NMLS LO License Exam
Which of the following is NOT a feature of a HELOC? Requires a large lump-sum payment at the end of the term with a smaller
payment to start
What is the LTV of a home that was appraised at 80%
$100,000 if the homeowners took out a mortgage for
$80,000?
How much would a borrower pay for two discount $3,000
points on a $150,000 mortgage?
_________ is required on all conventional loans when the Private Mortgage Insurance (PMI)
borrower's down payment or equity is less than 20%.
Which of the following is an example of a conforming Freddie Mac loan
loan?
Which of the following is NOT one of the four basic Procedures to identify employees to develop the policy
elements that a company should have in its Red Flags
Rule Policy?
All of the following are covered by RESPA, except: Bridge loans
All of the following are arms of the GLBA, except: The Subtexting Rule
When they sell the rights to a mortgage, servicers must 15 days
provide a goodbye letter _________ days before the
effective date of the transfer.
Lenders are required to provide a closing disclosure at Three days
least _____ business days prior to the consummation of
the loan.
The 1003 application includes _______ pages for additional 4 pages
borrowers.
The monthly mortgage payment would be ________ if the $1,049.78
principal and interest are $761.78, the mortgage
insurance is $82, and the escrow is $206.
Which of the following is an acceptable source of funds The cash value of a vested life insurance policy
for reserves:
Which of the following programs allows the highest FHA
back-end DTI qualification?
, NMLS LO License Exam
All of the following situations require a SAR, except: Transactions with a low or moderate amount of cash
The total interest percentage is the total amount of Interest
_______ you will pay over the loan term expressed as a
percentage of the loan amount.
If you issue the closing disclosure in person on a Friday, The next Tuesday
on which day could you close?
What is the name for a loan that has a straw or non- Air loan
existent buyer, or a non-existent property?
All of the following are themes in fraud for profit, A borrower providing false information about employment, income, or assets
except: to be able to qualify for a loan
Since Q2 of 2021 CoreLogic reports that transaction 34.2%, 2%
fraud has increased by _________, while income fraud risk
decreased by __________.
A borrower is looking to purchase a new home, this Foreclosure Rescue Schemes
new home is smaller than their current home and less
expensive. They tell the MLO that they intend to sell
their current home once they've gotten a new home.
The borrower closes on their new home and promptly
defaults on their old home, this is called:
An MLO leaves a borrower's file open on his/her desk FACTA and GLBA
for just a moment. An Identity thief sees the borrower's
credit report which contains a huge amount of
information. Fortunately, the MLO quickly returns. What
potential Federal laws is the MLO violating?
What rule made it illegal to charge upfront fees and The MARS Rule
requires disclosures in ads for mortgage assistance
relief providers?
You pull credit on a husband and wife. It turns out their legal and ethical (except for communal property sales)
debt-to-income ratio is too high. You notice the
majority of the debts belong to the husband. You also
note that the wife has enough income to qualify on her
own. You remove the husband from the loan, with
permission from the borrower, submit the file, and
receive approval. This action is:
Which of the following is NOT a feature of a HELOC? Requires a large lump-sum payment at the end of the term with a smaller
payment to start
What is the LTV of a home that was appraised at 80%
$100,000 if the homeowners took out a mortgage for
$80,000?
How much would a borrower pay for two discount $3,000
points on a $150,000 mortgage?
_________ is required on all conventional loans when the Private Mortgage Insurance (PMI)
borrower's down payment or equity is less than 20%.
Which of the following is an example of a conforming Freddie Mac loan
loan?
Which of the following is NOT one of the four basic Procedures to identify employees to develop the policy
elements that a company should have in its Red Flags
Rule Policy?
All of the following are covered by RESPA, except: Bridge loans
All of the following are arms of the GLBA, except: The Subtexting Rule
When they sell the rights to a mortgage, servicers must 15 days
provide a goodbye letter _________ days before the
effective date of the transfer.
Lenders are required to provide a closing disclosure at Three days
least _____ business days prior to the consummation of
the loan.
The 1003 application includes _______ pages for additional 4 pages
borrowers.
The monthly mortgage payment would be ________ if the $1,049.78
principal and interest are $761.78, the mortgage
insurance is $82, and the escrow is $206.
Which of the following is an acceptable source of funds The cash value of a vested life insurance policy
for reserves:
Which of the following programs allows the highest FHA
back-end DTI qualification?
, NMLS LO License Exam
All of the following situations require a SAR, except: Transactions with a low or moderate amount of cash
The total interest percentage is the total amount of Interest
_______ you will pay over the loan term expressed as a
percentage of the loan amount.
If you issue the closing disclosure in person on a Friday, The next Tuesday
on which day could you close?
What is the name for a loan that has a straw or non- Air loan
existent buyer, or a non-existent property?
All of the following are themes in fraud for profit, A borrower providing false information about employment, income, or assets
except: to be able to qualify for a loan
Since Q2 of 2021 CoreLogic reports that transaction 34.2%, 2%
fraud has increased by _________, while income fraud risk
decreased by __________.
A borrower is looking to purchase a new home, this Foreclosure Rescue Schemes
new home is smaller than their current home and less
expensive. They tell the MLO that they intend to sell
their current home once they've gotten a new home.
The borrower closes on their new home and promptly
defaults on their old home, this is called:
An MLO leaves a borrower's file open on his/her desk FACTA and GLBA
for just a moment. An Identity thief sees the borrower's
credit report which contains a huge amount of
information. Fortunately, the MLO quickly returns. What
potential Federal laws is the MLO violating?
What rule made it illegal to charge upfront fees and The MARS Rule
requires disclosures in ads for mortgage assistance
relief providers?
You pull credit on a husband and wife. It turns out their legal and ethical (except for communal property sales)
debt-to-income ratio is too high. You notice the
majority of the debts belong to the husband. You also
note that the wife has enough income to qualify on her
own. You remove the husband from the loan, with
permission from the borrower, submit the file, and
receive approval. This action is:
