NMLS final exam questions with 100% Correct answers

NMLS final exam questions with 100% Correct answers Which document actually contains the borrower's promise to repay the loan? A. The deed B. The mortgage C. The note D. The TIL Disclosure - Answer-C. The note The practice of intentionally targeting borrowers in poor or underserved areas with predatory loans is known as: A. Redlining B. Steering C. Misappropriation D. Reverse redlining - Answer-D. Reverse redlining If a lender wants to obtain copies of a borrower's tax returns, the borrower is asked to sign what? A. 4506-T B. A waiver of financial information C. 1003 D. 1040 - Answer-A. 4506-T An increase in fees and issuance of a revised Loan Estimate to reflect the new amounts is permitted in which of the following cases? A. The creditor failed to provide an accurate estimate of transfer taxes and wants to issue a revised Loan Estimate showing actual costs B. The consumer is not allowed to shop for flood zone determination services and the actual costs are more than the estimated costs C. The title company affiliated with the lender decides to charge more for its services than initially disclosed D. The consumer has failed to respond to a loan officer within ten business days and the lending terms have changed - Answer-D. The consumer has failed to respond to a loan officer within ten business days and the lending terms have changed All of the following are true of FHA fixed-rate loans, except: A. They require upfront MIP on all loans B. They are available in 15- and 30-year terms C. The borrower is only required to carry MIP until the LTV reaches 78% D. The borrower must make at least a 3.50% investment - Answer-C. The borrower is only required to carry MIP until the LTV reaches 78% Previously used as compensation for mortgage professionals, yield spread premiums must now be used: A.As referral fees paid to the broker by a settlement service provider B. As credits to the borrower to help pay settlement costs C. As commissions paid in addition to mortgage broker compensation D. As credits off of the interest rate of the loan - Answer-B. As credits to the borrower to help pay settlement costs