©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
National and UST Mortgage Practice Exam 3
Questions And Answers. Verified And
Updated.
When would a license be suspended without a hearing?
A. A licensee fails to renew
B. A request for a hearing is never made with the state regulator
C. A licensee has failed to complete pre-licensing requirements
D. The licensee has already executed a right to a hearing for a previous violation - Answer✔B. A
request for a hearing is never made with the state regulator
The NMLS does not require a hearing. Under most circumstances, the licensee has the right to
request a hearing. If one is not requested, a hearing is not conducted.
After a borrower allows the assumption of his or her VA loan, he or she may use his or her VA
privilege again only after:
A. Five years have passed
B. The home is sold to a new owner
C. The original VA loan is satisfied
D. The original VA loan is moved from his or her name into the name of the assuming borrower
- Answer✔C. The original VA loan is satisfied
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, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
A VA loan is assumable; however, the veteran's VA eligibility is no longer available until the
original VA loan has been satisfied. This means that it is paid off, either over the remaining
amortization time period, sale of the home, or refinancing out of the VA loan.
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
A. Twelve months
B. Three years
C. Two years
D. Five years - Answer✔B. Three years
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for three years.
Conrad began his pre-licensing education in one state and ended up moving to another state
prior to actually submitting an application for a mortgage loan originator license. What happens
to the courses he has completed?
A. NMLS-approved courses are accepted towards credit in any state
B. He must retake them under the requirements of the state in which he currently resides
C. He can petition the state licensing agency for permission to submit those courses towards
the requirement
D. The courses may or may not be accepted towards pre-licensing credit, depending on the
requirements of the new state - Answer✔A. NMLS-approved courses are accepted towards
credit in any state
Any pre-licensing education course in federal law and regulations, ethics, or lending standards
for the nontraditional mortgage product approved by the NMLS for any state may be accepted
as credit towards completion of pre-licensing education requirements in the licensing state.
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
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, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
A. For sale by owner (FSBO)
B. Seller carry-back
C. Seller concessions
D. Seller self-financed - Answer✔B. Seller carry-back
In a purchase transaction involving an assumable mortgage, when the party selling the property
provides all or part of the financing, it is referred to as a seller carry-back.
Which section of the URLA contains questions which, depending on the applicant's answer,
could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - Answer✔B. Declarations
The "Declarations" section of the URLA contains questions which, depending on the applicant's
answer, could result in immediate rejection of the application.
If a financial institution intends to share consumer information with nonaffiliated third parties,
an initial privacy notice is due to a consumer at what point?
A. Within seven business days of a customer providing nonpublic personal information
sufficient to pull a credit report
B. Within three business days of initial contact between the consumer and the financial
institution
C. No later than three business days prior to settlement
D. No later than the time at which a customer relationship is established - Answer✔D. No later
than the time at which a customer relationship is established
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National and UST Mortgage Practice Exam 3
Questions And Answers. Verified And
Updated.
When would a license be suspended without a hearing?
A. A licensee fails to renew
B. A request for a hearing is never made with the state regulator
C. A licensee has failed to complete pre-licensing requirements
D. The licensee has already executed a right to a hearing for a previous violation - Answer✔B. A
request for a hearing is never made with the state regulator
The NMLS does not require a hearing. Under most circumstances, the licensee has the right to
request a hearing. If one is not requested, a hearing is not conducted.
After a borrower allows the assumption of his or her VA loan, he or she may use his or her VA
privilege again only after:
A. Five years have passed
B. The home is sold to a new owner
C. The original VA loan is satisfied
D. The original VA loan is moved from his or her name into the name of the assuming borrower
- Answer✔C. The original VA loan is satisfied
1|Page
, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
A VA loan is assumable; however, the veteran's VA eligibility is no longer available until the
original VA loan has been satisfied. This means that it is paid off, either over the remaining
amortization time period, sale of the home, or refinancing out of the VA loan.
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
A. Twelve months
B. Three years
C. Two years
D. Five years - Answer✔B. Three years
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for three years.
Conrad began his pre-licensing education in one state and ended up moving to another state
prior to actually submitting an application for a mortgage loan originator license. What happens
to the courses he has completed?
A. NMLS-approved courses are accepted towards credit in any state
B. He must retake them under the requirements of the state in which he currently resides
C. He can petition the state licensing agency for permission to submit those courses towards
the requirement
D. The courses may or may not be accepted towards pre-licensing credit, depending on the
requirements of the new state - Answer✔A. NMLS-approved courses are accepted towards
credit in any state
Any pre-licensing education course in federal law and regulations, ethics, or lending standards
for the nontraditional mortgage product approved by the NMLS for any state may be accepted
as credit towards completion of pre-licensing education requirements in the licensing state.
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
2|Page
, ©SIRJOEL 2024/2025 ALL RIGHTS RESERVED.
A. For sale by owner (FSBO)
B. Seller carry-back
C. Seller concessions
D. Seller self-financed - Answer✔B. Seller carry-back
In a purchase transaction involving an assumable mortgage, when the party selling the property
provides all or part of the financing, it is referred to as a seller carry-back.
Which section of the URLA contains questions which, depending on the applicant's answer,
could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - Answer✔B. Declarations
The "Declarations" section of the URLA contains questions which, depending on the applicant's
answer, could result in immediate rejection of the application.
If a financial institution intends to share consumer information with nonaffiliated third parties,
an initial privacy notice is due to a consumer at what point?
A. Within seven business days of a customer providing nonpublic personal information
sufficient to pull a credit report
B. Within three business days of initial contact between the consumer and the financial
institution
C. No later than three business days prior to settlement
D. No later than the time at which a customer relationship is established - Answer✔D. No later
than the time at which a customer relationship is established
3|Page
