NMLS Safe Test Mortgage Licensing
Practice Exam Questions With Latest
Solutions 2024
Which yfederal ylaw yrequires ythat ythe yLoan yEstimate ybe yprovided yto ythe yborrower ywithin
ythree ybusiness ydays yof ythe ytime yof yloan yapplication yis ytaken? y- ycorrect yanswer.TILA
What ytype yof yscam yentails yhomeowners ywho yare yencouraged yto yrefinance ytheir
yproperty yover yand yover yuntil ylittle yor yno yequity yremains? y- ycorrect yanswer.Loan yflipping
yor ychurning
After ya yloan yclosing, yfunds yare ydisbursed. yWhen yare ythe yfunds ydisbursed yfor yan yowner-
occupied, yresidential yrefinance? y- ycorrect yanswer.After y3 ybusiness-day yrescission
yperiod
What yis ythe yadjustable ynumber yused yto ycompute ythe yinterest yrate yon yan yARM ycalled? y-
ycorrect yanswer.Index
A yborrower yis ybuying ya yhouse yfor y$180,000. yHe yprovides ya ydown ypayment yof y$40,000.
yIf yhe ypays ythree ydiscount ypoints, ywhat yis ythe ytotal ycost yof ythe ypoints? y- ycorrect
yanswer.$4200
Which yday yis ycounted yas ypart yof ythe yCD ythree ybusiness yday ydelivery yperiod? y- ycorrect
yanswer.Monday-Saturday
A yLatina yapplies yto ya ymortgage ycompany yfor ya yhome yloan. yShe yis yrefused ybased yon ythe
yreputation yof ythe yneighborhood yfor ya yhigh ynumber yof yforeclosures. yThis yis yan yexample
yof ywhat yillegal ypractice? y- ycorrect yanswer.Redlining
Which yAct yamended ythe yTruth yin yLending yAct, yestablishing ydisclosure yrequirements
yand yprohibiting yequity ystripping yand yother yabusive ypractices yin yconnection ywith y"high
ycost" ymortgages? y- ycorrect yanswer.Home yOwnership yand yEquity yProtection yAct
y(HOEPA)
The ytype yof ymortgage ythat ycan yprovide ythe yborrower ywith ya ymonthly ycheck yinstead yof
ythe yborrower ypaying ya ymonthly ypayments yis yknown yas y- ycorrect yanswer.Reverse
ymortgage
,According yto ythe yFair yCredit yReporting yAct, yif yadverse yaction yis ytaken yagainst ya ycredit
yapplicant ybecause yof yinformation yon ya ycredit yreport, ythe ylender ywho yused ythat yreport yis
yrequired yto y- ycorrect yanswer.provide yto ythe yconsumer ythe yname, yaddress, yand
ytelephone ynumber yof ythe yconsumer yreporting yagency ythat yfurnished ythe yreport yand ythe
ycredit yscore yused
At yclosing, ythe ybuyers yrealizes ythat ythe ylender ychanged ythe yterms yof ythe yloan, ybut ysince
yhe ywas yfacing yforeclosure, yhe yfelt yhe yhad yno ychoice ybut yto ygo yahead ywith ythe yrefinance
yor ylose ythe yhouse. yThis ycould ybe yan yexample yof y- ycorrect yanswer.Predatory ylending
The ySAFE yAct y- ycorrect yanswer.Establishes yminimum ystandards yfor ylicensing yand
yregistering ymortgage yloan yoriginators
In ya ynote, ywhat ygives ythe ylender ythe yright yto ycharge ythe yborrower ya yfee yfor yretiring ythe
yloan yearly? y- ycorrect yanswer.Prepayment ypenalty
Regulation yB yimplements ythe yEqual yCredit yOpportunity yAct. yTrue yor yFalse? y- ycorrect
yanswer.True
Which yitem yis yNOT yincluded yin ythe ycalculation ythat ydetermines ythe yannual ypercentage
yrate?
