MLO SAFE NMLS SAFE TEST EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS LATEST UPDATE JUST RELEASED THIS YEAR

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MLO SAFE NMLS SAFE TEST EXAM WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS
LATEST UPDATE JUST RELEASED THIS YEAR


Question: A _____________________ is a loan that does not follow the FNMA/FHLMC GSE's

loan limit guidelines or terms. - CORRECT ANSWER✔✔A Non Conforming Loan




Question: The income remaining after subtracting taxes, housing expenses and all recurring

debts and obligations is called _________________. - CORRECT ANSWER✔✔Residual Income




Question: From the borrower's perspective, the purpose of PMI is to obtain a loan with a

______________ down payment. - CORRECT ANSWER✔✔Lower




Question: According to FNMA guidelines, commission income must have been received a

minimum of _________________ months in order to considered towards qualification. -

CORRECT ANSWER✔✔12 Months




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Question: How often does the external Do Not Call list get updated? - CORRECT

ANSWER✔✔Every 3 months or 90 days.




Question: What does VA stand for? - CORRECT ANSWER✔✔The Department of Veteran's

Affairs




Question: The three functions of a direct endorser include ______________ ,

__________________ and ________________. - CORRECT ANSWER✔✔Originate, underwrite

and close loans.




Question: What is the down payment requirement on a VA guaranteed loan? - CORRECT

ANSWER✔✔0, Zero. There is no down payment required.




Question: The APR is also know at the _____________ rate. - CORRECT ANSWER✔✔Effective

rate.




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Question: The term of a loan effects the APR. The longer the term the ______________ the

APR. - CORRECT ANSWER✔✔Lower.




Question: Business days exclude ________________ and _________________. - CORRECT

ANSWER✔✔Sundays and Federal Holidays.




Question: Per the TILA the three business days Right of Rescission applies to the

_____________________ of a ______________________ dwelling. - CORRECT ANSWER✔✔The

refinance of a primary residence.




Question: GLBA stand for the ________________. - CORRECT ANSWER✔✔GRAMM-LEACH-

BLILEY ACT




Question: A "qualified" mortgage is one with points and fees not exceeding ______________%

of the loan amount, do not have terms that exceed __________________ year and do not

result in _________________ amortization. - CORRECT ANSWER✔✔3%, 30 years and negative

amortization




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Question: On qualified mortgages, prepayment penalties are prohibited except for some

_____________ loans. - CORRECT ANSWER✔✔Fixed rate




Question: With regard to a credit score, the Dodd-Frank Act amended the FCRA to require

creditors to provide the score to a consumer at $ ______________ cost. - CORRECT

ANSWER✔✔$0, no charge




Question: From a banks perspective, the term that describes depositors withdrawing their

funds is _______________________. - CORRECT ANSWER✔✔Disintermediation




Question: What is a 360/180 loan? - CORRECT ANSWER✔✔This loan would require payments

as if amortized over 30 years but will become due or balloon in 15 years.




Question: In a fully amortizing loan the principle portion of the payment

____________________ and the interest portion _________________. - CORRECT

ANSWER✔✔Principle portion increases and interest portion decreases.




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