NMLS Test Preparation with Complete
Solutions
The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), requires that
state-licensed MLOs complete pre-licensing (PE) and continuing education (CE)
courses as a condition to be licensed. The SAFE Act also requires that all education
completed as a condition for state licensure be NMLS approved. - ANS-Rules of
Conduct for NMLS Approved Pre-Licensure (PE) and Continuing Education (CE)
Courses
Nationwide Mortgage Licensing System and Registry - ANS-NMLS
The NMLS Unique Identifier is the number permanently assigned by the Nationwide
Mortgage Licensing System & Registry (NMLS) for each company, branch, and
individual that maintains a single account on NMLS. - ANS-NMLS Number
Loans extended with little documentation or verification of the borrowers' income,
employment, and other indicators of their ability to repay. Because of this poor
documentation, these loans are risky. - ANS-Alt-A Loans
Average Prime Offer Rate (APOR) - ANS-What's APOR?
Average Prime Offer Rate (APOR) is a survey-based estimate of Annual Percentage
Rates (APRs) currently offered on prime mortgage loans. The rates are published for
Fixed Rate Mortgages (FRM) and Adjustable Rate Mortgages (ARM) and are available
for yearly maturities ranging from 1 year to 50 years.
APOR is calculated and published weekly by Federal Financial Institutions Examination
Council's (FFIEC) and is available on their website at Average Prime Offer Rates
Tables. - ANS-What's APOR?
A conforming loan is a mortgage that is equal to or less than the dollar amount
established by the limit set by the Federal Housing Finance Agency (FHFA) and meets
the funding criteria of Freddie Mac and Fannie Mae to be sold in the secondary market -
ANS-What is a conforming loan?
The Consumer Financial Protection Bureau (CFPB), a U.S. government agency that
makes sure banks, lenders, and other financial companies treat you fairly. - ANS-What
is the main purpose of the CFPB?
, The CFPB was created to provide a single point of accountability for enforcing federal
consumer financial laws and protecting consumers in the financial marketplace. - ANS-
What is the main purpose of the CFPB?
Congress created the CFPB as an independent federal agency in Title X of the Dodd-
Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") as an
attempt to address the consumer financial protection issues that became salient in the
wake of the 2008 financial crisis. - ANS-Why did Congress create the CFPB?
A correspondent lender is a unique type of lender that originates, underwrites, and
funds a mortgage loan using their name. The correspondent lender will then sell the
loan to a larger mortgage lender, who becomes the loan servicer. The loan servicer will
be the entity in charge of collecting the monthly payments. - ANS-What is
correspondent mortgage lending?
Disintermediation is the process of removing the middleman or intermediary from future
transactions. In finance, disintermediation is the withdrawal of funds from intermediary
financial institutions, such as banks and savings and loan associations, to invest them
directly - ANS-What is disintermediation?
An Act to promote the financial stability of the United States by improving accountability
and transparency in the financial system, to end "too big to fail", to protect the American
taxpayer by ending bailouts, to protect consumers from abusive financial services
practices, and for other purposes. - ANS-What Is the Dodd-Frank Wall Street Reform
and Consumer Protection Act?
A jumbo loan is a mortgage used to finance properties that are too expensive for a
conventional conforming loan. The maximum amount for a conforming loan is $548,250
in most counties, as determined by the Federal Housing Finance Agency (FHFA).
Homes that exceed the local conforming loan limit require a jumbo loan. Unlike
conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or
securitized by Fannie Mae or Freddie Mac. - ANS-What is a jumbo loan?
The Federal Housing Administration (FHA), provides mortgage insurance on loans
made by FHA-approved lenders. FHA insures mortgages on single family homes,
multifamily properties, residential care facilities, and hospitals. - ANS-What FHA
means?
hypothecation - ANS-which term describes the process by which a borrower pledges
property as security for a loan without giving up possession of it?
mortgage - ANS-The document that creates a lien against real property as security for
promise to repay a loan is called
Installment Note - ANS-A(n) _____ note calls for payments of principal and/or interest at
designated intervals
Solutions
The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), requires that
state-licensed MLOs complete pre-licensing (PE) and continuing education (CE)
courses as a condition to be licensed. The SAFE Act also requires that all education
completed as a condition for state licensure be NMLS approved. - ANS-Rules of
Conduct for NMLS Approved Pre-Licensure (PE) and Continuing Education (CE)
Courses
Nationwide Mortgage Licensing System and Registry - ANS-NMLS
The NMLS Unique Identifier is the number permanently assigned by the Nationwide
Mortgage Licensing System & Registry (NMLS) for each company, branch, and
individual that maintains a single account on NMLS. - ANS-NMLS Number
Loans extended with little documentation or verification of the borrowers' income,
employment, and other indicators of their ability to repay. Because of this poor
documentation, these loans are risky. - ANS-Alt-A Loans
Average Prime Offer Rate (APOR) - ANS-What's APOR?
Average Prime Offer Rate (APOR) is a survey-based estimate of Annual Percentage
Rates (APRs) currently offered on prime mortgage loans. The rates are published for
Fixed Rate Mortgages (FRM) and Adjustable Rate Mortgages (ARM) and are available
for yearly maturities ranging from 1 year to 50 years.
APOR is calculated and published weekly by Federal Financial Institutions Examination
Council's (FFIEC) and is available on their website at Average Prime Offer Rates
Tables. - ANS-What's APOR?
A conforming loan is a mortgage that is equal to or less than the dollar amount
established by the limit set by the Federal Housing Finance Agency (FHFA) and meets
the funding criteria of Freddie Mac and Fannie Mae to be sold in the secondary market -
ANS-What is a conforming loan?
The Consumer Financial Protection Bureau (CFPB), a U.S. government agency that
makes sure banks, lenders, and other financial companies treat you fairly. - ANS-What
is the main purpose of the CFPB?
, The CFPB was created to provide a single point of accountability for enforcing federal
consumer financial laws and protecting consumers in the financial marketplace. - ANS-
What is the main purpose of the CFPB?
Congress created the CFPB as an independent federal agency in Title X of the Dodd-
Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") as an
attempt to address the consumer financial protection issues that became salient in the
wake of the 2008 financial crisis. - ANS-Why did Congress create the CFPB?
A correspondent lender is a unique type of lender that originates, underwrites, and
funds a mortgage loan using their name. The correspondent lender will then sell the
loan to a larger mortgage lender, who becomes the loan servicer. The loan servicer will
be the entity in charge of collecting the monthly payments. - ANS-What is
correspondent mortgage lending?
Disintermediation is the process of removing the middleman or intermediary from future
transactions. In finance, disintermediation is the withdrawal of funds from intermediary
financial institutions, such as banks and savings and loan associations, to invest them
directly - ANS-What is disintermediation?
An Act to promote the financial stability of the United States by improving accountability
and transparency in the financial system, to end "too big to fail", to protect the American
taxpayer by ending bailouts, to protect consumers from abusive financial services
practices, and for other purposes. - ANS-What Is the Dodd-Frank Wall Street Reform
and Consumer Protection Act?
A jumbo loan is a mortgage used to finance properties that are too expensive for a
conventional conforming loan. The maximum amount for a conforming loan is $548,250
in most counties, as determined by the Federal Housing Finance Agency (FHFA).
Homes that exceed the local conforming loan limit require a jumbo loan. Unlike
conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or
securitized by Fannie Mae or Freddie Mac. - ANS-What is a jumbo loan?
The Federal Housing Administration (FHA), provides mortgage insurance on loans
made by FHA-approved lenders. FHA insures mortgages on single family homes,
multifamily properties, residential care facilities, and hospitals. - ANS-What FHA
means?
hypothecation - ANS-which term describes the process by which a borrower pledges
property as security for a loan without giving up possession of it?
mortgage - ANS-The document that creates a lien against real property as security for
promise to repay a loan is called
Installment Note - ANS-A(n) _____ note calls for payments of principal and/or interest at
designated intervals
