Nevada mortgage licensing test
questions and answers
Study Guide
I passed for 2022 yippee for Christmas
Don't you love this Elf scene?
Nevada requires more hours of education than
most other states.
Nevada also has deeper dive into the background of a mortgage loan originator with good reason. For some reason the Nevada Attorney General seems to always have their hands full.
Nevada
Division of Mortgage Lending has replied to a challenge in writing,
the person which originated the challenge may send a written rebuttal provided
this is done within:
30 days
of receipt of the Division's reply .
7 days of
receipt of the Division's reply
60 days of
receipt of the Division's reply
14 days of
receipt of the Division's reply
The person who filed
a challenge only has 30 days to send a written rebuttal following receipt of
the Division's reply.
With regard to violations, when a
person decides to challenge information provided by the Division of Mortgage
Lending to the NMLS, the challenge must be addressed to:
The
Office of the Commissioner .
The Division of
Real Estate
The Office of
the Attorney General
The Division of
Mortgage Lending
When a person
decides to challenge information provided by the Division of Mortgage Lending
to the NMLS, the challenge must be sent in writing by regular mail to the Division
and addressed to the Office of the Commissioner.
To whom does the Commissioner of the
Division of Mortgage Lending report?
The Secretary
of State
The Director of
the Department of Finance
The Governor
The
Director of the Department of Business and Industry .
The Commissioner of
the Division of Mortgage Lending reports to the Director of the Department of
Business and Industry, who reports to the Governor.
The Advisory Panel for the Division
has how many members?
3.
5 .
7
9
The Advisory Panel
for the Division of Mortgage Lending has 5 members.
To whom does the Commissioner report all violations of state and
Federal law?
FBI
Attorney
General
NMLS .
HUD
The Commissioner of
the Division of Mortgage Lending is charged by Nevada code with reporting all
violations of state and Federal mortgage law to the NMLS. Violations that
involve criminal behavior may also be referred to the Attorney General, or to
the FBI if the activity involves interstate fraud. HUD does not track
violations.
Which of the following is a covered service of a loan modification
consultant under NRS 654F?
Assist a
homeowner to obtain a waver of an acceleration clause.
Obtain a
forbearance from a mortgagee.
Prevent or
postpone a foreclosure sale.
Negotiating
a change in the loan maturity. .
NRS 654F defines and
applies to both Foreclosure Prevention Specialists and Loan Modification
Consultants. Obtaining a waver of an acceleration clause or a forbearance or
any other action to prevent or postpone a foreclosure sale is an activity of a
Foreclosure Prevention Specialist. Negotiating a change in the loan maturity is
an activity of a Loan Modification Consultant.
Which activity is included in the definition of a residential
mortgage loan originator found in NRS 645B?
Communicating
with a borrower regarding information needed to process a loan.
Taking
a mortgage loan application. .
Accepting
documentation for a mortgage loan application.
Analyzing
information collected in support of a mortgage loan application.
The definition of a
residential mortgage loan originator found in NRS 645B includes any person who
takes a residential mortgage loan application or offers or negotiates terms of
a residential mortgage loan for compensation or other pecuniary gain. It does
not include a person who performs support or clerical services, such as
accepting documentation, communicating with borrower regarding needed
information, or analyzing that information.
Where in the Nevada Revised Statutes will find the Unfair Lending Practices Act?
NRS 645B
NRS 645E
NRS
598D .
NRS 645F
The Unfair Lending
Practices Act is found in NRS 598D. NRS 645B is the Mortgage companies and
Mortgage loan originators Act, NRS 645E is the Mortgage Banker Act and NRS 645F
is the Loan Modification and Foreclosure Consultant Act.
Under NRS 205.372, which of the following would not be considered a
mortgage lending transaction?
The
solicitation of a person to obtain a loan.
Receipt
of a regularly scheduled monthly payment. .
The negotiation
of the terms of a loan.
The execution
of any document related to the making of a loan.
Under 5. NRS
205.372, a "Mortgage Lending Transaction" is any activity to solicit,
negotiate, or prepare to make a mortgage loan. The receipt of a regularly
scheduled monthly payment does not meet that definition.
Under NRS 645B, which of the following would be considered a
"Private Investor?"
A family trust
that provides funds to invest in a lien secured by real property.
A
married couple who provide their own funds to invest in a lien secured by real
property. .
An investment
trust that provides funds to invest in a lien secured by real property.
A retirement
fund that provides funds to invest in a lien secured by real property.
Under NRS 645B, a
"private Investor" is either a natural person or 2 or more related
investors who provide funds to invest in a lien secured by real property.
Family trusts, investment trusts, and retirement funds are not natural persons.
