NMLS Training EXAM Questions and Answers With Verified Solutions 2025
A mortgage broker must provide the Washington Department of Financial Institutions with _______
notice when there is a change in standing with the Washington Secretary of State. - ✔✔Ten business
days
Washington's Consumer Loan Act prevents a lender from collecting more than ____ days' prepaid
interest when using the simple interest calculation method. - ✔✔31
An individual may act as both a loan originator and real estate broker in the same transaction as long as:
- ✔✔A disclosure is provided to the borrower prior to providing any mortgage services
The administrative agency that implements regulations and enforces laws regulating mortgage brokers
and loan originators in Washington is: - ✔✔The National Association of Mortgage Brokers
Washington's predatory lending law applies to - ✔✔Loans defined in the law as "residential mortgage
loans
Which of the following is not a requirement for an individual applying for a loan originator license under
the MBPA? - ✔✔At least three years of industry experience
According to the Washington Usury Act, what is the legal maximum annual interest rate in Washington?
- ✔✔12%
The Mortgage Broker Practices Act requires prior notice of which of the following events: - ✔✔A
mortgage broker's decision to sell a mortgage business
The initial Loan Estimate must be delivered at least how many days prior to consummation? - ✔✔7
business days
When may a homeowner request PMI to be cancelled? - ✔✔As soon as his/her equity position is 20% or
greater
, Tom and Cindy Lewis are buying a house with a $300,000 sales price and their LTV will be 80%. They
paid $3,600 in discount points. How many total points did they pay? - ✔✔1.5
In accordance with Section 8 of the Real Estate Settlement Procedures Act, a mortgage broker may
receive compensation for which of the following? - ✔✔The reasonable value of goods and/or services
actually performed or provided
The Telemarketing Sales Rule prohibits calls made to consumers: - ✔✔Who have specifically asked a
mortgage professional not to contact them
Which document actually contains the borrower's promise to repay the loan? - ✔✔the note
Overtime income may be considered for an hourly employee: - ✔✔If it has been consistent for at least
two years and is likely to continue
The most commonly used type of reverse mortgage is known as a: - ✔✔Home Equity Conversion
Mortgage
An appraiser uses any one of three appraisal approaches to determine the value of a property. They are:
- ✔✔Sales comparison (or market), cost, and income
Which of the following individuals would not be permitted to hold POA for a borrower? - ✔✔The
borrower's mortgage loan originator
Businesses that conduct telemarketing are required to access the Do-Not-Call Registry every _______ in
order to maintain an updated database of people on the Do-Not-Call List. - ✔✔31 days
Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer? - ✔✔the
creditor
A mortgage broker must provide the Washington Department of Financial Institutions with _______
notice when there is a change in standing with the Washington Secretary of State. - ✔✔Ten business
days
Washington's Consumer Loan Act prevents a lender from collecting more than ____ days' prepaid
interest when using the simple interest calculation method. - ✔✔31
An individual may act as both a loan originator and real estate broker in the same transaction as long as:
- ✔✔A disclosure is provided to the borrower prior to providing any mortgage services
The administrative agency that implements regulations and enforces laws regulating mortgage brokers
and loan originators in Washington is: - ✔✔The National Association of Mortgage Brokers
Washington's predatory lending law applies to - ✔✔Loans defined in the law as "residential mortgage
loans
Which of the following is not a requirement for an individual applying for a loan originator license under
the MBPA? - ✔✔At least three years of industry experience
According to the Washington Usury Act, what is the legal maximum annual interest rate in Washington?
- ✔✔12%
The Mortgage Broker Practices Act requires prior notice of which of the following events: - ✔✔A
mortgage broker's decision to sell a mortgage business
The initial Loan Estimate must be delivered at least how many days prior to consummation? - ✔✔7
business days
When may a homeowner request PMI to be cancelled? - ✔✔As soon as his/her equity position is 20% or
greater
, Tom and Cindy Lewis are buying a house with a $300,000 sales price and their LTV will be 80%. They
paid $3,600 in discount points. How many total points did they pay? - ✔✔1.5
In accordance with Section 8 of the Real Estate Settlement Procedures Act, a mortgage broker may
receive compensation for which of the following? - ✔✔The reasonable value of goods and/or services
actually performed or provided
The Telemarketing Sales Rule prohibits calls made to consumers: - ✔✔Who have specifically asked a
mortgage professional not to contact them
Which document actually contains the borrower's promise to repay the loan? - ✔✔the note
Overtime income may be considered for an hourly employee: - ✔✔If it has been consistent for at least
two years and is likely to continue
The most commonly used type of reverse mortgage is known as a: - ✔✔Home Equity Conversion
Mortgage
An appraiser uses any one of three appraisal approaches to determine the value of a property. They are:
- ✔✔Sales comparison (or market), cost, and income
Which of the following individuals would not be permitted to hold POA for a borrower? - ✔✔The
borrower's mortgage loan originator
Businesses that conduct telemarketing are required to access the Do-Not-Call Registry every _______ in
order to maintain an updated database of people on the Do-Not-Call List. - ✔✔31 days
Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer? - ✔✔the
creditor
