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WorksheetsNMLS Quiz #2
Total questions: 20
Worksheet time: 5hrs 0mins
In 2008, the Housing and Economic Recovery Act (HERA) initiated a subsequent act that required states to standardize the license and application process for mortgage loan originators to ensure greater consumer protection. What was this act called?
Dodd-Frank Act
Patriot Act
SAFE Act
HERA
The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators are responsible for:
Writing HERA and enforcing all the federal mortgage laws
Writing the SAFE act and maintaining the NMLS
Creating the CFPB and maintaining the NMLS
Writing the conforming guidelines and purchasing loans from the primary market
Which of the following does a Mortgage Loan Originator (MLO) not do?
Take a 1003 application
Negotiate rates and fees of the loan
Assist a customer in applying for a residential mortgage loan
Perform judgment on the loan file
The primary purpose of Fannie Mae and Freddie Mac is to:
Develop industry guidelines
Purchase loans from the secondary market
Regulate the premiums with the interest market
Purchase loans from the primary market
SAFE Pre-licensing education is broken down by:
8 hours with 3 hours Federal Law, 3 hours Ethics, 2 hours Non-Traditional Lending, 1 hour elective
10 hours with 3 hours Federal Law, 3 hours Ethics, 3 hours Non-Traditional Lending, 1 hour elective
20 hours with 3 hours Federal Law, 3 hours Ethics, 2 hours Non-Traditional Lending, 12 hours electives
20 hours with 3 hours Federal Law, 2 hours Ethics, 3 hours Non-Traditional Lending, 12 hours general mortgage knowledge
SAFE continuing education is broken down by:
8 hours with 2 hours Federal Law, 3 hours Ethics, 2 hours Non-Traditional Lending, 1 hour elective
8 hours with 3 hours Federal Law, 2 hours Ethics, 2 hours Non-Traditional Lending, 1 hour elective
5 hours with 3 hours Federal Law, 1 hour Ethics, 1 hour Non-Traditional Lending, 1 hour elective
12 hours with 3 hours Federal Law, 2 hours Ethics, 2 hours Non-Traditional Lending, 5 hours general mortgage knowledge
A registered MLO works for what types of institutions:
Depository institution such as a correspondent lender
State licensed lender such as a credit union
Depository institution such as a bank
Subsidiary of a mortgage lender such as a broker
The maximum length of a prepayment penalty allowed is:
6 months from the start of the loan
1 year from the start of the loan
2 years from the start of the loan
3 years from the start of the loan
The maximum amount of penalty that can be charged for a prepayment penalty is:
6 months of interest
1% of the remaining loan balance
2% of the remaining loan balance
2% of the original loan balance
What is the clause on a note that allows a lender to call a loan due prior to the scheduled amortization date if the borrower defaults on the payments?
Non-recourse clause
Due-on-sale clause
Re-conveyance clause
Acceleration clause
f someone fails the SAFE exam on the first attempt, how long must they wait to retake the exam?
10 days
30 days
60 days
180 days
If someone fails the SAFE exam on the third attempt, how long must they wait to retake the exam?
10 days
30 days
60 days
180 days
The primary agency that is responsible for enforcing most of the mortgage federal laws is the:
Conference of State Bank Supervisors
Consumer Financial Protection Bureau
Federal Trade Commission
American Association of Residential Mortgage Regulators
The two positions that normally perform clerical and support duties are:
MLO and broker
Processor and Underwriter
Mortgage broker and real estate broker
Processor and MLO
Processors and Underwriters normally do not need to have an MLO license unless:
They work for a depository institution
They work for a state licensed institution
They have frequent contact with customers
They are an independent contractor
If a servicer approves a loan to be assumed, the original borrower will be released from any future liability on the loan if the note has a:
Assumption clause
Acceleration clause
Recourse clause
Non-recourse clause
To not be considered “late,” Continuing Education is due each year before:
October 1st
November 1st
December 31st
January 1st
What is the standard maximum fine allowed by state regulators for violations?
$5,000
$25,000
$50,000
Only the CFPB can issue fines for violations
Which of the following best describes the Settlement Agent that conducts the closing of a home loan?
The notary is the Settlement Agent
The attorney is the Settlement Agent
The Escrow Officer is the Settlement Agent
The Title company or Escrow company is the Settlement Agent
The profit a lender makes when they sell the servicing rights to another lender is referred to as:
Subrogation
Service Release Premium
Remittance
Settlement Charges
