California State NMLS Practice Test
Exam Questions and Answers Graded A+
"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 - Correct answer-D.
A borrower approaches a lender to refinance their existing negative amortization
loan, which was originated by that
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,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. - Correct answer-C.
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
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,A. One (1) day
B. Three (3) days
C. Five (5) days
D. Seven (7) days - Correct 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
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, 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 - Correct 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
A. 10%
B. 20%
C. 3%
D. 5% - Correct answer-A.
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Exam Questions and Answers Graded A+
"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 - Correct answer-D.
A borrower approaches a lender to refinance their existing negative amortization
loan, which was originated by that
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,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. - Correct answer-C.
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,A. One (1) day
B. Three (3) days
C. Five (5) days
D. Seven (7) days - Correct 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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 - Correct 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
A. 10%
B. 20%
C. 3%
D. 5% - Correct answer-A.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
