NMLS Safe Exam With Correct Questions
And Answers 2024
Where wcredit winstitutions woriginate wloans w- wcorrect wanswer.Primary wMortgage wMarket
When wan wARM whas wrate wcaps wof w5/2/6, wthe w6 wrefers wto wwhat?
A. wThe wmaximum wrate wincrease wat wthe winitial wadjustment w
B. wThe wstart wrate wfor wthe wloan
C. wThe wmaximum wthe wrate wcan wincrease wover wthe wlife wof wthe wloan
D. wThe wrate wmaximum wthe wrate wcan wdecrease wover wthe wlife wof wthe wloan w- wcorrect
wanswer.C. wThe wmaximum wthe wrate wcan wincrease wover wthe wlife wof wthe wloan
When wutilizing wa wtemporary wbuydown wto wlower wthe winterest wrate won wa wFHA wloan, wwhich
wof wthe wfollowing ware wcorrect
A. wThe wborrower wqualified wat wthe wnote wrate
B. wThe wborrower wqualified wat wthe wbuydown wrate
C. wThe wrate wcannot wbe wmore wthan w2% wbelow wthe wnote wrate
D. wSeller wor wbuilder wcan wpay wthe wdiscount wpoints wto wbuydown wthe wrate w- wcorrect
wanswer.B. wThe wborrower wqualified wat wthe wbuydown wrate
All wof wthe wfollowing ware wviolations wof wthe wFair wHousing wAct wEXCEPT
A. wAge
B. wNational wOrigin w
C. wDisability w
D.Religion w- wcorrect wanswer.A. wAge
Claim wagainst wproperty wheld wby wone wwho wis wnot wthe wlegal wowner w- wcorrect
wanswer.Encrumbrance
Advertised wterm wthat wrequires wadditional wdisclosures w- wcorrect wanswer.Trigger wTerm
An wadvertisement wmust wbe wpresented w"clearly wand wconspicuously" wto wkeep wfrom wbeing
wdeceptive, wunfair, wor wotherwise wviolate wa wCommission wrule w- wcorrect
wanswer.Advertising wDisclosure
Extenuating wcircumstances wsuch was w"bona wfide wpersonal wfinancial wemergency w-
wcorrect wanswer.Waving wRight wof wRescission
,Right wthat wborrowers whave wto wcancel wa wloan wor wline wof wcredit wwith wa wlender wwithin
wthree wdays wof wclosing w- wcorrect wanswer.Right wof wRescission
When wcreditors woffice wis wopen wto wthe wpublic, wa wcalendar wworking wday wexcept wSunday
wor wa wfederal wholiday w- wcorrect wanswer.Business wDay
Financial winformation wused wfor wpurposes wof wobtaining wan wextension wof wcredit w- wcorrect
wanswer.Application
The wact wof wmaking wnew winformation wknown w- wcorrect wanswer.Disclosure
Mission wis wto wpromote wconsumer wprotection wand weliminate wand wprevent wanticompetitive
wbusiness wpractices w- wcorrect wanswer.FTC
Federal wTrade wCommission
Regulatory wagency wcharged wwith woverseeing wfinancial wproducts wand wservices woffered
wto wconsumers w- wcorrect wanswer.CFPB
Consumer wFinancial wProtection wBureau
Enacted w1968 wpromotes wthe winformed wuse wof wconsumer wcredit wby wrequiring
wdisclosures wabout wterms wand wcosts wand wstandardizes wthe wmanner win wwhich wcosts wwith
wborrowing ware wcalculated wand wdisclosed w- wcorrect wanswer.TILA
Truth win wLending wAct
Interest wcharged won wa wloan wfor wone wor wmore wdays w- wcorrect wanswer.Per wDiem wInterest
Principal w(X) wInterest wRate w= wAnnual wInterest wRate w- wcorrect wanswer.Annual wInterest
wRate wFormula
Mortgage wwhere wthe wmortgagor wis wonly wrequired wto wpay woff wthe winterest wthat warises
wfrom wthe wprincipal wthat wis wborrowed wfor wa wset wperiod w- wcorrect wanswer.Interest wOnly
wMortgage
Borrower wchooses wto wpay wadditional w"discount wpoints" wto wbuy wdown wthe winterest wrate
wfor wthe wlife wof wthe wmortgage wnote w- wcorrect wanswer.Permanent wBuydown
Used won wfixed wrate wloans wover wtwo wyears
Set wof wtwo winitial wtemporary-start winterest wrates wthat wincrease win wstair-step wfashion wuntil
wa wpermanent winterest wrate wis wreached w- wcorrect wanswer.2/1 wBuydown
A wform wof wpre-paid winterest wwhich weffectively wincreases wthe wyield won wthe wloan wabove
wthe wamount wof wthe wstated winterest wrate w- wcorrect wanswer.Discount wPoint
