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Nevada Mortgage Test Study

 Nevada mortgage licensing test 

questions and answers

Study Guide

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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:

 

4 years

5 years .

3 years

2 years

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:

 

Within 7 days of court action

Prior to court action .

Within 30 days of court action

Within 14 days of court action

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?

 

10 hours every year .

12 hours every year

12 hours every two years

10 hours every two years

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?

 

3 years

6 months

4 years

1 year .

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?

 

Every two years

Every six months

Every 3 years

Every year .

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?

 

$1,000

$250

$100

$500 .

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?"

 

When the mortgage broker is not located in the State of Nevada.

When the mortgage broker employs more than 15 mortgage agents

When the mortgage broker operates more than one office

When the mortgage broker is not a natural person .

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?

 

The funds may be deposited in an account in an insured depository institution.

All funds must be kept separate from money belonging to the mortgage broker.

The funds may be deposited in an escrow account controlled by an independent third party.

Funds received may be released, in any proportion, to an investor who owns a beneficial interest in the loan, whether or not the amount described is also released to every other investor who owns a beneficial interest in the loan .

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?

 

The monies received must be returned to the investor within 48 hours of the determination that the loan will not close.

The monies received must be returned to the investor within 24 hours of the determination that the loan will not close.

The monies received may be applied to a different loan if written permission to do so is received from the investor.

The monies received may be held in an escrow account for up to 45 days and applied to a different loan if written permission to do so is received from the investor.

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?

 

A Class D felony

A Class B felony.

A misdemeanor

A gross misdemeanor

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?

 

Within 30 calendar days after the change

At least 10 calendar days prior to the change

Within 10 calendar days after the change

At least 30 calendar days prior to the change

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?

 

Citizenship status

Gender identity

Familial status

Ancestry

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?

 

15 days

5 days

30 days

10 days

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?

 

Federal disclosure forms

Application forms

Business cards

Mortgage related emails

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?

 

Knowingly allowing a document containing inaccurate or false information to be recorded in conjunction with a mortgage loan transaction

Allowing information provided by a borrower that  know to be false to remain a part of a loan application and to be considered and relied upon by a lender

Counseling a borrower to remove or not disclose negative information on their loan application

Counseling a borrower to attempt to remove negative information from their credit report prior to applying for a mortgage

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?

 

Copies of all electronic correspondence

Copies of all deposit slips

Copies of all solicitations received from third-party vendors.

Copies of each piece of advertising material

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?

 

Notice that the investor received the required application documents, or that the investor waived in writing the right to receive the documents

Notice that the decision to make the loan was made after the investor had the opportunity to receive and review the required application documents

Notice that the investor continues to meet the minimum financial requirement

Notice that the applicant is aware that the loan application will be reviewed by a private investor

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?

 

The provisions of the Power of Attorney must expressly prohibit the mortgage broker and his mortgage agents from using or releasing any money in which the private investor owns a beneficial interest with regard to the specific loan for a purpose that is n

The provisions of the Power of Attorney must expressly provide that the power of attorney is effective only for the term of the specific loan unless the mortgage broker obtains written approval from the private investor to extend the term of the power of

The provisions of the Power of Attorney must expressly prohibit the mortgage broker and his mortgage agents from engaging in any act or transaction that subordinates the priority of a recorded deed of trust unless, before such an act or transaction, the m

The provisions of the Power of Attorney must expressly prohibit the mortgage broker and his mortgage agents from acting on behalf of more than one private investor in regards to any single mortgage loan transaction.

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?

 

Knowingly allowing a document containing inaccurate or false information to be recorded in conjunction with a mortgage loan transaction

Counseling a borrower to attempt to remove negative information from their credit report prior to applying for a mortgage

Counseling a borrower to remove or not disclose negative information on their loan application

Allowing information provided by a borrower that  know to be false to remain a part of a loan application and to be considered and relied upon by a lender

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?

 

No type of loan may be made without considering a borrower's ability to repay.

A reverse mortgage

A "stated income" loan

A "no document" 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?

 

$25,000

$10,000

$100,000

$50,000

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?

 

Failing to pay court-ordered child support

Receiving the lowest possible rating on two consecutive examinations

Failure to respond to a subpoena

Receiving the lowest possible score on any examination

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?

 

No civil claims are permitted for violations of the Mortgage Banker Act or the Mortgage Broker Act

A client only

Both the Attorney General and a client

The Attorney General only

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?

 

1.

5 years

3 years

10 years

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:

 

$50,000 .

$25,000

$10,000

$100,000

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?

 

$100,000

$10,000

$25,000

$50,000

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?

 

10 days

45 days

20 days

30 days

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:

 

$10,000

$50,000

$25,000

$100,000

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?

 

5 years

10 years

3 years

1 year

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?

 

A client may seek compensatory damages in any amount deemed appropriate by the court

A client may seek punitive damages in any amount deemed appropriate by the court

A client may seek all court costs and reasonable attorney's fees

A client may not seek both punitive damages and consequential damages within the same action

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:

 

$750

$150

$250

$100

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:

 

10 hours of instruction

15 hours of instruction

5 hours of instruction

12 hours of instruction

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:

 

1 calendar day prior to the execution of the contract

3 calendar days prior to the execution of the contract

4 calendar days prior to the execution of the contract

2 calendar days prior to the execution of the contract

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?

 

4 days

5 days

3 days

2 days

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?

 

$5,000

$10,000.

$20,000

$25,000

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.

 

When may a person who holds a beneficial interest in a loan act on behalf of all holders of a beneficial interest in that loan?

 

Only when that person holds a limited power of attorney from all others holding a beneficial interest in the loan which authorizes him to act on their behalf

Only when the beneficial interest held by that person represents the largest portion of the outstanding principal balance of the loan held by anyone holding a beneficial interest in the loan..

Only when the beneficial interest held by that person represents at least 51% of the outstanding principal balance of the loan.

