NMLS Recordkeeping and Reporting 3 — Questions and Answers
Question 1: Which HMDA data point was added by the 2015 HMDA Rule that was NOT required under the original 1975 regulation?
- Loan amount
- Property location
- Applicant race and ethnicity
- Credit score (Correct answer)
Correct answer: Credit score
The 2015 HMDA rule added new data points including credit scores, debt-to-income ratios, and NMLS IDs, which were not required under the original regulation.
Question 2: Under the SAFE Act, a mortgage company must report to NMLS when a licensed MLO is terminated for cause within how many days?
- 5 days
- 10 days
- 30 days (Correct answer)
- 60 days
Correct answer: 30 days
Employers must report a for-cause termination of an MLO to NMLS within 30 days of the termination date.
Question 3: Which document must a mortgage lender provide to a borrower at application that includes a standardized disclosure of loan costs and terms?
- Closing Disclosure
- Loan Estimate (Correct answer)
- HUD-1 Settlement Statement
- Good Faith Estimate
Correct answer: Loan Estimate
The Loan Estimate, introduced by TRID in 2015, replaced the GFE and must be provided within 3 business days of receiving a completed application.
Question 4: An MLO working for a state-licensed mortgage company who originates loans in a state where they are not licensed is violating which federal law?
- RESPA
- TILA
- SAFE Act (Correct answer)
- FCRA
Correct answer: SAFE Act
The SAFE Act requires MLOs to be licensed in each state where they originate mortgage loans, making unlicensed origination a federal violation.
Question 5: For record retention under TILA, a creditor must retain evidence of compliance for how long after a mortgage loan is consummated?
- 1 year
- 2 years
- 3 years (Correct answer)
- 5 years
Correct answer: 3 years
TILA requires creditors to retain records of compliance for 3 years after the date of consummation of a mortgage loan.
Question 6: Under HMDA, a financial institution is exempt from reporting if it originated fewer than how many closed-end mortgage loans in each of the two preceding calendar years?
- 10
- 25 (Correct answer)
- 50
- 100
Correct answer: 25
Under the 2015 HMDA rule, institutions that originated fewer than 25 closed-end mortgage loans in each of the two preceding years are exempt from HMDA reporting.
Question 7: Which NMLS form is used by a company to report changes to its business structure, such as a merger or acquisition?
- MU1 (Correct answer)
- MU2
- MU3
- MU4
Correct answer: MU1
The MU1 is the company form in NMLS, and material changes to a company's structure must be reported by amending the MU1 filing.
NMLS Recordkeeping and Reporting 3
Which HMDA data point was added by the 2015 HMDA Rule that was NOT required under the original 1975 regulation?