NMLS PRACTICE TEST EXAM QUESTIONS AND ANSWERS (WELL
NMLS Practice Test
DETAILED AND VERIFIED ANSWERS) LATEST UPDATE 2024/2025
Study online at https://quizlet.com/_3ivb7p
1. 1) Seller can Sell property at a premium/profit with •90 days
Fannie Mae financing after?
30 days
•60 days
•90 days
2. 2) A COFI index is defined as? cost of fund index
Cost of funds index
•Cost of financial index
•Cost of funding insurance
3. 3) Subordinate financing relates to second mortgage
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans.
4. 4) Explain what Investors with non-recourse loans Borrower does not have
mean? any recourse on default
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity
5. 5) Which of the following is true of the COFI? It is the slow moving cost
of funds index
It stands for the Cost of Future Interest.
•It is the preferred index if interest rates are expected
to fall.
•It is only used in the 11th Federal Home Loan Bank
1/7
, NMLS Practice Test
Study online at https://quizlet.com/_3ivb7p
District.
•It is the slow-moving Cost of Funds Index.
6. 6) Who is in charge of discrimination complaints? Federal housing authority
•Federal housing authority
•Lender
•ECOA
•Loan Officer
7. 7) The advantage of a home equity loan over refinanc- the ability to pay off part of
ing is the total debt separately
•lower interest rate.
•less likelihood of default.
•tax deductibility.
•the ability to pay off part of the total debt separately.
8. 9) When a telemarketer calls a person on the do not 16,000
call list in violation of the do not call regulations, he is
subject to a fine of
$5,000.
•$7,500.
•$12,000.
•$16,000
9. 10) An escrow account •is intended to ensure
timely payment of taxes
is set up to assure the borrower's loan payments are and other charges related
made promptly. to the property.
•is intended to ensure timely payment of taxes and
other charges related to the property.
2/7
NMLS Practice Test
DETAILED AND VERIFIED ANSWERS) LATEST UPDATE 2024/2025
Study online at https://quizlet.com/_3ivb7p
1. 1) Seller can Sell property at a premium/profit with •90 days
Fannie Mae financing after?
30 days
•60 days
•90 days
2. 2) A COFI index is defined as? cost of fund index
Cost of funds index
•Cost of financial index
•Cost of funding insurance
3. 3) Subordinate financing relates to second mortgage
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans.
4. 4) Explain what Investors with non-recourse loans Borrower does not have
mean? any recourse on default
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity
5. 5) Which of the following is true of the COFI? It is the slow moving cost
of funds index
It stands for the Cost of Future Interest.
•It is the preferred index if interest rates are expected
to fall.
•It is only used in the 11th Federal Home Loan Bank
1/7
, NMLS Practice Test
Study online at https://quizlet.com/_3ivb7p
District.
•It is the slow-moving Cost of Funds Index.
6. 6) Who is in charge of discrimination complaints? Federal housing authority
•Federal housing authority
•Lender
•ECOA
•Loan Officer
7. 7) The advantage of a home equity loan over refinanc- the ability to pay off part of
ing is the total debt separately
•lower interest rate.
•less likelihood of default.
•tax deductibility.
•the ability to pay off part of the total debt separately.
8. 9) When a telemarketer calls a person on the do not 16,000
call list in violation of the do not call regulations, he is
subject to a fine of
$5,000.
•$7,500.
•$12,000.
•$16,000
9. 10) An escrow account •is intended to ensure
timely payment of taxes
is set up to assure the borrower's loan payments are and other charges related
made promptly. to the property.
•is intended to ensure timely payment of taxes and
other charges related to the property.
2/7
