NMLS SAFE EXAM 2022 with complete solutions

NMLS SAFE EXAM 2022 What does TILA stand for? - AnswerTruth-In-Lending Act, Regulation Z What is a HELOC loan? - Answera secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? - Answer LTV stands for - AnswerLoan to Value Define PMI and state what the acronym stands for. - AnswerPrivate mortgage insurance- on conventional loans Define one time variable funding fee and people in what situations is it waived for? - AnswerDisabled veterans and surviving spouses. USDA loans are also called what? - Answer502 loans Define MIP - AnswerCan be paid up front or in installments. Mortgage insurance premium used by FHA to protect themselves against higher-risk borrowers who are more likely to default on loans Define APR - Answerannual percentage rate Define APOR - Answeraverage prime offer rate Define HPML - AnswerHigh price mortgage loans or Section 35 loans. A mortgage with an annual percentage rate (APR) that's higher than the average prime offer rate (APOR) When is a loan considered to be a section 35 loan? (High price mortgage loan) - Answer- When the APR exceeds APOR by 1.5% on a first lien, 2.5% on Jumbo first lien or 3.5% on subordinate lien What requirements are placed on section 35 loans? (High price mortgage loans) - AnswerAPE A- ATR / ability to repay P- no PREPAYMENT penalty unless in the first 2 years E- requires ESCROW of the taxes and hazard insurance for the first 5 years Define ATR - AnswerAbility to repay 8 Factors of ATR - AnswerMICE DOES M- Monthly mortgage I- Income + assets C- Credit history E- Employment D- Debt to Income Ratio