NMLS SAFE EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

NMLS SAFE EXAM UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question:
Primary Mortgage Market
Answer:
Where credit institutions originate loans

Question:
C. The maximum the rate can increase over the life of the loan
Answer:
When an ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the initial adjustment
B. The start rate for the loan
C. The maximum the rate can increase over the life of the loan
D. The rate maximum the rate can decrease over the life of the loan

Question:
B. The borrower qualified at the buydown rate
Answer:
When utilizing a temporary buydown to lower the interest rate on a FHA loan, which of the following are
correct
A. The borrower qualified at the note rate
B. The borrower qualified at the buydown rate
C. The rate cannot be more than 2% below the note rate
D. Seller or builder can pay the discount points to buydown the rate

Question:
A. Age
Answer:
All of the following are violations of the Fair Housing Act EXCEPT
A. Age
B. National Origin
C. Disability
D.Religion

Question:
Encrumbrance
Answer:
Claim against property held by one who is not the legal owner

Question:
Trigger Term
Answer:
Advertised term that requires additional disclosures

, Question:
Advertising Disclosure
Answer:
An advertisement must be presented "clearly and conspicuously" to keep from being deceptive, unfair, or
otherwise violate a Commission rule

Question:
Waving Right of Rescission
Answer:
Extenuating circumstances such as "bona fide personal financial emergency

Question:
Right of Rescission
Answer:
Right that borrowers have to cancel a loan or line of credit with a lender within three days of closing

Question:
Business Day
Answer:
When creditors office is open to the public, a calendar working day except Sunday or a federal holiday

Question:
Application
Answer:
Financial information used for purposes of obtaining an extension of credit

Question:
Disclosure
Answer:
The act of making new information known

Question:
FTC Federal Trade Commission
Answer:
Mission is to promote consumer protection and eliminate and prevent anticompetitive business practices

Question:
CFPB Consumer Financial Protection Bureau
Answer:
Regulatory agency charged with overseeing financial products and services offered to consumers

Question:
TILA Truth in Lending Act
Answer:
Enacted 1968 promotes the informed use of consumer credit by requiring disclosures about terms and costs
and standardizes the manner in which costs with borrowing are calculated and disclosed