NMLS SAFE RESPA, Regulation X & TRID Practice Questions
RESPA, Regulation X & TRID makes up 4 of every 50 questions on a Tigertest NMLS SAFE practice test. Here are 10 of the 16 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the NMLS SAFE MLO content outline. Original questions; 50 per test, weighted like the real 120-question test, 75% to pass. Not affiliated with NMLS.
1. A creditor receives a complete application on a Tuesday. Absent holidays, and with the office open Monday to Friday, the Loan Estimate must be delivered or placed in the mail by:
- A.Tuesday of the next week
- B.Friday of the same week
- C.Thursday of the same week
- D.Monday of the next week
Answer: B. The Loan Estimate is due within three business days of application, and for this purpose a business day is a day the creditor's offices are open. Wednesday, Thursday and Friday are the three days.
2. Under TRID, which set of facts makes up an application that starts the Loan Estimate clock?
- A.Name, SSN, credit report and pay stubs
- B.Address, appraisal, title and insurance
- C.Name, income, SSN, address, a signed contract
- D.Name, income, SSN, address, value, amount
Answer: D. Regulation Z defines an application as six pieces of information: the consumer's name, income and Social Security number, the property address, an estimate of its value and the loan amount sought.
3. Before the consumer receives the Loan Estimate and indicates intent to proceed, the only fee a creditor may collect is:
- A.A credit report fee
- B.A small application fee
- C.An appraisal fee
- D.A rate lock deposit
Answer: A. TRID bars imposing fees before the Loan Estimate is received and intent to proceed is shown, except a bona fide and reasonable fee for obtaining the consumer's credit report.
4. A borrower must receive the Closing Disclosure at least how long before consummation?
- A.Three calendar days
- B.One business day
- C.Three business days
- D.Seven business days
Answer: C. The Closing Disclosure must be received at least three business days before consummation, counting every day but Sundays and federal holidays. If mailed, it is presumed received three business days after mailing.
5. After the Closing Disclosure is delivered, which change requires a corrected disclosure and a new three-business-day wait?
- A.A seller credit that rises slightly
- B.A one-day change in closing date
- C.Adding a prepayment penalty
- D.A lower recording fee
Answer: C. A new waiting period is triggered only when the APR becomes inaccurate beyond tolerance, the loan product changes, or a prepayment penalty is added. Other changes need a corrected Closing Disclosure at or before closing.
6. Which fee on the Loan Estimate falls in the zero tolerance category?
- A.The origination charge
- B.Homeowner's insurance premium
- C.Initial escrow deposit
- D.Prepaid daily interest
Answer: A. Fees paid to the creditor, broker or their affiliates, transfer taxes, and services the consumer may not shop for carry zero tolerance. Prepaid interest, insurance premiums and escrow deposits have no tolerance limit.
7. A borrower chooses a title company from the creditor's written list of providers. That title fee is subject to which tolerance?
- A.5% tolerance per fee
- B.Zero tolerance
- C.No tolerance limit
- D.10% total tolerance
Answer: D. Services the consumer may shop for but selects from the creditor's written list, along with recording fees, fall in the 10% aggregate bucket. If the consumer picks a provider not on the list, there is no limit.
8. Closing costs exceed the Loan Estimate beyond the allowed tolerance. The creditor must refund the excess no later than:
- A.90 days after the first payment
- B.60 days after consummation
- C.30 days after consummation
- D.The next payment due date
Answer: B. Regulation Z lets the creditor cure a tolerance violation by refunding the excess and giving a corrected Closing Disclosure within 60 calendar days after consummation.
9. Which loan is covered by TRID's Loan Estimate and Closing Disclosure?
- A.A loan for a commercial building
- B.A fixed-rate loan on a condo
- C.A home equity line of credit
- D.A reverse mortgage
Answer: B. TRID covers most closed-end consumer credit secured by real property. HELOCs, reverse mortgages, chattel loans on unattached mobile homes and business-purpose loans keep other disclosures or none.
10. Under RESPA Section 8, which payment to a real estate agent is prohibited?
- A.A shared commission with a co-broker
- B.Salary paid by the agent's employer
- C.Pay for an actual service performed
- D.A fee for each loan the agent refers
Answer: D. Section 8 bans giving or accepting anything of value for referring settlement service business. Payment for goods or services actually furnished, at market value, is permitted.
Practice all 16 respa, regulation x & trid questions, and the rest of the 200-question bank, in the free NMLS SAFE training sets. Questions you miss come back until you have mastered them.
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