NMLS SAFE EXAM QUESTIONS & ANSWERS 2022/2023

NMLS SAFE EXAM QUESTIONS & ANSWERS Primary Mortgage Market - ANSWER-Where credit institutions originate loans C. The maximum the rate can increase over the life of the loan - ANSWER-When an ARM has rate caps of 5/2/6, the 6 refers to what? A. The maximum rate increase at the initial adjustment B. The start rate for the loan C. The maximum the rate can increase over the life of the loan D. The rate maximum the rate can decrease over the life of the loan B. The borrower qualified at the buydown rate - ANSWER-When utilizing a temporary buydown to lower the interest rate on a FHA loan, which of the following are correct A. The borrower qualified at the note rate B. The borrower qualified at the buydown rate C. The rate cannot be more than 2% below the note rate D. Seller or builder can pay the discount points to buydown the rate A. Age - ANSWER-All of the following are violations of the Fair Housing Act EXCEPT A. Age B. National Origin C. Disability D.Religion Encrumbrance - ANSWER-Claim against property held by one who is not the legal owner Trigger Term - ANSWER-Advertised term that requires additional disclosures Advertising Disclosure - ANSWER-An advertisement must be presented "clearly and conspicuously" to keep from being deceptive, unfair, or otherwise violate a Commission rule Waving Right of Rescission - ANSWER-Extenuating circumstances such as "bona fide personal financial emergency Right of Rescission - ANSWER-Right that borrowers have to cancel a loan or line of credit with a lender within three days of closing Business Day - ANSWER-When creditors office is open to the public, a calendar working day except Sunday or a federal holiday