NMLS Practice Test Questions and
Answers
1.1) Seller can Sell property at a premium/profit with Fannie Mae
financing after?
30 days
•60 days
•90 days
Answers •90 days
2.2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance
Answers cost of fund index
3.3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans.
Answers second mortgage
1/
10
, 4.4) Explain what Investors with non-recourse loans mean?
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity
Answers Borrower does not have any recourse on default
5.5) 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.
Answers It is the slow moving cost of funds index
6.6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer
Answers Federal housing authority
7.7) The advantage of a home equity loan over refinancing is
•lower interest rate.
•less likelihood of default.
2/
10
Answers
1.1) Seller can Sell property at a premium/profit with Fannie Mae
financing after?
30 days
•60 days
•90 days
Answers •90 days
2.2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance
Answers cost of fund index
3.3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans.
Answers second mortgage
1/
10
, 4.4) Explain what Investors with non-recourse loans mean?
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity
Answers Borrower does not have any recourse on default
5.5) 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.
Answers It is the slow moving cost of funds index
6.6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer
Answers Federal housing authority
7.7) The advantage of a home equity loan over refinancing is
•lower interest rate.
•less likelihood of default.
2/
10
