NMLS Safe Test Mortgage Licensing Practice Exam Questions with correct answers

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? Answer TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? Answer Loan flipping or churning After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied, residential refinance? Answer After 3 business-day rescission period What is the adjustable number used to compute the interest rate on an ARM called? Answer Index A borrower is buying a house for $180,000. He provides a down payment of $40,000. If he pays three discount points, what is the total cost of the points? Answer $4200 Which day is counted as part of the CD three business day delivery period? Answer Monday-Saturday A Latina applies to a mortgage company for a home loan. She is refused based on the reputation of the neighborhood for a high number of foreclosures. This is an example of what illegal practice? Answer Redlining