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| All the Regulations to Memorize for your NMLS Test
For fun I have listed here some more than one hundred questions and the correct answers for you to memorize for your NMLS Test. This is in case the droning voice recording on your online test made you fall asleep, or the teacher was on something. You must memorize the details the way NMLS is testing for nationally, it does not matter what you think or how you practice in your local market. It does not matter about common sense, burn the facts in your head. Mortgage now is run by Barney Frank who once had a boyfriend at Wells Fargo Home Mortgage, so he really knows how to properly regulate a complex business with certain laws that do not help consumers. So here it is, do not question the man behind the curtain, he is the great and powerful Oz. This does not guarantee you will pass. This is not necessarily any exact list of the questions. This is a free study guide.
NMLS TEST QUESTIONS AND STUDY GUIDE FREE
1.
Prior to closing how long does RESPA require you
give the HUD1 to borrower if they ask?
One business day
2.
UNDER ECOA What may NOT be used adversely in Underwriting?
Borrower receives public assistance
Remember ECOA is REG B
3.
Who is not a depository institution?
Mortgage banker because they don’t lend
their own dough or work for a bank or S&L
4.
What is difference between a mortgage banker and
mortgage broker?
Mortgage broker is middleman
intermediary, bankers do that but
also raise stock to loan their own money
5.
According to Truth in Lending Act a borrower on
a refinance who was not disclosed the APR can?
Rescind
the loan for three years
6.
Lender who doesn’t sell loans to investors is:
Portfolio
Lender
7.
Regulation forbids seller to steer to certain Title Company
REG
X
8.
If the fed buys government securities the money
supply:
Increases
9.
What law defines high cost loans or Section 32 loans?
HOEPA Home Ownership and Equity Protection Act
10.
Fannie or Freddie can force a lender to buy back /repurchase a loan if
Evidence
of fraud
11.
What Federal legislation requires information
about race?
Home
Mortgage Disclosure Act HMDA
12.
A registered State Licensed MLO is identified in NLMS by
Unique
identifier
13.
Common name of Title V?
SAFE
ACT
14.
TIL does
not require:
Name of
entity who services but does
requires amount, finance charges, total
payments…
15.
What is the fine for violating Do Not Call?
$16000.00
16.
State Licensed MLO lets license expire must retest if :
5
years have past
17.
Federal regulation regarding adverse collection information on credit report?
REG V
18.
Registered MLO hours education?
0 only State has 20
19.
MLO fails test 3rd time must wait:
180 days
20.
SAFE requires State Licensed x hours continuing education?
8
21.
RESPA requires what disclosure at closing?
HUD-1
22.
Fixed rate fully amortized loans each payment:
Interest portion decreases and principle
increases
23.
HMDA does not include:
Land loans
24.
Refinance recission:
3 business
days including Saturday not Sunday or Fed holidays
25.
Lender must notify Borrower of decision in:
30
days
26.
RESPA applies
to all
Real
estate credit 1-4 family dwellings
27.
APR
must be disclosed on
TIL
28.
FCRA #
days a credit information provider respond to dispute?
30
29.
Mortgage
Disclosure Improvement Act fastest # days can close
7th
business day after disclosures delivered
30.
What settlement charge may have 10% tolerance between GFE and closing?
Government
recording charges
31.
Estimate for settlement charges on GFE is available for X days
7
32.
What fee may be charged before delivery TIL and
GFE?
Credit report fee
33.
Mortgage broker rents discounted space from a
Title Co for referrals violates:
RESPA
34.
APR
initial TIL 5.99% increases to
6.25% on final how long wait to close?
3
business days after redisclosure
35.
Higher priced
loan is
APR is
average prime offer rate + 1.5%
36.
GFE lumps
together:
Lender
and mortgage broker fees
37.
According to SAFE a MLO convicted of felony
assault 10 years ago
Can apply
38.
MLO can be paid on:
Fixed percentage of loan amount
39.
Conventional loans are backed by the government?
Not guaranteed
40.
What kind of loan is assumable?
FHA
41.
Down payment for FHA with FICO 580+
3.5% or 10% for score 500-579
42.
Seller contribution
allowed FHA
6% of
closing but not down payment
43.
FHA refinance amount UFMIP?
1%
loan for both refi and purchase
44.
FHA
housing ration and DTI?
31%
/ 43%
45.
FHA tax
free income – disability/child support
Gross
up 125%
46.
VA Housing Ratio and DTI
41%
/ 41%
47.
VA seller
maximum buy down rate is
4%
48.
VA funding
fee for first time (not National Guard or reserve)
2.15%
49.
Rural Housing Services RHS under
USDA
50.
PMI
requires what down?
3%
51.
Cancel
PMI under:
Homeowners
Protection Act
52.
Homeowners Protection Act requires lender to drop PMI at:
78%
of original purchase price
53.
Jumbo loan is
Nonconforming loan
54.
Definition of nontraditional loan is under
SAFE Act
55.
Mortgage second with predetermined maximum loan
amount, adjustable, IO minimum, can be reborrowed is
HELOC
56.
