NMLS TEST EXAM WITH QUESTIONS AND ANSWERS
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
Which of the following would NOT be considered a depository institution? -
...(ANSWERS)....Mortgage Broker
The primary difference between a mortgage banker and a mortgage broker is: -
...(ANSWERS)....Whether it makes loans or acts as intermediary
A lender which keeps its loans and does not sell them to investors is called a: -
...(ANSWERS)....Portfolio Lender
Fannie Mae and Freddie Mac can require a lender to repurchase a loan: -
...(ANSWERS)....If there is evidence of mortgage fraud
If the Fed were to buy government securities, the money supply would likely: -
...(ANSWERS)....Increase
Under which of the following circumstances would the clerical employee of a MLO
be required to be personally registered or licensed as a mortgage loan originator?
- ...(ANSWERS)....The employee offers a lower rate to the applicant
A Registered or State Licensed MLO is identified in the NMLS by his or her: -
...(ANSWERS)....Unique Identifier
,If a State Licensed MLO allows his or her license to expire, that person will have to
retest if the license is not renewed within: - ...(ANSWERS)....5 years
A Registered Mortgage Loan Originator must complete how many hours of
continuing education courses each year? - ...(ANSWERS)....0...A State Licensed
Originator has to take 8 hours
A person who has failed the national portion of the NMLS exam on the third
attempt: - ...(ANSWERS)....Must wait 180 days to retake the test
A borrower takes out a fixed rate, fully amortized loan. As each payment is made
due, which of the following statements is correct? - ...(ANSWERS)....The interest
portion of the payment will decrease and the principal portion will increase
A conventional loan would have what form of backing from the federal
government or quasi-government agencies? - ...(ANSWERS)....They are not
issued, insured or guaranteed by any government agency
Each of the following statements regarding jumbo loans is correct EXCEPT? -
...(ANSWERS)....When jumbo loans are difficult to obtain, fixed rate loans are
usually easier to obtain than adjustable rate loans
Which of the following types of loans would most likely be assumable? -
...(ANSWERS)....An FHA Loan (Federal Housing Administration)
, What is the down payment requirement for an FHA Loan for a borrower with a
credit score at or above 580? - ...(ANSWERS)....3.5%...Scores from 500-579 are
10% downpayment
What contribution can a seller make towards the buyer's closing costs when the
buyer is obtaining an FHA Loan? - ...(ANSWERS)....6% of the purchase of the
property (none go to down payment)
In an FHA refinancing loan, what is the amount of the UFMIP? -
...(ANSWERS)....1%, nut in reality its 1.75%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
FHA loans? - ...(ANSWERS)....31% and 43%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
VA loans? - ...(ANSWERS)....41% and 41%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
Conventional loans? - ...(ANSWERS)....28% and 36%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
Jumbo loans? - ...(ANSWERS)....33% and 38-40%
When an applicant for an FHA loan receives tax free income payments of child
support payments from a former spouse, what percentage of that income will be
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
Which of the following would NOT be considered a depository institution? -
...(ANSWERS)....Mortgage Broker
The primary difference between a mortgage banker and a mortgage broker is: -
...(ANSWERS)....Whether it makes loans or acts as intermediary
A lender which keeps its loans and does not sell them to investors is called a: -
...(ANSWERS)....Portfolio Lender
Fannie Mae and Freddie Mac can require a lender to repurchase a loan: -
...(ANSWERS)....If there is evidence of mortgage fraud
If the Fed were to buy government securities, the money supply would likely: -
...(ANSWERS)....Increase
Under which of the following circumstances would the clerical employee of a MLO
be required to be personally registered or licensed as a mortgage loan originator?
- ...(ANSWERS)....The employee offers a lower rate to the applicant
A Registered or State Licensed MLO is identified in the NMLS by his or her: -
...(ANSWERS)....Unique Identifier
,If a State Licensed MLO allows his or her license to expire, that person will have to
retest if the license is not renewed within: - ...(ANSWERS)....5 years
A Registered Mortgage Loan Originator must complete how many hours of
continuing education courses each year? - ...(ANSWERS)....0...A State Licensed
Originator has to take 8 hours
A person who has failed the national portion of the NMLS exam on the third
attempt: - ...(ANSWERS)....Must wait 180 days to retake the test
A borrower takes out a fixed rate, fully amortized loan. As each payment is made
due, which of the following statements is correct? - ...(ANSWERS)....The interest
portion of the payment will decrease and the principal portion will increase
A conventional loan would have what form of backing from the federal
government or quasi-government agencies? - ...(ANSWERS)....They are not
issued, insured or guaranteed by any government agency
Each of the following statements regarding jumbo loans is correct EXCEPT? -
...(ANSWERS)....When jumbo loans are difficult to obtain, fixed rate loans are
usually easier to obtain than adjustable rate loans
Which of the following types of loans would most likely be assumable? -
...(ANSWERS)....An FHA Loan (Federal Housing Administration)
, What is the down payment requirement for an FHA Loan for a borrower with a
credit score at or above 580? - ...(ANSWERS)....3.5%...Scores from 500-579 are
10% downpayment
What contribution can a seller make towards the buyer's closing costs when the
buyer is obtaining an FHA Loan? - ...(ANSWERS)....6% of the purchase of the
property (none go to down payment)
In an FHA refinancing loan, what is the amount of the UFMIP? -
...(ANSWERS)....1%, nut in reality its 1.75%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
FHA loans? - ...(ANSWERS)....31% and 43%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
VA loans? - ...(ANSWERS)....41% and 41%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
Conventional loans? - ...(ANSWERS)....28% and 36%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for
Jumbo loans? - ...(ANSWERS)....33% and 38-40%
When an applicant for an FHA loan receives tax free income payments of child
support payments from a former spouse, what percentage of that income will be
