NMLS CORRECT EXAMS ANSWERS AND QUESTIONS
SET A+
✔✔How many days does a lender have to send an adverse action notice?
A.) 5
B.) 10
C.) 30
D.) 60 - ✔✔C.) 30
✔✔The GFE/Loan Estimate must be mailed or given to the borrower within how many
days after rceiving the signed application?
A.) 3 business days
B.) 7 business days
C.) 10 business days
D.) 30 business days - ✔✔A.) 3 business days
✔✔The enforcement of a lien is known as:
A.) Closing
B.) Foreclosure
C.) Warranty inspection
D.) Police Action - ✔✔B.) Foreclosure
✔✔The minimum percentage of ownership in a related service required a conflict of
interest disclosure?
A.) 5%
B.) 10%
C.) 25%
D.) 50% - ✔✔B.) 10%
,✔✔What minimum percentage o ownership qualifies an individual as self-employed?
A.) 5%
B.) 10%
C.) 25%
D.) 50% - ✔✔C.) 25%
✔✔A salaried employee may have to produce which of the following documents to
obtain a loan?
A.) 90 day pay stubs
B.) 2 years W2's
C.) Profit and Loss statement
D.) Balance sheet - ✔✔B.) 2 years W2's
✔✔How may months must be left on an automobile lease to include it as a debt?
A.) 2 months
B.) 5 months
C.) 10 months
D.) It is always included - ✔✔D.) It is always included
✔✔Which law defines the right of rescission?
A.) Truth-in-Lending
B.) Real Estate Settlement Procedures Act
C.) Equal Credit Opportunity Act
D.) Patriot Act - ✔✔A.) Truth-in-Lending
Investopedia
A right of rescission is a right under American federal law set forth by the Truth in
Lending Act (TILA) that gives a borrower the right to cancel a home equity loan or line of
credit with a new lender, or to cancel a refinance transaction done with another lender
other than the current mortgagee within three days of closing. The right is provided on a
no-questions-asked basis, and the lender must give up its claim to the property and
refund all fees within 20 days of exercising of the right of rescission.
✔✔How long after the application date must social security payments continue to be
received in order to count as income?
A.) 3 months
B.) 10 months
C.) 2 years
D.) 3 years - ✔✔D.) 3 years
, ✔✔Credit reports on new construction are good for how many days?
A.) 90 days
B.) 120 days
C.) 180 days
D.) 225 days - ✔✔B.) 120 days
✔✔Which clause in a mortgage allows a lender to increase the interest rate?
A.) Defeasance
B.) Escalation
C.) Acceleration
D.) Exculpatory - ✔✔B.) Escalation
✔✔Which clause in a mortgage prevents the lender from foreclosing unless the
borrower is in default?
A.) Defeasance
B.) Escalation
C.) Acceleration
D.) Exculpatory - ✔✔A.) Defeasance
✔✔The lender has how many days to send the Satisfaction of Mortgage letter to the
borrower once the loan balance is paid?
A.) 30 days
B.) 60 days
C.) 90 days
D.) 120 days - ✔✔B.) 60 days
✔✔Which of the following increases cap rate?
A.) Lower purchase price
B.) Increase purchase price
C.) Decrease cash flow
D.) Increase interest rate - ✔✔B.) Increase purchase price
✔✔Who should applicants contact if they have questions about their credit score or
credit information?
A.) Credit reporting agency
B.) Lender
C.) Mortgage broker
D.) Attorney - ✔✔A.) Credit reporting agency
SET A+
✔✔How many days does a lender have to send an adverse action notice?
A.) 5
B.) 10
C.) 30
D.) 60 - ✔✔C.) 30
✔✔The GFE/Loan Estimate must be mailed or given to the borrower within how many
days after rceiving the signed application?
A.) 3 business days
B.) 7 business days
C.) 10 business days
D.) 30 business days - ✔✔A.) 3 business days
✔✔The enforcement of a lien is known as:
A.) Closing
B.) Foreclosure
C.) Warranty inspection
D.) Police Action - ✔✔B.) Foreclosure
✔✔The minimum percentage of ownership in a related service required a conflict of
interest disclosure?
A.) 5%
B.) 10%
C.) 25%
D.) 50% - ✔✔B.) 10%
,✔✔What minimum percentage o ownership qualifies an individual as self-employed?
A.) 5%
B.) 10%
C.) 25%
D.) 50% - ✔✔C.) 25%
✔✔A salaried employee may have to produce which of the following documents to
obtain a loan?
A.) 90 day pay stubs
B.) 2 years W2's
C.) Profit and Loss statement
D.) Balance sheet - ✔✔B.) 2 years W2's
✔✔How may months must be left on an automobile lease to include it as a debt?
A.) 2 months
B.) 5 months
C.) 10 months
D.) It is always included - ✔✔D.) It is always included
✔✔Which law defines the right of rescission?
A.) Truth-in-Lending
B.) Real Estate Settlement Procedures Act
C.) Equal Credit Opportunity Act
D.) Patriot Act - ✔✔A.) Truth-in-Lending
Investopedia
A right of rescission is a right under American federal law set forth by the Truth in
Lending Act (TILA) that gives a borrower the right to cancel a home equity loan or line of
credit with a new lender, or to cancel a refinance transaction done with another lender
other than the current mortgagee within three days of closing. The right is provided on a
no-questions-asked basis, and the lender must give up its claim to the property and
refund all fees within 20 days of exercising of the right of rescission.
✔✔How long after the application date must social security payments continue to be
received in order to count as income?
A.) 3 months
B.) 10 months
C.) 2 years
D.) 3 years - ✔✔D.) 3 years
, ✔✔Credit reports on new construction are good for how many days?
A.) 90 days
B.) 120 days
C.) 180 days
D.) 225 days - ✔✔B.) 120 days
✔✔Which clause in a mortgage allows a lender to increase the interest rate?
A.) Defeasance
B.) Escalation
C.) Acceleration
D.) Exculpatory - ✔✔B.) Escalation
✔✔Which clause in a mortgage prevents the lender from foreclosing unless the
borrower is in default?
A.) Defeasance
B.) Escalation
C.) Acceleration
D.) Exculpatory - ✔✔A.) Defeasance
✔✔The lender has how many days to send the Satisfaction of Mortgage letter to the
borrower once the loan balance is paid?
A.) 30 days
B.) 60 days
C.) 90 days
D.) 120 days - ✔✔B.) 60 days
✔✔Which of the following increases cap rate?
A.) Lower purchase price
B.) Increase purchase price
C.) Decrease cash flow
D.) Increase interest rate - ✔✔B.) Increase purchase price
✔✔Who should applicants contact if they have questions about their credit score or
credit information?
A.) Credit reporting agency
B.) Lender
C.) Mortgage broker
D.) Attorney - ✔✔A.) Credit reporting agency
