NMLS Exam Questions with Correct Answers (Definite Pass)
In the absence of caps, adjustments on an ARM loan would be determined solely by:
The index
The margin
The fully-indexed rate
The lifetime rate - Answer-the fully-indexed rate
A consumer signs a closed-end lending agreement on Wednesday. What is the latest that he/she may wait to exercise the right to rescind?
Midnight on Friday
Midnight on Saturday
Midnight on Monday
Midnight on Tuesday - Answer-midnight on Saturday.
All of the following types of information must be reported for government monitoring purposes in accordance with HMDA, except:
Identification of loans subject to HOEPA
Action taken on the loan and the location of the subject property
Ethnicity, race, sex, and income of the applicant
Ethnicity, race, sex, and religion of the applicant - Answer-ethnicity, race, sex, and religion of the applicant
The administrative authority of the Commissioner includes all but which of the following?
Promulgate rules or regulations implementing the S.A.F.E. Act
Administer, interpret, and enforce the S.A.F.E. Act
Carry out the intentions of the Legislature
Sentencing violators of the S.A.F.E. Act to appropriate prison terms - Answer-
sentencing violators of the S.A.F.E. Act to appropriate prison terms
A state-licensed loan originator is:
Licensed by the NMLS
An employee of a non-depository institution
Identified by the unique identifier of his/her employer
An employee of a subsidiary which is owned or controlled by a depository institution - Answer-an employee of a non-depository institution
HMDA data is collected and aggregated to determine:
The success rate of nontraditional mortgage loans
Whether the success of lending terms varies in different geographic areas
The extent of creditor compliance with privacy protection laws
Whether different credit terms are offered to members of protected classes - Answer-
whether different credit terms are offered to members of protected classes. A balloon rider, a prepayment penalty rider and a second-home rider may all be part of:
A title insurance policy
A deed of trust
A note
A power-of-attorney agreement - Answer-a deed of trust.
How many total hours of ethics are required, at minimum, for continuing education?
Three
Eight
Two
Eleven - Answer-two
Intentionally targeting borrowers in poor or underserved areas with expensive high-cost loans is considered illegal under:
TILA
Homeowners Protection Act
HOEPA
RESPA - Answer-HOEPA
Concerning ARMs, margin is best defined as:
A number, expressed as a percentage, that represents a lender's operating costs and profit margin
The amount of compensation earned by a mortgage professional for originating an ARM
The range of flexibility an interest rate has between caps on traditional ARMs
The maximum - up or down - that an interest rate can ever adjust on an ARM - Answer-
a number, expressed as a percentage, that represents a lender's operating costs and profit margin.
Under RESPA, in order to provide the escrow analysis statement, a borrower's escrow account must be analyzed:
Annually
Monthly
Quarterly
Twice a year - Answer-annually
Special second appraisal requirements apply for a loan that is a(n):
VA loan
Higher-priced mortgage loan
Adjustable-rate mortgage
Refinance - Answer-higher-priced mortgage loan
Germaine Hopper has not maintained a state loan originator license for five years. However, during the last three years of that five-year period, she was employed as a registered loan originator with the Anywhere Bank. Is Germaine required to retake the licensing test when she decides to apply for a new state license?
In the absence of caps, adjustments on an ARM loan would be determined solely by:
The index
The margin
The fully-indexed rate
The lifetime rate - Answer-the fully-indexed rate
A consumer signs a closed-end lending agreement on Wednesday. What is the latest that he/she may wait to exercise the right to rescind?
Midnight on Friday
Midnight on Saturday
Midnight on Monday
Midnight on Tuesday - Answer-midnight on Saturday.
All of the following types of information must be reported for government monitoring purposes in accordance with HMDA, except:
Identification of loans subject to HOEPA
Action taken on the loan and the location of the subject property
Ethnicity, race, sex, and income of the applicant
Ethnicity, race, sex, and religion of the applicant - Answer-ethnicity, race, sex, and religion of the applicant
The administrative authority of the Commissioner includes all but which of the following?
Promulgate rules or regulations implementing the S.A.F.E. Act
Administer, interpret, and enforce the S.A.F.E. Act
Carry out the intentions of the Legislature
Sentencing violators of the S.A.F.E. Act to appropriate prison terms - Answer-
sentencing violators of the S.A.F.E. Act to appropriate prison terms
A state-licensed loan originator is:
Licensed by the NMLS
An employee of a non-depository institution
Identified by the unique identifier of his/her employer
An employee of a subsidiary which is owned or controlled by a depository institution - Answer-an employee of a non-depository institution
HMDA data is collected and aggregated to determine:
The success rate of nontraditional mortgage loans
Whether the success of lending terms varies in different geographic areas
The extent of creditor compliance with privacy protection laws
Whether different credit terms are offered to members of protected classes - Answer-
whether different credit terms are offered to members of protected classes. A balloon rider, a prepayment penalty rider and a second-home rider may all be part of:
A title insurance policy
A deed of trust
A note
A power-of-attorney agreement - Answer-a deed of trust.
How many total hours of ethics are required, at minimum, for continuing education?
Three
Eight
Two
Eleven - Answer-two
Intentionally targeting borrowers in poor or underserved areas with expensive high-cost loans is considered illegal under:
TILA
Homeowners Protection Act
HOEPA
RESPA - Answer-HOEPA
Concerning ARMs, margin is best defined as:
A number, expressed as a percentage, that represents a lender's operating costs and profit margin
The amount of compensation earned by a mortgage professional for originating an ARM
The range of flexibility an interest rate has between caps on traditional ARMs
The maximum - up or down - that an interest rate can ever adjust on an ARM - Answer-
a number, expressed as a percentage, that represents a lender's operating costs and profit margin.
Under RESPA, in order to provide the escrow analysis statement, a borrower's escrow account must be analyzed:
Annually
Monthly
Quarterly
Twice a year - Answer-annually
Special second appraisal requirements apply for a loan that is a(n):
VA loan
Higher-priced mortgage loan
Adjustable-rate mortgage
Refinance - Answer-higher-priced mortgage loan
Germaine Hopper has not maintained a state loan originator license for five years. However, during the last three years of that five-year period, she was employed as a registered loan originator with the Anywhere Bank. Is Germaine required to retake the licensing test when she decides to apply for a new state license?
