NMLS Practice Test With Correct Questions
And Answers 2024
1) jSeller jcan jSell jproperty jat ja jpremium/profit jwith jFannie jMae jfinancing jafter? j
30 jdays
•60 jdays
•90 jdays j- jcorrect janswer.•90 jdays
2) jA jCOFI jindex jis jdefined jas?
Cost jof jfunds jindex
•Cost jof jfinancial jindex
•Cost jof jfunding jinsurance j- jcorrect janswer.cost jof jfund jindex
3) jSubordinate jfinancing jrelates jto
•seller jfinancing.
•second jmortgages.
•financing jin jthe jsecondary jmortgage jmarket.
•subprime jloans. j- jcorrect janswer.second jmortgage
4) jExplain jwhat jInvestors jwith jnon-recourse jloans jmean?
•Borrower jdoes jnot jhave jany jrecourse jon jdefault
•Borrower jdoesn't joccupy jthe jproperty
•Borrower jhas j20% jequity j- jcorrect janswer.Borrower jdoes jnot jhave jany jrecourse jon
jdefault
5) jWhich jof jthe jfollowing jis jtrue jof jthe jCOFI?
It jstands jfor jthe jCost jof jFuture jInterest.
•It jis jthe jpreferred jindex jif jinterest jrates jare jexpected jto jfall.
•It jis jonly jused jin jthe j11th jFederal jHome jLoan jBank jDistrict.
•It jis jthe jslow-moving jCost jof jFunds jIndex. j- jcorrect janswer.It jis jthe jslow jmoving jcost jof
jfunds jindex
6) jWho jis jin jcharge jof jdiscrimination jcomplaints?
, •Federal jhousing jauthority
•Lender
•ECOA
•Loan jOfficer j- jcorrect janswer.Federal jhousing jauthority
7) jThe jadvantage jof ja jhome jequity jloan jover jrefinancing jis
•lower jinterest jrate.
•less jlikelihood jof jdefault.
•tax jdeductibility.
•the jability jto jpay joff jpart jof jthe jtotal jdebt jseparately. j- jcorrect janswer.the jability jto jpay joff
jpart jof jthe jtotal jdebt jseparately
9) jWhen ja jtelemarketer jcalls ja jperson jon jthe jdo jnot jcall jlist jin jviolation jof jthe jdo jnot jcall
jregulations, jhe jis jsubject jto ja jfine jof
$5,000.
•$7,500.
•$12,000.
•$16,000 j- jcorrect janswer.16,000
10) jAn jescrow jaccount
is jset jup jto jassure jthe jborrower's jloan jpayments jare jmade jpromptly.
•is jintended jto jensure jtimely jpayment jof jtaxes jand jother jcharges jrelated jto jthe jproperty.
•does jnot jnecessitate jsending jout jany jstatements jto jthe jborrower.
•protects jthe jborrower jin jthe jevent jhe jis junable jto jmake jhis jtax jpayments. j- jcorrect
janswer.•is jintended jto jensure jtimely jpayment jof jtaxes jand jother jcharges jrelated jto jthe
jproperty.
11) jHal jhas jan jadjustable jrate jloan jwith ja jpayment jcap jthat jallows jhim jto jpay jless jthan jthe
jamount jneeded jto jpay jall jof jthe jinterest jbeing jcharged jon jthe jloan. jThe jterm jto jdescribe
jthis jis
•partial jamortization.
•negative jamortization.
•full jamortization.
•interest jonly. j- jcorrect janswer.negative jamortization
12) jGovernment jagency jthat jregulates jRESPA? j
•ECOA
•HUD
•FBI j- jcorrect janswer.HUD
13) jThe jlast jportion jof jthe j1003 jcontains jgovernment jmonitoring jdata jon?
And Answers 2024
1) jSeller jcan jSell jproperty jat ja jpremium/profit jwith jFannie jMae jfinancing jafter? j
30 jdays
•60 jdays
•90 jdays j- jcorrect janswer.•90 jdays
2) jA jCOFI jindex jis jdefined jas?
Cost jof jfunds jindex
•Cost jof jfinancial jindex
•Cost jof jfunding jinsurance j- jcorrect janswer.cost jof jfund jindex
3) jSubordinate jfinancing jrelates jto
•seller jfinancing.
•second jmortgages.
•financing jin jthe jsecondary jmortgage jmarket.
•subprime jloans. j- jcorrect janswer.second jmortgage
4) jExplain jwhat jInvestors jwith jnon-recourse jloans jmean?
•Borrower jdoes jnot jhave jany jrecourse jon jdefault
•Borrower jdoesn't joccupy jthe jproperty
•Borrower jhas j20% jequity j- jcorrect janswer.Borrower jdoes jnot jhave jany jrecourse jon
jdefault
5) jWhich jof jthe jfollowing jis jtrue jof jthe jCOFI?
It jstands jfor jthe jCost jof jFuture jInterest.
•It jis jthe jpreferred jindex jif jinterest jrates jare jexpected jto jfall.
•It jis jonly jused jin jthe j11th jFederal jHome jLoan jBank jDistrict.
•It jis jthe jslow-moving jCost jof jFunds jIndex. j- jcorrect janswer.It jis jthe jslow jmoving jcost jof
jfunds jindex
6) jWho jis jin jcharge jof jdiscrimination jcomplaints?
, •Federal jhousing jauthority
•Lender
•ECOA
•Loan jOfficer j- jcorrect janswer.Federal jhousing jauthority
7) jThe jadvantage jof ja jhome jequity jloan jover jrefinancing jis
•lower jinterest jrate.
•less jlikelihood jof jdefault.
•tax jdeductibility.
•the jability jto jpay joff jpart jof jthe jtotal jdebt jseparately. j- jcorrect janswer.the jability jto jpay joff
jpart jof jthe jtotal jdebt jseparately
9) jWhen ja jtelemarketer jcalls ja jperson jon jthe jdo jnot jcall jlist jin jviolation jof jthe jdo jnot jcall
jregulations, jhe jis jsubject jto ja jfine jof
$5,000.
•$7,500.
•$12,000.
•$16,000 j- jcorrect janswer.16,000
10) jAn jescrow jaccount
is jset jup jto jassure jthe jborrower's jloan jpayments jare jmade jpromptly.
•is jintended jto jensure jtimely jpayment jof jtaxes jand jother jcharges jrelated jto jthe jproperty.
•does jnot jnecessitate jsending jout jany jstatements jto jthe jborrower.
•protects jthe jborrower jin jthe jevent jhe jis junable jto jmake jhis jtax jpayments. j- jcorrect
janswer.•is jintended jto jensure jtimely jpayment jof jtaxes jand jother jcharges jrelated jto jthe
jproperty.
11) jHal jhas jan jadjustable jrate jloan jwith ja jpayment jcap jthat jallows jhim jto jpay jless jthan jthe
jamount jneeded jto jpay jall jof jthe jinterest jbeing jcharged jon jthe jloan. jThe jterm jto jdescribe
jthis jis
•partial jamortization.
•negative jamortization.
•full jamortization.
•interest jonly. j- jcorrect janswer.negative jamortization
12) jGovernment jagency jthat jregulates jRESPA? j
•ECOA
•HUD
•FBI j- jcorrect janswer.HUD
13) jThe jlast jportion jof jthe j1003 jcontains jgovernment jmonitoring jdata jon?