A licensee must re-take a written test if he/she has not maintained
a valid license for at least:
A licensee must re-take a written test if he/she has not maintained
a valid license for 5 years or more.
With regard to claims against a surety bond, payment can be made:
Payment for claims against a surety bond can be made prior to court
action.
What are the continuing education requirements for a mortgage agent
in the state of Nevada?
The minimum continuing education requirement is 10 hours of
approved courses every year.
How long must a mortgage banker retain, at the location where they
were taken, applications that were denied or withdrawn?
A mortgage banker must retain, at the location they were taken,
applications that were denied or withdrawn for at least 1 year.
Under NRS 645B, how frequently, at a minimum, must the
commissioner perform an examination of each mortgage broker doing business in
the State of Nevada?
Under NRS 645B, the commissioner must, at a minimum, perform an
examination of the records of every mortgage broker doing business in the
State of Nevada annually.
What is the maximum administrative fine if a licensee fails to
provide at least 10 days advance notice to the Commissioner of a proposed
change of address?
The maximum administrative fine that may be imposed if a licensee
fails to provide at least 10 days advance notice to the Commissioner of a
proposed change of address is $500.
When is a mortgage broker required to designate a "qualified
employee?"
Any mortgage broker that is not a natural person must designate a
"qualified employee." the location, number of offices, or number of
employed agents are not relevant to the requirement.
Which of the following statements regarding funds received from a
debtor in full or partial payment of a loan is NOT correct?
Funds received
must not be released, in any proportion, to an investor who owns a beneficial
interest in the loan, unless the amount described is also released to every
other investor who owns a beneficial interest in the loan. All other
requirements are accurate.
If monies are received from
a private investor to fund a loan and are placed in escrow in connection with
a loan, but that loan subsequently fails to close, what must the broker do
with the monies received?
Money received
by a mortgage broker and his mortgage agents from a private investor may be
held in trust for not more than 45 days before an escrow account must be
opened in connection with a loan. If, within this 45-day period, the loan
or the transfer is not consummated, the money must be returned within 24
hours.
If a general
partner, director, officer, agent or employee of a mortgage broker violates
any provision regarding the handling of trust accounts and the amount
involved is $250 or more but less than $1,000, the violation is considered
what?
If a general
partner, director, officer, agent or employee of a mortgage broker
violates any provision regarding the handling of trust accounts and the
amount involved is $250 or more but less than $1,000, the violation is
considered a gross misdemeanor. If the amount involved is under $250, the
violation is a misdemeanor and if the amount is over $1,000, it is a Class
D felony.
How quickly must any material change in the
ownership, management or principal employees of a mortgage broker at his
principal office or a branch office be reported to the Commissioner?
Any material
change in the ownership, management or principal employees of a mortgage
broker at his principal office or a branch office must be reported to
the Commissioner within 30 calendar days after the change.
Which of the
following is NOT a protected class under Nevada's anti-discrimination
provisions?
Nevada
prohibits discrimination on the basis of gender identity, ancestry and
familial status. However, citizenship status is a legitimate underwriting
criteria that must be considered.
Within what
time period must a broker report a material change in the ownership,
management or principal employees of a mortgage broker at his
principal office or a branch office?
Any
material change in the ownership, management or principal employees
of a mortgage broker at his principal office or a branch office must
be reported to the Commissioner within 30 calendar days after the
change.
The
license number or unique identifier of a licensee is required to
appear on all but which of the following?
The
license number or unique identifier of a licensee must appear on
all application forms solicitations and advertisements and in all
communications, including emails, websites, blogs, and twitters. It
is not required on federal disclosure forms.
Which of
the following is not a form of mortgage fraud?
Counseling
borrower to clean up their credit reports prior to applying for a
mortgage is an accepted practice. However, counseling a borrower
to remove or not disclose negative information on their
application is a form of mortgage fraud. Knowingly allowing the
recording of a document containing a false statement and allowing
information know to be
false to remain in a file and be considered by a lender are also
forms of mortgage fraud.
Which of the following records regarding the operation
of a mortgage broker is NOT required to be retained?
The
list of items that must be retained in the records of a licensee
is extensive. It includes copies of all deposit slips, electronic
correspondence and advertising material. It does not include
solicitations received from third-party vendors.
When working with a private investor that is a
natural person, which of the following documents is NOT required
to be retained in the files of the mortgage broker?
When
working with a private investor that is a natural person there
is no requirement that the mortgage broker retain any notice
given to the applicant that the file will be reviewed by a
private investor. All other notices mentioned are required.
Which of the following statements regarding
limitations on the use of a Power of Attorney by a mortgage
broker is NOT accurate?
Nevada
code does not prevent a mortgage broker or its agents from
representing more than one private investor in regards to any
single loan transaction. All other restrictions given are
included in the code.