,An wamount win waddition wto wthe wLoan wto wValue, wwhich wsimply wrepresents wthe wfirst
wposition wmortgage wor wloan was wa wpercentage wof wthe wproperty's wvalue w- wcorrect
wanswer.CLTV
Combined wLoan wto wValue
Ratio wof wa wloan wto wthe wvalue wof wan wasset wpurchased w- wcorrect wanswer.LTV
Loan wto wValue
Principal, wInterest, wTaxes, wInsurance
Refers wto wthe wcomponents wof wa wmortgage wpayment w- wcorrect wanswer.PITI
Housing wto wDebt
Ratio wthat wmeasures wan windividual's wability wto wmanage wmonthly wpayment wand wrepay
wdebts w- wcorrect wanswer.DIF
Agreement wbetween wthe wlender wand wthe wborrower wto wdelay wforeclosure w- wcorrect
wanswer.Forbearance
A wpermanent wrestructuring wof wthe wmortgage wwhere wone wor wmore wof wthe wterms wof wa
wborrower's wloan ware wchanged wto wprovide wa wmore waffordable wpayment w- wcorrect
wanswer.Loan wModification
Legal wprocess wto wcollect wdebt won wmortgaged wproperty w- wcorrect wanswer.Foreclosure
Document wgenerated wand wsigned wby wa wmortgage wlender, wacknowledging wthat wthe
wborrower whas wpaid woff wthe wmortgage wloan win wfull wand wthe wmortgage wis wnot wa wlien won
wthe wproperty w- wcorrect wanswer.Satisfaction wof wMortgage wLetter
When wtwo wmortgages ware won wa wproperty, wthis wspecifies wwhich wmortgage wtakes
wprecedence w- wcorrect wanswer.Subordination wAgreement
Provides whomeowner wproof wthe wmortgage wis wpaid woff w- wcorrect wanswer.Payoff
wStatement
Legal wpresumption wthat wanything wrecorded win wa wpublic wrecord wcan wbe wknown wby
wanyone w- wcorrect wanswer.Constructive wNote
Direct wknowledge wthat wone whas wof wthe wproperty w- wcorrect wanswer.Actual wNote
Information wthat wshould wcompel wa wreasonable wperson wto wmake wfurther winquiries wabout
wsome waspect wof wthe wproperty w- wcorrect wanswer.Inquiry wNote
Serves was wa wcentral wrepository wof winformation wabout wa wparcel wof wland w- wcorrect
wanswer.Title wRecord
, Payment wreceived wby wlender wafter wselling wa wloan wBased won wmarket wvalue w- wcorrect
wanswer.SRP
Service wRelease wPremiums
Created win w1968, wgoal wto wexpand waffordable whousing wunder wHUD w- wcorrect
wanswer.GNMA w
Government wNational wMortgage wAssociation
Created w1968 wworks wwith wFannie wMae wto wincrease waffordable wlending w- wcorrect
wanswer.FNMA
Federal wNational wMortgage wAssociation
Insures wbanks wreal westate wloans wand wcharges wborrowers wa wsmall wpremium w- wcorrect
wanswer.FHA
Federal wHousing wAdministration
A wloan win wwhich wthe wlender wagrees wto wlend wa wmaximum wamount wwithin wan wagreed
wperiod
and wis walso wan wopen-ended wmortgage wtransaction wthat wis wsecured w- wcorrect
wanswer.HELOC
Home wEquity wLine wof wCredit
A wFHA winsured wreverse wmortgage wthat wallows wthe wconversion wof wequity win wa whome wto
wcash w- wcorrect wanswer.HECM
Home wEquity wConversion wMortgage
A wmortgage win wwhich wa wlarge wportion wof wthe wborrowed wprincipal wis wrepaid win wa wsingle
wpayment wat wthe wend wof wthe wloan wperiod wand wdoes wnot wamortize w- wcorrect
wanswer.Balloon wMortgage
Margin w+ wInterset w= wRate w- wcorrect wanswer.ARM wInterest wRate wAdjustment
Regional waverage wof winterest wexpenses wincurred wby wfinancial winstitutions wwhich win wturn
wis wused was wa wbase wfor wcalculating wvariable wrate wloans w- wcorrect wanswer.COFI
Cost wof wFund wIndex
Loan wthat wis wlower wthan wfixed wrate win wbeginning w
Loan wpayment wchanges wover wtime
Adjustable wcaps wthat wvary w
Used wto wobtain wa whigher wloan wamount w- wcorrect wanswer.ARM
Adjustable wRate wMortgage
Interest wrate wthat wremains wthe wsame wover wthe wlife wof wthe wloan w- wcorrect wanswer.Fixed
wRate
And Answers 2024
Where wcredit winstitutions woriginate wloans w- wcorrect wanswer.Primary wMortgage wMarket
When wan wARM whas wrate wcaps wof w5/2/6, wthe w6 wrefers wto wwhat?
