United States
Hong KongFederal Mortgage Related Laws
The second largest area at 24%, covering RESPA, TILA and TRID, ECOA, loan originator compensation, HMDA, FCRA, privacy and anti-money laundering. Almost everything in it is codified, so every answer can be traced to a provision.
Twenty-four percent of the paper, which we estimate at 29 questions. The most feared area, and not the largest.
What it covers
- RESPA - settlement services and prohibited referral fees
- RESPA - servicing, escrow and loss mitigation
- ECOA and fair lending in credit decisions
- TILA - finance charge, APR and the right of rescission
- TILA - ability to repay, qualified mortgages and HOEPA
- Loan originator compensation and qualification
- TRID - the Loan Estimate and the Closing Disclosure
- HMDA, FCRA, privacy and anti-money laundering
The good news about this area
It is codified. Every rule sits in a provision you can read, at a citation you can check. Look it up.
That is not true of every exam. Where a syllabus rests on industry practice, the only way to learn it is to be told. Here you can go to the source, and the source settles arguments between prep providers.
| Rule | Where it lives |
|---|---|
| RESPA | Regulation X, 12 CFR 1024 |
| TILA and TRID | Regulation Z, 12 CFR 1026 |
| ECOA | Regulation B, 12 CFR 1002 |
| SAFE Act | 12 USC 5101 and 12 CFR 1008 |
| HMDA | Regulation C, 12 CFR 1003 |
What actually gets tested
Timeframes, thresholds and which rule applies to which transaction. Rarely the purpose of a statute in the abstract. Learn the numbers.
A question will give you a scenario and ask what must happen and by when. Knowing that RESPA is about settlement services will not answer it. Knowing that the servicing transfer notice is due 15 days before the effective date will.
A question about the Closing Disclosure deadline will offer you the Loan Estimate deadline as an option. They are both three business days and they mean different things. This is where the area is won and lost.
How to study it
Build a single timeline of the loan from application to closing and hang each requirement off it. Then drill the numbers as numbers, separately, because the timeline gives you understanding and the drilling gives you speed.
Common questions
How much of the NMLS exam is federal law?
24%, which we estimate at 29 of the 120 questions.
Which federal laws are on the NMLS exam?
RESPA, TILA including TRID, ECOA, the SAFE Act, HMDA, FCRA, the Gramm-Leach-Bliley privacy rules and the Bank Secrecy Act.
How are federal law questions written?
Mostly as scenarios asking what must happen and by when, with neighboring rules offered as distractors.
Do I need to memorize citations?
No. You need the rules and the timeframes. Citations help you check a claim rather than answer a question.
Is federal law the biggest area?
No. Origination activities is larger at 27%.