NMLS Practice Test; Questions and Answers Rated A+

NMLS Practice Test; Questions and Answers Rated A+


1) Explain what Investors with non-recourse loans mean?




•Borrower does not have any recourse on default


•Borrower doesn't occupy the property


•Borrower has 20% equity CORRECT ANS-Borrower does not have any recourse on default


1) Seller can Sell property at a premium/profit with Fannie Mae financing after?


30 days


•60 days


•90 days CORRECT ANS-•90 days




2) A COFI index is defined as?




Cost of funds index


•Cost of financial index


•Cost of funding insurance CORRECT ANS-cost of fund index

, NMLS Practice Test; Questions and Answers Rated A+
3) Subordinate financing relates to




•seller financing.


•second mortgages.


•financing in the secondary mortgage market.


•subprime loans. CORRECT ANS-second mortgage




4) Which of the following is true of the COFI?




It stands for the Cost of Future Interest.


•It is the preferred index if interest rates are expected to fall.


•It is only used in the 11th Federal Home Loan Bank District.


•It is the slow-moving Cost of Funds Index. CORRECT ANS-It is the slow moving cost of

funds index




6) Who is in charge of discrimination complaints?