Which of the following is not a form of mortgage
fraud?
Counseling
borrower to clean up their credit reports prior to applying
for a mortgage is an accepted practice. However, counseling a
borrower to remove or not disclose negative information on
their application is a form of mortgage fraud. Knowingly
allowing the recording of a document containing a false
statement and allowing information know to be false to remain in
a file and be considered by a lender are also forms of
mortgage fraud.
What type of loan may be made without considering
a borrower's ability to repay the loan?
A licensee must consider a borrower's ability to
repay with every loan transaction except a reverse mortgage.
Accepted standards for determining the borrower's ability to
repay exist for stated income and no-doc loans.
What is the
maximum administrative fine the Commissioner may impose for
acting as a mortgage broker without a license?
The Commissioner may impose and administrative
fine of up to $50,000 for acting as a mortgage broker
without a license.
Which of the following is NOT an action for
which the Commissioner may suspend the license of a
mortgage broker, banker, or agent?
The Commissioner may suspend the license of a
mortgage broker, banker, or agent for failing to pay
court-ordered child support, failing to respond to a
subpoena, and receiving the lowest possible score in two
consecutive examinations. Receiving the lowest possible
score in one examination is not sufficient cause, on its
own, to warrant suspension.
Who may bring a civil action against a
licensee for violating any provision of the Mortgage
Banker Act or Mortgage Broker Act?
Both the Attorney General and a client who
has been harmed may bring civil action against a licensee
for violations of the Mortgage Broker Act and the
Mortgage Banker Act.
What
is the minimum (shortest) prison term that may be imposed
for a conviction of a pattern of mortgage fraud?
The minimum (shortest) prison term that may
be imposed for a conviction of a pattern of mortgage
fraud is 3 year's
5
What
is the maximum penalty that can be felony)? imposed for
a pattern of mortgage lending fraud (category B:
The maximum penalty that can be imposed for
a pattern of mortgage lending fraud (category B felony)
is $50,000.
What
is the maximum administrative fine the Commissioner may
impose for acting as a mortgage broker without a
license?
The Commissioner may impose and
administrative fine of up to $50,000 for acting as a
mortgage broker without a license.
Following
a hearing, how many days does the Commissioner have to
render a decision?
Following
a hearing, the Commissioner must render a decision
within 45 days.
What
is the maximum penalty that can be felony)? imposed
for a pattern of mortgage lending fraud (category B:
The
maximum penalty that can be imposed for a pattern of
mortgage lending fraud (category B felony) is
$50,000.
What is the minimum (shortest) prison
term that may be imposed for a conviction of a single
act of mortgage fraud?
The minimum (shortest) prison term that
may be imposed for a conviction of a single act of
mortgage fraud is 1 year.
Which
of the following statements regarding limitations
on the civil actions a client may take against a
licensee is NOT accurate?
Nevada law does not restrict the civil
damages that may be awarded to a client who has
been harmed by the unlawful acts of a mortgage
broker, banker, or agent. They are free to seek
both punitive and consequential damages in the
same action.
he
fee payable to file an original application for a
license for a principal office is:
The fees payable to file an original
application for a license is $750 for the
principal office and $100 for each branch office.
To obtain an
initial license, any Loan Modification Consultant
must complete at least:
A Loan Modification Consultant must
complete at 15 hours of instruction in order to
obtain an initial license. 5 hours of
instruction are then be necessary during the
first-year license period.
Prior
to the execution of a contract negotiated in a
language other than English, the homeowner will
be given a translation of the document at least:
A
loan modification consultant or foreclosure
purchaser who negotiates in a language other
than English in the course of entering into a
contract for the provision of any covered
service will deliver to the homeowner at least
two calendar days prior to the execution of the
contract, a translation in at least a 10-point
type of the material term f the contract in the
language in which the contract was negotiated,
along with a statement indicating that the
original contract will be in English.
How many days
must a homeowner be given to rescind a contract
with a loan modification consultant?
A
homeowner must be given three (3) days to
rescind any contract with a loan modification
consultant.
What is the
maximum administrative fine for each violation
of the regulations regarding loan
modification services?
The maximum administrative fine
that may be imposed for each violation of
the regulations regarding loan modification
services is $10,000.
Which
rating following an examination of a loan
modification consultant indicates that the
loan modification consultant and the
management of the loan modification
consultant have demonstrated less than
satisfactory compliance with applicable laws
and reg:
A
"3" rating
A
"4" rating
A
"5" rating
A
"2" rating
A rating of "3"
following an examination indicates that the
loan modification consultant and the
management of the loan modification
consultant have demonstrated less than
satisfactory compliance with applicable laws
and regulations and that regulatory
supervision is required.