NMLS SAFE EXAM TEST BANK (2 VERSIONS) NEWEST
2025 ACTUAL EXAM WITH COMPLETE 700+ QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | GUARANTEED PASS
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 -
Correct Answer > C. The maximum the rate can increase over the life of the
loan
An initial servicing transfer notice must be provided to a borrower
_________ days prior to transfer of servicing on a loan.
15
30
45
60 - Correct Answer > 15 Days
,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
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 -
Correct Answer > B. The borrower qualified at the buydown rate
All of the following are violations of the Fair Housing Act EXCEPT
A. Age
B. National Origin
C. Disability
D.Religion - Correct Answer > A. Age
Under The Guidance on Subprime Mortgage Loans , the CSBS considers
all of the following to be a predatory lending practice except:
a.) Basing a loan off the foreclosure value
b.) Refinancing a borrower repeatedly to collect more fees
c.) Charging higher rates to risky buyers
d.) Using fraud or deception to sell the loan - Correct Answer > c.) Charging
higher rates to risky buyers
,4 ways to pay ARM
1.) 30 yr payment
2.) 15 yr payment
3.) Interest Only
4.) Minimum Payment (negative amortization) - Correct Answer >
Which of the following is a risk associated with a nontraditional ARM?
a.) the inclusion of a prepayment penalty
b.) payment shock when amortizing begins
c.) additional costs associated with reduced document loans
d.) all of the above - Correct Answer > D.) all of the above
What does subprime refer to? - Correct Answer > Loans with high delinquency
or default rates
All of the following would be associated with a Subprime loan with the
exception of which of the
following:
a.) Limited Documentation
b.) High prepayment penalties
c.) balloon payments
d.) based on LIBOR - Correct Answer > D.) based on LIBOR
, An MLO takes an application and becomes suspicious of the applicants
Soc Sec. #; what should the MLO do?
(A) contact the police
(B) deny loan
(C) call soc sec admin and verify Soc Sec #
(D) wait to see if there is anymore suspicious activity - Correct Answer > (D)
wait to see if there is anymore suspicious activity
A young couple is applying for a loan for a new home purchase. A
portion of their down payment is a loan from a Grandparent for
$25,000. The money was already given to them and placed in their
account three months prior to the loan application. The loan payments
won't start for one year, how should the $25,000 be reported on the
mortgage application?
A. Asset
B. A Liability
C. Gift of funds
D. Not reported at all - Correct Answer > B). A Liability
What action should an MLO take if during a refinance involving a
mother and son the MLO gets the feeling the mother is hesitant about
the refinance?
2025 ACTUAL EXAM WITH COMPLETE 700+ QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | GUARANTEED PASS
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 -
Correct Answer > C. The maximum the rate can increase over the life of the
loan
An initial servicing transfer notice must be provided to a borrower
_________ days prior to transfer of servicing on a loan.
15
30
45
60 - Correct Answer > 15 Days
,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
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 -
Correct Answer > B. The borrower qualified at the buydown rate
All of the following are violations of the Fair Housing Act EXCEPT
A. Age
B. National Origin
C. Disability
D.Religion - Correct Answer > A. Age
Under The Guidance on Subprime Mortgage Loans , the CSBS considers
all of the following to be a predatory lending practice except:
a.) Basing a loan off the foreclosure value
b.) Refinancing a borrower repeatedly to collect more fees
c.) Charging higher rates to risky buyers
d.) Using fraud or deception to sell the loan - Correct Answer > c.) Charging
higher rates to risky buyers
,4 ways to pay ARM
1.) 30 yr payment
2.) 15 yr payment
3.) Interest Only
4.) Minimum Payment (negative amortization) - Correct Answer >
Which of the following is a risk associated with a nontraditional ARM?
a.) the inclusion of a prepayment penalty
b.) payment shock when amortizing begins
c.) additional costs associated with reduced document loans
d.) all of the above - Correct Answer > D.) all of the above
What does subprime refer to? - Correct Answer > Loans with high delinquency
or default rates
All of the following would be associated with a Subprime loan with the
exception of which of the
following:
a.) Limited Documentation
b.) High prepayment penalties
c.) balloon payments
d.) based on LIBOR - Correct Answer > D.) based on LIBOR
, An MLO takes an application and becomes suspicious of the applicants
Soc Sec. #; what should the MLO do?
(A) contact the police
(B) deny loan
(C) call soc sec admin and verify Soc Sec #
(D) wait to see if there is anymore suspicious activity - Correct Answer > (D)
wait to see if there is anymore suspicious activity
A young couple is applying for a loan for a new home purchase. A
portion of their down payment is a loan from a Grandparent for
$25,000. The money was already given to them and placed in their
account three months prior to the loan application. The loan payments
won't start for one year, how should the $25,000 be reported on the
mortgage application?
A. Asset
B. A Liability
C. Gift of funds
D. Not reported at all - Correct Answer > B). A Liability
What action should an MLO take if during a refinance involving a
mother and son the MLO gets the feeling the mother is hesitant about
the refinance?
