20 HR COURSE NMLS FINAL EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

20 HR COURSE NMLS FINAL EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

Question:
1. Regulations in section 32 of TILA deal strictly w:
Licensing standards in effect by the housing and Economic Recovery Act Consumer protections triggered
by high cost loan scenarios the amt a borrower should expect to be charged as an annual percentage rate
The interactions between mtg professionals and real estate agencts
Answer:
Consumer protections triggered by high cost loan scenarios *

Question:
2. Don is refinancing his home in order to save money. If the loan goes through, his payment will drop
from $2k per mth (PITI) TO $1,500 per mth (PITI). Don's gross income each mth is $6,800 but he has a
$300 car payment, a $150 credit card payment, and a mthly alimony payment of $1,300. what is Don't
housing ration on the proposed loan?
$6800
A. - $300
B. -$150
C. - $1,300
D. - $1500 = $2250
31%X 22% 29% 48%
Answer:
??

Question:
3. Overtime income may be considered for an hourly employee:
if it has been consistent for less than two years and is likely to continue Only if it is being paid in the same
paycheck if it has been consistent for at least two years and is likely to continue if the earnings have been
reported as wages
Answer:
if it has been consistent for at least two years and is likely to continue*

Question:
4. On which portion of the loan application would one find a street address and legal description of the
property?
Section II Section X Section III Section XV
Answer:
Section II*

Question:
5. What agency ensures that GSE are using sound financial practices and have adequate capital to engage
in the mtg business?
The Fed Housing Agency The office of Fed Housing Enterprise Oversight the office of the comptroller of
the Treasury The dept of Housing and Urban development

, Answer:
The Fed Housing Agency*

Question:
6. In an ARM , this term refers to the max amt by which the interest rate may cary during its lifetime?
Lifetime Cap Annual Cap Payment Cap Periodic rate adjustment cap
Answer:
Lifetime Cap*

Question:
7. You have taken a loan application from a customer with an excellent credit score. When should you
advise him/her about the status of the loan application?
within 30 days withing 1 week within 90 days within 3 days
Answer:
within 30 days *

Question:
8. In an ARM, margin is determined by?
The UW and it represents the percentage of error allowable for DTI ratio the lender and it represents the
lenders operating costs and profit margin The lender and it represents the amt of commission paid to the
broker the broker and it is the amt of profit split between the broker and lender
Answer:
the lender and it represents the lenders operating costs and profit margin*

Question:
9. When is it allowable for an originator to provide a real estate agent with a $50 gift card in exchange for a
referral? (Carson Restraunt.com gc for $25 & value of $50)
it is a violation of RESPA for the originator to provide the card if the gift card has no dollar amount listed
on it as long as the originator provides equal gift cards to each service provider on the loan if the real estate
agent's commission was no more than 25% more valuable than the card
Answer:
it is a violation of RESPA for the originator to provide the card*

Question:
10. Which of the following is permitted as a result of a referral?
a coffee card for each client a well written than you note a free mthly pass to the gym with each closing the
names phone numbers and annual incomes of clients who have applied for loans
Answer:
a well written than you note*

Question:
11. Who is responsible for ensuring that the Closing Disclosure (CD) is delivered to the consumer?
The Loan Processor the CFPB the consumer the creditor
Answer:
the creditor *