Nmls Practice Quiz

25 Questions  I  By NMLS Quiz
The NMLS Quiz will help the Mortgage Originator with the tools that they need to pass the Nationwide Mortgage Licensing System Test.

  
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Question Excerpt

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1.  Under the USA Patriot Act, which of the following is NOT obtained by a mortgage broker from a borrower for customer identification purposes?
A.
B.
C.
D.
2.  According to the Truth In Lending Act (TILA), which of the following notices by the creditor informs the customers about their rights to cancel a loan?
A.
B.
C.
D.
3.  A mortgage company advertises on a real estate agent’s website by paying the required fees. Which company is in violation of the Real Estate Settlement Procedures Act (RESPA)?
A.
B.
C.
D.
4.  If a consumer reporting agency makes an inquiry related to a joint credit account of a borrower and the spouse, which of the following information can be provided under the Equal Credit Opportunity Act (ECOA)?
A.
B.
C.
D.
5.  A homeowner’s equity position reaches 20% of the original value of the property. Which of the following statements is true pertaining to the cancellation of the Private Mortgage Insurance (PMI)?
A.
B.
C.
D.
6.  The purpose of the Fair Credit Reporting Act (FCRA) is to:
A.
B.
C.
D.
7.  According to the Real Estate Settlement Procedures Act (RESPA), which of the following relationships between a lender and a settlement service provider does NOT require disclosures on the Good Faith Estimate (GFE)?
A.
B.
C.
D.
8.  How does Freddie Mac benefit the consumer?
A.
B.
C.
D.
9.  A mortgage broker licensee charges a fee that exceeds the fee initially disclosed to the borrower. What MUST the mortgage broker provide the borrower three days prior to the signing of the closing documents?
A.
B.
C.
D.
10.  A mortgage displays its sign at a real estate licensee’s office. Which of the following statements is CORRECT?
A.
B.
C.
D.
11.  The loan fees increase from the initial Good Faith Estimate (GFE). The mortgage broker MUST provide the borrower with:
A.
B.
C.
D.
12.  A mortgage broker refers clients to a title company. The mortgage broker owns 10% of the title company. The title company performs services and pays the mortgage broker a commission. The title company pays the mortgage broker annual dividends based on the amount of business that was referred to the title company. Which of the statements is CORRECT?
A.
B.
C.
D.
13.  Truth in Lending Act (TIL) requires disclosure of:
A.
B.
C.
D.
14.  In whose name is a loan closed that is “table-funded”?
A.
B.
C.
D.
15.  Under the Fair Credit Reporting Act, who is responsible for ensuring that the reporting of consumers’ credit standing and reputation protects the consumer’s right to privacy?
A.
B.
C.
D.
16.  Truth in Lending Act (TILA) is designed to protect consumers in:
A.
B.
C.
D.
17.  A lender provides a borrower with an initial amortization schedule for Private Mortgage Insurance (PMI) disclosure at loan closing for an adjustable-rate mortgage. The lender MUST also provide a written notice stating the :
A.
B.
C.
D.
18.  Which of the following properties are considered residential real estate?    
A.
B.
C.
D.
19.  A mortgage broker has advertised “$1200 down” for a house in a local newspaper. According to the Truth In Lending Act (TILA), which of the following information must be disclosed in the same advertisement?
A.
B.
C.
D.
20.  A creditor can retain files that are prohibited by the Equal Credit Opportunity Act (ECOA) when the information:
A.
B.
C.
D.
21.  What is the minimum amount of a home’s appraised value required to be paid to avoid taking Private Mortgage Insurance (PMI)?
A.
B.
C.
D.
22.  If the creditor fails to send the required disclosures related to Truth in Lending Act (TILA), within how many years does the customer have to rescind from the date of consummation of transaction?
A.
B.
C.
D.
23.  Which of the following documents is NOT part of the books and records a mortgage broker must retain and make available for examination?
A.
B.
C.
D.
24.  A lender has advertised “7.25%APR” in a newspaper advertisement. Which of the following information must be provided in the same advertising?
A.
B.
C.
D.
25.  A borrower has approached a lender for refinancing a residential property. According to the Truth In Lending Act (TILA), which of the following information does the lender have to provide to the borrower?
A.
B.
C.
D.
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Quiz Comments (5)
I agree. The APR automatically includes mortgage insurance, prepaid financing charges and costs. This alone will make the APR stand alone in advertisements.
#24 answer suppose to C
Answer of Q#24 is doubtful. It should be --no other information is required
Your the tard... If you advertise with any trigger rates or verbiage APR is not enough. You have to show rate fees and loan amount along with Apr. No wonder why you are searching for practice tests. I don't know about these questions but I do know one thing. Tard
Whoever made this quiz is a CLOWN. Do not trust this quiz. TILA states that you DO NOT have to disclose any other information if you ONLY advertise APR.
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