NMLS SAFE EXAM QUESTIONS AND
ANSWERS 100% VERIFIED.
Primary uuMortgage uMarket u- ucorrect uanswer. u u u uWhere ucredit uinstitutions uoriginate uloans
C. uThe umaximum uthe urate ucan uincrease uover uthe ulife uof uthe uloan u- ucorrect uanswer. u u u
uWhen uan uARM uhas urate ucaps uof u5/2/6, uthe u6 urefers uto uwhat?
A. uThe umaximum urate uincrease uat uthe uinitial uadjustment u
B. uThe ustart urate ufor uthe uloan
C. uThe umaximum uthe urate ucan uincrease uover uthe ulife uof uthe uloan
D. uThe urate umaximum uthe urate ucan udecrease uover uthe ulife uof uthe uloan
B. uThe uborrower uqualified uat uthe ubuydown urate u- ucorrect uanswer. u u u uWhen uutilizing ua
utemporary ubuydown uto ulower uthe uinterest urate uon ua uFHA uloan, uwhich uof uthe ufollowing
uare ucorrect
A. uThe uborrower uqualified uat uthe unote urate
B. uThe uborrower uqualified uat uthe ubuydown urate
C. uThe urate ucannot ube umore uthan u2% ubelow uthe unote urate
D. uSeller uor ubuilder ucan upay uthe udiscount upoints uto ubuydown uthe urate
A. uAge u- ucorrect uanswer. u u u uAll uof uthe ufollowing uare uviolations uof uthe uFair uHousing uAct
uEXCEPT
A. uAge
B. uNational uOrigin u
C. uDisability u
D.Religion
Encrumbrance u- ucorrect uanswer. u u u uClaim uagainst uproperty uheld uby uone uwho uis unot uthe
ulegal uowner
Trigger uTerm u- ucorrect uanswer. u u u uAdvertised uterm uthat urequires uadditional udisclosures
,Advertising uDisclosure u- ucorrect uanswer. u u u uAn uadvertisement umust ube upresented
u"clearly uand uconspicuously" uto ukeep ufrom ubeing udeceptive, uunfair, uor uotherwise uviolate
ua uCommission urule
Waving uRight uof uRescission u- ucorrect uanswer. u u u uExtenuating ucircumstances usuch uas
u"bona ufide upersonal ufinancial uemergency
Right uof uRescission u- ucorrect uanswer. u u u uRight uthat uborrowers uhave uto ucancel ua uloan uor
uline uof ucredit uwith ua ulender uwithin uthree udays uof uclosing
Business uDay u- ucorrect uanswer. u u u uWhen ucreditors uoffice uis uopen uto uthe upublic, ua
ucalendar uworking uday uexcept uSunday uor ua ufederal uholiday
Application u- ucorrect uanswer. u u u uFinancial uinformation uused ufor upurposes uof uobtaining
uan uextension uof ucredit
Disclosure u- ucorrect uanswer. u u u uThe uact uof umaking unew uinformation uknown
FTC
Federal uTrade uCommission u- ucorrect uanswer. u u u uMission uis uto upromote uconsumer
uprotection uand ueliminate uand uprevent uanticompetitive ubusiness upractices
CFPB
Consumer uFinancial uProtection uBureau u- ucorrect uanswer. u u u uRegulatory uagency
ucharged uwith uoverseeing ufinancial uproducts uand uservices uoffered uto uconsumers
TILA
Truth uin uLending uAct u- ucorrect uanswer. u u u uEnacted u1968 upromotes uthe uinformed uuse uof
uconsumer ucredit uby urequiring udisclosures uabout uterms uand ucosts uand ustandardizes uthe
umanner uin uwhich ucosts uwith uborrowing uare ucalculated uand udisclosed
Per uDiem uInterest u- ucorrect uanswer. u u u uInterest ucharged uon ua uloan ufor uone uor umore udays
Annual uInterest uRate uFormula u- ucorrect uanswer. u u u uPrincipal u(X) uInterest uRate u= uAnnual
