NMLS questions with correct answers

Qualified mortgages do not include risky features. What are they? Answer Permanent There are four categories of Qualified Mortgages. The following is not included. Answer No negative amortization, No interest only, no loan terms over 30 years and a limit on points and fees charged. The DTI limit for a general QM is: Answer 43% The General QM requires that the qualifying rate for a borrower is based on the highest a rate can go within the first______ years of the loan. Answer 5 Years The types of Qualified Mortgages that all lenders can originate are: Answer General and Temporary A temporary QM is a QM that has a special provision allowing for enhanced underwriting for___years Answer 7 To qualify as a temporary QM a loan would have to be deliverable to: Answer Fanniemae, Freddiemac, FHA, VA, USDA If a lender wanted to originate a QM loan with a DTI greater than 43% it would need to meet the standards for: Answer Temporary QM The General and Temporary are two of the QM categories, what are the other two? Answer Balloon and Small Creditor