NMLS Exam Questions and Answers all 100%
Correct| Latest update 2024-2025
Which of the following contains only items which should be used in calculating a
borrower's debt-to-income ratio?
Monthly rent expense on current home, credit card payment, car insurance
Car payment, boat payment, child support obligations
Property tax payment, utility payment, cable bill
Mortgage insurance payment, average grocery costs, electric bill - ✔✔car payment,
boat payment, child support obligations
Which of the following would NOT be required if a mortgage company wishes to utilize
electronic signatures on required disclosures?
Borrowers must be given the option to receive the disclosures in paper form
Borrowers must be able to withdraw their consent to receive the disclosures
electronically
The company must record the IP address from which the documents were accessed
The company must disclose hardware and software requirements to borrowers -
✔✔the company must record the IP address from which the documents were
accessed
A loan which allows the borrower to take a lump sum distribution without any monthly
repayment requirements is a(n):
HECM
HELOC
Pay-option mortgage
,Equity mortgage - ✔✔HECM
Under the S.A.F.E. Act, a licensed loan originator's responsibilities with regard to
recordkeeping include all of the following, except:
Not knowingly withholding, removing, or destroying any books or records
Making all of the licensee's records available to borrowers upon demand
Permitting interviews of principals, loan originators, and independent contractors by
state regulators
Making records and books available to the state regulator - ✔✔making all of the
licensee's records available to borrowers upon demand
Which of the following federal regulations prohibits discrimination based on race, color,
religion, sex, marital status, or national origin in a credit transaction?
Regulation C
Regulation B
Regulation Z
Regulation G - ✔✔Regulation B. Regulation B implements the provisions of the Equal
Credit Opportunity Act (ECOA), which ensures that all persons, consumers, and
businesses are given an equal chance to obtain credit by prohibiting discrimination
based on criteria including race, color, religion, national origin, sex, marital status, and
age (provided the individual is of age to enter into a contract).
All of the following would be common activities in fraud for property, except:
Flipping
Asset fraud
Income and employment fraud
Silent second - ✔✔flipping
, In a mortgage transaction subject to RESPA that is secured by the consumer's dwelling, a
Loan Estimate must be delivered or mailed within three business days after receipt of a
written application and no later than:
Three business days before the transaction is consummated
The fifth business day before the transaction is consummated
The seventh business day before the transaction is consummated
The date the transaction is consummated - ✔✔the seventh business day before the
transaction is consummated
Which of the following would convey a property?
Deed rider
Warranty deed
Note
Deed of trust - ✔✔warranty deed
A licensed mortgage loan originator:
Performs clerical and support duties for his/her sponsoring broker
Advises loan applicants on current rates and loan terms
May take responsibility for servicing a loan after it has been consummated
Negotiates the sale and purchase of residential real estate - ✔✔advises loan
applicants on current rates and loan terms.
Correct| Latest update 2024-2025
Which of the following contains only items which should be used in calculating a
borrower's debt-to-income ratio?
Monthly rent expense on current home, credit card payment, car insurance
Car payment, boat payment, child support obligations
Property tax payment, utility payment, cable bill
Mortgage insurance payment, average grocery costs, electric bill - ✔✔car payment,
boat payment, child support obligations
Which of the following would NOT be required if a mortgage company wishes to utilize
electronic signatures on required disclosures?
Borrowers must be given the option to receive the disclosures in paper form
Borrowers must be able to withdraw their consent to receive the disclosures
electronically
The company must record the IP address from which the documents were accessed
The company must disclose hardware and software requirements to borrowers -
✔✔the company must record the IP address from which the documents were
accessed
A loan which allows the borrower to take a lump sum distribution without any monthly
repayment requirements is a(n):
HECM
HELOC
Pay-option mortgage
,Equity mortgage - ✔✔HECM
Under the S.A.F.E. Act, a licensed loan originator's responsibilities with regard to
recordkeeping include all of the following, except:
Not knowingly withholding, removing, or destroying any books or records
Making all of the licensee's records available to borrowers upon demand
Permitting interviews of principals, loan originators, and independent contractors by
state regulators
Making records and books available to the state regulator - ✔✔making all of the
licensee's records available to borrowers upon demand
Which of the following federal regulations prohibits discrimination based on race, color,
religion, sex, marital status, or national origin in a credit transaction?
Regulation C
Regulation B
Regulation Z
Regulation G - ✔✔Regulation B. Regulation B implements the provisions of the Equal
Credit Opportunity Act (ECOA), which ensures that all persons, consumers, and
businesses are given an equal chance to obtain credit by prohibiting discrimination
based on criteria including race, color, religion, national origin, sex, marital status, and
age (provided the individual is of age to enter into a contract).
All of the following would be common activities in fraud for property, except:
Flipping
Asset fraud
Income and employment fraud
Silent second - ✔✔flipping
, In a mortgage transaction subject to RESPA that is secured by the consumer's dwelling, a
Loan Estimate must be delivered or mailed within three business days after receipt of a
written application and no later than:
Three business days before the transaction is consummated
The fifth business day before the transaction is consummated
The seventh business day before the transaction is consummated
The date the transaction is consummated - ✔✔the seventh business day before the
transaction is consummated
Which of the following would convey a property?
Deed rider
Warranty deed
Note
Deed of trust - ✔✔warranty deed
A licensed mortgage loan originator:
Performs clerical and support duties for his/her sponsoring broker
Advises loan applicants on current rates and loan terms
May take responsibility for servicing a loan after it has been consummated
Negotiates the sale and purchase of residential real estate - ✔✔advises loan
applicants on current rates and loan terms.
