NMLS Compliance and Oversight 2

Question 1

Under the SAFE Act, which federal agency has the authority to establish minimum standards for state licensing of mortgage loan originators?

Accepted Answer

CFPB

Answer

The Consumer Financial Protection Bureau (CFPB) has authority under the SAFE Act to establish minimum standards for state MLO licensing programs.

Question 2

What is the maximum civil money penalty per day that the CFPB can impose for knowing violations of federal consumer financial law under Tier 3 penalties?

Accepted Answer

$1,000,000

Answer

Tier 3 (knowing) violations under the Dodd-Frank Act can result in civil money penalties of up to $1,000,000 per day.

Question 3

Which of the following triggers a Suspicious Activity Report (SAR) filing requirement for a mortgage company?

Accepted Answer

A transaction involving $5,000 or more that involves known or suspected money laundering

Answer

A SAR must be filed for transactions of $5,000 or more where the institution knows, suspects, or has reason to suspect money laundering or other criminal activity.

Question 4

Under Regulation Z, what is the tolerance threshold for most closing cost disclosures on the Loan Estimate before a lender must issue a revised disclosure?

Accepted Answer

10% aggregate tolerance

Answer

Most charges fall under a 10% aggregate tolerance, meaning the total of those fees cannot increase by more than 10% from the Loan Estimate to the Closing Disclosure.

Question 5

What does the Home Mortgage Disclosure Act (HMDA) primarily require lenders to do?

Accepted Answer

Collect and report data on mortgage loan applications to detect discriminatory lending patterns

Answer

HMDA requires covered lenders to collect, record, and report data about mortgage loan applications and originations to help identify discriminatory lending practices.

(NMLS) National Mortgage Licensing System Practice Test

(NMLS) National Mortgage Licensing System Practice Test

NMLS Compliance and Oversight 2