Only when that person has written consent from all others holding a beneficial interest in the loan to act on their behalfY

Except as otherwise provided by law or by agreement between the parties and regardless of the date the interests were created, if the beneficial interest in a loan belongs to more than one natural person, the holders of 51 percent or more of the outstanding principal balance may act on behalf of all the holders of the beneficial interests of record on matters which require the action of the holders of the beneficial interests in the loan. Therefore, written consent or a power of attorney would permit a person to act on behalf of others, but they are not the only way that this may be accomplished.

 

 

For how many consecutive weeks must a trustee publish a notice of intent to sell a property that secures a loan that is in default?

 

4 weeks.

3 weeks

2 weeks

6 weeks

A trustee must publish a copy of the notice of intent to sell three times, once each week for 3 consecutive weeks, in a newspaper of general circulation in the county where the property is situated.

 

 

Under NRS 598D, a home loan whose terms allow a borrower to establish his ability to repay the home loan without providing any verification of his income and other assets is called what?

 

A low-document loan

A no-verification loan

A stated-document loan.

A no-document loan

NRS 598D defines a low-document, stated document, and no-document loan. There is no definition for a "no-verification" loan. A home loan whose terms allow a borrower to establish his ability to repay the home loan without providing any verification of his income and other assets is called a "no-document loan."

 

 

After receiving a notice of default and intent to record a notice of sale, how long does a debtor have to correct the deficiency?

 

90 days

35 days.

180 days

45 days

A debtor who is in default has 35 days after receiving a notice of default and intent to record a notice of sale to correct the deficiency. Following that 35 day period, the trustee may record the notice of intent to sell and must way 90 days before scheduling the sale.

 

 

Which of the following is required to be licensed as a mortgage loan originator?

 

A mortgage loan underwriter acting as an employee of a licensed mortgage lender.

A loan processor acting as an independent contractor

A person licensed as a Real Estate broker who negotiates the terms of a mortgage loan on behalf of a client as an uncompensated ancillary service.

An attorney admitted to practice law who negotiates the terms of a mortgage loan on behalf of a client as an uncompensated ancillary service.

A loan processor acting as an independent contractor must be licensed as a mortgage loan originator. Attorneys and licensed Real Estate brokers who negotiate the terms of a loan as an uncompensated ancillary service are exempt, as is an underwriter acting as an employee of a licensee.

 

 

The regulation and enforcement of the Credit Service Organizations is under the jurisdiction of:

 

The Division of Mortgage Lending

The Office of the Commissioner

The Division of Financial Institutions

The Office of the Attorney General

The Division of Mortgage Lending registers Credit Services Organizations and holds their surety bonds. However, the regulation and enforcement of these organizations is under the jurisdiction of the Office of the Attorney General.

 

 

Which of the following professionals is not regulated by the Division of Mortgage Lending?

 

Real Estate appraisers

Escrow Agents

Foreclosure Consultants

Mortgage Brokers

The Division of Mortgage Lending holds regulatory authority over Mortgage Bankers, Mortgage Brokers, Mortgage Agents, Escrow Agencies, Escrow Agents, Loan Modification Consultants, Foreclosure Consultants, and other persons who provide similar services. It does not have authority to regulate real estate appraisers.

 

 

Which of the following would meet the definition of a "bona fide purchaser" under NRS 205.372?

 

Any person who purchases a mortgage in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the lender or any agent of the lender engaged in mortgage lending fraud

Any person who purchases a home in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the seller or any agent of the seller engaged in real estate fraud

Any person who purchases a mortgage in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the borrower or any agent of the borrower engaged in mortgage lending fraud

Any person who purchases a home in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the lender or any agent of the lender engaged in mortgage lending fraud

Under NRS 205.372, a "bona fide purchaser" is any person who purchases a mortgage in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the lender or any agent of the lender engaged in mortgage lending fraud. The definition does not address home buyers, borrowers or sellers.

 

 

Which of the following statements regarding funds received from a debtor in full or partial payment of a loan is NOT correct?

 

Funds received may be released, in any proportion, to an investor who owns a beneficial interest in the loan, whether or not the amount described is also released to every other investor who owns a beneficial interest in the loan

The funds may be deposited in an escrow account controlled by an independent third party.

The funds may be deposited in an account in an insured depository institution.

All funds must be kept separate from money belonging to the mortgage broker.

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.

 

 

Which of the following would be considered a home under NRS 598D?

 

An owner-occupied 6-unit residential property.

A mobile home with wheels removed and set on a lot held on a lease with a term of 30 years.

A mobile home with wheels removed and set on a lot held on a lease with a term of 50 years.

An owner-occupied 8-unit residential property

Under NRS 598D, a home is a dwelling or dwellings for not more than four families, the principal use of which is for residential purposes. A mobile home qualifies if the wheels have been removed and it has been set on a lot owned by the homeowner or leased with a term of not less than 40 years. A 6-unit or 8-unit residential property does not meet the definition because of the number of units.

 

 

To whom does the Commissioner of the Division of Mortgage Lending report?

 

The Director of the Department of Business and Industry .

The Governor

The Secretary of State

The Director of the Department of Finance

The Commissioner of the Division of Mortgage Lending reports to the Director of the Department of Business and Industry, who reports to the Governor.

 

 

Which of the following statements regarding funds received from an investor to fund a loan is NOT correct?

 

All funds must be kept separate from money belonging to the mortgage broker.

The funds must be held in an interest bearing account.

The funds may be deposited in an account in an insured depository institution.

The funds may be deposited in an escrow account controlled by an independent third party.

There is no requirement in the law that funds must be held in an interest bearing account. All other statements are accurate.

Which of the following is NOT a protected class under Nevada's anti-discrimination provisions?

 

Familial status

Gender identity

Ancestry

Citizenship status

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.

Which of the following information is NOT required when submitting a request for approval of the closure of the principal office of a mortgage broker?

