NMLS SAFE EXAM WITH 585 QUESTIONS AND ANSWRS
UPDATED NEW!! 100% VERIFIED CORRECT GUARANTEED
SUCCESS
Primary Mortgage Market - Correct Answers Where credit ins tu ons originate loans
C. The maximum the rate can increase over the life of the loan - Correct Answers When an
ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the ini al 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 - Correct Answers When u lizing 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
A. Age - Correct Answers All of the following are viola ons of the Fair Housing Act EXCEPT
A. Age
B. Na onal Origin
C. Disability
D.Religion
,Encrumbrance - Correct Answers Claim against property held by one who is not the legal
owner
Trigger Term - Correct Answers Adver sed term that requires addi onal disclosures
Adver sing Disclosure - Correct Answers An adver sement must be presented "clearly and
conspicuously" to keep from being decep ve, unfair, or otherwise violate a Commission rule
Waving Right of Rescission - Correct Answers Extenua ng circumstances such as "bona fide
personal financial emergency
Right of Rescission - Correct Answers Right that borrowers have to cancel a loan or line of
credit with a lender within three days of closing
Business Day - Correct Answers When creditors office is open to the public, a calendar working
day except Sunday or a federal holiday
Applica on - Correct Answers Financial informa on used for purposes of obtaining an
extension of credit
Disclosure - Correct Answers The act of making new informa on known
FTC
Federal Trade Commission - Correct Answers Mission is to promote consumer protec on and
eliminate and prevent an compe ve business prac ces
CFPB
,Consumer Financial Protec on Bureau - Correct Answers Regulatory agency charged with
overseeing financial products and services offered to consumers
TILA
Truth in Lending Act - Correct Answers 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 - Correct Answers Interest charged on a loan for one or more days
Annual Interest Rate Formula - Correct Answers Principal (X) Interest Rate = Annual Interest
Rate
Interest Only Mortgage - Correct Answers 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 - Correct Answers Borrower chooses to pay addi onal "discount points"
to buy down the interest rate for the life of the mortgage note
2/1 Buydown - Correct Answers Used on fixed rate loans over two years
Set of two ini al temporary-start interest rates that increase in stair-step fashion un l a
permanent interest rate is reached
Discount Point - Correct Answers A form of pre-paid interest which effec vely increases the
yield on the loan above the amount of the stated interest rate
CLTV
Combined Loan to Value - Correct Answers An amount in addi on to the Loan to Value, which
simply represents the first posi on mortgage or loan as a percentage of the property's value
, LTV
Loan to Value - Correct Answers Ra o of a loan to the value of an asset purchased
PITI - Correct Answers Principal, Interest, Taxes, Insurance
Refers to the components of a mortgage payment
DIF - Correct Answers Housing to Debt
Ra o that measures an individual's ability to manage monthly payment and repay debts
Forbearance - Correct Answers Agreement between the lender and the borrower to delay
foreclosure
Loan Modifica on - Correct Answers A permanent restructuring of the mortgage where one or
more of the terms of a borrower's loan are changed to provide a more affordable payment
Foreclosure - Correct Answers Legal process to collect debt on mortgaged property
Sa sfac on of Mortgage LeEer - Correct Answers Document generated and signed by a
mortgage lender, acknowledging that the borrower has paid off the mortgage loan in full and
the mortgage is not a lien on the property
Subordina on Agreement - Correct Answers When two mortgages are on a property, this
specifies which mortgage takes precedence
Payoff Statement - Correct Answers Provides homeowner proof the mortgage is paid off
UPDATED NEW!! 100% VERIFIED CORRECT GUARANTEED
SUCCESS
Primary Mortgage Market - Correct Answers Where credit ins tu ons originate loans
C. The maximum the rate can increase over the life of the loan - Correct Answers When an
ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the ini al 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 - Correct Answers When u lizing 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
A. Age - Correct Answers All of the following are viola ons of the Fair Housing Act EXCEPT
A. Age
B. Na onal Origin
C. Disability
D.Religion
,Encrumbrance - Correct Answers Claim against property held by one who is not the legal
owner
Trigger Term - Correct Answers Adver sed term that requires addi onal disclosures
Adver sing Disclosure - Correct Answers An adver sement must be presented "clearly and
conspicuously" to keep from being decep ve, unfair, or otherwise violate a Commission rule
Waving Right of Rescission - Correct Answers Extenua ng circumstances such as "bona fide
personal financial emergency
Right of Rescission - Correct Answers Right that borrowers have to cancel a loan or line of
credit with a lender within three days of closing
Business Day - Correct Answers When creditors office is open to the public, a calendar working
day except Sunday or a federal holiday
Applica on - Correct Answers Financial informa on used for purposes of obtaining an
extension of credit
Disclosure - Correct Answers The act of making new informa on known
FTC
Federal Trade Commission - Correct Answers Mission is to promote consumer protec on and
eliminate and prevent an compe ve business prac ces
CFPB
,Consumer Financial Protec on Bureau - Correct Answers Regulatory agency charged with
overseeing financial products and services offered to consumers
TILA
Truth in Lending Act - Correct Answers 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 - Correct Answers Interest charged on a loan for one or more days
Annual Interest Rate Formula - Correct Answers Principal (X) Interest Rate = Annual Interest
Rate
Interest Only Mortgage - Correct Answers 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 - Correct Answers Borrower chooses to pay addi onal "discount points"
to buy down the interest rate for the life of the mortgage note
2/1 Buydown - Correct Answers Used on fixed rate loans over two years
Set of two ini al temporary-start interest rates that increase in stair-step fashion un l a
permanent interest rate is reached
Discount Point - Correct Answers A form of pre-paid interest which effec vely increases the
yield on the loan above the amount of the stated interest rate
CLTV
Combined Loan to Value - Correct Answers An amount in addi on to the Loan to Value, which
simply represents the first posi on mortgage or loan as a percentage of the property's value
, LTV
Loan to Value - Correct Answers Ra o of a loan to the value of an asset purchased
PITI - Correct Answers Principal, Interest, Taxes, Insurance
Refers to the components of a mortgage payment
DIF - Correct Answers Housing to Debt
Ra o that measures an individual's ability to manage monthly payment and repay debts
Forbearance - Correct Answers Agreement between the lender and the borrower to delay
foreclosure
Loan Modifica on - Correct Answers A permanent restructuring of the mortgage where one or
more of the terms of a borrower's loan are changed to provide a more affordable payment
Foreclosure - Correct Answers Legal process to collect debt on mortgaged property
Sa sfac on of Mortgage LeEer - Correct Answers Document generated and signed by a
mortgage lender, acknowledging that the borrower has paid off the mortgage loan in full and
the mortgage is not a lien on the property
Subordina on Agreement - Correct Answers When two mortgages are on a property, this
specifies which mortgage takes precedence
Payoff Statement - Correct Answers Provides homeowner proof the mortgage is paid off
