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NMLS Practice Test Exam Questions and
Answers 100% Pass
1) Seller can Sell property at a premium/profit with Fannie Mae financing after?
30 days
•60 days
•90 days - ANS •90 days
2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance - ANS cost of fund index
3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans. - ANS second mortgage
4) Explain what Investors with non-recourse loans mean?
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•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity - ANS 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. - ANS It is the slow moving cost of funds index
6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer - ANS 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. - ANS the ability to pay off part of the
total debt separately
NMLS Practice Test Exam Questions and
Answers 100% Pass
1) Seller can Sell property at a premium/profit with Fannie Mae financing after?
30 days
•60 days
•90 days - ANS •90 days
2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance - ANS cost of fund index
3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans. - ANS second mortgage
4) Explain what Investors with non-recourse loans mean?
, ©THESTAR 2025 ALL RIGHTS RESERVED
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity - ANS 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. - ANS It is the slow moving cost of funds index
6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer - ANS 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. - ANS the ability to pay off part of the
total debt separately
