MLO SAFE NMLS Safe Test Practice Questions With All 100% Correct Answers 2022
Taking advantage of ill-informed consumers through excessively high fees,
... [Show More] misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. - Predatory Lending.
RESPA-Real Estate Settlement Procedures Act - The Federal Statute that deals with the settlement of residential mortgage loans.
RESPA's section 9 Prohibits - Home sellers from requiring home buyers to purchase title insurance from a particular company providing title services.
The Dodd-Frank Act modifies ECOA to require a creditor to furnish a copy of an appraisal developed in connection with a first mortgage_____________________ and absolutely not later than ________ business days prior to closing. - upon completion and 3 business days
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate) - Per the Dodd Frank Act, a single disclosure form combines these 2 statements.
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees may not exceed ________% of the total loan amount. - 3% (three percent)
Per a provision of the Dodd-Frank Act mortgage lenders are to determine that a borrower has a reasonable ability to repay a loan. Does this provision apply to all loans or just owner occupied loans? - All loans, whether owner occupied or not.
A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan. - 2 (two) years
Per the Dodd-Frank Act an abusive act would include which of the following:
1. One that materially interferes with the consumers ability to understand the product or service.
2. One that take unreasonable advantage of a consumers' lack of understanding.
3. One that takes unreasonable advantage of the consumer's reasonable reliance on the MLO. - All three would be considered abusive acts.
Per the Dodd-Frank Act if an MLO receives compensation directly from a consumer, up to how much additional compensation may be received from a lender in the same transaction? - $0.00, dual compensation is not allowed. Compensation must be borrower paid or lender paid.
What kinds of reasons are necessary for a lender to take adverse action with regard to a borrower? - Specific reasons.
Adverse action means ______________________. - A denial or revocation of credit. Also, a change in the terms of an existing credit arrangement or a refusal to grant credit in substantially the amount or terms requested.
Per Regulation B, Lenders should retain certain records for _____________ months. - 25 Months
Because of the impact of the Dodd-Frank Act on a second mortgage, an APR that exceeds the ________ by more than _____% is the trigger that defines a high cost loan. - APOR ( Average Prime Offer Rate), 8.5%
Regulation C is known as ________________________. - HMDA, The Home Mortgage Disclosure Act.
What is the purpose of HMDA? - The HMDA determines whether financial institutions are serving the housing needs of their communities. It also identifies patterns of discriminatory lending.
Under what circumstances can a lender with an Affiliated Business Arrangement require a borrower to use a specific third party service provider? [Show Less]