Mortgage NMLS Exam Questions with Correct Answers

Mortgage NMLS Exam Questions with Correct Answers Deed of Trust - Answer-Legal document between lender and borrower (aka the trustor) which is used in some states instead of a mortgage to transfer a property's legal title to a neutral third party (trustee) to secure the repayment of loan. Discount Points - Answer-Fees charged by a lender to borrowers at closing to lower the stated interest rate and the interest portion of each monthly payment. Ethics - Answer-Set of values, conduct, and principles that consistently guide our behavior and decisions to deliver fair and honest service to all parties Equity - Answer-Market value of a property in excess of the amount owed by the borrower Home Equity Line of Credit (HELOC) - Answer-Type of loan based on a secured by the value of the home that exceeds the amount already owed by the borrower to other more senior lien holders. Typically have variable interest rates and are open-ended - funds can be borrowed and repaid over and over again. Home Equity Loan - Answer-Loan based on the difference between the value of the home and the amount owed Investor - Answer-Person or entity that funds the loan, aka a lender or mortgagee