NMLS ACTUAL SETS ANSWERS AND QUESTIONS SET
A+
✔✔If the Gross Rent Multiplier (GRM) decreases, the property value:
A.) Increases
B.) Decreases
C.) Does not change
D.) Can increase or decrease - ✔✔B.) Decreases
✔✔What is the maximum allowable amount of VA seller concessions?
A.) 2%
B.) 3%
C.) 4%
D.) 5% - ✔✔C.) 4%
✔✔When a property increases in value for any reason this is known as:
A.) Acceleration
B.) Appreciation
C.) Accumulation
D.) Acclimation - ✔✔B.) Appreciation
✔✔Which appraisal approach is most suitable for an office building?
A.) Sales comparison approach
B.) Cost approach
C.) Income capitalization approach
D.) Tenant collection approach - ✔✔C.) Income capitalization approach
Investopedia
, The income approach is a real estate appraisal method that allows investors to estimate
the value of a property by taking the net operating income of the rent collected and
dividing it by the capitalization rate.
✔✔Which of the following is incorrect regarding an adjustable-rate mortgage?
A.) The index is fixed
B.) The margin is fixed
C.) There are rate caps on both the adjustment period and the life of the loan
D.) LIBOR is a typical index used - ✔✔A.) The index is fixed
✔✔Which of the following is NOT a fully amortized loan?
A.) Term mortgage
B.) Fixed-rate mortgage
C.) Adjustable-rate mortgage
D.) Bi-weekly mortgage - ✔✔A.) Term mortgage
✔✔Which of the following is a negatively amortizing loan?
A.) Reverse mortgage
B.) Balloon mortgage
C.) Term mortgage
D.) Wrap mortgage - ✔✔A.) Reverse mortgage
✔✔Fannie Mae does NOT require:
A.) 6 months of bank statements
B.) Verifiable funds
C.) 2 years of addresses
D.) Stable 2 year work history - ✔✔A.) 6 months of bank statements
✔✔A note is:
A.) The document that conveys title
B.) The pledge of the property as collateral for the loan
C.) The borrower's IOU
D.) The document that transfers contractual rights to another investor - ✔✔C.) The
borrower's IOU
✔✔A mortgage is:
A.) The document that conveys title
B.) The pledge of the property as collateral for the loan
C.) The borrower's IOU
A+
✔✔If the Gross Rent Multiplier (GRM) decreases, the property value:
A.) Increases
B.) Decreases
C.) Does not change
D.) Can increase or decrease - ✔✔B.) Decreases
✔✔What is the maximum allowable amount of VA seller concessions?
A.) 2%
B.) 3%
C.) 4%
D.) 5% - ✔✔C.) 4%
✔✔When a property increases in value for any reason this is known as:
A.) Acceleration
B.) Appreciation
C.) Accumulation
D.) Acclimation - ✔✔B.) Appreciation
✔✔Which appraisal approach is most suitable for an office building?
A.) Sales comparison approach
B.) Cost approach
C.) Income capitalization approach
D.) Tenant collection approach - ✔✔C.) Income capitalization approach
Investopedia
, The income approach is a real estate appraisal method that allows investors to estimate
the value of a property by taking the net operating income of the rent collected and
dividing it by the capitalization rate.
✔✔Which of the following is incorrect regarding an adjustable-rate mortgage?
A.) The index is fixed
B.) The margin is fixed
C.) There are rate caps on both the adjustment period and the life of the loan
D.) LIBOR is a typical index used - ✔✔A.) The index is fixed
✔✔Which of the following is NOT a fully amortized loan?
A.) Term mortgage
B.) Fixed-rate mortgage
C.) Adjustable-rate mortgage
D.) Bi-weekly mortgage - ✔✔A.) Term mortgage
✔✔Which of the following is a negatively amortizing loan?
A.) Reverse mortgage
B.) Balloon mortgage
C.) Term mortgage
D.) Wrap mortgage - ✔✔A.) Reverse mortgage
✔✔Fannie Mae does NOT require:
A.) 6 months of bank statements
B.) Verifiable funds
C.) 2 years of addresses
D.) Stable 2 year work history - ✔✔A.) 6 months of bank statements
✔✔A note is:
A.) The document that conveys title
B.) The pledge of the property as collateral for the loan
C.) The borrower's IOU
D.) The document that transfers contractual rights to another investor - ✔✔C.) The
borrower's IOU
✔✔A mortgage is:
A.) The document that conveys title
B.) The pledge of the property as collateral for the loan
C.) The borrower's IOU