a. ythe ybroker's yorigination yfee
b. ythe ylender's ydiscount ypoints
c. ythe ymortgage yinsurance ypremium
d. ythe ytitle yinsurance ypremium y- ycorrect yanswer.The ytitle yinsurance ypremium y(D)
Under yRESPA, ywho ywould ybe ysubject yto yfines yand ypenalties yif ya ykickback yis ypaid? y-
ycorrect yanswer.All yparties ypaying yor yreceiving ya ykickback
A yconforming yloan yis ya yloan ythat y- ycorrect yanswer.Follows ythe ysecondary ymarket ycriteria
yset yby yFannie yMae/Freddie yMac
MLO yJon yfrom yABC yMortgage yis ymeeting ywith ya ypotential yborrower. yWhat ymay yJon
yNEVER yask yabout yduring ythe yloan yapplication yprocess? y- ycorrect yanswer.Religion
The yclause yin ythe ymortgage ythat ymakes ythe ynote ydue yin yfull yupon ysale yor ytransfer yof ya
yproperty yis ycall ya(n) y- ycorrect yanswer.Alienation yclause yAKA y"due yat ysale yclause"
The yAPR yis yrequired yto ybe ydisclosed yin ya yTruth yin yLending ystatement yis ythe y- ycorrect
yanswer.Relationship ybetween ythe ytotal ycost yof yborrowing yand ythe yactual yamount
yborrowed
Which yof ythe yfollowing yis yNOT yincluded yas ya yprotected yclass yby ythe yEqual yCredit
yOpportunity yAct?
, a. ymartial ystatus
b. yreceipt yof ypublic yassistance
c. yreligion
d.Social ysecurity y- ycorrect yanswer.D
The yrate ythat yis yused yto yamortize ythe ymortgage yloan yand ydetermining ythe ymonthly yloan
ypayments yis yknown yas ythe y- ycorrect yanswer.note yrate
The yloan yofficer yknows ythat ythe yapplicants ysource yof yincome yis ypublic yassistance, yso yhe
ytells ythe yapplicant ynot yto ywaster yhis ytime yfilling yout yan yapplication yand ypaying yany yfees.
yWhat yfederal ylaw yhas ythe yloan yofficer yviolated? y- ycorrect yanswer.ECOA
A ysubordination yclause yin ya ymorgage y- ycorrect yanswer.Puts ythe ymortgage yin yfirst ylien
yposition yover yan yearlier yrecorded ymortgage
Where ydo ythe yfunds yfor yFHA yloans ycome yfrom? y- ycorrect yanswer.approved ylenders
An yapplicant yfor ya ymortgage yhas yrecurring ymonthly ydebt yof y$425 yand ya ygross ymonthly
yincome yof y$3,850. yFor ya yconforming yloan, ywhat yis ythe ymaximum yhouse ypayment-
yincluding yPITI- yfor ywhich yshe yqualifies? y- ycorrect yanswer.$961.00
What yis ythe yloan-to-value yif ythe yloan yamount yis y$139,500, ythe yappraised yvalue yis
y$164,117 yand ythe ysales yprice yis y$155,000? y
**remember yto yuse ylower ynumber yof yeither yappraised yvalue yor ysales yprice** y- ycorrect
yanswer.90%
To ycomply ywith ythe ySafeguard yRules yof yGramm, yLeach, yBliley, ya yloan yofficer yshould y-
ycorrect yanswer.place yall yloan yapplications yand ydocumentation yin ya ysecure yplace ywhen
ynot yworking yon ythem
VA yloans yallow yfor ya ymaximum yLTV yof ywhat ypercent? y- ycorrect yanswer.100%
Byuyer ywith ya ycredit yscore yof y703 ymakes yan yoffer yof y$156,000 yon ya yhouse ythat ywas
yappraised yfor y$162,000. yIf ythe yseller yaccepts yhis yoffer, yhow ymuch ywill yhe yhave yto ypay
ydown yon ya yFHA yloan? y- ycorrect yanswer.$5,460
Private ymortgage yinsurance y(PMI) yis yNOT yrequired ywhen y- ycorrect yanswer.the yloan yhas
ybeen ypaid ydown yto yless ythan y78% yof ythe yproperty's ycurrent yvalue
The yfederal yTruth yin yLending yAct y- ycorrect yanswer.regulates yadvertising ywith yreferences
yto ymortgage yinterest yrates
When yqualifying ya yborrower, yan yinstallment ydebt ydown ynot yneed yto ybe yincluded yin ythe
ydebt yration yon yconventional yloans ywhen ythe ybalance yof ythe yterm yof yrepayment yis yless
ythan yhow ymany ymonths? y- ycorrect yanswer.10
Practice Exam Questions With Latest
Solutions 2024
Which yfederal ylaw yrequires ythat ythe yLoan yEstimate ybe yprovided yto ythe yborrower ywithin
ythree ybusiness ydays yof ythe ytime yof yloan yapplication yis ytaken? y- ycorrect yanswer.TILA
What ytype yof yscam yentails yhomeowners ywho yare yencouraged yto yrefinance ytheir
yproperty yover yand yover yuntil ylittle yor yno yequity yremains? y- ycorrect yanswer.Loan yflipping
yor ychurning
After ya yloan yclosing, yfunds yare ydisbursed. yWhen yare ythe yfunds ydisbursed yfor yan yowner-
occupied, yresidential yrefinance? y- ycorrect yanswer.After y3 ybusiness-day yrescission
yperiod
What yis ythe yadjustable ynumber yused yto ycompute ythe yinterest yrate yon yan yARM ycalled? y-
ycorrect yanswer.Index
A yborrower yis ybuying ya yhouse yfor y$180,000. yHe yprovides ya ydown ypayment yof y$40,000.
