NMLS Practice Questions with correct
solutions
A state licensing agency is conducting an examination of a company's loan origination
activities. In doing so, it may do all of the following, except: ✅✅Close the company
down for the period of the examination
At what LTV is a mortgage servicer required to remove PMI on a "high-risk" loan,
assuming the borrower's loan is current? ✅✅77%
Which of the following factors deemed customers to be a higher credit risk according to
the Statement of Subprime Lending? ✅✅Two or more 30 day delinquencies with the
in the past 12 months
Which of the following is not a tool to calculate an applicant's income? ✅✅State
income tax forms
Placing a subordinate loan behind a conventional first mortgage to eliminate the need
for PMI when the applicant has less than 20% to put down on a home purchase is
known as: ✅✅piggyback. financing
A mortgage originator sends a thank-you note to a Realtor for referring a client. Who, if
anyone, violated RESPA? ✅✅Neither the realtor or mortgage originator
The SAFE Act creates standard guidelines for state legislation to regulate loan
originators. In order to meet the standards established under the SAFE Act, state
licensing laws must include all of the following except: ✅✅A universal fine for
violators
The functions of participating in the NMLS, conducting background checks, and writing
rules and regulations are required under the SAFE Act by: ✅✅A state licensing
agency
Sue Johnson is a receptionist for a construction company. She receives bi-weekly pay
in the amount of $1,153.85. What is her monthly qualifying income? ✅✅$2,500.00
solutions
A state licensing agency is conducting an examination of a company's loan origination
activities. In doing so, it may do all of the following, except: ✅✅Close the company
down for the period of the examination
At what LTV is a mortgage servicer required to remove PMI on a "high-risk" loan,
assuming the borrower's loan is current? ✅✅77%
Which of the following factors deemed customers to be a higher credit risk according to
the Statement of Subprime Lending? ✅✅Two or more 30 day delinquencies with the
in the past 12 months
Which of the following is not a tool to calculate an applicant's income? ✅✅State
income tax forms
Placing a subordinate loan behind a conventional first mortgage to eliminate the need
for PMI when the applicant has less than 20% to put down on a home purchase is
known as: ✅✅piggyback. financing
A mortgage originator sends a thank-you note to a Realtor for referring a client. Who, if
anyone, violated RESPA? ✅✅Neither the realtor or mortgage originator
The SAFE Act creates standard guidelines for state legislation to regulate loan
originators. In order to meet the standards established under the SAFE Act, state
licensing laws must include all of the following except: ✅✅A universal fine for
violators
The functions of participating in the NMLS, conducting background checks, and writing
rules and regulations are required under the SAFE Act by: ✅✅A state licensing
agency
Sue Johnson is a receptionist for a construction company. She receives bi-weekly pay
in the amount of $1,153.85. What is her monthly qualifying income? ✅✅$2,500.00
