Mortgage Uniform State Content 3

Question 1

A borrower applies for a mortgage and is denied. The lender must provide a written adverse action notice that includes which of the following?

Accepted Answer

The specific reasons for denial or notice of the right to request those reasons

Answer

The borrower's credit score only

Answer

Only the name and address of the credit reporting agency used

Answer

The lender's internal underwriting criteria

Question 2

Under the NMLS system, an MLO license can be transferred to a new employer through which process?

Accepted Answer

The MLO submits a sponsorship request through NMLS and the new employer approves it

Answer

The MLO must retake the SAFE test before transferring

Answer

A state regulator must approve the transfer in writing within 30 days

Answer

The MLO must obtain a new license number for each employer

Question 3

Which type of loan is generally exempt from the Home Mortgage Disclosure Act (HMDA) reporting requirements?

Accepted Answer

A business-purpose loan secured by a commercial property

Answer

A home purchase loan on a 1-4 family dwelling

Answer

A refinance of a primary residence

Answer

A home improvement loan on a borrower's primary residence

Question 4

A lender charges a borrower a fee for paying off their mortgage early. Under federal law, which loan type restriction applies to prepayment penalties?

Accepted Answer

Prepayment penalties on higher-priced mortgage loans are restricted under Regulation Z

Answer

All conventional loans are prohibited from having prepayment penalties

Answer

Qualified Mortgages (QMs) may have prepayment penalties only during the first year

Answer

FHA loans allow prepayment penalties for the full loan term

Question 5

Under the SAFE Act, the term 'nontraditional mortgage product' includes which of the following?

Accepted Answer

An interest-only loan or a payment-option adjustable-rate mortgage

Answer

A 30-year fixed-rate conventional loan

Answer

A 15-year fixed-rate FHA loan

Answer

A VA loan with standard amortization

Question 6

Which agency is primarily responsible for enforcing the Truth in Lending Act for non-bank mortgage lenders?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Federal Deposit Insurance Corporation (FDIC)

Answer

Office of the Comptroller of the Currency (OCC)

Answer

Federal Housing Finance Agency (FHFA)

Question 7

An MLO collects a $400 application fee from a borrower at the time of application. Under which circumstance may the lender retain this fee if the loan does not close?

Accepted Answer

If the fee is for a bona fide third-party service already performed, such as a credit report or appraisal

Answer

Whenever the borrower withdraws the application for any reason

Answer

Only if the lender's underwriter has reviewed the file

Answer

The lender may never retain any portion of an upfront fee