NMLS Flashcards 2022, Questions with accurate answers, Graded A+

NMLS Flashcards 2022, Questions with accurate answers, Graded A+ -AfBA/ABA stands for? -What is it? - ✔✔-Affiliated Business Arrangement -If referring client to another business of yours (1%) then you must disclos ...

NMLS Flashcards 2022, Questions with accurate answers, Graded A+ -AfBA/ABA stands for? -What is it? - ✔✔-Affiliated Business Arrangement -If referring client to another business of yours (1%) then you must disclose ASAP Other ways to say "Doc Signing" - ✔✔-Loan consummation -Loan Settlement -Loan Closing What is an escrow account? - ✔✔-account holding money for insurance/taxes -AKA "impound account" or "reverse account" -What's an MU4? -What are requirements? - ✔✔-Individual application after NMLS exam -finger printing and credit report -What does RESPA stand for? -Regulation___? -Deals with? -Penalties - ✔✔-Real Estate Settlement Procedures Act -Regulation X -Allows customers to be better shoppers for settlements (reduce unnecessarily high settlement costs) -Up to $10k and/or 1yr jail -FACT Act stands for? -Deals with? - ✔✔-Fair and Accurate Credit Transactions Act -Identity theft and allows consumers to obtain a free copy of their file once every 12 months -HPA Stands for - ✔✔-Homeowners Protection Act NMLS stands for? Pre-Licencing requirements? After License requirements? Who makes requirements? Where does it appear on? - ✔✔-Nationwide Mortgage Licensing System -Each broker has their own unique identifier -20 Hours before license -8 hours continuing education -Renew once a year between Nov 1st-Dec 31st -Score at least 75% -Wait one month (30days) if fail first time, 6 months (180 days) if fail 3rd time -SAFE Act requires these terms -Documents appear on mortgages, loan apps, promisary notes. NOT appraisals -HMDA Stands for? -Regulation___? -Where can this info be found? - ✔✔-Home Mortgage Disclosure Act -Regulation C "C where the discrimination is" -Section 10 (X) of 1003 application -ECOA Stands for? -Regulation___? - ✔✔-Equal Credit Opportunity Act -Regulation B "B equal when lending credit" -No discriminating -If application for credit is denied borrower has 90 days to request copy and lender has 30 days to deliver FCRA stands for? Regulation___? What's an ammendment under FCRA? - ✔✔-Fair Credit Reporting Act -Regulation V "Very good credit" (deals with credit reporting) -FACTA is an amendment (Fair and Accurate Credit Transactions Act) TILA Stands for? Regulation___? Deals with? - ✔✔-Truth In Lending Act -Regulation Z -Deals with credit, APR, and advertizing of loans -General marketing and advertising for credit is covered by TILA. CFPB Stands for? What was it created by? - ✔✔-Consumer Financial Protection Bureau -Created by Dodd-Frank Act AND Consumer Protection Act combined -If it has to do with money or banking they have to answer to CFPB RESPA Section 8 - ✔✔8: Kickbacks (referral fees - you can't take something of value for referrals) RESPA Section 6 - ✔✔PROTECTS HOMEOWNERS AGAINST MORTGAGE SERVICING ABUSES RESPA Section 9 - ✔✔States a seller cannot require the use of particular title company RESPA Section 10 - ✔✔Identifies the amounts that can be charged to maintain escrow accounts -Requires annual escrow analysis must be paid within 30 days if owed more than $50 Bank Secrecy Act - ✔✔1970, Requires U.S financial institutions to collaborate with the U.S government in cases of suspected money laundering and fraud. Jumbo Loan - ✔✔-A loan that exceeds Fannie Mae's and Freddie Mac's loan limits. -Also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans. HECMS Stands for - ✔✔-The home equity conversion mortgage (HECM) -doesn't require monthly payments as long as borrower still lives in home First step in closing process - ✔✔funding An underwriter would expect to see _____ in order to document the income of a commissioned borrower - ✔✔two years' tax returns and all schedules if the commission income is more than 25% of income Businesses that conduct telemarketing are required to access the Do-Not-Call Registry every _____ in order to maintain an updated database of people on the Do-Not-Call List. - ✔✔31 Days