NMLS ACTUAL FINALS ANSWERS AND QUESTIONS
SET A+
✔✔Term "20 basis points" expressed as a percentage is:
A.) 0.2%
B.) 0.20%
C.) 2.00%
D.) 20.00% - ✔✔B.) 0.20%
one hundredth of one percent, used chiefly in expressing differences of interest rates.
0.01
so 0.01 x20 = 0.2
✔✔According to the Truth-in-Lending Act (TILA), which if the following fees is
EXCLUDED from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums - ✔✔A.) Hazard insurance
✔✔FHA loans are:
A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled - ✔✔A.) Partially guaranteed
✔✔The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
,C.) 5% of principle and interest
D.) 10% of principle and interest - ✔✔C.) 5% of principle and interest
✔✔A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan - ✔✔B.) VA loan
✔✔A Mortgage Insurance Premium is required on:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan - ✔✔A.) FHA loan
✔✔The mortgagee is the:
A.) Borrower
B.) Lender
C.) Closing agent
D.) Mortgage broker - ✔✔B.) Lender
✔✔The borrower does NOT sign which document:
A.) Deed
B.) HUD-1/Loan Disclosure
C.) Mortgage
D.) Note - ✔✔A.) Deed
✔✔Which documents is usually NOT recorded
A.) Assignment of mortgage
B.) Note
C.) Deed
D.) Mortgage - ✔✔B.) Note
✔✔A mortgage title insurance policy is NOT
A.) Based on the loan amount
B.) Transferable
C.) Optional
D.) Required by the lender - ✔✔C.) Optional
, ✔✔Which parties sign the deed?
A.) Grantor, grantee and two witnesses
B.) Grantor and two witnesses
C.) Grantee and two witnesses
D.) Grantee only - ✔✔B.) Grantor and two witnesses
✔✔When the mortgagor and the mortgagee title insurance policies are issued at the
same time, this is known as:
A.) Simultaneous issue
B.) Concurrent issue
C.) Subsequent issue
D.) Dual issue - ✔✔A.) Simultaneous issue
✔✔A shrubbery hedge is one example of an:
A.) Encumbrance
B.) Easement
C.) Entitlement
D.) Acceptable title impediment - ✔✔D.) Acceptable title impediment
✔✔A loan on personal property only known as:
A.) Package mortgage
B.) Chattel mortgage
C.) Furnishing mortgage
D.) Exotic mortgage - ✔✔B.) Chattel mortgage
Investopedia
Chattel mortgage is a legal term used to describe a loan arrangement in which an item
of movable personal property is used as security for the loan. The movable property, or
chattel, guarantees the loan in this type of mortgage. This differs from a conventional
mortgage in which the loan is secured by a lien on real property.
✔✔Which of the following is NOT a characteristic of a Tenants in Common form of
ownership:
A.) Equal shares
B.) Buy at different times
C.) Right survivorship
D.) Ability to will share - ✔✔C.) Right survivorship
✔✔PITI payments do NOT include which of the following:
SET A+
✔✔Term "20 basis points" expressed as a percentage is:
A.) 0.2%
B.) 0.20%
C.) 2.00%
D.) 20.00% - ✔✔B.) 0.20%
one hundredth of one percent, used chiefly in expressing differences of interest rates.
0.01
so 0.01 x20 = 0.2
✔✔According to the Truth-in-Lending Act (TILA), which if the following fees is
EXCLUDED from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums - ✔✔A.) Hazard insurance
✔✔FHA loans are:
A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled - ✔✔A.) Partially guaranteed
✔✔The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
,C.) 5% of principle and interest
D.) 10% of principle and interest - ✔✔C.) 5% of principle and interest
✔✔A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan - ✔✔B.) VA loan
✔✔A Mortgage Insurance Premium is required on:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan - ✔✔A.) FHA loan
✔✔The mortgagee is the:
A.) Borrower
B.) Lender
C.) Closing agent
D.) Mortgage broker - ✔✔B.) Lender
✔✔The borrower does NOT sign which document:
A.) Deed
B.) HUD-1/Loan Disclosure
C.) Mortgage
D.) Note - ✔✔A.) Deed
✔✔Which documents is usually NOT recorded
A.) Assignment of mortgage
B.) Note
C.) Deed
D.) Mortgage - ✔✔B.) Note
✔✔A mortgage title insurance policy is NOT
A.) Based on the loan amount
B.) Transferable
C.) Optional
D.) Required by the lender - ✔✔C.) Optional
, ✔✔Which parties sign the deed?
A.) Grantor, grantee and two witnesses
B.) Grantor and two witnesses
C.) Grantee and two witnesses
D.) Grantee only - ✔✔B.) Grantor and two witnesses
✔✔When the mortgagor and the mortgagee title insurance policies are issued at the
same time, this is known as:
A.) Simultaneous issue
B.) Concurrent issue
C.) Subsequent issue
D.) Dual issue - ✔✔A.) Simultaneous issue
✔✔A shrubbery hedge is one example of an:
A.) Encumbrance
B.) Easement
C.) Entitlement
D.) Acceptable title impediment - ✔✔D.) Acceptable title impediment
✔✔A loan on personal property only known as:
A.) Package mortgage
B.) Chattel mortgage
C.) Furnishing mortgage
D.) Exotic mortgage - ✔✔B.) Chattel mortgage
Investopedia
Chattel mortgage is a legal term used to describe a loan arrangement in which an item
of movable personal property is used as security for the loan. The movable property, or
chattel, guarantees the loan in this type of mortgage. This differs from a conventional
mortgage in which the loan is secured by a lien on real property.
✔✔Which of the following is NOT a characteristic of a Tenants in Common form of
ownership:
A.) Equal shares
B.) Buy at different times
C.) Right survivorship
D.) Ability to will share - ✔✔C.) Right survivorship
✔✔PITI payments do NOT include which of the following:
