NMLS MLO Test Questions with 100%
Correct Answers
If a borrower sells personal property in order to raise money for down payment, and
the underwriter questions whether the value of the items sold is realistic, the
underwriter may:
A) Take the item in trade for cash value
B) Have an appraisal done on the item, or ask for further documentation
C) Add the value in questions to the loan amount if further documentation cannot be
provided
D) Deny the loan until another source of down payment can be identified
B) Have an appraisal done on the item, or ask for further documentation
If an investor is comfortable with existing data on a property being used as a collateral
for a rate and term refinance, what might be permitted?
A) A waiver of the rescission period
B) A streamline close
C) A silent second
D) A property inspection waiver
D) A property inspection waiver
Virtually every residential transaction involves an estate that is held in _______, the
desired form of holding ownership to property because it has the fewest restrictions.
A) Short-sale
, B) Deed-in-lieu
C) Fee simple
D) Foreclosure
C) Fee simple
Nontraditional credit includes all of the following, except:
A) Electric bills
B) Payments to a landlord
C) Car loans
D) Telephone bills
A) Electric bills
Per diem interest is used by a lender in order to:
A) Allow for a lower payment with a temporary buy down
B) Pay the previous lender's costs for selling the loan
C) Put a loan on schedule
D) Build a borrower's escrow account
C) Put a loan on schedule
How long must flood insurance be in place?
A) Until the loan reaches the halfway point in the amortization table
B) It cannot be cancelled as long as the property remains in a mandatory flood zone
C) The borrower can cancel at 80% of the loan balance
D) Until the loan balance is completely paid off
Correct Answers
If a borrower sells personal property in order to raise money for down payment, and
the underwriter questions whether the value of the items sold is realistic, the
underwriter may:
A) Take the item in trade for cash value
B) Have an appraisal done on the item, or ask for further documentation
C) Add the value in questions to the loan amount if further documentation cannot be
provided
D) Deny the loan until another source of down payment can be identified
B) Have an appraisal done on the item, or ask for further documentation
If an investor is comfortable with existing data on a property being used as a collateral
for a rate and term refinance, what might be permitted?
A) A waiver of the rescission period
B) A streamline close
C) A silent second
D) A property inspection waiver
D) A property inspection waiver
Virtually every residential transaction involves an estate that is held in _______, the
desired form of holding ownership to property because it has the fewest restrictions.
A) Short-sale
, B) Deed-in-lieu
C) Fee simple
D) Foreclosure
C) Fee simple
Nontraditional credit includes all of the following, except:
A) Electric bills
B) Payments to a landlord
C) Car loans
D) Telephone bills
A) Electric bills
Per diem interest is used by a lender in order to:
A) Allow for a lower payment with a temporary buy down
B) Pay the previous lender's costs for selling the loan
C) Put a loan on schedule
D) Build a borrower's escrow account
C) Put a loan on schedule
How long must flood insurance be in place?
A) Until the loan reaches the halfway point in the amortization table
B) It cannot be cancelled as long as the property remains in a mandatory flood zone
C) The borrower can cancel at 80% of the loan balance
D) Until the loan balance is completely paid off