 

The status of any incomplete applications for mortgage loans and the manner in which the loans will be finalized

A statement regarding the disposition of all tangible assets of the mortgage broker, including any earnings, furniture, equipment or other tangible assets

An accounting of any trust account maintained by the mortgage broker and the plan for distribution of money in the account

If any mortgage agent associated with or employed by the mortgage broker has been terminated, evidence of the termination

When submitting a request for approval to close the principal office of a mortgage broker, the request must include information on the status of any incomplete loan applications, an accounting of any trust funds, and evidence of the termination of any agents who have been terminated. There is no requirement to account for the tangible assets of the broker.

 

 

What is the maximum fee to apply for a certificate of exemption that exempts a person from the annual continuing education requirements?

 

$150

$100

$200

$170

The fee apply for a certificate of exemption from the annual continuing education requirements is $200. However, the fee to renew a certificate is $100.

 

 

How many fraudulent acts in what number of transactions constitutes a "pattern of mortgage lending fraud?"

 

One or more offenses in three or more transactions

Two or more offenses in three or more transactions

One or more offenses in two or more transactions

Two or more offenses in two or more transactions

A "pattern of mortgage lending fraud" requires a minimum of one or more offenses in two or more transactions.

 

 

How many employing entities (brokers or bankers) may an originator be employed by at the same time?

 

An originator may be employed by no more than one employing entity at a time.

An originator may be employed by no more than 2 employing entities, if those entities serve substantially different areas of the mortgage market.

An originator may be employed by no more than 5 employing entities, if those entities serve substantially different areas of the mortgage market.

An originator may be employed by no more than 3 employing entities, if those entities serve substantially different areas of the mortgage market.

An originator may never be employed by more than one employing entity at the same time.

 

 How many days must a homeowner be given to rescind a contract with a loan modification consultant?

 

2 days

5 days

4 days

3 days

A homeowner must be given three (3) days to rescind any contract with a loan modification consultant.

The Advisory Panel for the Division has how many members?

 

5

3

9

7

The Advisory Panel for the Division of Mortgage Lending has 5 members.

 

 

A loan to which of the following persons would NOT be considered an insider loan?

 

A director of the mortgage banker

An employee of the mortgage banker

A stockholder of the mortgage banker

An officer of the mortgage banker

An insider loan is a loan to an officer, director or employee of a mortgage banker. A loan made to a stockholder that is not a director of the company is not an insider loan.

During what time period would a felony conviction related to fraud, dishonesty, a breach of trust, money laundering or moral turpitude disqualify an individual from licensure as a mortgage loan originator?

 

Any conviction in the previous 10 years.

Any previous conviction ever

Any conviction in the previous 7 years.

Any conviction in the previous 5 years.

Any conviction ever of a felony involving fraud, dishonesty, a breach of trust, money laundering or moral turpitude would disqualify and individual from licensure as a mortgage loan originator.

What is the maximum fee to renew a certificate of exemption that exempts a person from the annual continuing education requirements?

 

$100

$150

$200

$170

The fee for applying for a certificate of exemption from the annual continuing education requirements is $200. However, the fee to renew the certificate is $100.

What is the minimum (shortest) prison term that may be imposed for a conviction of a single act of mortgage fraud?

 

3 years

1 year

5 years

10 years

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 fees may not be financed in a mortgage transaction in the State of Nevada?

 

Credit life insurance premiums

Interest rate discount points

Title insurance premiums

Origination fees

In the State of Nevada it is considered an unfair lending practice to finance, directly or indirectly in connection with a home loan, any credit insurance premium, including credit life insurance.

How many days following receipt of a notice to cease and desist does a licensee have to file a request for a hearing?

 

30 days

15 days

10 days

20 days

A licensee who receives a cease and desist order has 20 days to file a request for a hearing. That hearing must be scheduled within 30 days of receipt of the request.

Which of the following statements is NOT true regarding the responsibilities of mortgage brokers to supervise mortgage agents in their employ as specified in Nevada code?

 

Mortgage brokers must establish a system to review, oversee and inspect all documents prepared by the mortgage agents that may have a material effect upon the rights or obligations of a party to such a transaction.

Mortgage brokers must establish a system to review, oversee and inspect all communications between a mortgage agent and any party to a mortgage transaction.

Mortgage brokers must establish a system to review, oversee and inspect the handling by the mortgage agents of any fee, deposit or money paid to the mortgage broker or the mortgage agents.

Mortgage brokers must establish a system to review, oversee and inspect all sales calls and other marketing efforts made by the mortgage agent on behalf of the mortgage broker.

While it may be prudent for a mortgage broker to do so, Nevada code does not specifically require that a mortgage broker establish a system to review, oversee and inspect all sales calls and other marketing efforts made by the mortgage agent on behalf of the mortgage broker. All other requirements mentioned are specifically included in the code.

Which of the following actions is considered a fraudulent act in the State of Nevada?

 

Knowingly recording a document with a county recorder that contains a factual misstatement

Unknowingly facilitating the use of another person's concealment or failure to disclose a material fact

Unknowingly failing to disclose a material fact

Unknowingly receiving funds from a transaction in which another party committed fraud.

A finding of fraud requires intent and foreknowledge. Therefore, a person must knowingly commit a fraudulent act. Unknowingly facilitating the use of another person's concealment or failure to disclose a material fact, therefore, is not a fraudulent act. It may still subject the licensee to civil liability, but it is not a criminal act.

What is the maximum penalty that can be felony)? imposed for a pattern of mortgage lending fraud (category B:

 

$50,000

$25,000

$100,000

$10,000

The maximum penalty that can be imposed for a pattern of mortgage lending fraud (category B felony) is $50,000.

Within how many days must a licensee correct any deficiency or violation cited in an order by the Commissioner?

 

30 days

20 days

10 days

45 days

A licensee must correct any deficiency or violation cited in an order by the Commissioner within 10 days unless that order specifies a longer period.

