NMLS Compliance and Oversight 5

Question 1

Which of the following is a prohibited practice under the Real Estate Settlement Procedures Act (RESPA) Section 8?

Accepted Answer

Paying a referral fee to a real estate agent for sending mortgage business

Answer

RESPA Section 8 prohibits paying or receiving referral fees, kickbacks, or anything of value in exchange for referring settlement service business.

Question 2

Under the Military Lending Act (MLA), what is the maximum Military Annual Percentage Rate (MAPR) that can be charged to active-duty servicemembers on covered consumer loans?

Accepted Answer

36%

Answer

The Military Lending Act caps the Military Annual Percentage Rate at 36% for covered loans made to active-duty servicemembers and their dependents.

Question 3

What is the purpose of a 'lookback period' in HMDA compliance?

Accepted Answer

The prior calendar year used to determine whether an institution meets the coverage thresholds requiring HMDA reporting

Answer

The HMDA lookback period refers to the prior calendar year's origination volume used to determine whether an institution meets the thresholds requiring HMDA data collection and reporting.

Question 4

An MLO fails to renew their NMLS license by December 31st but submits a renewal application in January. Under which status may they continue operating until the renewal is approved?

Accepted Answer

Grace period active status under state law if the state permits late renewal

Answer

Many states permit a grace period for late renewal during which the MLO may continue operating, but this varies by state law and the MLO must have submitted a timely renewal application.

Question 5

Under Regulation B (ECOA), within how many days must a creditor notify an applicant of adverse action on a completed credit application?

Accepted Answer

30 days

Answer

Regulation B requires creditors to notify applicants of adverse action within 30 days of receiving a completed credit application.

(NMLS) National Mortgage Licensing System Practice Test

(NMLS) National Mortgage Licensing System Practice Test

NMLS Compliance and Oversight 5