CALIFORNIA STATE NMLS PRACTICE TEST | FROM
PRACTICE TO PERFECTION | GUARANTEED
SUCCESS!
"Federal banking agencies" include:
Answers
A. The Director of the Office of Thrift Supervision, the Board of Governors of the Federal
Reserve System, and FDIC
B. Fannie Mae and Freddie Mac
C. The Comptroller of the Currency and the National Credit Union Administration
D. A and C - Answer: D.
A borrower approaches a lender to refinance their existing negative amortization loan,
which was originated by that
Same lender. Which of the following statements is incorrect?
A. The lender must make due regard for the borrower's ability to repay the new loan.
B. The new loan cannot be a stated income pay option arm.
C. The lender can collect a prepayment penalty, as long as it does not exceed 1.75% of
the principal balance.
D. If their existing mortgage is a reverse mortgage, it is not considered a negative
amortization loan. - Answer: C.
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A borrower cannot be required to pay interest on the principal balance of a loan secured
by a mortgage on real
Property more than how many days prior the date that loan proceeds are disbursed
from escrow?
Answers
A. One (1) day
B. Three (3) days
C. Five (5) days
D. Seven (7) days - Answer: A.
A borrower's file requires a VOD, however currently, the borrower has no money but is
expecting an inheritance check.
What can the MLO do?
Answers
A. The MLO may request the VOD takes place after the funds are deposited
B. Request the borrower to take out a pay day advance loan, put it in his account, and
repay it once the verification is done
C. The MLO may loan the borrower money and take it back after the VOD is complete -
Answer: A.
A foreclosure consultant may not charge a fee in which exceeds ___ percent per annum
of a loan which the consultant makes to the owner.
Answers
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A. 10%
B. 20%
C. 3%
D. 5% - Answer: A.
A late charge may be imposed for late payment of an installment due on a mortgage
loan or deed of trust but cannot exceed greater than $5 or ___ percent of the installment
due.
Answers
A. One (1) percent
B. Three (3) percent
C. Five (5) percent
D. Ten (10) percent - Answer: C.
A mortgage broker's fiduciary duty to a client involves which of the following?
Answers
A. A duty of exclusivity
B. Full disclosure to the client, even at the expense of another client
C. Putting the client's economic interest ahead of the broker's own
D. Securing the best loan which the client could hope to find - Answer: C.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
, A mortgage company advertises for loans in both Spanish and English. Which of the
following statements is true?
Answers
A. The mortgage company must provide the key disclosures such as the TIL and Good
Faith Estimate in Spanish to their Spanish speaking
Clients.
B. At least 40% of the employees of the company must be bilingual.
C. The company must have at least one native Spanish speaker available during
regular business hours.
D. The actual loan documents (note, mortgage, deed, etc.) Must be provided in
Spanish. - Answer: A.
A mortgage loan originator must pass the licensing test in order to obtain a new license
if he has failed to maintain a license over how many years?
Answers
A. Five (5) years
B. Seven (7) years
C. Ten (10) years
D. Mlos do not ever have to retake the licensing test - Answer: A.
4
APPHIA - Crafted with Care and Precision for Academic Excellence.
PRACTICE TO PERFECTION | GUARANTEED
SUCCESS!
"Federal banking agencies" include:
Answers
A. The Director of the Office of Thrift Supervision, the Board of Governors of the Federal
Reserve System, and FDIC
B. Fannie Mae and Freddie Mac
C. The Comptroller of the Currency and the National Credit Union Administration
D. A and C - Answer: D.
A borrower approaches a lender to refinance their existing negative amortization loan,
which was originated by that
Same lender. Which of the following statements is incorrect?
A. The lender must make due regard for the borrower's ability to repay the new loan.
B. The new loan cannot be a stated income pay option arm.
C. The lender can collect a prepayment penalty, as long as it does not exceed 1.75% of
the principal balance.
D. If their existing mortgage is a reverse mortgage, it is not considered a negative
amortization loan. - Answer: C.
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A borrower cannot be required to pay interest on the principal balance of a loan secured
by a mortgage on real
Property more than how many days prior the date that loan proceeds are disbursed
from escrow?
Answers
A. One (1) day
B. Three (3) days
C. Five (5) days
D. Seven (7) days - Answer: A.
A borrower's file requires a VOD, however currently, the borrower has no money but is
expecting an inheritance check.
What can the MLO do?
Answers
A. The MLO may request the VOD takes place after the funds are deposited
B. Request the borrower to take out a pay day advance loan, put it in his account, and
repay it once the verification is done
C. The MLO may loan the borrower money and take it back after the VOD is complete -
Answer: A.
A foreclosure consultant may not charge a fee in which exceeds ___ percent per annum
of a loan which the consultant makes to the owner.
Answers
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A. 10%
B. 20%
C. 3%
D. 5% - Answer: A.
A late charge may be imposed for late payment of an installment due on a mortgage
loan or deed of trust but cannot exceed greater than $5 or ___ percent of the installment
due.
Answers
A. One (1) percent
B. Three (3) percent
C. Five (5) percent
D. Ten (10) percent - Answer: C.
A mortgage broker's fiduciary duty to a client involves which of the following?
Answers
A. A duty of exclusivity
B. Full disclosure to the client, even at the expense of another client
C. Putting the client's economic interest ahead of the broker's own
D. Securing the best loan which the client could hope to find - Answer: C.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
, A mortgage company advertises for loans in both Spanish and English. Which of the
following statements is true?
Answers
A. The mortgage company must provide the key disclosures such as the TIL and Good
Faith Estimate in Spanish to their Spanish speaking
Clients.
B. At least 40% of the employees of the company must be bilingual.
C. The company must have at least one native Spanish speaker available during
regular business hours.
D. The actual loan documents (note, mortgage, deed, etc.) Must be provided in
Spanish. - Answer: A.
A mortgage loan originator must pass the licensing test in order to obtain a new license
if he has failed to maintain a license over how many years?
Answers
A. Five (5) years
B. Seven (7) years
C. Ten (10) years
D. Mlos do not ever have to retake the licensing test - Answer: A.
4
APPHIA - Crafted with Care and Precision for Academic Excellence.