uInterest uRate
Interest uOnly uMortgage u- ucorrect uanswer. u u u uMortgage uwhere uthe umortgagor uis uonly
urequired uto upay uoff uthe uinterest uthat uarises ufrom uthe uprincipal uthat uis uborrowed ufor ua uset
uperiod
Permanent uBuydown u- ucorrect uanswer. u u u uBorrower uchooses uto upay uadditional
u"discount upoints" uto ubuy udown uthe uinterest urate ufor uthe ulife uof uthe umortgage unote
2/1 uBuydown u- ucorrect uanswer. u u u uUsed uon ufixed urate uloans uover utwo uyears
Set uof utwo uinitial utemporary-start uinterest urates uthat uincrease uin ustair-step ufashion uuntil ua
upermanent uinterest urate uis ureached
,Discount uPoint u- ucorrect uanswer. u u u uA uform uof upre-paid uinterest uwhich ueffectively
uincreases uthe uyield uon uthe uloan uabove uthe uamount uof uthe ustated uinterest urate
CLTV
Combined uLoan uto uValue u- ucorrect uanswer. u u u uAn uamount uin uaddition uto uthe uLoan uto
uValue, uwhich usimply urepresents uthe ufirst uposition umortgage uor uloan uas ua upercentage uof
uthe uproperty's uvalue
LTV
Loan uto uValue u- ucorrect uanswer. u u u uRatio uof ua uloan uto uthe uvalue uof uan uasset upurchased
PITI u- ucorrect uanswer. u u u uPrincipal, uInterest, uTaxes, uInsurance
Refers uto uthe ucomponents uof ua umortgage upayment
DIF u- ucorrect uanswer. u u u uHousing uto uDebt
Ratio uthat umeasures uan uindividual's uability uto umanage umonthly upayment uand urepay
udebts
Forbearance u- ucorrect uanswer. u u u uAgreement ubetween uthe ulender uand uthe uborrower uto
udelay uforeclosure
Loan uModification u- ucorrect uanswer. u u u uA upermanent urestructuring uof uthe umortgage
uwhere uone uor umore uof uthe uterms uof ua uborrower's uloan uare uchanged uto uprovide ua umore
uaffordable upayment
Foreclosure u- ucorrect uanswer. u u u uLegal uprocess uto ucollect udebt uon umortgaged uproperty
Satisfaction uof uMortgage uLetter u- ucorrect uanswer. u u u uDocument ugenerated uand usigned
uby ua umortgage ulender, uacknowledging uthat uthe uborrower uhas upaid uoff uthe umortgage
uloan uin ufull uand uthe umortgage uis unot ua ulien uon uthe uproperty
Subordination uAgreement u- ucorrect uanswer. u u u uWhen utwo umortgages uare uon ua uproperty,
uthis uspecifies uwhich umortgage utakes uprecedence
Payoff uStatement u- ucorrect uanswer. u u u uProvides uhomeowner uproof uthe umortgage uis upaid
uoff
Constructive uNote u- ucorrect uanswer. u u u uLegal upresumption uthat uanything urecorded uin ua
upublic urecord ucan ube uknown uby uanyone
Actual uNote u- ucorrect uanswer. u u u uDirect uknowledge uthat uone uhas uof uthe uproperty
Inquiry uNote u- ucorrect uanswer. u u u uInformation uthat ushould ucompel ua ureasonable uperson
uto umake ufurther uinquiries uabout usome uaspect uof uthe uproperty
, Title uRecord u- ucorrect uanswer. u u u uServes uas ua ucentral urepository uof uinformation uabout ua
uparcel uof uland
SRP
Service uRelease uPremiums u- ucorrect uanswer. u u u uPayment ureceived uby ulender uafter
uselling ua uloan uBased uon umarket uvalue
GNMA u
