Nmls Safe Mortgage Loan Originator Exam A+ Grade Assured Complete Solutions And Verified Answers

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Exam Solution @x




NMLS (MLO) Loan Origination Activities 2026 A+ GRA
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DE ASSURED COMPLETE SOLUTIONS AND VERIFIED AN
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SWERS (DB38F) @x




QUESTION 1 @x




What are two of the most important documents that the borrower signs at settlemen
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t?
ANSWER

The Promissory Note and the Deed of Trust or mortgage (correct) -
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A note or promissory note is a written, legally binding promise to repay a debt. The note creates t
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he debt, and the mortgage secures the payment. When the property is foreclosed on, the lender is
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foreclosing on the note. The mortgage or deed of trust is the security instrument that the borrower
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gives to the lender that protects the lender's interest in the property. When the borrower signs th
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e mortgage or deed of trust, they are giving the lender the right to take the property by foreclosur
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e if they fail to pay their mortgage properly. The Loan Note and First Payment Letter The Mortgag
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e and Right of Rescission Error and Omissions and the Loan Note
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QUESTION 2 @x




If there are two borrowers on the loan but the two borrowers are unmarried, they w
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ould be considered what:
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ANSWER

Title sharers Co-mortgagors (correct) -
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Only borrowers who are married can be included on the same 1003 and be considered co-
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borrowers. If there are two unmarried borrowers, they must fill out two separate 1003s. These tw
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o borrowers are called co-mortgagors Co-borrowers Community property holders
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QUESTION 3 @x




A borrower purchases a home for $120,500 and is putting 10% down. If he has alrea
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dy paid $2,500 in earnest money, what is the rest of the down payment at closing?
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ANSWER

, $9,550 (Correct) - @x @x



First find out what the entire down payment is, 10% of $120,500 is $12,050. Subtract the earnest
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money from the total down payment, $12,050 - $2,500 = $9,550. $8,550 $8,345 $10,500
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QUESTION 4 @x




When you order an Insurance binder on a borrower's loan file, the one-
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page sheet that summarizes all the insurance information is known as the:
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ANSWER

When you order an Insurance binder on a borrower's loan file, the one-
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page sheet that summarizes all the insurance information is known as the: binder reference page. 1
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008. binder summary page. Declaration page. (correct) -
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Borrowers often need home insurance binders to provide proof of insurance coverage when purch
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asing a house with a mortgage. The insurance binder specifies all the protections for which the bor
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rower is covered while they wait for a new policy, as well as any coverage limits, deductibles, fees,
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terms and conditions, this is all included on the declaration page. The declaration page is the fron
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t page (or pages) of the policy that specifics all the pertinent details of the policy.
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QUESTION 5 @x




On an FHA annually adjusting ARM, assume that the starting rate was 5%; the margi
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n is 2.5%; the index in 6 months is 3%; the index in 12 months is 3.5%; the index in
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18 months is 3.25%. What is the borrower's interest rate in 18 months?
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ANSWER

5.00% 6.00% (correct) -
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The margin plus the index as 12 months is 6%. There is additional superfluous information in thi
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s question. The loan adjusts annually so you only need the index at 12 months. 5.50% 5.75%
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QUESTION 6 @x




What is the note rate for a $150,000 loan with a 2/1 buy down when the borrowers
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start with a payment rate of 4% for 12 months; then 5% for another 12 months; the
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n 6% for the rest of the payment term?
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ANSWER

The note includes all three interest rates. 4% 5% 6% (correct) -
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The note rate is the interest rate after the buydown which in this situation is 6%.
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QUESTION 7 @x




Which of the following is true concerning Service Release Premium (SRP)?
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ANSWER