If a mortgage broker or agent places their license in inactive status in order to fulfill an active duty military obligation, how long after completing their military service do they have to reactivate their license without having to pass an exam or under:

 

9 months

3 months

12 months

6 months.

If a mortgage broker or agent places their license in inactive status in order to fulfill an active duty military obligation, they have six months from the time they complete their military service to reactivate their license without having to pass an exam or undergo an investigation.

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 "5" rating

A "4" rating

A "2" rating

A "3" 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.

 

What is the maximum civil liability payable to a borrower by a licensee who has been found to have engaged in an unfair lending practice?

 

4 times the actual damages incurred, plus reasonable court costs and legal fees

5 times the actual damages incurred, plus reasonable court costs and legal fees

2 times the actual damages incurred, plus reasonable court costs and legal fees

3 times the actual damages incurred, plus reasonable court costs and legal fees

The maximum civil liability payable to the borrower by a licensee who has been found to have engaged in unfair lending practices is 3 times the actual damages incurred, plus reasonable court costs and legal fees.

Which of the following is NOT an action for which the Commissioner may suspend the license of a mortgage broker, banker, or agent?

 

Receiving the lowest possible score on any examination.

Receiving the lowest possible rating on two consecutive examinations

Failing to pay court-ordered child support

Failure to respond to a subpoena

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.

If a licensee fails to file the required documents to renew their license, they may later file a request to reinstate the license. What is the amount of the reinstatement fee?

 

$170

$245

$100

$75 .

If a licensee fails to file the required documents to renew their license at the time prescribed, their license is suspended. They may later file a request to reinstate the license but must pay a reinstatement fee of $75. This is in addition to the normal renewal fee of $170, making a total of $245.

For a file on a mortgage transaction closed directly by an investor to be considered "complete and suitable," it must include all but which of the following?

 

A copy of the title policy

The original loan application.

The Uniform Settlement Statement

The appraisal report

When a loan is closed directly by an investor, they receive a copy of the title policy from the closing agent. Therefore, it is not required to be in the file held by the broker. All other documents are required.

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:

 

3 calendar days prior to the execution of the contract

1 calendar day prior to the execution of the contract

2 calendar days prior to the execution of the contract

4 calendar days prior to the execution of the contract

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.

What recourse does a borrower have if a lender or the lender's agent is convicted of fraud in connection with the borrower's mortgage transaction.

 

The borrower may seek to rescind the mortgage transaction within 12 months of the conviction

The borrower may seek to rescind the mortgage transaction within 36 months of the conviction

The borrower may seek to rescind the mortgage transaction within 24 months of the conviction

The borrower may seek to rescind the mortgage transaction within 6 months of the conviction

A borrower may seek to rescind any mortgage transaction in which a lender or an agent of the lender has been found by a court to have committed mortgage fraud. The request for rescission must be filed within 6 months of the conviction.

Under NRS 654F, a transfer of at least what percentage of the outstanding voting stock of a foreclosure consultant constitutes a change of control?

 

10%

25%

50%

51%

Under NRS 654F, a transfer of at least 25% of the outstanding voting stock of a foreclosure consultant constitutes a change of control.

During what time period would a felony conviction related to fraud, dishonesty, a breach of trust, money laundering or moral turpitude disqualify an individual from licensure as a mortgage loan originator?

 

Any previous conviction ever.

Any conviction in the previous 5 years.

Any conviction in the previous 10 years.

Any conviction in the previous 7 years.

Any conviction ever of a felony involving fraud, dishonesty, a breach of trust, money laundering or moral turpitude would disqualify and individual from licensure as a mortgage loan originator.

A licensee's fiduciary responsibility to a client (borrower) requires that they do all BUT which of the following?

 

Not accept any fees that exceed the usual and customary fees for that service in their market

Conduct only those mortgage transactions that are in the best interests of the client

Provide an accounting to the client that lists all money and property received from the client

Disclose any financial, business, professional or personal interest the person has in conducting a mortgage transaction for the client

A licensees fiduciary responsibility does not require that they only collect those fees that are usual and customary, though all fees must be disclosed in advance. All other requirements are stated in the law.

Which of the following would be considered a "non-substantive change" in an advertisement that would not require approval from the Division?

 

A change in interest rate and the associated APR

A change in the mortgage loan program being advertised

A change in the qualifying requirements being advertised

A change in the services being advertised

A "non-substantive change" is one that does not change the meaning or intent of the advertisement. Change in interest rate, with its associated APR, meets that requirement. Changes in loan program, qualifying requirements and services being advertised do not. They would require approval.

What are the continuing education requirements for a mortgage agent in the state of Nevada?

 

12 hours every year

12 hours every two years

10 hours every years

10 hours every two years

The minimum continuing education requirement is 10 hours of approved courses every year.

The Advisory Panel for the Division has how many members?

 

9

7

5

3

The Advisory Panel for the Division of Mortgage Lending has 5 members.

Which of these persons needs to be licensed as a Mortgage Loan Agent in Nevada?

 

A licensed Real Estate Broker who negotiates loans on behalf of a consumer and receives compensation from the lender for those services .

A person licensed to practice law who negotiates a mortgage loan on behalf of a client as part of their normal legal services

A seller of real property who offers credit secured by a mortgage of the property sold

A loan underwriter working for and under the direction of a licensed individual

A licensed Real Estate Broker who receives compensation for arranging a mortgage loan must be separately licensed as a mortgage agent. A loan underwriter is exempt if employed and supervised by a licensed person. A seller of real property who offers credit secured by a mortgage on the property sold and an a licensed attorney if the work is incidental to their law practice are also exempt.

If the annual review of an impound trust account shows that excess funds have been deposited into the account, how long after receiving a report from the broker or lender does the debtor have to respond to that report and indicate how they want the excess:

 

20 days

15 days

10 days

30 days

After receiving a notice from the lender or broker regarding excess funds deposited into an impound escrow account, the debtor may specify the disposition of the excess money within 20 days after receipt of the notice. If the debtor fails to specify such a disposition within that time, the mortgage broker will maintain the excess money in the account.

