NMLS PRACTICE QUESTIONS | LATEST UPDATE| ULTIMATE SOLUTION

which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA? - CORRECT ANSWER FEDERAL RESERVE SYSTEM the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the - CORRECT ANSWER Acceleration Clause at closing a borrower may deposit funds to establish reserves for which of the following? - CORRECT ANSWER TAXES AND INSURANCE in a qualification of an applicant who receives child support and alimony - CORRECT ANSWER CHILD SUPPORT INCOME CAN BE GROSSED UP a homeowner had a home worth 200k. he has an outstanding loan of 165k and a HELOC with a limit of 30k which he has drawn 12k. Which of the following is not true? - CORRECT ANSWER His TLTV is 94% you must calculate LTV, CLTV, and TLTV TLTV is higher than CLTV and LTV test mortgage transferred servicing rights of some of its mortgage loans to answer mortgage, Lender must send a servicing transfer statement to the affected borrowers how many days before the effective date of transfer? - CORRECT ANSWER 15 days before the effective date of transfer a Lender must send the servicing transfer statement to the affected borrowers following section IX (acknowledgements) in the 1003 loan application, the form is to be signed to signify that - CORRECT ANSWER the applicant represents that all information contained in the form is truthfully represented As the deadline approaches for the closing date established in the buyer's sale agreement, the buyer's loan application has not yet been approved but seems to be headed for approval. the loan originator should... - CORRECT ANSWER Notify the real estate broker to try to get an extension of closing deadline The lowest payment option for an option ARM is - CORRECT ANSWER minumum payment Fannie Mae requires occupancy with in - CORRECT ANSWER 60 days The purpose of a Market Conditions Addendum is to - CORRECT ANSWER Provide the Lender with a clear understanding of the market trends and conditions in a subject neighborhood The ECOA prevents discvrimination against which of the following? - CORRECT ANSWER DISABILITIES a 240/60, 20k loan is made with interest at 9% per year. Which is true? - CORRECT ANSWER this is a ballon loan with a loan term of five years 240/12= number of years in loan 60/12= number of years until fully amortized and needs to be paid off or refinance the acronym PFC stands for - CORRECT ANSWER PREPAID FINANCE CHARGES NMLS PRACTICE QUESTIONS | LATEST UPDATE| ULTIMATE SOLUTION 2 | P a g e the rules relating to the Federal Trade Commission's "no call" registry allows calls to persons on the "no call" list - CORRECT ANSWER for up to 18 months after business transaction has been completed with them and up to 3 months after they inquiry a copy of the appraisal is provided - CORRECT ANSWER at close of escrow the risk that an agent may not have his clients best interest at heart is called - CORRECT ANSWER Principal-Agent risk the federal regulation that implements the Real Estate Settlement Procedures Act (RESPA) is - CORRECT ANSWER Regulation X a loan applicnats employment is usually verified by a - CORRECT ANSWER VEO (VERIFICATION OF EMPLOYMENT) The UNIFORM RESIDENTIAL LOAN APPLICATION (1003) includes a section reqiesting information for government monitoring. applicants must complete this section - CORRECT ANSWER ONLY IF THEY WISH interest onlu has what feature? - CORRECT ANSWER can be paid off faster than fully amortized Right to Rescind is not valid on which of the following - CORRECT ANSWER Commercial Purchase the HUD-1 Settlement Statement includes all of the following Except - CORRECT ANSWER housing expense ratio what is the best description for a 360/180 loan? - CORRECT ANSWER Ballon loan a property that is appraised with a higher than market value results in - CORRECT ANSWER an inflated appraisal which law prohibits a lender/ mortgage broker from makinf any oral/ written statement, in advertising or otherwise to applicants or prospective applicants that would discourage a reasonable person from making or pursuing an application - CORRECT ANSWER ECOA an applicant for a real estate loan can not be asked about his - CORRECT ANSWER RELIGION RESPA does not require lender disclosures of closing costs and procedures for which of the following loans? - CORRECT ANSWER CONSTRUSCTION LOANS A lender is obligated to provide a borrower with a HUD-1 Settlement Statement how many days prior to closing? - CORRECT ANSWER 1day