A. wThe wmaximum wrate wincrease wat wthe winitial wadjustment w
B. wThe wstart wrate wfor wthe wloan
C. wThe wmaximum wthe wrate wcan wincrease wover wthe wlife wof wthe wloan
D. wThe wrate wmaximum wthe wrate wcan wdecrease wover wthe wlife wof wthe wloan w- wcorrect
wanswer.C. wThe wmaximum wthe wrate wcan wincrease wover wthe wlife wof wthe wloan
When wutilizing wa wtemporary wbuydown wto wlower wthe winterest wrate won wa wFHA wloan, wwhich
wof wthe wfollowing ware wcorrect
A. wThe wborrower wqualified wat wthe wnote wrate
B. wThe wborrower wqualified wat wthe wbuydown wrate
C. wThe wrate wcannot wbe wmore wthan w2% wbelow wthe wnote wrate
D. wSeller wor wbuilder wcan wpay wthe wdiscount wpoints wto wbuydown wthe wrate w- wcorrect
wanswer.B. wThe wborrower wqualified wat wthe wbuydown wrate
All wof wthe wfollowing ware wviolations wof wthe wFair wHousing wAct wEXCEPT
A. wAge
B. wNational wOrigin w
C. wDisability w
D.Religion w- wcorrect wanswer.A. wAge
Claim wagainst wproperty wheld wby wone wwho wis wnot wthe wlegal wowner w- wcorrect
wanswer.Encrumbrance
Advertised wterm wthat wrequires wadditional wdisclosures w- wcorrect wanswer.Trigger wTerm
An wadvertisement wmust wbe wpresented w"clearly wand wconspicuously" wto wkeep wfrom wbeing
wdeceptive, wunfair, wor wotherwise wviolate wa wCommission wrule w- wcorrect
wanswer.Advertising wDisclosure
Extenuating wcircumstances wsuch was w"bona wfide wpersonal wfinancial wemergency w-
wcorrect wanswer.Waving wRight wof wRescission
,Right wthat wborrowers whave wto wcancel wa wloan wor wline wof wcredit wwith wa wlender wwithin
wthree wdays wof wclosing w- wcorrect wanswer.Right wof wRescission
When wcreditors woffice wis wopen wto wthe wpublic, wa wcalendar wworking wday wexcept wSunday
wor wa wfederal wholiday w- wcorrect wanswer.Business wDay
Financial winformation wused wfor wpurposes wof wobtaining wan wextension wof wcredit w- wcorrect
wanswer.Application
The wact wof wmaking wnew winformation wknown w- wcorrect wanswer.Disclosure
Mission wis wto wpromote wconsumer wprotection wand weliminate wand wprevent wanticompetitive
wbusiness wpractices w- wcorrect wanswer.FTC
Federal wTrade wCommission
Regulatory wagency wcharged wwith woverseeing wfinancial wproducts wand wservices woffered
wto wconsumers w- wcorrect wanswer.CFPB
Consumer wFinancial wProtection wBureau
Enacted w1968 wpromotes wthe winformed wuse wof wconsumer wcredit wby wrequiring
wdisclosures wabout wterms wand wcosts wand wstandardizes wthe wmanner win wwhich wcosts wwith
wborrowing ware wcalculated wand wdisclosed w- wcorrect wanswer.TILA
Truth win wLending wAct
Interest wcharged won wa wloan wfor wone wor wmore wdays w- wcorrect wanswer.Per wDiem wInterest
Principal w(X) wInterest wRate w= wAnnual wInterest wRate w- wcorrect wanswer.Annual wInterest
wRate wFormula
Mortgage wwhere wthe wmortgagor wis wonly wrequired wto wpay woff wthe winterest wthat warises
wfrom wthe wprincipal wthat wis wborrowed wfor wa wset wperiod w- wcorrect wanswer.Interest wOnly
wMortgage
Borrower wchooses wto wpay wadditional w"discount wpoints" wto wbuy wdown wthe winterest wrate
wfor wthe wlife wof wthe wmortgage wnote w- wcorrect wanswer.Permanent wBuydown
Used won wfixed wrate wloans wover wtwo wyears
Set wof wtwo winitial wtemporary-start winterest wrates wthat wincrease win wstair-step wfashion wuntil
wa wpermanent winterest wrate wis wreached w- wcorrect wanswer.2/1 wBuydown
A wform wof wpre-paid winterest wwhich weffectively wincreases wthe wyield won wthe wloan wabove
wthe wamount wof wthe wstated winterest wrate w- wcorrect wanswer.Discount wPoint
,An wamount win waddition wto wthe wLoan wto wValue, wwhich wsimply wrepresents wthe wfirst
