NMLS Test Outline Questions and Answers Already Passed

NMLS Test Outline Questions and Answers Already Passed RESPA disclosures? due dates? ✔✔3 days after application: Home loan tool kit Loan estimate List of HUD counselors Mortgage Servicing Disclosure Statement Know befor ...

NMLS Test Outline Questions and Answers Already Passed RESPA disclosures? due dates? ✔✔3 days after application: Home loan tool kit Loan estimate List of HUD counselors Mortgage Servicing Disclosure Statement Know before you owe booklet Special Info Booklet 3 days before consummation: Initial Closing Disclosure AfBA disclosure At consummation: Final Closing Disclosure Initial Escrow Statement (45 days after closing) After closing: Annual Escrow Statement Servicing Transfer Statement (sent 15 days before transfer) RESPA covers which loan types? exempt loan types? ✔✔FHA,VA,conventional, USDA,purchase loans, REFI, HELOC all cash sales RESPA 4 sections ✔✔Section 6: Mortgage Servicing Disclosure Statement: mortgage servicers are required to correct errors and work with home buyers if payments aren't being made. Section 8: No kickbacks/referral fees Section 9: Seller cannot require borrower use a specific title insurance company Section 10: limits amounts a lender can require a borrower to put into escrow account to 1/12 disbursement and 2 reserves. Requires annual escrow analysis. RESPA properties types? exempt? ✔✔owner occupied 1-4 unit residential property Agricultural 25+ acres Businesses Commercial Temporary Financing Vacant Land Assumes existing 1st lien The Loan Estimate combines which old disclosures? ✔✔GFE and Initial TIL Statement How long are Loan Estimate terms available? ✔✔10 business days What if the changed circumstance causes third party charges subject to a cumulative 10% tolerance to increase? ✔✔creditor must send a revised Loan Estimate and refund excess money within 60 days Are there any restrictions on how many days before consummation a revised Loan Estimate may be provided? ✔✔- receives revised LE at least 4 business days before consummation - cannot provide revised LE after providing closing disclosure What is a "changed circumstance"? ✔✔Event beyond the control Inaccurate info used in Loan Estimate New info that creditor didn't know when providing Loan Estimate Mailbox Rule ✔✔creditor needs to place Loan Estimate in mail 3 days after application and 7 days before consummation The Closing Disclosure combines which old disclosures? ✔✔HUD-1 and Final TIL Statement Who is responsible for providing the closing disclosure to the: borrower? when? seller? when? ✔✔creditor to borrower settlement/title agent to seller Name some valid change in circumstances that require you to revise the Closing Disclosures? ✔✔changes before consummation that require 3 day waiting period - change in APR - change loan product - add prepayment penalty changes before consummation that do not require 3 day waiting period - consumer requests revised CD - at consummation - any other changes changes after consummation - event causes inaccurate info for consumer or seller - 30 days after consummation - non numerical clerical errors - 60 days after consummation - creditors refund money to cure tolerance violations - 60 days after consummation Which law requires an adverse action notice? How long do they have to deliver it? ✔✔ECOA 30 days after application ECOA definition ✔✔ensures all consumers have an equal chance to obtain credit. What is the correct way to ask about marital status? under which law? ✔✔Are you married, unmarried or separated? ECOA How long do you have to retain ECOA disclosures? why? ✔✔25 months because consumers can take you to court for ECOA violations Penalties for: RESPA TILA ECOA Red Flag Rules State Regulatory Authorities Fraud DNC ✔✔RESPA - $10,000/1 year imprisonment for each violation TILA - $10,000 per day of noncompliance ECOA - $10,000 for each violation Red Flag - $3,500 per incident State Reg. - $25,000 each act or ommission Fraud - $1,000,000/30 years imprisonment for each violation DNC - $16,000 each The borrower has how long to request a copy of his appraisal report? How long does the creditor have to deliver the appraisal report? This is under which law? ✔✔90 days