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 "4" rating

A "5" rating

A "3" 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.

Which of the following is NOT considered personal information, protected by privacy laws, when found in combination with a person's first and last name?

 

Account number.

Physical address

Driver's license number

Employer identification number

A person's physical address is a matter of public record and is not considered personal information in the State of Nevada. An employer identification number, driver's license number, or account number, when found in combination with the person's first and last name, are considered protected personal information.

Which of the following is NOT a violation in regards to the actions of a mortgage agent?

 

Being convicted or pleading nolo contendere to any felony

Failing to pay a fee to a third party for services performed in relation to a mortgage transaction

Being convicted of or pleading nolo contendere to a misdemeanor offense

Having a financial services license, other than as a mortgage agent, suspended in any jurisdiction

Being convicted of or pleading nolo contendere to a misdemeanor offense is not a violation. However, all other actions listed are.

Which of the following need NOT be included when notifying the Division of the termination of a mortgage agent?

 

The name and address of the new employer of the mortgage agent.

A copy of the written statement that the mortgage broker delivers or mails to the mortgage agent

A written statement of the circumstances surrounding the termination

The license number or unique identifier of the mortgage agent

The license number or unique identifier of the mortgage agent, a written statement of the circumstances surrounding the termination, and a copy of the notice sent to the mortgage agent must all be provided to the Division. The name and address of the agent's new employer are not required.

How many years following a felony conviction not related to fraud, dishonesty, breach of trust, or money laundering must  wait before applying for a mortgage loan originator's license?

 

3 years

5 years

9 years

7 years

The waiting period following a felony conviction not related to fraud, dishonesty, breach of trust, or money laundering is 7 years.

How many years following a felony conviction not related to fraud, dishonesty, breach of trust, or money laundering must  wait before applying for a mortgage loan originator's license?

 

9 years

7 years .

3 years

5 years

The waiting period following a felony conviction not related to fraud, dishonesty, breach of trust, or money laundering is 7 years.

Which of the following would not be considered a "covered service" under NRS 654F?

 

Advising the filing of any document or assisting in any manner in the preparation of any document for filing with a civil court for the purpose of pursuing litigation against the lender

Advising the filing of any document or assisting in any manner in the preparation of any document for filing with a bankruptcy court

Arranging or attempting to arrange for an extension of the period within which a homeowner may cure a default and reinstate an obligation pursuant to a note, mortgage or deed of trust

Financial counseling, including, without limitation, debt counseling and budget counseling

NRS 654F addresses covered services for foreclosure consultants and loan modification consultants. Financial counseling, arranging extensions, and assisting in the filing of paperwork for a bankruptcy are all covered services. However, assisting with the filing of a lawsuit against a lender is not.

When may  work as a mortgage loan originator in Nevada without a license?

 

When assisting borrowers in receiving financing while employed by a homebuilder.

When assisting a licensed mortgage loan originator.

When acting as a Registered Mortgage Loan Originator..

When  are a licensed attorney and receive compensation for r efforts from a mortgage broker or lender.

A person who meets the definition of a Registered Mortgage Loan Originator is exempt from licensure. The other circumstances given are not exemptions.

What is the minimum passing score for the national licensing exam?

 

80%

65%

75%.

70%

The minimum passing score for the national licensing exam is 75% of answers correct out of a total of 125 s.

Which of the following would NOT lead to the disqualification of an applicant for licensure as a mortgage agent?

 

A felony DUI conviction 8 years prior to application

A felony assault conviction in a foreign court 6 years prior to application.

A felony DUI conviction 6 years prior to application.

A felony assault conviction in a military court 6 years prior to application.

Any felony conviction in any domestic, foreign, or military court in the last 7 years is a disqualifying event. However, a felony conviction not involving fraud, dishonesty or a breach of trust, or money laundering or moral turpitude that occurred more than 7 years ago is not a disqualifying event.

What is the maximum penalty that can be imposed for mortgage lending fraud (category C felony)?

 

$10,000

$25,000

$100,000

$50,000

The maximum penalty that can be imposed for mortgage lending fraud (category C felony) is $25,000.

As a rule, when a licensee requests a hearing, this must be held within:

 

10 days

30 days

28 days

14 days

When a licensee requests a hearing, this must be held within 30 days after the date the petition is filed unless the Commissioner and the person agree on another date.

When a change of control occurs, the fee payable to register this change is:

 

$250

$100

$750

$150

The fee payable to register a change of control is $250.

How many hours of ethics instruction are required prior to licensure and what must be covered?

 

3; fraud, consumer protection, and high-cost loan provisions

2; fraud, consumer protection, and high-cost loan provisions

3; fraud, consumer protection, and fair lending issues

2; fraud, consumer protection, and fair lending issues

Consistent with the federal S.A.F.E. act, Nevada law requires that an applicant receive 3 hours of prelicensing education related to ethics and that fraud, consumer protection and fair lending issues be addressed in that training.

Which of the following activities regarding advertising is prohibited?

 

A mortgage agent placing an advertisement independent of the broker for whom the agent works and which includes the name and contact information for the employing broker.

A mortgage agent placing an advertisement jointly with a licensed company with the licensed company paying all costs of advertising

A mortgage agent placing an advertisement jointly with a licensed company with each party paying a pro-rata share of the costs of advertising.

A mortgage broker advertising a service requiring licensure and a service not requiring licensure in manner that each service appears separately

When a broker or agent an advertisement jointly with a licensed company, the names of both parties must appear in the ad and both parties must pay a pro rata share of the costs of advertising. Otherwise, the activities listed are acceptable.

Which of the following is not a form of mortgage fraud?

