NMLS Exam 2025; Questions with Solutions 100% Pass
Annual percentage rate (APR): CORRECT ANS-Does NOT include...TEN ACT-
(Title,Escrow,Notary,Appraisal,Credit Report,Termite)A measurement of the total cost of the
credit, expressed as an annual rate. The APR includes those paid at the time of closing and
those paid over the term of the loan. It includes all items that are part of the finance charge,
such as interest, discount points, mortgage insurance premiums and administrative fees.
Application CORRECT ANS-A request for a residential mortgage loan and includes the
borrower-related information that lenders commonly use when considering the request.
Someone who takes an application from a consumer is generally considered to be acting as a
loan originator, even when gathering application information over the phone or Internet
ARM Disclosure: CORRECT ANS-A disclosure required to be presented to the applicant
within three days of application on any ARM loan. This disclosure provides the applicant with
information about the specific ARM product for which they are applying, such as a historical
index value
Fraud for money Laundering CORRECT ANS--Criminal uses scheme known as value
tampering
-Criminal offers to buy house at reduced rate
, NMLS Exam 2025; Questions with Solutions 100% Pass
-Seller must sell at appraised value on paper, but after closing, seller give the criminal the
difference in cash.
Adverse Action CORRECT ANS-An unfavorable credit decision rendered against a consumer
made on
the basis of information contained on the credit application. If a lender takes adverse
action against an applicant, the lender must notify the applicant in writing. If the adverse
action is taken as a result of information contained on the credit report, the notice must
also provide the name, address and toll-free phone number of the credit bureau that
supplied the information.
American Association of Residential Mortgage Regulators (AARMR): CORRECT ANS-A
national association of individuals who are charged with administering and regulating various
aspects of residential mortgage lending. It played a major role in the formation of the NMLS-R
and in the drafting of the model licensing law.
Balloon mortgage: CORRECT ANS-A type of fixed-rate mortgage loan with monthly
payments based on a 30-year amortization schedule, setting a maturity date for a shorter
, NMLS Exam 2025; Questions with Solutions 100% Pass
period of time - usually five, seven, 10 or 15 years. This allows the borrower to make lower
monthly payments for that shorter period of time, with a large payment of the full remaining
principal balance and interest due at the maturity date
Bank Secrecy Act (BSA): CORRECT ANS-A federal law requiring that financial institutions
take steps to prevent and report cases of money laundering.
Bridge loan: CORRECT ANS-A bridge loan is a loan for a short duration of time and can be
used when one is purchasing one property but is dependent on the equity from another
property that has not yet been sold. Once the property is sold then the bridge loan is repaid.
Business day: CORRECT ANS-Monday through Saturday except holidays.For the LE, when
creditor is open to the public for carrying on substantially all of the creditor's business
functions
Certificate of Reasonable Value (CRV): CORRECT ANS-A form indicating the appraised value
of a property being financed with a VA loan.
Annual percentage rate (APR): CORRECT ANS-Does NOT include...TEN ACT-
(Title,Escrow,Notary,Appraisal,Credit Report,Termite)A measurement of the total cost of the
credit, expressed as an annual rate. The APR includes those paid at the time of closing and
those paid over the term of the loan. It includes all items that are part of the finance charge,
such as interest, discount points, mortgage insurance premiums and administrative fees.
Application CORRECT ANS-A request for a residential mortgage loan and includes the
borrower-related information that lenders commonly use when considering the request.
Someone who takes an application from a consumer is generally considered to be acting as a
loan originator, even when gathering application information over the phone or Internet
ARM Disclosure: CORRECT ANS-A disclosure required to be presented to the applicant
within three days of application on any ARM loan. This disclosure provides the applicant with
information about the specific ARM product for which they are applying, such as a historical
index value
Fraud for money Laundering CORRECT ANS--Criminal uses scheme known as value
tampering
-Criminal offers to buy house at reduced rate
, NMLS Exam 2025; Questions with Solutions 100% Pass
-Seller must sell at appraised value on paper, but after closing, seller give the criminal the
difference in cash.
Adverse Action CORRECT ANS-An unfavorable credit decision rendered against a consumer
made on
the basis of information contained on the credit application. If a lender takes adverse
action against an applicant, the lender must notify the applicant in writing. If the adverse
action is taken as a result of information contained on the credit report, the notice must
also provide the name, address and toll-free phone number of the credit bureau that
supplied the information.
American Association of Residential Mortgage Regulators (AARMR): CORRECT ANS-A
national association of individuals who are charged with administering and regulating various
aspects of residential mortgage lending. It played a major role in the formation of the NMLS-R
and in the drafting of the model licensing law.
Balloon mortgage: CORRECT ANS-A type of fixed-rate mortgage loan with monthly
payments based on a 30-year amortization schedule, setting a maturity date for a shorter
, NMLS Exam 2025; Questions with Solutions 100% Pass
period of time - usually five, seven, 10 or 15 years. This allows the borrower to make lower
monthly payments for that shorter period of time, with a large payment of the full remaining
principal balance and interest due at the maturity date
Bank Secrecy Act (BSA): CORRECT ANS-A federal law requiring that financial institutions
take steps to prevent and report cases of money laundering.
Bridge loan: CORRECT ANS-A bridge loan is a loan for a short duration of time and can be
used when one is purchasing one property but is dependent on the equity from another
property that has not yet been sold. Once the property is sold then the bridge loan is repaid.
Business day: CORRECT ANS-Monday through Saturday except holidays.For the LE, when
creditor is open to the public for carrying on substantially all of the creditor's business
functions
Certificate of Reasonable Value (CRV): CORRECT ANS-A form indicating the appraised value
of a property being financed with a VA loan.