yIf yhe ypays ythree ydiscount ypoints, ywhat yis ythe ytotal ycost yof ythe ypoints? y- ycorrect
yanswer.$4200
Which yday yis ycounted yas ypart yof ythe yCD ythree ybusiness yday ydelivery yperiod? y- ycorrect
yanswer.Monday-Saturday
A yLatina yapplies yto ya ymortgage ycompany yfor ya yhome yloan. yShe yis yrefused ybased yon ythe
yreputation yof ythe yneighborhood yfor ya yhigh ynumber yof yforeclosures. yThis yis yan yexample
yof ywhat yillegal ypractice? y- ycorrect yanswer.Redlining
Which yAct yamended ythe yTruth yin yLending yAct, yestablishing ydisclosure yrequirements
yand yprohibiting yequity ystripping yand yother yabusive ypractices yin yconnection ywith y"high
ycost" ymortgages? y- ycorrect yanswer.Home yOwnership yand yEquity yProtection yAct
y(HOEPA)
The ytype yof ymortgage ythat ycan yprovide ythe yborrower ywith ya ymonthly ycheck yinstead yof
ythe yborrower ypaying ya ymonthly ypayments yis yknown yas y- ycorrect yanswer.Reverse
ymortgage
,According yto ythe yFair yCredit yReporting yAct, yif yadverse yaction yis ytaken yagainst ya ycredit
yapplicant ybecause yof yinformation yon ya ycredit yreport, ythe ylender ywho yused ythat yreport yis
yrequired yto y- ycorrect yanswer.provide yto ythe yconsumer ythe yname, yaddress, yand
ytelephone ynumber yof ythe yconsumer yreporting yagency ythat yfurnished ythe yreport yand ythe
ycredit yscore yused
At yclosing, ythe ybuyers yrealizes ythat ythe ylender ychanged ythe yterms yof ythe yloan, ybut ysince
yhe ywas yfacing yforeclosure, yhe yfelt yhe yhad yno ychoice ybut yto ygo yahead ywith ythe yrefinance
yor ylose ythe yhouse. yThis ycould ybe yan yexample yof y- ycorrect yanswer.Predatory ylending
The ySAFE yAct y- ycorrect yanswer.Establishes yminimum ystandards yfor ylicensing yand
yregistering ymortgage yloan yoriginators
In ya ynote, ywhat ygives ythe ylender ythe yright yto ycharge ythe yborrower ya yfee yfor yretiring ythe
yloan yearly? y- ycorrect yanswer.Prepayment ypenalty
Regulation yB yimplements ythe yEqual yCredit yOpportunity yAct. yTrue yor yFalse? y- ycorrect
yanswer.True
Which yitem yis yNOT yincluded yin ythe ycalculation ythat ydetermines ythe yannual ypercentage
yrate?
