Exam (elaborations)
NMLS SAFE EXAM 2025/2026 Exam Questions and Corresponding Answers with Surety of 100% Pass Mark
NMLS SAFE EXAM 2025/2026 Exam Questions and Corresponding Answers with Surety of 100% Pass Mark Primary Mortgage Market -
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NMLS SAFE EXAM 2025/2026 ExamQuestions and Corresponding Answers
with Surety of 100% Pass Mark
Primary Mortgage Market - 🧠 ANSWER ✔✔Where credit institutions
originate loans
C. The maximum the rate can increase over the life of the loan - 🧠
ANSWER ✔✔When an ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the initial adjustment
B. The start rate for the loan
C. The maximum the rate can increase over the life of the loan
D. The rate maximum the rate can decrease over the life of the loan
B. The borrower qualified at the buydown rate - 🧠 ANSWER ✔✔When
utilizing a temporary buydown to lower the interest rate on a FHA loan,
which of the following are correct
A. The borrower qualified at the note rate
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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,B. The borrower qualified at the buydown rate
C. The rate cannot be more than 2% below the note rate
D. Seller or builder can pay the discount points to buydown the rate
A. Age - 🧠 ANSWER ✔✔All of the following are violations of the Fair
Housing Act EXCEPT
A. Age
B. National Origin
C. Disability
D.Religion
Encrumbrance - 🧠 ANSWER ✔✔Claim against property held by one who is
not the legal owner
Trigger Term - 🧠 ANSWER ✔✔Advertised term that requires additional
disclosures
Advertising Disclosure - 🧠 ANSWER ✔✔An advertisement must be
presented "clearly and conspicuously" to keep from being deceptive, unfair,
or otherwise violate a Commission rule
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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,Waving Right of Rescission - 🧠 ANSWER ✔✔Extenuating circumstances
such as "bona fide personal financial emergency
Right of Rescission - 🧠 ANSWER ✔✔Right that borrowers have to cancel a
loan or line of credit with a lender within three days of closing
Business Day - 🧠 ANSWER ✔✔When creditors office is open to the public,
a calendar working day except Sunday or a federal holiday
Application - 🧠 ANSWER ✔✔Financial information used for purposes of
obtaining an extension of credit
Disclosure - 🧠 ANSWER ✔✔The act of making new information known
FTC
Federal Trade Commission - 🧠 ANSWER ✔✔Mission is to promote
consumer protection and eliminate and prevent anticompetitive business
practices
CFPB
Consumer Financial Protection Bureau - 🧠 ANSWER ✔✔Regulatory
agency charged with overseeing financial products and services offered to
consumers
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, TILA
Truth in Lending Act - 🧠 ANSWER ✔✔Enacted 1968 promotes the informed
use of consumer credit by requiring disclosures about terms and costs and
standardizes the manner in which costs with borrowing are calculated and
disclosed
Per Diem Interest - 🧠 ANSWER ✔✔Interest charged on a loan for one or
more days
Annual Interest Rate Formula - 🧠 ANSWER ✔✔Principal (X) Interest Rate =
Annual Interest Rate
Interest Only Mortgage - 🧠 ANSWER ✔✔Mortgage where the mortgagor is
only required to pay off the interest that arises from the principal that is
borrowed for a set period
Permanent Buydown - 🧠 ANSWER ✔✔Borrower chooses to pay additional
"discount points" to buy down the interest rate for the life of the mortgage
note
2/1 Buydown - 🧠 ANSWER ✔✔Used on fixed rate loans over two years
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
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