Government uNational uMortgage uAssociation u- ucorrect uanswer. u u u uCreated uin u1968, ugoal
uto uexpand uaffordable uhousing uunder uHUD
FNMA
Federal uNational uMortgage uAssociation u- ucorrect uanswer. u u u uCreated u1968 uworks uwith
uFannie uMae uto uincrease uaffordable ulending
FHA
Federal uHousing uAdministration u- ucorrect uanswer. u u u uInsures ubanks ureal uestate uloans
uand ucharges uborrowers ua usmall upremium
HELOC
Home uEquity uLine uof uCredit u- ucorrect uanswer. u u u uA uloan uin uwhich uthe ulender uagrees uto
ulend ua umaximum uamount uwithin uan uagreed uperiod
and uis ualso uan uopen-ended umortgage utransaction uthat uis usecured
HECM
Home uEquity uConversion uMortgage u- ucorrect uanswer. u u u uA uFHA uinsured ureverse
umortgage uthat uallows uthe uconversion uof uequity uin ua uhome uto ucash
Balloon uMortgage u- ucorrect uanswer. u u u uA umortgage uin uwhich ua ularge uportion uof uthe
uborrowed uprincipal uis urepaid uin ua usingle upayment uat uthe uend uof uthe uloan uperiod uand
udoes unot uamortize
ARM uInterest uRate uAdjustment u- ucorrect uanswer. u u u uMargin u+ uInterset u= uRate
COFI
Cost uof uFund uIndex u- ucorrect uanswer. u u u uRegional uaverage uof uinterest uexpenses
uincurred uby ufinancial uinstitutions uwhich uin uturn uis uused uas ua ubase ufor ucalculating
uvariable urate uloans
ARM
Adjustable uRate uMortgage u- ucorrect uanswer. u u u uLoan uthat uis ulower uthan ufixed urate uin
ubeginning u
Loan upayment uchanges uover utime
Adjustable ucaps uthat uvary u
Used uto uobtain ua uhigher uloan uamount
ANSWERS 100% VERIFIED.
Primary uuMortgage uMarket u- ucorrect uanswer. u u u uWhere ucredit uinstitutions uoriginate uloans
C. uThe umaximum uthe urate ucan uincrease uover uthe ulife uof uthe uloan u- ucorrect uanswer. u u u
uWhen uan uARM uhas urate ucaps uof u5/2/6, uthe u6 urefers uto uwhat?
A. uThe umaximum urate uincrease uat uthe uinitial uadjustment u
B. uThe ustart urate ufor uthe uloan
C. uThe umaximum uthe urate ucan uincrease uover uthe ulife uof uthe uloan
D. uThe urate umaximum uthe urate ucan udecrease uover uthe ulife uof uthe uloan
B. uThe uborrower uqualified uat uthe ubuydown urate u- ucorrect uanswer. u u u uWhen uutilizing ua
utemporary ubuydown uto ulower uthe uinterest urate uon ua uFHA uloan, uwhich uof uthe ufollowing
uare ucorrect
A. uThe uborrower uqualified uat uthe unote urate
B. uThe uborrower uqualified uat uthe ubuydown urate
C. uThe urate ucannot ube umore uthan u2% ubelow uthe unote urate
D. uSeller uor ubuilder ucan upay uthe udiscount upoints uto ubuydown uthe urate
A. uAge u- ucorrect uanswer. u u u uAll uof uthe ufollowing uare uviolations uof uthe uFair uHousing uAct
uEXCEPT
A. uAge
B. uNational uOrigin u
C. uDisability u
D.Religion
Encrumbrance u- ucorrect uanswer. u u u uClaim uagainst uproperty uheld uby uone uwho uis unot uthe
ulegal uowner
Trigger uTerm u- ucorrect uanswer. u u u uAdvertised uterm uthat urequires uadditional udisclosures
,Advertising uDisclosure u- ucorrect uanswer. u u u uAn uadvertisement umust ube upresented
u"clearly uand uconspicuously" uto ukeep ufrom ubeing udeceptive, uunfair, uor uotherwise uviolate
