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NMLS FINAL ACTUAL EXAM REVIEW QUESTIONS AND CORRECT ANSWERS; GRADED A+; 100% ACCURATE AND VERIFIED SOLUTIONS $14.99
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NMLS FINAL ACTUAL EXAM REVIEW QUESTIONS AND CORRECT ANSWERS; GRADED A+; 100% ACCURATE AND VERIFIED SOLUTIONS
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Test and improve your knowledge of NMLS with this study questions. This post covers exam questions on NMLS with 100% correct answers

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  • February 2, 2025
  • 6
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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NMLS FINAL ACTUAL EXAM REVIEW
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) A GRADE


You have taken a loan application from a customer with an excellent credit score. When should you
advise him/her about the status of the application?
Within 30 days
Within 90 days
Within one week
Within three days - ANS-within 30 days

An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a periodic
cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what will the rate be
after its first adjustment?
4.00%
5.00%
7.00%
9.00% - ANS-5%

Previously used as compensation for mortgage professionals, yield spread premiums must now be used:
a. As credits off of the interest rate of the loan
b. As credits to the borrower to help pay settlement costs
c. As referral fees paid to the broker by a settlement service provider
d. As commissions paid in addition to mortgage broker compensation - ANS-As credits to the borrower
to help pay settlement costs

Which of the following best describes the legal consequences of providing an inflated description of
income on a loan application?
a. It is not illegal if the applicant inflates his or her income to secure approval for the loan but fully
intends to repay the obligation
b. It is not a violation of criminal laws, and any penalties imposed are civil, not criminal
c. It is a violation of multiple federal lending laws and constitutes fraud
d. It is not an illegal act, but may impact the consumer's credit score - ANS-It is a violation of multiple
federal lending laws and constitutes fraud

This is calculated by dividing PITI by the borrower's monthly gross income:
Total debt ratio
Net tangible benefit
Housing expense ratio

, Loan suitability - ANS-Housing expense ratio

If a lender wants to obtain copies of a borrower's tax returns, the borrower is asked to sign what?
4506-C
A waiver of financial information
1003
1040 - ANS-4506-c

In accordance with Section 8 of the Real Estate Settlement Procedures Act, a mortgage broker may
receive compensation for which of the following?
a. Referring a borrower to a real estate agent
b. Taking information to be used in a loan application and submitting the file to processing
c. .Submitting a loan to a lender
d. The reasonable value of goods and/or services actually performed or provided - ANS-The reasonable
value of goods and/or services actually performed or provided

The most commonly used type of reverse mortgage is known as a:
Home Equity Conversion Loan
Home Equity Consolidation Mortgage
Home Equity Conversion Mortgage
Home Equity Line of Credit - ANS-Home Equity Conversion Mortgage

All of the following are true of FHA fixed-rate loans, except:
The borrower must make at least a 3.50% investment
They require upfront MIP on all loans
They are available in 15- and 30-year terms
The borrower is only required to carry MIP until the LTV reaches 78% - ANS-The borrower is only
required to carry MIP until the LTV reaches 78%

When may a homeowner request PMI to be cancelled?
When the lender informs him/her that it is terminating PMI
As soon as the five-year required minimum is met
As soon as his/her equity position reaches at least 22%
As soon as his/her equity position is 20% or greater - ANS-As soon as his/her equity position is 20% or
greater

A mortgage broker structures a higher-priced loan with two points in borrower credit because the
borrower has limited cash to close, and suggests the borrower use the premium generated to subsidize
the closing costs. After consideration, the borrower agrees and moves forward. This is:
Legal and ethical
Illegal and ethical
Illegal and unethical
Legal and unethical - ANS-Legal and ethical

When is it allowable for an originator to provide a real estate agent with a $50 gift card in exchange for a
referral?
If the gift card has no dollar amount listed on it
As long as the originator provides equal gift cards to each service provider on the loan

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