Prepxl Practice Test 1 Questions and Answers 2024 Correctly done

Homes for All considers itself a nonprofit organization. In order for its employees to be exempt from the licensing requirements of the S.A.F.E. Act, each of the following must be true about Homes, except: A) It has tax-exempt status under the Internal Revenue Code B) Its employee compensation package does not encourage an employee to act in his or her own interests over that of his or her clients C) It promotes affordable housing D) It may engage in both nonprofit and for-profit activities - It may engage in both nonprofit and for-profit activities Which of the following would convey a property? A) Deed rider B) Warranty deed C) Note D) Deed of trust - Warranty deed. A warranty deed conveys full ownership of land, and is commonly used in purchase and sales transactions of real estate. In addition to conveying property ownership, a warranty deed contains the promise of clear title, meaning the property is free of encumbrances. A borrower obtains a one-year ARM, which starts at 4.0% and has a margin of 3.0%. At the end of the first year, the index is 5.0%. What is the fully-indexed rate when the loan adjusts? A) 8% B) 7% C) 6% D) 9% - 8%.When the rate adjusts, the new fully-indexed rate is equal to the index plus margin. In this case: 5 + 3 = 8. A 180 / 360 loan is considered a(n) ___________________ mortgage. A) Adjustable-rate B) Pay-option C) Hybrid D) Balloon - Balloon mortgage. A partially-amortized or balloon mortgage provides for some, but not total, amortization during the mortgage term. It has payments that are equal and regular in nature. However, the loan term is shorter than the time needed to repay the full loan balance by making those payments. Therefore, at the end of the loan term, a large balloon payment is needed to pay off the remaining balance. The loan would be labeled by indicating the loan term in months (in this case, 180) and the amortization period in months (in this case, 360). Information held by the NMLS relating to the employment history or disciplinary actions taken against a mortgage loan originator: - Is not confidential, but is not available for public access - Is confidential and is not available for public access - Is not confidential and is available for public access - Is confidential, but is available for public access - Is not confidential and is available for public access. The requirements under any federal and/or state law regarding the privacy or confidentiality of any information or material provided to the NMLS continue to apply after such information has been disclosed to the NMLS. However, information or material held by the NMLS relating to the employment history and/or disciplinary and enforcement actions taken against a mortgage loan originator, is not protected by confidentiality and is available for public access.Under Regulation X, the term "loan originator" applies to a: - Loan processor - Mortgage broker only - Mortgage broker or lender - Mortgage lender only - Mortgage broker or lender