 

Counseling a borrower to attempt to remove negative information from their credit report prior to applying for a mortgage

Allowing information provided by a borrower that  know to be false to remain a part of a loan application and to be considered and relied upon by a lender

Counseling a borrower to remove or not disclose negative information on their loan application

Knowingly allowing a document containing inaccurate or false information to be recorded in conjunction with a mortgage loan transaction

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.

Following a suspension, a licensee can request a hearing provided this is done within:

 

20 days

21 days

10 days

14 days

Following a suspension, a licensee can request a hearing provided this is done within 10 days.

 28

A loan to which of the following persons would NOT be considered an insider loan?

 

A stockholder of the mortgage banker .

An officer of the mortgage banker

A director of the mortgage banker

An employee of the mortgage banker

An insider loan is a loan to an officer, director or employee of a mortgage banker. A loan made to a stockholder that is not a director of the company is not an insider loan.

 

 

When cancelling a surety bond, the Commissioner must be given:

 

120 days' notice

30 days' notice

90 days' notice

60 days' notice

Cancellation of a surety bond requires 60 days' notice to the Commissioner by certified mail.

Training in which of the following topics may NOT be applied to the continuing education requirements for the State of Nevada?

 

Approved education received during the previous year that exceeded the 10 hour requirement for that year

Training related to commercial lending

Training related to private investor loans

Training related to consumer lending

Nevada is one of the few states that allows a licensee to roll over excess training hours to meet the requirements for the following year. It is also one of the few states that allows training in commercial lending and private investor loans to count toward continuing education requirements. Nevada does not, however, allow training in consumer lending to qualify as continuing education for a mortgage agent.

 

 

The fee payable to file an original application for a license for a principal office is:

 

$150

$750

$250

$100

The fees payable to file an original application for a license is $750 for the principal office and $100 for each branch office.

What is the minimum face amount of the surety bond that a mortgage agent who produces less than $20,000,000 per year in mortgage loans must hold?

 

$75,000

$100,000

$50,000

$25,000

The minimum face amount of the surety bond that a mortgage agent who produces less than $20,000,000 per year in mortgage loans must hold is $50,000. If their production exceeds $20,000,000, the amount is $75,000.

In NRS 645B, the commissioner is specifically prohibited from adopting regulations governing what aspect of the mortgage industry?

 

Loan brokerage fees

Establishing a rating system to rate the financial performance of a mortgage broker

The transfer of beneficial interest in a loan secured by real property

Loans made to a director or employee of a licensee

NRS 645B specifically prohibits the commissioner from establishing regulations regarding loan brokerage fees. The making of loans to a director or employee, the transfer of a beneficial interest in a loan, and the establishing of a rating system are all responsibilities granted under the law.

When is a mortgage broker required to designate a "qualified employee?"

 

When the mortgage broker is not located in the State of Nevada

When the mortgage broker employs more than 15 mortgage agents

When the mortgage broker is not a natural person .

When the mortgage broker operates more than one office

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.

How frequently must a mortgage broker submit a report to the Commissioner regarding the status of funds held in trust for investors?

 

Every 3 months

Annually

Every 6 months .

Monthly

If a mortgage broker maintains any accounts, the mortgage broker will, in addition to the annual financial statement, submit to the Commissioner each 6 calendar months a financial statement concerning those trust accounts.

 mortgage broker may not accept money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property unless the mortgage broker has obtained a written appraisal of the real property securing the loan. With.

 

1 month

2 months

3 months

6 months .

A mortgage broker may not accept money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property unless the mortgage broker has obtained a written appraisal of the real property securing the loan. That appraisal must have been performed with the previous 6 months.

 

 

What is the maximum fee to apply for a certificate of exemption that exempts a person from the annual continuing education requirements?

 

$150

$100

$200 .

$170

The fee apply for a certificate of exemption from the annual continuing education requirements is $200. However, the fee to renew a certificate is $100.

 

 

If a mortgage broker or agent places their license in inactive status in order to fulfill an active duty military obligation, how long after completing their military service do they have to reactivate their license without having to pass an exam or under:

 

3 months

12 months

6 months .

9 months

If a mortgage broker or agent places their license in inactive status in order to fulfill an active duty military obligation, they have six months from the time they complete their military service to reactivate their license without having to pass an exam or undergo an investigation.

 

 

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.

An investment 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. .

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.

 

 

If the "qualified employee" of a mortgage broker is not approved by the Commissioner or leaves the employ of the mortgage broker, how long does the broker have to designate a new "qualified employee?"

 

60 days

15 days

30 days .

5 days

If the "qualified employee" of a mortgage broker is not approved by the Commissioner or leaves the employ of the mortgage broker, the broker must designate a new "qualified employee" within 30 days.

 

 

What is the minimum (shortest) prison term that may be imposed for a conviction of a single act of mortgage fraud?

 

5 years

3 years

10 years

1 year .

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 use of a Power of Attorney by a mortgage broker is NOT accurate?

 

The provisions of the Power of Attorney must expressly provide that the power of attorney is effective only for the term of the specific loan unless the mortgage broker obtains written approval from the private investor to extend the term of the power of

The provisions of the Power of Attorney must expressly prohibit the mortgage broker and his mortgage agents from engaging in any act or transaction that subordinates the priority of a recorded deed of trust unless, before such an act or transaction, the m

The provisions of the Power of Attorney must expressly prohibit the mortgage broker and his mortgage agents from using or releasing any money in which the private investor owns a beneficial interest with regard to the specific loan for a purpose that is n

The provisions of the Power of Attorney must expressly prohibit the mortgage broker and his mortgage agents from acting on behalf of more than one private investor in regards to any single mortgage loan transaction. .

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.

 

 

How many days prior to a hearing, at a minimum, must all motions from all parties be delivered to the hearing officer?

 

15 days .

5 days

20 days

10 days

A written motion must be served on the opposing party and the hearing officer at least 15 days before the time set for the hearing on the motion unless good cause is shown to the hearing officer. An opposing party may file a written response to a motion at least 7 days before the time set for the hearing on the motion by serving the written response on all parties and the hearing officer. No motion for summary judgment will be allowed.

