NMLS SAFE TEST EXAM 2 VERSIONS
(VERSION A AND B) AND PRACTICE
EXAM QUESTIONS WELL
RESEARCHED ACTUAL EXAM
COMPLETE ACCURATE EXAM
QUESTIONS WITH 100% DETAILED
VERIFIED AND CORRECT ANSWERS
ACTUAL BRAND-NEW EXAM ALREADY
GRADED A+
VERSION A
Courtney would like to purchase a home from Chuck.
Because of her prior credit problems, she is unable to
obtain conventional financing. Chuck decides to sell
Courtney the property, but he will retain the title until
the purchase price of the property is paid in full. What
type of agreement have they executed?
A. Purchase contract with note.
B. Purchase contract with note and mortgage.
C. Contract for deed.
D. Purchase contract and deed of trust. -
....ANSWER...C). Contract for Deed
1
,FNMA and FHLMC securitize what types of loans?
A. JUMBO loans
B. Conventional loans.
C. Sub Prime loans.
D. VA loans. - ....ANSWER...B.) Conventional Loans
If a lender agrees to subordinate a loan, what has
occured?
A. The lender will allow their lien to stay in second
position.
B. The borrower has a late payment reflected on his
credit report.
C. A loan has been paid in full.
D. A loan has been approved. - ....ANSWER...A. The
lender will allow their lien to stay in second position.
If the borrower has less than a _____ down payment,
mortgage insurance is required. Usually, the lenders will
submit the loan package to a mortgage guaranty insurer
at the same time the lender is underwriting the loan. -
....ANSWER...20%
Mortgage back securities are a product of which of the
following?
2
,A. Secondary market.
B. Primary market.
C. Jumbo market.
D. Stock market. - ....ANSWER...A.) Secondary Market
Nontraditional ARMs are considered the riskiest of loans
when they include any of the following except.
A. Low Doc programs.
B. Rate caps.
C. A refinance provision.
D. Teaser programs. - ....ANSWER...C.) A refinance
provision
Out of all the loans below, which has a mandatory MIP?
A. All loans with less than 20% down payment.
B. FHA loans.
C. HELOC
D. VA - ....ANSWER...B.) FHA Loans
The acronym PFC stands for:
A. Paid from closing.
3
, B. Prepayment penalty.
C. Prequalification of credit.
D. Prepaid Finance Charge. - ....ANSWER...D.) Prepaid
Finance Charge
The below loan has an assumable clause:
A. Jumbo loans.
B. Conforming loans.
C. FHA loans for low income families.
D. VA loans. - ....ANSWER...D.) VA Loans
The Cost of Funds Index is traditionally used to
determine interest rates of what type of loans?
A. 360 month mortgage-Fixed rates.
B. Rate adjustments on adjustable rate programs.
C. Reverse mortgage.
D. HELOC - ....ANSWER...B.) Rate adjustments on
adjustable rate programs
There are three usual approaches to determining the fair
market value of a property: Which one does not belong?
A. Income approach
B. MLS sold homes approach.
4
(VERSION A AND B) AND PRACTICE
EXAM QUESTIONS WELL
RESEARCHED ACTUAL EXAM
COMPLETE ACCURATE EXAM
QUESTIONS WITH 100% DETAILED
VERIFIED AND CORRECT ANSWERS
ACTUAL BRAND-NEW EXAM ALREADY
GRADED A+
VERSION A
Courtney would like to purchase a home from Chuck.
Because of her prior credit problems, she is unable to
obtain conventional financing. Chuck decides to sell
Courtney the property, but he will retain the title until
the purchase price of the property is paid in full. What
type of agreement have they executed?
A. Purchase contract with note.
B. Purchase contract with note and mortgage.
C. Contract for deed.
D. Purchase contract and deed of trust. -
....ANSWER...C). Contract for Deed
1
,FNMA and FHLMC securitize what types of loans?
A. JUMBO loans
B. Conventional loans.
C. Sub Prime loans.
D. VA loans. - ....ANSWER...B.) Conventional Loans
If a lender agrees to subordinate a loan, what has
occured?
A. The lender will allow their lien to stay in second
position.
B. The borrower has a late payment reflected on his
credit report.
C. A loan has been paid in full.
D. A loan has been approved. - ....ANSWER...A. The
lender will allow their lien to stay in second position.
If the borrower has less than a _____ down payment,
mortgage insurance is required. Usually, the lenders will
submit the loan package to a mortgage guaranty insurer
at the same time the lender is underwriting the loan. -
....ANSWER...20%
Mortgage back securities are a product of which of the
following?
2
,A. Secondary market.
B. Primary market.
C. Jumbo market.
D. Stock market. - ....ANSWER...A.) Secondary Market
Nontraditional ARMs are considered the riskiest of loans
when they include any of the following except.
A. Low Doc programs.
B. Rate caps.
C. A refinance provision.
D. Teaser programs. - ....ANSWER...C.) A refinance
provision
Out of all the loans below, which has a mandatory MIP?
A. All loans with less than 20% down payment.
B. FHA loans.
C. HELOC
D. VA - ....ANSWER...B.) FHA Loans
The acronym PFC stands for:
A. Paid from closing.
3
, B. Prepayment penalty.
C. Prequalification of credit.
D. Prepaid Finance Charge. - ....ANSWER...D.) Prepaid
Finance Charge
The below loan has an assumable clause:
A. Jumbo loans.
B. Conforming loans.
C. FHA loans for low income families.
D. VA loans. - ....ANSWER...D.) VA Loans
The Cost of Funds Index is traditionally used to
determine interest rates of what type of loans?
A. 360 month mortgage-Fixed rates.
B. Rate adjustments on adjustable rate programs.
C. Reverse mortgage.
D. HELOC - ....ANSWER...B.) Rate adjustments on
adjustable rate programs
There are three usual approaches to determining the fair
market value of a property: Which one does not belong?
A. Income approach
B. MLS sold homes approach.
4