wposition wmortgage wor wloan was wa wpercentage wof wthe wproperty's wvalue w- wcorrect
wanswer.CLTV
Combined wLoan wto wValue
Ratio wof wa wloan wto wthe wvalue wof wan wasset wpurchased w- wcorrect wanswer.LTV
Loan wto wValue
Principal, wInterest, wTaxes, wInsurance
Refers wto wthe wcomponents wof wa wmortgage wpayment w- wcorrect wanswer.PITI
Housing wto wDebt
Ratio wthat wmeasures wan windividual's wability wto wmanage wmonthly wpayment wand wrepay
wdebts w- wcorrect wanswer.DIF
Agreement wbetween wthe wlender wand wthe wborrower wto wdelay wforeclosure w- wcorrect
wanswer.Forbearance
A wpermanent wrestructuring wof wthe wmortgage wwhere wone wor wmore wof wthe wterms wof wa
wborrower's wloan ware wchanged wto wprovide wa wmore waffordable wpayment w- wcorrect
wanswer.Loan wModification
Legal wprocess wto wcollect wdebt won wmortgaged wproperty w- wcorrect wanswer.Foreclosure
Document wgenerated wand wsigned wby wa wmortgage wlender, wacknowledging wthat wthe
wborrower whas wpaid woff wthe wmortgage wloan win wfull wand wthe wmortgage wis wnot wa wlien won
wthe wproperty w- wcorrect wanswer.Satisfaction wof wMortgage wLetter
When wtwo wmortgages ware won wa wproperty, wthis wspecifies wwhich wmortgage wtakes
wprecedence w- wcorrect wanswer.Subordination wAgreement
Provides whomeowner wproof wthe wmortgage wis wpaid woff w- wcorrect wanswer.Payoff
wStatement
Legal wpresumption wthat wanything wrecorded win wa wpublic wrecord wcan wbe wknown wby
wanyone w- wcorrect wanswer.Constructive wNote
Direct wknowledge wthat wone whas wof wthe wproperty w- wcorrect wanswer.Actual wNote
Information wthat wshould wcompel wa wreasonable wperson wto wmake wfurther winquiries wabout
wsome waspect wof wthe wproperty w- wcorrect wanswer.Inquiry wNote
Serves was wa wcentral wrepository wof winformation wabout wa wparcel wof wland w- wcorrect
wanswer.Title wRecord
, Payment wreceived wby wlender wafter wselling wa wloan wBased won wmarket wvalue w- wcorrect
wanswer.SRP
Service wRelease wPremiums
Created win w1968, wgoal wto wexpand waffordable whousing wunder wHUD w- wcorrect
wanswer.GNMA w
Government wNational wMortgage wAssociation
Created w1968 wworks wwith wFannie wMae wto wincrease waffordable wlending w- wcorrect
wanswer.FNMA
Federal wNational wMortgage wAssociation
Insures wbanks wreal westate wloans wand wcharges wborrowers wa wsmall wpremium w- wcorrect
wanswer.FHA
Federal wHousing wAdministration
A wloan win wwhich wthe wlender wagrees wto wlend wa wmaximum wamount wwithin wan wagreed
wperiod
and wis walso wan wopen-ended wmortgage wtransaction wthat wis wsecured w- wcorrect
wanswer.HELOC
Home wEquity wLine wof wCredit
A wFHA winsured wreverse wmortgage wthat wallows wthe wconversion wof wequity win wa whome wto
wcash w- wcorrect wanswer.HECM
Home wEquity wConversion wMortgage
A wmortgage win wwhich wa wlarge wportion wof wthe wborrowed wprincipal wis wrepaid win wa wsingle
wpayment wat wthe wend wof wthe wloan wperiod wand wdoes wnot wamortize w- wcorrect
wanswer.Balloon wMortgage
Margin w+ wInterset w= wRate w- wcorrect wanswer.ARM wInterest wRate wAdjustment
Regional waverage wof winterest wexpenses wincurred wby wfinancial winstitutions wwhich win wturn
wis wused was wa wbase wfor wcalculating wvariable wrate wloans w- wcorrect wanswer.COFI
Cost wof wFund wIndex
Loan wthat wis wlower wthan wfixed wrate win wbeginning w
Loan wpayment wchanges wover wtime
Adjustable wcaps wthat wvary w
Used wto wobtain wa whigher wloan wamount w- wcorrect wanswer.ARM
Adjustable wRate wMortgage
Interest wrate wthat wremains wthe wsame wover wthe wlife wof wthe wloan w- wcorrect wanswer.Fixed
wRate
