NMLS Quiz: Identify Respa Disclosure Requirements

What this quiz covers

This quiz focuses on Identify Respa Disclosure Requirements, 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. The ratio of total interest costs to the principal loan amount (correct answer)
2. The effective interest rate including all finance charges and fees
3. The monthly interest payment as a percentage of monthly income
4. The annual interest rate adjusted for compounding and payment frequency

Question 2

1. 30 days after the completion of the escrow account computation year (correct answer)
2. 60 days after the completion of the escrow account computation year
3. 90 days after the completion of the escrow account computation year
4. 120 days after the completion of the escrow account computation year

Question 3

1. At least three business days before consummation, meaning the borrower becomes contractually obligated. (correct answer)
2. Within three calendar days after consummation, along with the first payment notice.
3. At the same time as the purchase contract, before any loan application occurs.
4. Only after the lender receives the appraisal and issues final underwriting approval.

Question 4

1. The borrower reads the Closing Disclosure and asks where to sign at closing.
2. The borrower asks the lender to explain the difference between escrow and prepaids.
3. The borrower receives a general rate quote before providing application information.
4. The borrower changes from a fixed-rate loan to an adjustable-rate loan mid-process. (correct answer)

Question 5

1. Loan Estimate arrives after closing; Closing Disclosure arrives within three days of application.
2. Loan Estimate is within three business days of application; Closing Disclosure is at least three business days before closing. (correct answer)
3. Both forms are provided only at closing, because final fees are unknown earlier.
4. Closing Disclosure is provided first; Loan Estimate is optional if the borrower consents.

Question 6

1. Zero tolerance - no increase permitted from Loan Estimate amounts
2. 10% cumulative tolerance - increases limited to 10% collectively (correct answer)
3. Unlimited tolerance - any increase is permitted with disclosure
4. 15% individual tolerance - each service limited to 15% increase

Question 7

1. Section B - Projected Payments as part of monthly payment breakdown
2. Section D - Loan Costs under origination charges and fees
3. Section E - Other Costs under prepaids and initial escrow deposits (correct answer)
4. Section F - Summaries under total loan costs calculation

Question 8

1. The lender's internal cost structure changes due to market conditions
2. The borrower's credit score decreases after the initial application (correct answer)
3. The lender decides to offer a more competitive interest rate
4. General market interest rates increase across all loan products

Question 9

1. 2 business days before the scheduled closing date
2. 3 business days before the scheduled closing date (correct answer)
3. 5 business days before the scheduled closing date
4. 7 business days before the scheduled closing date

Question 10

1. Within 3 business days after receiving the complete loan application
2. At the time of loan application or within 3 business days thereafter (correct answer)
3. Within 7 business days before the scheduled closing date
4. At the closing table along with all other required documentation

Question 11

1. Down payment amount required for the specific loan program
2. Closing costs payable by the borrower at settlement
3. Prepaids such as interim interest and insurance premiums
4. Monthly principal and interest payments for the first year (correct answer)

Question 12

1. Only when the loan is a high-cost mortgage under HOEPA
2. Within 3 business days after receiving the loan application (correct answer)
3. Only when the borrower specifically requests counseling information
4. At closing along with all other required settlement documents

Question 13

1. 15 calendar days after the escrow account is established at closing
2. 30 calendar days after the escrow account is established at closing
3. 45 calendar days after the escrow account is established at closing (correct answer)
4. 60 calendar days after the escrow account is established at closing

Question 14

1. Hand delivery only to ensure borrower receipt and understanding
2. Email delivery only to provide electronic records and confirmation
3. Hand delivery, mail, or email if borrower consents to electronic delivery (correct answer)
4. Certified mail only to provide legal proof of delivery timing

Question 15

1. Immediately upon discovery of the changes requiring correction
2. No later than 2 business days after the changes are discovered
3. No later than 3 business days before the new consummation date (correct answer)
4. No later than 5 business days before the new consummation date

Question 16

1. Section D as positive amounts that increase the borrower's total loan costs
2. Section D as negative amounts that decrease the borrower's total loan costs (correct answer)
3. Section E as positive amounts that increase the borrower's other costs
4. Section F as adjustments that have no effect on borrower costs

Question 17

1. The borrower's credit score and complete credit history report
2. The loan's Annual Percentage Rate and total interest percentage (correct answer)
3. The property's complete title history and ownership records
4. The lender's complete fee schedule for all possible loan products

Question 18

1. At the time of referral or within 3 business days thereafter (correct answer)
2. Within 10 business days after the loan application is submitted
3. No later than 3 business days before the scheduled closing
4. At closing when all settlement service providers are identified

Question 19

1. Section A - Loan Terms located on page 1 of the disclosure (correct answer)
2. Section B - Projected Payments located on page 1 of the disclosure
3. Section C - Costs at Closing located on page 1 of the disclosure
4. Section D - Loan Costs located on page 2 of the disclosure

Question 20

1. Zero tolerance with no increases permitted above disclosed amounts
2. 10% cumulative tolerance with other third-party services
3. Unlimited tolerance since they are government-imposed fees (correct answer)
4. 5% individual tolerance as required government recording charges