NMLS FINAL PAPER 2026 FULL Q&A STUDY
GUIDE GRADED A+
◉The most commonly and frequently used approach to appraising
residential property is the ____________ approach.. Answer:
Comparable Approach also known as the Market Data Approach.
◉What is market price?. Answer: The dollar amount that is actually
paid for a property.
◉When a primary residence, the ratio that results from dividing the
subject property PITI by the borrowers stable gross monthly income
is called ______________________.. Answer: The primary housing expense
or the front end ratio.
◉The USDA loan program that either guarantees loans made by
approved private lenders or makes direct loans is known as the
section ____________________ loan program.. Answer: 502
◉Chapter 7 bankruptcy will continue to be reported on the
borrower's credit for a period of _____________ years.. Answer: 10
years.
,◉A loan with a 2/1 buydown will cost the borrower 2.625 points at
closing. The loan amount is $157,000. Compute the cost of the
points.. Answer: $4,121.00. $157,000 X 2.625% = $4,121.00
◉A high cost loan under the Dodd-Frank Act exceeds the APOR by
6.5% for a 1st mortgage. A high priced loan in a first lien priority
exceeds the APOR by ______________?. Answer: 1.5%
◉What is the name of the Act that allows the consumer to "freeze"
their credit to prevent information from showing on their credit
report?. Answer: FACTA, The Fair Credit Reporting Act of 2003
◉What does the GLBA restrict?. Answer: The (GLBA) Gram-Leach-
Bliley Act restricts the selling or sharing personal information with
non-affiliated third parties.
◉What must an institution do as dictated by the Red Flag Rule?.
Answer: The institution must create a written identity theft
protection program.
◉The VA debt ratio is _______________%.. Answer: 41%, VA only
considers a total obligations ratio
◉The income that a Rural Development Loan considers is the
___________________________.. Answer: AMI, the area median income
, ◉Whether intentional or negligent, the misrepresentation or
concealment of materials facts is unethical and considered to be
_______________________________.. Answer: Fraud
◉Under Regulation Z, regarding a principal residence, how long is
the rescission period for a (1) refinance , a (2) HELOC and a (3)
purchase?. Answer: 1. 3 business days 2. 3 business days. 3. 0-None
for a purchase
◉After an annual escrow analysis a lender discovers that a
borrower, delinquent with payments, has an excess of $450 in his
escrow account. Must the excess be returned to the borrower?
When?. Answer: No, if the borrower is delinquent with payments,
the lender is not required to return any excess escrow.
◉FACTA modifies FCRA regarding ________________ __________________..
Answer: FACTA requires the disclosure of the credit score.
◉Regarding the GLBA and the Do-Not-Call registry, violations are
$_______________________ per incident.. Answer: $16,000
◉The required down payment on an FHA loan is __________% of the
lesser of the sales price of the property or appraised value.. Answer:
3.5%
GUIDE GRADED A+
◉The most commonly and frequently used approach to appraising
residential property is the ____________ approach.. Answer:
Comparable Approach also known as the Market Data Approach.
◉What is market price?. Answer: The dollar amount that is actually
paid for a property.
◉When a primary residence, the ratio that results from dividing the
subject property PITI by the borrowers stable gross monthly income
is called ______________________.. Answer: The primary housing expense
or the front end ratio.
◉The USDA loan program that either guarantees loans made by
approved private lenders or makes direct loans is known as the
section ____________________ loan program.. Answer: 502
◉Chapter 7 bankruptcy will continue to be reported on the
borrower's credit for a period of _____________ years.. Answer: 10
years.
,◉A loan with a 2/1 buydown will cost the borrower 2.625 points at
closing. The loan amount is $157,000. Compute the cost of the
points.. Answer: $4,121.00. $157,000 X 2.625% = $4,121.00
◉A high cost loan under the Dodd-Frank Act exceeds the APOR by
6.5% for a 1st mortgage. A high priced loan in a first lien priority
exceeds the APOR by ______________?. Answer: 1.5%
◉What is the name of the Act that allows the consumer to "freeze"
their credit to prevent information from showing on their credit
report?. Answer: FACTA, The Fair Credit Reporting Act of 2003
◉What does the GLBA restrict?. Answer: The (GLBA) Gram-Leach-
Bliley Act restricts the selling or sharing personal information with
non-affiliated third parties.
◉What must an institution do as dictated by the Red Flag Rule?.
Answer: The institution must create a written identity theft
protection program.
◉The VA debt ratio is _______________%.. Answer: 41%, VA only
considers a total obligations ratio
◉The income that a Rural Development Loan considers is the
___________________________.. Answer: AMI, the area median income
, ◉Whether intentional or negligent, the misrepresentation or
concealment of materials facts is unethical and considered to be
_______________________________.. Answer: Fraud
◉Under Regulation Z, regarding a principal residence, how long is
the rescission period for a (1) refinance , a (2) HELOC and a (3)
purchase?. Answer: 1. 3 business days 2. 3 business days. 3. 0-None
for a purchase
◉After an annual escrow analysis a lender discovers that a
borrower, delinquent with payments, has an excess of $450 in his
escrow account. Must the excess be returned to the borrower?
When?. Answer: No, if the borrower is delinquent with payments,
the lender is not required to return any excess escrow.
◉FACTA modifies FCRA regarding ________________ __________________..
Answer: FACTA requires the disclosure of the credit score.
◉Regarding the GLBA and the Do-Not-Call registry, violations are
$_______________________ per incident.. Answer: $16,000
◉The required down payment on an FHA loan is __________% of the
lesser of the sales price of the property or appraised value.. Answer:
3.5%