 

 

What is the maximum fine for a single act of mortgage fraud?

 

$50,000

$10,000 .

$20,000

$25,000

The maximum fine for a single act of mortgage fraud is $10,000. The maximum fine for a pattern of mortgage fraud is $50,000.

 

 

Under NRS 654F, which of the following is not a form of loan modification?

 

A change in the loan amount.

A change in the maturity date.

A scheduled adjustment in an interest rate. .

A change in the payment amount.

A loan modification is defined in NRS 654F as an adjustment to the terms of a loan during its term in a way not provided for in the original or previously modified mortgage loan contract. A scheduled adjustment in an interest rate is part of the original terms. A change in maturity date, loan amount, or payment amount is no. Therefore, they meet the definition of a loan modification.

 

 

To meet the continuing education requirements, a licensee must receive training in Ethics and Nevada Law and Regulations. The number of hours required in each topic are:

 

3 and 1 respectively

1 and 3 respectively

2 and 3 respectively .

3 and 2 respectively

To meet the continuing education requirements, a licensee must receive 2 hours of training in ethics and 3 hours of training in Nevada Law and Regulations, as well as 3 hours in Federal Law and Regulations, and 2 hours in standards for non-traditional mortgage products.

 

 

As a rule, which of the following information need not be kept current by a licensed mortgage agent?

 

The status of court-ordered child support payments, if any

Their physical address

Their marital status .

Their electronic (email) address

A licensed mortgage agent is required to maintain a current electronic address as well as a current physical address. An agent who has been ordered by a court to pay child support must submit documentation annually that they are in full compliance with that order. However, changes in their marital status need not be reported unless they result in new court-ordered child support payments.

 

 

When a mortgage banker or broker is issued a license for a principal office, he must pay an issuance fee currently set at:

 

$1,250

$1,750

$1,500                                   

$1,000 .

When a mortgage banker or broker is issued a license for a principal office, he must pay an issuance fee currently set at $1,000.

An examiner has the authority to require that broker do all but which of the following during the course of an examination?

 

Inspect and copy any documents held by any affiliated business that conducts business activities which are directly related to the business of the mortgage broker

Inspect and copy any documents kept by the mortgage broker pursuant to any federal or state law or regulation

Inspect and copy any documents held by any entity that is owned, all or in part, by the broker regardless of whether that entity conducts business activities which are directly related to the business of the mortgage broker. .

Inspect and copy any documents related to the operation of the business of the mortgage broker.

The power and authority of an examiner includes the right to Inspect and copy any documents kept by the mortgage broker pursuant to any federal or state law or regulation, Inspect and copy any documents related to the operation of the business of the mortgage broker, and Inspect and copy any documents held by any affiliated business that conducts business activities which are directly related to the business of the mortgage broker. That authority does not extend to entities owned, all or in part, by the broker that do not conduct business activities which are directly related to the business of the mortgage broker.

 

Which of the following is required of a mortgage broker regarding records of mortgage transactions sold to an investor?

 

That all records be held in their original form for not less than 4 years

That all original notes be held in a fireproof box or room. .

That all records be held in the State of Nevada

That all records be held in an electronic or photographic for a period of not less than 4 years. shouldn't have checked this.

Nevada law requires that a mortgage broker hold their original notes in a fireproof box or room. The records need not be held in the State of Nevada and the form and term of holding are not designated.

 

How many hours of training in federal mortgage law are required to meet the continuing education requirements for a licensee?

 

3 hours .

4 hours

1 hour

2 hours

 must receive a minimum of 3 hours of continuing education related to federal mortgage laws each year.

 

 

Under NRS 598D, a home loan whose terms allow a borrower to establish his ability to repay the home loan without providing any verification of his income and other assets is called what?

 

A no-verification loan

A stated-document loan

A low-document loan

A no-document loan .

NRS 598D defines a low-document, stated document, and no-document loan. There is no definition for a "no-verification" loan. A home loan whose terms allow a borrower to establish his ability to repay the home loan without providing any verification of his income and other assets is called a "no-document loan."

 

 

To whom does the Commissioner report all violations of state and Federal law?

 

NMLS .

Attorney General 

FBI

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.

 

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?

 

The monies received may be applied to a different loan if written permission to do so is received from the investor.

The monies received must be returned to the investor within 24 hours of the determination that the loan will not close. .

The monies received must be returned to the investor within 48 hours of the determination that the loan will not close.

The monies received may be held in an escrow account for up to 45 days and applied to a different loan if written permission to do so is received from the investor.

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.

 

 

How long after the last activity relating to a mortgage transaction may a mortgage lender or broker convert original records to an electronic or other format?

 

3 years

4 years

1 year .

2 years

After a record has been retained for 1 year or longer following the last activity relating to the transaction, the mortgage banker may cause the original record to be reproduced by the microphotographic process, optical disc imaging or any other equivalent technique designed to ensure an accurate reproduction of the original record.

 

 

Training in which of the following topics may NOT be applied to the continuing education requirements for the State of Nevada?

 

Training related to commercial lending

Approved education received during the previous year that exceeded the 10 hour requirement for that year.

Training related to private investor loans

Training related to consumer lending .

Nevada is one of the few states that allows a licensee to roll over excess training hours to meet the requirements for the following year. It is also one of the few states that allows training in commercial lending and private investor loans to count toward continuing education requirements. Nevada does not, however, allow training in consumer lending to qualify as continuing education for a mortgage agent.

 

 

Which of the statements given best describes which advertisements by a mortgage broker must be submitted to the Commissioner for approval?

 

Only those advertisements used to solicit funds from private investors for use in the business of the mortgage broker must be submitted for approval.

All advertisements used in carrying on the business of a mortgage broker and placed within the first 24 months following the initial licensure of the broker must be submitted for approval.

Only those advertisements used to solicit loan applications from consumers must be submitted for approval.