Borrower right to change from ARM to Fixed one
time
Convertible loan
57.
Conforming loan
Follows Freddie and Fannie criteria
58.
Nontraditional
mortgage highest risk in underwriting is
High
debt to income ratio
59.
Difference between index and the rate charged is
called
Margin
60.
Total payments payoff the entire balance at term
is
Fully amortizing
61.
During reverse mortgage what decreases:
Equity
62.
Reverse mortgage must be repaid if unoccupied by owner for:
12
months
63.
HECM
not available on:
No cooperatives
64.
HECM does
not consider:
Credit
of borrower
65.
Lender refuses to make loans in certain neighborhood
Redlining
66.
RESPA
kickback who pays fine
All parties
who received
67.
TIL in
Advertising
Think
numbers like: 10% down
68.
Advertising
APR
amount down terms repayment
69.
Discouraging minority application
ECOA
70.
Not
protected by Fair Housing Act
Sexual
orientation
71.
ARM loans
address
Recessions
72.
Initial
rate ARM 4% lower than fully indexed
Teaser
73.
Recast
ARM
Recomputed
monthly payments to fully amortize
74.
5/2/6 ARM
(6 is the
Payment
cap
75.
Lowest teaser rate
Pay option ARM
76.
Option ARM accelerated payment is
Fully amortized over shorter loan term (15
or 20)
77.
Option ARM recast
Regular normal every 5 years
78.
Conversion right on ARM must requalify if:
Sold to secondary
79.
Graduated Payment mortgage is
Payments increase at regular intervals
80.
Graduated Payment Mortgages
Have neg am
81.
ARM’s
Have Home Equity Conversion Mortgage
82.
HECM is
Reverse Mortgage
83.
HECM
Cannot be second or subordinate loan
84.
Reverse Mortgage
Borrower must maintain, live in and pay
taxes
85.
Land Contract
Vendor/seller transfers equitable title to
vendee/ buyer
86.
Alienation clause is
Due on sale/ if sold payoff loan
87.
MLO can’t be a modification counselor advertisement
under
Truth in Lending Act
88.
3 day rescission Regulation
Reg Z
89.
Flipping analyze past
3 years history of transfers
90.
Civil Rights 1866 prohibits discrimination on
Race
91.
Repeated refinancing
Loan flipping
92.
Fed. Legislation requiring “equal housing lender”
Fair Housing Act
93.
Fair Housing Act does NOT cover
Disability (does cover religion, maritial,
sex)
94.
Fed law covers redlining
Community Reinvestment Act
95.
Discount points are:
Paid to reduce rate
96.
Defeasance clause
Lender releases (defeated) when repaid
97.
Deficiency judgment
Lender recovers the losses
98.
Blanket mortgage
On one or more parcels
99.
Partially amortized loan
Has balloon
100.
Higher rate charged in exchange for lower
upfront costs
Yield spread premium
Stuff you must memorize because a couple questions use these assumptions:
Conventional Ratios: 28% / 36%
FHA 31%/ 43%
VA /41%
more questions and answers to the National Mortgage Registry Test
101.
Market value
Most probable selling price
102.
Minimum number comps required
3
103.
Section 502 loans are
USDA
104.
Chapter 7 BK shows on credit for
10 years
105.
VA loan to value
100%
106.
UFMIP is on
FHA
107.
Hypothecation
Using collateral without surrendering
possession
SAFE 2008
HERA 2008 V-NMLS
RESPA=X=HUD=GFE=HUD-1, 1-4 family
properties, kickbacks 1975
TILA=Z=FTC 1968 (Fed) 3 rescission, 3 day
disclosure forms:TIL, booklet, CHARM, APR
ECOA=B=Federal Reserve =Discriminate sex
age marriage race religion public assistance Cons. P.
HMDA= C =1975 gathers information about
discrimination
FACTA=V=FTC=2003=
GrammLeach GLB=P=FTC 1999 privacy
Nat Do not Call $16000 fine
FCRA= V=credit= FTC
HOEPA+ Z=Section 32+ FTC= high cost= rescind
3 years, APR TBill+8%/ 2nd
+10%
USPAP –appraisal HUCC – AIR
Dodd Frank
HPA- PMI 1998 cancel 78% of original sales
price or lender at 80%
MLO compensation rule = Z = Fed
CRA 1977 low mod loans
Civil Rights Act 1866 – no racial discrimination
in buying selling homes
Fair Housing Act 1968
Fannie Freddie appraisal
Max gross adjustment to comp 25% Robin Hood
Max net 15% of sale price of comp
copyright Caroline Gerardo all this is mine even the photograph and we prosecute stealers. If you would like to print and study, that is fine. If you want to reproduce you will need to buy one of my books and have written (email) permission from me. Do not repost on Pinterest all rights reserved.
Cost Approach
Marshall Swift rebuild minus depreciation +
land
Income Approach
Net operating income divided by
Capitalization Rate= Value
If I think of more I'll post another homework list.
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