ua uCommission urule
Waving uRight uof uRescission u- ucorrect uanswer. u u u uExtenuating ucircumstances usuch uas
u"bona ufide upersonal ufinancial uemergency
Right uof uRescission u- ucorrect uanswer. u u u uRight uthat uborrowers uhave uto ucancel ua uloan uor
uline uof ucredit uwith ua ulender uwithin uthree udays uof uclosing
Business uDay u- ucorrect uanswer. u u u uWhen ucreditors uoffice uis uopen uto uthe upublic, ua
ucalendar uworking uday uexcept uSunday uor ua ufederal uholiday
Application u- ucorrect uanswer. u u u uFinancial uinformation uused ufor upurposes uof uobtaining
uan uextension uof ucredit
Disclosure u- ucorrect uanswer. u u u uThe uact uof umaking unew uinformation uknown
FTC
Federal uTrade uCommission u- ucorrect uanswer. u u u uMission uis uto upromote uconsumer
uprotection uand ueliminate uand uprevent uanticompetitive ubusiness upractices
CFPB
Consumer uFinancial uProtection uBureau u- ucorrect uanswer. u u u uRegulatory uagency
ucharged uwith uoverseeing ufinancial uproducts uand uservices uoffered uto uconsumers
TILA
Truth uin uLending uAct u- ucorrect uanswer. u u u uEnacted u1968 upromotes uthe uinformed uuse uof
uconsumer ucredit uby urequiring udisclosures uabout uterms uand ucosts uand ustandardizes uthe
umanner uin uwhich ucosts uwith uborrowing uare ucalculated uand udisclosed
Per uDiem uInterest u- ucorrect uanswer. u u u uInterest ucharged uon ua uloan ufor uone uor umore udays
Annual uInterest uRate uFormula u- ucorrect uanswer. u u u uPrincipal u(X) uInterest uRate u= uAnnual
uInterest uRate
Interest uOnly uMortgage u- ucorrect uanswer. u u u uMortgage uwhere uthe umortgagor uis uonly
urequired uto upay uoff uthe uinterest uthat uarises ufrom uthe uprincipal uthat uis uborrowed ufor ua uset
uperiod
Permanent uBuydown u- ucorrect uanswer. u u u uBorrower uchooses uto upay uadditional
u"discount upoints" uto ubuy udown uthe uinterest urate ufor uthe ulife uof uthe umortgage unote
2/1 uBuydown u- ucorrect uanswer. u u u uUsed uon ufixed urate uloans uover utwo uyears
Set uof utwo uinitial utemporary-start uinterest urates uthat uincrease uin ustair-step ufashion uuntil ua
upermanent uinterest urate uis ureached
,Discount uPoint u- ucorrect uanswer. u u u uA uform uof upre-paid uinterest uwhich ueffectively
uincreases uthe uyield uon uthe uloan uabove uthe uamount uof uthe ustated uinterest urate
CLTV
Combined uLoan uto uValue u- ucorrect uanswer. u u u uAn uamount uin uaddition uto uthe uLoan uto
uValue, uwhich usimply urepresents uthe ufirst uposition umortgage uor uloan uas ua upercentage uof
uthe uproperty's uvalue
LTV
Loan uto uValue u- ucorrect uanswer. u u u uRatio uof ua uloan uto uthe uvalue uof uan uasset upurchased
PITI u- ucorrect uanswer. u u u uPrincipal, uInterest, uTaxes, uInsurance
Refers uto uthe ucomponents uof ua umortgage upayment
DIF u- ucorrect uanswer. u u u uHousing uto uDebt
Ratio uthat umeasures uan uindividual's uability uto umanage umonthly upayment uand urepay
udebts
Forbearance u- ucorrect uanswer. u u u uAgreement ubetween uthe ulender uand uthe uborrower uto
