NMLS Quiz: Identify Federal Mortgage Laws

What this quiz covers

This quiz focuses on Identify Federal Mortgage Laws, giving you a quick way to practice the rules, question types, and explanations that matter most for NMLS.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. Notify the consumer in writing at least 72 hours before requesting the credit report from agencies
2. Obtain the consumer's written or electronic authorization to access their credit information (correct answer)
3. Provide the consumer with a copy of their existing credit report from another lending source
4. Register with the consumer reporting agency as an authorized mortgage lending institution with proper credentials

Question 2

1. Physical security measures only, including locked filing cabinets and restricted office access controls
2. Electronic security measures only, including firewalls, encryption, and secure data transmission protocols
3. Comprehensive information security programs covering administrative, technical, and physical safeguards for customer data (correct answer)
4. Third-party security audits only, conducted annually by independent cybersecurity consulting firms

Question 3

1. Mortgage loan applications submitted through secure online lending platforms with proper authentication
2. Promissory notes and security instruments that create or transfer interests in real property (correct answer)
3. Loan estimates and closing disclosures delivered electronically with appropriate consumer consent
4. Power of attorney documents authorizing loan closings executed with digital signature technology

Question 4

1. Three years after the customer account is closed or the customer relationship is terminated
2. Five years after the customer account is closed or the customer relationship is terminated (correct answer)
3. Seven years after the customer account is closed or the customer relationship is terminated
4. Ten years after the customer account is closed or the customer relationship is terminated

Question 5

1. Suspicious patterns that indicate possible identity theft affecting consumer accounts or transactions (correct answer)
2. Unusual fluctuations in local real estate market values that might indicate appraisal fraud
3. Abnormal interest rate movements that could suggest market manipulation by competitors
4. Irregular secondary market pricing that might indicate investor fraud in mortgage securities

Question 6

1. Government-issued identification number such as Social Security number, taxpayer identification number, or passport number (correct answer)
2. Employment history for the past ten years including all previous employers and salary information
3. Complete family information including spouse details and all dependents living in the household
4. Banking relationships for the past five years including all account numbers and financial institutions used

Question 7

1. A customer applying for a mortgage loan amount that exceeds local median home prices
2. A customer providing an address that does not match the address on their credit report (correct answer)
3. A customer seeking to refinance their mortgage to obtain a lower interest rate
4. A customer requesting to close their loan faster than the standard processing timeframe

Question 8

1. The right to have all disputed items immediately removed pending investigation by the reporting agency
2. The right to have the consumer reporting agency investigate and correct inaccurate information within reasonable time (correct answer)
3. The right to demand monetary compensation for each inaccurate item found on their credit report
4. The right to prevent any new negative information from being added during the dispute process

Question 9

1. Immediately freeze all customer accounts and notify local law enforcement within 24 hours of detection
2. File a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network within required timeframes (correct answer)
3. Conduct an internal investigation for 60 days before taking any reporting or notification actions
4. Transfer the suspicious accounts to a government-approved monitoring system for ongoing surveillance

Question 10

1. The customer's full legal name as it appears on government-issued identification documents
2. The customer's date of birth as shown on official government identification or documentation
3. The customer's current residential address for primary mailing and contact purposes
4. The customer's annual gross household income from all employment and investment sources (correct answer)

Question 11

1. Only when the customer specifically requests information about the lender's privacy policies
2. At least annually and before sharing nonpublic personal information with nonaffiliated third parties (correct answer)
3. Only at the time of loan closing when all mortgage documents are finalized and signed
4. Within 60 days after the mortgage loan has been sold to a secondary market investor

Question 12

1. Provide the same adverse action notice required when using consumer credit report information
2. Notify the consumer orally of the adverse action but no written notice is required
3. Inform the consumer of the adverse action and their right to know the information that influenced the decision (correct answer)
4. Wait 30 days before informing the consumer to allow for reconsideration of the adverse action decision

Question 13

1. Obtain written consent from each customer for every specific third-party information sharing arrangement
2. Provide privacy notices and opt-out opportunities, then honor customer opt-out choices regarding information sharing (correct answer)
3. Register all third-party relationships with appropriate federal banking regulators before any information sharing begins
4. Conduct background checks on all nonaffiliated third parties to ensure they meet federal security standards

Question 14

1. When the applicant receives less favorable credit terms based on information from a consumer credit report (correct answer)
2. When the applicant's loan application is approved for the full requested loan amount and terms
3. When the applicant decides to withdraw their loan application before underwriting is completed
4. When the applicant provides additional documentation to support their creditworthiness during processing

Question 15

1. The borrower must use a digital certificate issued by a government-approved certification authority
2. The electronic signature must be created using biometric authentication technology exclusively
3. The borrower must consent to conducting the transaction electronically and receive required disclosures (correct answer)
4. The electronic signature must be notarized by a licensed notary public in physical presence

Question 16

1. To receive identification and basic debt information from collectors (correct answer)
2. To compel immediate debt cancellation after a phone complaint
3. To require the credit bureau to set the loan's interest rate
4. To apply state-only rules to federal mortgage disclosures

Question 17

1. RESPA restricted unearned fees and certain referral arrangements (correct answer)
2. FCRA required collectors to stop calls after 9:00 p.m.
3. FDCPA required lenders to disclose APR on the Loan Estimate
4. A state statute controlled all federal settlement service rules

Question 18

1. The lender deleted all negative items automatically on request
2. The credit bureau investigated and corrected or verified disputed data (correct answer)
3. The servicer stopped reporting any data for 12 months
4. The FDCPA required the bureau to disclose all loan terms

Question 19

1. Using deceptive documents that falsely appear to be legal process (correct answer)
2. Sending a notice that states the consumer may dispute the debt
3. Calling the borrower at 10:00 a.m. local time
4. Providing the collector's mailing address and company name

Question 20

1. TILA prohibited collectors from calling at inconvenient times
2. RESPA restricted kickbacks and unearned fees in settlement services (correct answer)
3. FCRA required deletion of all late payments after 30 days
4. FDCPA required lenders to provide the Closing Disclosure