NMLS Exam; Questions with Solutions 100% Pass
The Housing and Urban Development Act CORRECT ANS-providing government-insured
loans to moderate-income people.
The Dodd-Frank Act CORRECT ANS-protects borrowers from predatory lending practices
Affirmatively Furthering Fair Housing (AFFH) CORRECT ANS-Advocating for lenders to
operate in underserved areas
After how many days can foreclosure proceedings begin if the client is not being evaluated for
loss mitigation, and has missed payments on an FHA loan CORRECT ANS-120
FHA 203K Loan CORRECT ANS-allows the homeowner to refinance the home loan to
perform repair
Streamlined 203K Loan CORRECT ANS-minor rehabilitation and/or home improvement
projects that will not require the involvement of consultants, engineers, and/or architects
, NMLS Exam; Questions with Solutions 100% Pass
key advantage of the client using a real estate agent versus selling her house on her own
CORRECT ANS-Real estate agents negotiate on behalf of the client.
A means test CORRECT ANS-bankruptcy qualification that considers income and equity in
assets to determine if a client has the ability to repay part of the debt
Default CORRECT ANS-when a payment has not been made after 60 to 90 days. FHA 30
days
Delinquent CORRECT ANS-timely mortgage payments by the end of the grace period (14
day)
Which notice must the servicer send the client once the mortgage is delinquent and before 45
days past due? CORRECT ANS-Housing counseling
advertisement that guarantees a government-approved loan modification must be reported
to...... CORRECT ANS-Report the company to the Federal Trade Commission (FTC)
Conventional Loan CORRECT ANS-Front end 28%
, NMLS Exam; Questions with Solutions 100% Pass
Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA
prime loans. Good credit, 20% down payment. May have interest only terms
FHA CORRECT ANS-Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
EEM (Energy) FHA CORRECT ANS-Front end 33%
Back end 45%
VA CORRECT ANS-41%
USDA CORRECT ANS-Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive
rates. Bellow 115% median income. Loan term 33 to 38 yrs
, NMLS Exam; Questions with Solutions 100% Pass
Equal Credit Opportunity Act (ECOA) CORRECT ANS-A federal act, which prohibits
discrimination by lenders on the basis of sex or marital status in any aspect of a credit
transaction.
Front end Ratio CORRECT ANS-PITIA/ Gross Income
Within three days of receiving a loan application, lenders are required to supply the client
with CORRECT ANS-Loan Estimate
How may years at a job to show employment stability? CORRECT ANS-At least 2 years
Which factor determines whether the client will have to pay private mortgage insurance
versus mortgage insurance premium CORRECT ANS-Type of loan
The Fair Housing Act CORRECT ANS-The federal law that prohibits discrimination in
housing based on race, color, religion, sex, handicap, familial status, and national origin
The Housing and Urban Development Act CORRECT ANS-providing government-insured
loans to moderate-income people.
The Dodd-Frank Act CORRECT ANS-protects borrowers from predatory lending practices
Affirmatively Furthering Fair Housing (AFFH) CORRECT ANS-Advocating for lenders to
operate in underserved areas
After how many days can foreclosure proceedings begin if the client is not being evaluated for
loss mitigation, and has missed payments on an FHA loan CORRECT ANS-120
FHA 203K Loan CORRECT ANS-allows the homeowner to refinance the home loan to
perform repair
Streamlined 203K Loan CORRECT ANS-minor rehabilitation and/or home improvement
projects that will not require the involvement of consultants, engineers, and/or architects
, NMLS Exam; Questions with Solutions 100% Pass
key advantage of the client using a real estate agent versus selling her house on her own
CORRECT ANS-Real estate agents negotiate on behalf of the client.
A means test CORRECT ANS-bankruptcy qualification that considers income and equity in
assets to determine if a client has the ability to repay part of the debt
Default CORRECT ANS-when a payment has not been made after 60 to 90 days. FHA 30
days
Delinquent CORRECT ANS-timely mortgage payments by the end of the grace period (14
day)
Which notice must the servicer send the client once the mortgage is delinquent and before 45
days past due? CORRECT ANS-Housing counseling
advertisement that guarantees a government-approved loan modification must be reported
to...... CORRECT ANS-Report the company to the Federal Trade Commission (FTC)
Conventional Loan CORRECT ANS-Front end 28%
, NMLS Exam; Questions with Solutions 100% Pass
Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA
prime loans. Good credit, 20% down payment. May have interest only terms
FHA CORRECT ANS-Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
EEM (Energy) FHA CORRECT ANS-Front end 33%
Back end 45%
VA CORRECT ANS-41%
USDA CORRECT ANS-Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive
rates. Bellow 115% median income. Loan term 33 to 38 yrs
, NMLS Exam; Questions with Solutions 100% Pass
Equal Credit Opportunity Act (ECOA) CORRECT ANS-A federal act, which prohibits
discrimination by lenders on the basis of sex or marital status in any aspect of a credit
transaction.
Front end Ratio CORRECT ANS-PITIA/ Gross Income
Within three days of receiving a loan application, lenders are required to supply the client
with CORRECT ANS-Loan Estimate
How may years at a job to show employment stability? CORRECT ANS-At least 2 years
Which factor determines whether the client will have to pay private mortgage insurance
versus mortgage insurance premium CORRECT ANS-Type of loan
The Fair Housing Act CORRECT ANS-The federal law that prohibits discrimination in
housing based on race, color, religion, sex, handicap, familial status, and national origin