All advertisements used in carrying on the business of a mortgage broker and placed within the first 12 months following the initial licensure of the broker must be submitted for approval. .

Each mortgage broker that has received its initial license within the past 12 months must submit any proposed advertisement that the mortgage broker intends to use in carrying on its business to the Commissioner for approval.

 

 

How many hours of ethics instruction are required prior to licensure and what must be covered?

 

3; fraud, consumer protection, and high-cost loan provisions

2; fraud, consumer protection, and fair lending issues

3; fraud, consumer protection, and fair lending issues .

2; fraud, consumer protection, and high-cost loan provisions

Consistent with the federal S.A.F.E. act, Nevada law requires that an applicant receive 3 hours of prelicensing education related to ethics and that fraud, consumer protection and fair lending issues be addressed in that training.

 

 

When may a person who holds a beneficial interest in a loan act on behalf of all holders of a beneficial interest in that loan?

 

Only when that person has written consent from all others holding a beneficial interest in the loan to act on their behalf

Only when the beneficial interest held by that person represents at least 51% of the outstanding principal balance of the loan. .

Only when the beneficial interest held by that person represents the largest portion of the outstanding principal balance of the loan held by anyone holding a beneficial interest in the loan..

Only when that person holds a limited power of attorney from all others holding a beneficial interest in the loan which authorizes him to act on their behalf

Except as otherwise provided by law or by agreement between the parties and regardless of the date the interests were created, if the beneficial interest in a loan belongs to more than one natural person, the holders of 51 percent or more of the outstanding principal balance may act on behalf of all the holders of the beneficial interests of record on matters which require the action of the holders of the beneficial interests in the loan. Therefore, written consent or a power of attorney would permit a person to act on behalf of others, but they are not the only way that this may be accomplished.

 

 

When a mortgage banker or broker applies for a license for a principal office, he must pay a fee currently set at:

 

$1,750

$1,000

$1,250

$1,500 .

When a mortgage banker or broker applies for a license for a principal office, he must pay a fee currently set at $1,500.

 

 

Which of the following is NOT a violation of the requirements regarding the handling of impound trust accounts?

 

Making payments in a manner that causes a homeowner's insurance policy to be cancelled.

Requiring the payment of contributions in excess of the amount needed to cover the anticipated expenses of the account.

Making payments in a manner that causes the taxes due on a secured property to become delinquent.

Requiring an increase in the monthly contributions sufficient to cover a shortfall in the account .

It is a violation for a mortgage broker to make payments in a manner that causes an insurance policy to be cancelled or taxes to become delinquent. It is also a violation to require larger contributions than are necessary to meet the obligations of the account. It is not a violation to require an increase in contributions sufficient to cover a shortfall in the account.

 

 

When a mortgage banker or broker applies for a license for a branch office, he must pay a fee currently set at:

 

$60 .

$40

$30

$50

When a mortgage banker or broker applies for a license for a branch office, he must pay a fee currently set at $60.

 

 

As given in NRS 205.372, which of the following is not mentioned in the definition of a "participant in a mortgage lending transaction?"

 

A housing counselor .

An escrow agent

A foreclosure consultant

A mortgage broker

Escrow agents, foreclosure consultants and mortgage brokers are all specifically mentioned in the definition of a "participant in a mortgage lending transaction" under NRS 205.372. A housing counselor is not mentioned.

 

 

To obtain an initial license, any Loan Modification Consultant must complete at least:

 

15 hours of instruction .

10 hours of instruction

12 hours of instruction

5 hours of instruction

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.

 

 

When may the Attorney General initiate a criminal investigation of a licensee?

 

After receiving a notification from the Commissioner, a consumer complaint, or a civil action is instituted against a licensee.

After receiving a notification from the Commissioner or a consumer complaint

Only after receiving a notification from the Commissioner

Whenever evidence comes to light that warrants an investigation. .

The Attorney General may initiate a criminal investigation into the actions of a licensee any time that evidence comes to light which warrants an investigation. There is no limitation regarding notifications from the Commissioner, consumer complaints, or civil actions, those these could all trigger a criminal investigation.

 

Which of the following records regarding the operation of a mortgage broker is NOT required to be retained?

 

Copies of all solicitations received from third-party vendors. .

Copies of all deposit slips

Copies of all electronic correspondence

Copies of each piece of advertising material

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.

 

 

Where in the Nevada Revised Statutes will  find the Unfair Lending Practices Act?

 

NRS 598D .

NRS 645F

NRS 645B

NRS 645E

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.

 

 

How many fraudulent acts in what number of transactions constitutes a "pattern of mortgage lending fraud?"

 

One or more offenses in two or more transactions .

Two or more offenses in three or more transactions

One or more offenses in three or more transactions

Two or more offenses in two or more transactions

A "pattern of mortgage lending fraud" requires a minimum of one or more offenses in two or more transactions.

 

 

If a mortgage agent fails to meet the requirements for the renewal of their license in a timely manner, how long following the cancellation of their license do they have to meet those requirements and apply for reinstatement?

 

1 month

3 months

2 months .

6 months

A mortgage agent who fails to meet the requirements for the renewal of their license in a timely manner has 2 months to meet those requirements and apply for reinstatement.

 

 

Under what conditions might the Commissioner waive the requirement of an investigation of the credit history, criminal history and background of a mortgage agent?

 

If such an investigation has been conducted within the 6 months immediately preceding the date the application is submitted .

If such an investigation has been conducted within the 12 months immediately preceding the date the application is submitted

If such an investigation has been conducted within the 3 months immediately preceding the date the application is submitted

If such an investigation has been conducted within the 9 months immediately preceding the date the application is submitted

The Commissioner may waive the requirement of an investigation into the credit history, criminal history and background of a mortgage agent of such an investigation has been completed with the 6 months immediately preceding the date the application is submitted.

 2021  Caroline Gerardo Barbeau NMLS 324982   (949)  784  9699