a. ythe ybroker's yorigination yfee
b. ythe ylender's ydiscount ypoints
c. ythe ymortgage yinsurance ypremium
d. ythe ytitle yinsurance ypremium y- ycorrect yanswer.The ytitle yinsurance ypremium y(D)
Under yRESPA, ywho ywould ybe ysubject yto yfines yand ypenalties yif ya ykickback yis ypaid? y-
ycorrect yanswer.All yparties ypaying yor yreceiving ya ykickback
A yconforming yloan yis ya yloan ythat y- ycorrect yanswer.Follows ythe ysecondary ymarket ycriteria
yset yby yFannie yMae/Freddie yMac
MLO yJon yfrom yABC yMortgage yis ymeeting ywith ya ypotential yborrower. yWhat ymay yJon
yNEVER yask yabout yduring ythe yloan yapplication yprocess? y- ycorrect yanswer.Religion
The yclause yin ythe ymortgage ythat ymakes ythe ynote ydue yin yfull yupon ysale yor ytransfer yof ya
yproperty yis ycall ya(n) y- ycorrect yanswer.Alienation yclause yAKA y"due yat ysale yclause"
The yAPR yis yrequired yto ybe ydisclosed yin ya yTruth yin yLending ystatement yis ythe y- ycorrect
yanswer.Relationship ybetween ythe ytotal ycost yof yborrowing yand ythe yactual yamount
yborrowed
Which yof ythe yfollowing yis yNOT yincluded yas ya yprotected yclass yby ythe yEqual yCredit
yOpportunity yAct?
, a. ymartial ystatus
b. yreceipt yof ypublic yassistance
c. yreligion
d.Social ysecurity y- ycorrect yanswer.D
The yrate ythat yis yused yto yamortize ythe ymortgage yloan yand ydetermining ythe ymonthly yloan
ypayments yis yknown yas ythe y- ycorrect yanswer.note yrate
The yloan yofficer yknows ythat ythe yapplicants ysource yof yincome yis ypublic yassistance, yso yhe
ytells ythe yapplicant ynot yto ywaster yhis ytime yfilling yout yan yapplication yand ypaying yany yfees.
yWhat yfederal ylaw yhas ythe yloan yofficer yviolated? y- ycorrect yanswer.ECOA
A ysubordination yclause yin ya ymorgage y- ycorrect yanswer.Puts ythe ymortgage yin yfirst ylien
yposition yover yan yearlier yrecorded ymortgage
Where ydo ythe yfunds yfor yFHA yloans ycome yfrom? y- ycorrect yanswer.approved ylenders
An yapplicant yfor ya ymortgage yhas yrecurring ymonthly ydebt yof y$425 yand ya ygross ymonthly
yincome yof y$3,850. yFor ya yconforming yloan, ywhat yis ythe ymaximum yhouse ypayment-
yincluding yPITI- yfor ywhich yshe yqualifies? y- ycorrect yanswer.$961.00
What yis ythe yloan-to-value yif ythe yloan yamount yis y$139,500, ythe yappraised yvalue yis
y$164,117 yand ythe ysales yprice yis y$155,000? y
**remember yto yuse ylower ynumber yof yeither yappraised yvalue yor ysales yprice** y- ycorrect
yanswer.90%
To ycomply ywith ythe ySafeguard yRules yof yGramm, yLeach, yBliley, ya yloan yofficer yshould y-
ycorrect yanswer.place yall yloan yapplications yand ydocumentation yin ya ysecure yplace ywhen
ynot yworking yon ythem
VA yloans yallow yfor ya ymaximum yLTV yof ywhat ypercent? y- ycorrect yanswer.100%
Byuyer ywith ya ycredit yscore yof y703 ymakes yan yoffer yof y$156,000 yon ya yhouse ythat ywas
yappraised yfor y$162,000. yIf ythe yseller yaccepts yhis yoffer, yhow ymuch ywill yhe yhave yto ypay
ydown yon ya yFHA yloan? y- ycorrect yanswer.$5,460
Private ymortgage yinsurance y(PMI) yis yNOT yrequired ywhen y- ycorrect yanswer.the yloan yhas
ybeen ypaid ydown yto yless ythan y78% yof ythe yproperty's ycurrent yvalue
The yfederal yTruth yin yLending yAct y- ycorrect yanswer.regulates yadvertising ywith yreferences
yto ymortgage yinterest yrates
When yqualifying ya yborrower, yan yinstallment ydebt ydown ynot yneed yto ybe yincluded yin ythe
ydebt yration yon yconventional yloans ywhen ythe ybalance yof ythe yterm yof yrepayment yis yless
ythan yhow ymany ymonths? y- ycorrect yanswer.10
