MLO SAFE NMLS SAFE TEST PRACTICE QUESTIONS | LATEST VERSION | 2024/2025 | ALREADY PASSED

MLO SAFE NMLS SAFE TEST PRACTICE QUESTIONS | LATEST VERSION | 2024/2025 | ALREADY PASSED __________________ requires that a borrower is notified ___________ days prior to the effective date of the loan servicing transfer. RESPA (Real Estate Settlement Procedures Act), 15 days prior ________________________ is another name for Section 114 of FACTA and also amends FCRA. The Red Flag Rules A ______________ buyer is a person who gets paid for the use of their name and credit history in (a) loan transaction(s) usually for fraudulent persons. Straw Buyer A _______________ allows qualified homeowners age 62 or older to convert equity in their home to a monthly cash flow or line of credit. Reverse Mortgage, RAM Reverse Annuity Mortgage, HECM FHA's Home Equity Conversion Mortgage A ________________ mortgage encumbers more than one parcel of land. Blanket mortgage A _________________ fee is required to implement the guarantee on a VA loan. Funding Fee A _________________ is someone who allows his/her name and personal details to be used to obtain a mortgage loan for a property he/she has no intention of inhabiting. Straw Buyer A __________________ disclosure is required to be provided to the borrower when the referring provider has greater than 1% ownership interest in the business being referred. AfBA, Affiliated Business Arrangement Disclsoure A _____________________ is a loan that does not follow the FNMA/FHLMC GSE's loan limit guidelines or terms. A Non Conforming Loan A ______________________ loan encumbers both real and personal property. Package mortgage A ______________________market entity would usually buy a loan from a ___________________ market entity. Secondary/Primary A "qualified" mortgage is one with points and fees not exceeding ______________% of the loan amount, do not have terms that exceed __________________ year and do not result in _________________ amortization. 3%, 30 years and negative amortization A Balloon payment is disclosed on the document evidencing the debt and the security instrument known as the __________________ and _____________________. Note and mortgage A borrower borrows $95,000 (95% LTV) with PMI to implement a $100,000 purchase. Years later the property appraises at $150,000 but the borrower still owes $90,000 (60% LTV). Per the HPA guidelines, will the PMI automatically terminate? No, per the Homeowner's Protection Act, LTV is based on the original amortization schedule, not a new appraisal. The PMI will automatically terminate at 78% LTV equaling a balance of $78,000. A borrower earns $10,000 per month and has installment debt and revolving charge payments of $1,400 per month. Per FHA guidelines this borrowers maximum allowable housing expense is _______________. $2,900. $10,000 X 43% = $4,300 - $1,400 = $2,900 FHA ratios 31/43 Use the lesser of the front/back end Front=$10,000 X 31%=$3,100 A borrower is approved for an ARM with a starting rate of 5% and 2/6 caps. If the index continues to increase over the next 5 years, what is the highest interest rate that this borrower could pay? 11%, adding the life cap (6%) to the starting rate (5%) totals 11%. This is the highest possible for the life of the loan regardless of market conditions. A Borrower is buying a home for $150,000 and makes a down payment of $10,000. He agrees to pay 2 discount points which equal _________________. $2,800. $140,000 X .02 = $2,800 A borrower is turned down for a loan and receives an adverse action notice and a notice of his/her right to an appraisal copy. Per ECOA the borrower must submit a request for an appraisal copy within ___________ days from the about notification? 90 days from the adverse action notice A borrowerr switches from a fixed rate loan already applied for to an adjustable rate mortgage. Will this switch require new disclosures or an adjustment of existing disclosures? New Disclosures, rate and term changes are significant and would require redisclosure. A Company is required to update the names on the internal "do not call list" every ______________ days. 30 days A conventional, conforming first mortgage requires PMI when the LTV exceeds ____________________. 80%