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NMLS Exam Questions and Answers 100%
Pass
The preferred debt-to-income ratio for applicants for VA loans is:
A. 35%
B. 43%
C. 50%
D. 41% - ANS D. 41%
When would a license be suspended without a hearing?
A. If a licensee fails to renew
B. If a licensee fails to request a hearing with the state regulator
C. If a licensee has failed to complete pre-licensing requirements
D. If a licensee has already executed a right to a hearing for a previous violation - ANS B. If a
licensee fails to request a hearing with the state regulator
After a borrower allows the assumption of his or her VA loan, he or she may use his or her VA
privilege again only after:
A. Five years have passed
B. The home is sold to a new owner
C. The original VA loan is satisfied
D. The original VA loan is moved from his or her name into the name of the assuming borrower
- ANS C. The original VA loan is satisfied
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In order to qualify for an adjustable-rate mortgage, a consumer must be able to show that he or
she can:
A. Make regularly scheduled payments that are calculated using the loan's introductory rate
B. Make amortizing payments that are calculated using the fully indexed rate for the ARM
C. Make amortizing payments that are calculated using the loan's rate after the first interest
rate adjustment occurs
D. Make regularly scheduled payments that are calculated using the fixed interest rate for
which the consumer would be eligible - ANS B. Make amortizing payments that are
calculated using the fully indexed rate for the ARM
Money paid by a buyer to a seller at the time of entering into a contract to indicate intent and
ability to carry out the contract is called:
A. Down payment
B. Earnest money
C. Escrow funds
D. Service release premium - ANS B. Earnest money
The Pois have just closed on their mortgage loan at a formal settlement meeting. What is
mortgage loan originator Leilani Luau's responsibility after loan closing?
A. She must provide any required re-disclosures
B. None; Leilani's tasks are complete
C. She must provide another set of disclosures, showing final costs and expenses
D. She must record the transaction with the county recorder - ANS B. None; Leilani's tasks
are complete
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
A. Twelve months
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B. Three years
C. Two years
D. Five years - ANS B. Three years
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
A. For sale by owner (FSBO)
B. Seller carry-back
C. Seller concessions
D. Seller self-financed - ANS B. Seller carry-back
Which section of the URLA contains questions which, depending on the applicant's answer,
could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - ANS B. Declarations
With what type of loan do payments, including principal and interest, remain constant
throughout the life of the loan?
A. A balloon loan, as long as the maturity date is beyond ten years
B. An ARM with a conversion option
C. Fixed rate
D. An FHA loan - ANS C. Fixed rate
If a financial institution intends to share consumer information with nonaffiliated third parties,
an initial privacy notice is due to a consumer at what point?
NMLS Exam Questions and Answers 100%
Pass
The preferred debt-to-income ratio for applicants for VA loans is:
A. 35%
B. 43%
C. 50%
D. 41% - ANS D. 41%
When would a license be suspended without a hearing?
A. If a licensee fails to renew
B. If a licensee fails to request a hearing with the state regulator
C. If a licensee has failed to complete pre-licensing requirements
D. If a licensee has already executed a right to a hearing for a previous violation - ANS B. If a
licensee fails to request a hearing with the state regulator
After a borrower allows the assumption of his or her VA loan, he or she may use his or her VA
privilege again only after:
A. Five years have passed
B. The home is sold to a new owner
C. The original VA loan is satisfied
D. The original VA loan is moved from his or her name into the name of the assuming borrower
- ANS C. The original VA loan is satisfied
, ©THESTAR 2025 ALL RIGHTS RESERVED
In order to qualify for an adjustable-rate mortgage, a consumer must be able to show that he or
she can:
A. Make regularly scheduled payments that are calculated using the loan's introductory rate
B. Make amortizing payments that are calculated using the fully indexed rate for the ARM
C. Make amortizing payments that are calculated using the loan's rate after the first interest
rate adjustment occurs
D. Make regularly scheduled payments that are calculated using the fixed interest rate for
which the consumer would be eligible - ANS B. Make amortizing payments that are
calculated using the fully indexed rate for the ARM
Money paid by a buyer to a seller at the time of entering into a contract to indicate intent and
ability to carry out the contract is called:
A. Down payment
B. Earnest money
C. Escrow funds
D. Service release premium - ANS B. Earnest money
The Pois have just closed on their mortgage loan at a formal settlement meeting. What is
mortgage loan originator Leilani Luau's responsibility after loan closing?
A. She must provide any required re-disclosures
B. None; Leilani's tasks are complete
C. She must provide another set of disclosures, showing final costs and expenses
D. She must record the transaction with the county recorder - ANS B. None; Leilani's tasks
are complete
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
A. Twelve months
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B. Three years
C. Two years
D. Five years - ANS B. Three years
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
A. For sale by owner (FSBO)
B. Seller carry-back
C. Seller concessions
D. Seller self-financed - ANS B. Seller carry-back
Which section of the URLA contains questions which, depending on the applicant's answer,
could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - ANS B. Declarations
With what type of loan do payments, including principal and interest, remain constant
throughout the life of the loan?
A. A balloon loan, as long as the maturity date is beyond ten years
B. An ARM with a conversion option
C. Fixed rate
D. An FHA loan - ANS C. Fixed rate
If a financial institution intends to share consumer information with nonaffiliated third parties,
an initial privacy notice is due to a consumer at what point?
