What section are HECM loans?

Section 255