Ethics
The practice of getting people to sell their homes at bargain prices by suggesting that certain ethnic groups are going to move into the area is nicknamed
Blockbusting
You and the borrower believe an Adjustable Rate Mortgage would be best for the borrower. What is the name of the booklet you are required to give?
CHARM Booklet
The maximum penalty for providing false information on a federally related loan
Up to $1 million fine and 30 years in prison
Monday through Saturday except legal public holidays
Business day
This is the minimum passing score on the NMLS exam.
75%
The practice of denying home financing in certain neighborhoods is called
Redlining
A borrower and a co-borrower are refinancing a home that they both occupy, at the closing who must receive a copy of the rescission disclosure?
Both borrowers
The Homeowners Protection Act states that when a loan-to-value falls below 78% PMI is to be:
Removed
This document creates a lien against the property.
Mortgage or Trust Deed
There are ____ questions on the NMLS exam
125
Guiding a loan applicant into a particular loan product that may have less favorable terms or conditions than an alternative product
Steering
On a refinance loan, if the loan is improperly closed and funded in one day with no three day rescission period, how long do the borrowers have to rescind the transaction?
3 years
Reg B/ ECOA
360/180 best describes this type of loan.
Balloon
After failing the NMLS test, there is a required waiting period of ___ days before retesting.
30
This is an industry term for giving or accepting “anything of value” for the referral of mortgage business and is prohibited under RESPA Section 8.
Kickbacks
An applicant has been denied credit. How long does the lender have to get a letter of adverse action to him/her?
30 days
This law requires the lender to collect borrower information for first mortgages and home improvement loans
HMDA
PUD is the acronym for:
Planned Unit Development
MLOs must complete at least this many hours of continuing education to meet the annual requirements.
8
Considering the legislation of the Secure and Fair Enforcement Act (S.A.F.E. Act) of 2008, originating a loan for a family member or other blood relation is considered:
Legal and ethical
This type of loan requires an upfront mortgage insurance fee.
FHA
This agency regulates the Do Not Call List.
Federal Trade Commission
This type of loan application requires a residual income analysis to be performed
VA Loan
Alexandra is a licensed mortgage loan originator, and she works for a licensed mortgage lender.
Alexandra also works part time as a mortgage loan originator at her friend's brokerage.
Is Alexandra doing anything wrong?
Yes, Alexandra is working simultaneously for two companies, which is prohibited