udelay uforeclosure
Loan uModification u- ucorrect uanswer. u u u uA upermanent urestructuring uof uthe umortgage
uwhere uone uor umore uof uthe uterms uof ua uborrower's uloan uare uchanged uto uprovide ua umore
uaffordable upayment
Foreclosure u- ucorrect uanswer. u u u uLegal uprocess uto ucollect udebt uon umortgaged uproperty
Satisfaction uof uMortgage uLetter u- ucorrect uanswer. u u u uDocument ugenerated uand usigned
uby ua umortgage ulender, uacknowledging uthat uthe uborrower uhas upaid uoff uthe umortgage
uloan uin ufull uand uthe umortgage uis unot ua ulien uon uthe uproperty
Subordination uAgreement u- ucorrect uanswer. u u u uWhen utwo umortgages uare uon ua uproperty,
uthis uspecifies uwhich umortgage utakes uprecedence
Payoff uStatement u- ucorrect uanswer. u u u uProvides uhomeowner uproof uthe umortgage uis upaid
uoff
Constructive uNote u- ucorrect uanswer. u u u uLegal upresumption uthat uanything urecorded uin ua
upublic urecord ucan ube uknown uby uanyone
Actual uNote u- ucorrect uanswer. u u u uDirect uknowledge uthat uone uhas uof uthe uproperty
Inquiry uNote u- ucorrect uanswer. u u u uInformation uthat ushould ucompel ua ureasonable uperson
uto umake ufurther uinquiries uabout usome uaspect uof uthe uproperty
, Title uRecord u- ucorrect uanswer. u u u uServes uas ua ucentral urepository uof uinformation uabout ua
uparcel uof uland
SRP
Service uRelease uPremiums u- ucorrect uanswer. u u u uPayment ureceived uby ulender uafter
uselling ua uloan uBased uon umarket uvalue
GNMA u
Government uNational uMortgage uAssociation u- ucorrect uanswer. u u u uCreated uin u1968, ugoal
uto uexpand uaffordable uhousing uunder uHUD
FNMA
Federal uNational uMortgage uAssociation u- ucorrect uanswer. u u u uCreated u1968 uworks uwith
uFannie uMae uto uincrease uaffordable ulending
FHA
Federal uHousing uAdministration u- ucorrect uanswer. u u u uInsures ubanks ureal uestate uloans
uand ucharges uborrowers ua usmall upremium
HELOC
Home uEquity uLine uof uCredit u- ucorrect uanswer. u u u uA uloan uin uwhich uthe ulender uagrees uto
ulend ua umaximum uamount uwithin uan uagreed uperiod
and uis ualso uan uopen-ended umortgage utransaction uthat uis usecured
HECM
Home uEquity uConversion uMortgage u- ucorrect uanswer. u u u uA uFHA uinsured ureverse
umortgage uthat uallows uthe uconversion uof uequity uin ua uhome uto ucash
Balloon uMortgage u- ucorrect uanswer. u u u uA umortgage uin uwhich ua ularge uportion uof uthe
uborrowed uprincipal uis urepaid uin ua usingle upayment uat uthe uend uof uthe uloan uperiod uand
udoes unot uamortize
ARM uInterest uRate uAdjustment u- ucorrect uanswer. u u u uMargin u+ uInterset u= uRate
COFI
Cost uof uFund uIndex u- ucorrect uanswer. u u u uRegional uaverage uof uinterest uexpenses
uincurred uby ufinancial uinstitutions uwhich uin uturn uis uused uas ua ubase ufor ucalculating
uvariable urate uloans
ARM
Adjustable uRate uMortgage u- ucorrect uanswer. u u u uLoan uthat uis ulower uthan ufixed urate uin
ubeginning u
Loan upayment uchanges uover utime
Adjustable ucaps uthat uvary u
Used uto uobtain ua uhigher uloan uamount
