9/02/2020

NMLS Mortgage Questions

Companies subject to Regulation N are required to keep records of ________ for 24 months.

 

All advertisements

All marketing materials

All written materials

All commercial communications.

Companies subject to Regulation N are required to keep records of all commercial communications regarding any term of any mortgage credit product for 24 months.

Score: 100%

Question 2

Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any _________.

 

Commercial Loan

Mortgage Credit Product.

Consumer Loan

Interest Rate

Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any mortgage credit product. It applies to institutions under the jurisdiction of the FTC.

Score: 100%

Question 3

Which is not a "Mortgage Credit Product"?

 

A loan to purchase a family lake house

A loan to purchase a second home

A loan to purchase husband and wife's flower shop.

A loan to purchase a family home.

A "Mortgage Credit Product" is "any form of credit that is secured by real property or a dwelling and that is offered or extended to a consumer primarily for personal, family, or household purposes. See 12 CFR § 1014.2.

Score: 100%

Question 4

Regulation N was designed to address:

 

Misrepresentations in the advertising of mortgage productsYou correctly checked this.

Permissible claims in advertising

Unearned Kickbacks and Fees relationing to settlements

Telephone solicitations to consumers

Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any mortgage credit product.

Score: 100%

Question 5

Which is not a commercial communication:

 

A message in a newspaper

None of the above

A telephone soliciation

A radio announcement

A Commercial Communication is defined as: Any written or oral statement, illustration, or depiction, whether in English or any other language, that is designed to effect a sale or create interest in purchasing goods or services, whether it appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase display, film, slide, audio program transmitted over a telephone system, telemarketing script, on-hold script, upsell script, training materials provided to telemarketing firms, program-length commercial ("infomercial"), the internet, cellular network, or any other medium. Promotional materials and items and Web pages are included in the term commercial communication. See 12 CFR § 1014.2.

Score: 100%

The purpose of this act is to require certain reports or records that have a high degree of usefulness in criminal, tax or regulatory investigations to protect against international terrorism.

 

Patriot Act

SARs

AML

BSA.

The requirement for an AML program has been in place for depository lenders under the Bank Secrecy Act, BSA, and now applies to non-depository lenders as well.

 

Question 2

This Act is also known as the Currency and Foreign Transactions Reporting Act of 1970

 

FinCEN

AML

BSA

CFPB

The Currency and Foreign Transactions Reporting Act of 1970 is also known as The Bank Secrecy Act (BSA).

 

 

AML stands for

 

Approved Money Laundering

Approved Mortgage Lender

Anti-Money Laundering

Anti-Money Labeling

Anti-money laundering training, policies and procedures is now required for non-depository lenders.

 

 

All of the following are components of SARs reporting except

 

SARs are required by non-depository institutions

FinCEN regulates SARs

SARs are reported using FinCEN's BSA E-filing method

Once a SAR is reported, it may be disclosed to the borrower.

All SARs must be kept confidential and may not be disclosed to any parties that may be involved prior to or after reporting.

 

 

The 3 stages of money laundering.

 

Origination, Placement, Fraud

Placement, Layering, Origination

Placement, Layering, Integration

Processing, Layering, Integration

(1) Placement: The introduction of illegally obtained monies or other valuables into financial or nonfinancial institutions. (2) Layering: Separating the proceeds of criminal activity from their source through the use of layers of complex financial transactions. These layers are designed to hamper the audit trail, disguise the origin of funds and provide anonymity. (3) Integration: Placing the laundered proceeds back into the economy in such a way that they re-enter the financial system as apparently legitimate funds. NOTE: These "stages" are not static and overlap broadly. Financial institutions may be misused at any point in the money laundering process. Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal the origin or intended use of the funds, which will later be used for criminal purposes.

 

When must a lender provide the consumer with the Loan Estimate?

 

5 days after receipt of loan application

2 days after receipt of loan application

3 days after receipt of loan application

4 days after receipt of loan application

The Loan Estimate must be provided to the consumer within 3 business days of the receipt of the consumer's loan application.

Can a mortgage broker provide the Loan Estimate?

 

Yes, always.

Yes, if the mortgage broker is the main point of contact.

No, never.

Yes, if the mortgage broker receives the consumer's application..

A mortgage broker may provide a Loan Estimate to a consumer if the mortgage broker received the consumer's application.

When can a creditor issue a revised loan estimate

 

Never.

Any time as long as it is 4 business days prior to consummation

When the creditor made a good faith mistake on the original

If the consumer waits more than 10 days before indicating his/her intent to move forward with the loan.

Changed circumstances that occur after the Loan Estimate is provided to the consumer that cause estimated settlement charges to increase more than is permitted under the TILA-RESPA rule § 1026.19(e)(3)(iv)(A); Changed circumstances that occur after the Loan Estimate is provided to the consumer that affect the consumer's eligibility for the terms for which the consumer applied or the value of the security for the loan § 1026.19(e)(3)(iv)(B); Revisions to the credit terms or the settlement are requested by the consumer § 1026.19(e)(3)(iv)(C); The interest rate was not locked when the Loan Estimate was provided, and locking the rate causes the points or lender credits disclosed on the Loan Estimate to change § 1026.19(e)(3)(iv)(D); The consumer indicates an intent to proceed with the transaction more than 10 business days after the Loan Estimate was originally provided § 1026.19(e)(3)(iv)(E); or The loan is a new construction loan, and settlement is delayed by more than 60 calendar days

I made a mistake on the bank's fees on the Loan Estimate, but it is still in good faith because it was:

 

Less than the amount disclosed on the Loan Estimate

Underestimation of the charge

A miscalculation

Technical error

Generally, if the charge paid by or imposed on the consumer exceeds the amount originally disclosed on the Loan Estimate it is not in good faith, regardless of whether the creditor later discovers a technical error, miscalculation, or underestimation of a charge. However, a Loan Estimate is considered to be in good faith if the creditor charges the consumer less than the amount disclosed on the Loan Estimate, without regard to any tolerance limitations.

If the amounts paid by the consumer at closing exceed the amounts disclosed on the Loan Estimate beyond the applicable tolerance threshold, the creditor must refund the excess to the consumer no later than:

 

10 days after closing

90 days after closing

3 days after closing

60 days after closing

If the amounts paid by the consumer at closing exceed the amounts disclosed on the Loan Estimate beyond the applicable tolerance threshold, the creditor must refund the excess to the consumer no later than 60 calendar days after consummation.