Fees related to third-party service providers and recording fees are subject to what tolerance threshold?
10% tolerance threshold
In an interest-only loan, what does the lump sum payment include?
Principal only
Which of the following statements about early disclosures, such as the CHARM booklet or Notice of Right to Receive Credit Score, is true?
The disclosures are required by law and must be provided within three business days from the date the application is signed.
A creditor has taken adverse action on a loan application. The creditor’s notification to the applicant regarding the adverse action contains a statement of the provisions of Section 701(a) of the Equal Credit Opportunity Act, which concerns which topic?
Discrimination against protected classes
What part of the title insurance policy lists standard exceptions or title defects that are not insured in the policy?
Schedule B-2
According to the RESPA, what is a kickback?
Any item of value received in return for referring business to a settlement service provider
A lender has 90 days to provide a consumer with notice _____.
That the lender is extending a counter-offer
The NMLS serves ______.
All 50 states and U.S. territories
Which one of the following forms is used by financial institutions to report potential money laundering or other possible criminal activity?
Suspicious Activity Report (SAR)
Which of the following best describes a home equity line of credit (HELOC)?
A borrower borrows against the equity in the house and pays back the amount withdrawn plus interest
When a lender extends a counter-offer to a consumer, the lender offers to extend credit on different terms than the applicant originally requested. The counter-offer adverse action notice must indicate why the original offer was denied and must list the ______ terms of the counter-offer, including new rates and terms.
Specific
When does the NMLS period begin for renewing licenses?
November 1
A telemarketer called a consumer every day for a week because, on the first call, the individual was rude and then hung up on him. How would the TSR define the telemarketer’s conduct?
Abusive
What was the main purpose of the amendments to TILA and RESPA?
Make it simpler to understand loan terms.
A lender revised a Loan Estimate based on a changed circumstance that impacted the estimated closing costs. Which of the following would be a lawful reason for revising the Loan Estimate?
A natural disaster occurred.
What special initiative was created by the CFPB to help consumers understand the loan options that are available to them?
Know Before You Owe
A licensee’s contact information changed recently, and her office address in the NMLS files is now incorrect. What is the licensee legally obligated to do in this situation?
She must amend or correct the information on file with the NMLS.
Lisa’s decided to become an MLO in her home state. As an MLO, she must ______.
Never engage in behavior that is not lawful, honest, or fair.
Abby, a loan applicant, has been given an LE. The section on late charges consists of a statement that late charges will apply 15 days after a payment is due. What else should this section of the LE include?
The amount of the late payment, expressed as a dollar amount or a percentage
If a non-U.S. citizen who is in the country on a work visa wants to obtain a mortgage loan, which one of the following documents is a lender least likely to want to examine?
A form of identification issued by a U.S. state
A borrower’s monthly mortgage payment is $1,256.28. His annual property taxes are $809, and his annual insurance premium is $712. How much of his payment goes toward the principal and interest?
$1,129.53
Which of these is NOT one of the three main categories of QMs?
GOV-insured qualified mortgage
Which category of real estate transactions is covered under the federal Fair Housing Act’s anti-discrimination provisions?
Residential property financing
Under the terms of the USA PATRIOT Act, customers of financial institutions who take out a loan must provide all of the following pieces of information EXCEPT for which one?
Gender
