NMLS PRACTICE TEST REVIEWS WITH
ANSWERS
1) Seller can Sell property at a premium/profit with Fannie Mae
financing after?
30 days
•60 days
•90 days - ANSWER-•90 days
2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance - ANSWER-cost of fund index
3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans. - ANSWER-second mortgage
4) Explain what Investors with non-recourse loans mean?
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity - ANSWER-Borrower does not have
any recourse on default
5) Which of the following is true of the COFI?
It stands for the Cost of Future Interest.
, •It is the preferred index if interest rates are expected to fall.
•It is only used in the 11th Federal Home Loan Bank District.
•It is the slow-moving Cost of Funds Index. - ANSWER-It is the
slow moving cost of funds index
6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer - ANSWER-Federal housing authority
7) The advantage of a home equity loan over refinancing is
•lower interest rate.
•less likelihood of default.
•tax deductibility.
•the ability to pay off part of the total debt separately. -
ANSWER-the ability to pay off part of the total debt separately
9) When a telemarketer calls a person on the do not call list in
violation of the do not call regulations, he is subject to a fine of
$5,000.
•$7,500.
•$12,000.
•$16,000 - ANSWER-16,000
10) An escrow account
is set up to assure the borrower's loan payments are made
promptly.
•is intended to ensure timely payment of taxes and other
charges related to the property.
•does not necessitate sending out any statements to the
borrower.
ANSWERS
1) Seller can Sell property at a premium/profit with Fannie Mae
financing after?
30 days
•60 days
•90 days - ANSWER-•90 days
2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance - ANSWER-cost of fund index
3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans. - ANSWER-second mortgage
4) Explain what Investors with non-recourse loans mean?
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity - ANSWER-Borrower does not have
any recourse on default
5) Which of the following is true of the COFI?
It stands for the Cost of Future Interest.
, •It is the preferred index if interest rates are expected to fall.
•It is only used in the 11th Federal Home Loan Bank District.
•It is the slow-moving Cost of Funds Index. - ANSWER-It is the
slow moving cost of funds index
6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer - ANSWER-Federal housing authority
7) The advantage of a home equity loan over refinancing is
•lower interest rate.
•less likelihood of default.
•tax deductibility.
•the ability to pay off part of the total debt separately. -
ANSWER-the ability to pay off part of the total debt separately
9) When a telemarketer calls a person on the do not call list in
violation of the do not call regulations, he is subject to a fine of
$5,000.
•$7,500.
•$12,000.
•$16,000 - ANSWER-16,000
10) An escrow account
is set up to assure the borrower's loan payments are made
promptly.
•is intended to ensure timely payment of taxes and other
charges related to the property.
•does not necessitate sending out any statements to the
borrower.
