NMLS SAFE Exam Key Terms: Mortgage, Laws, and Regulations Exam Questions
with Correct Answers | Verified Solutions
1003 Form - ✔✔Uniform Residential Loan Application; borrower info form.
Adjustable-Rate Mortgage (ARM) - ✔✔Interest rate can change periodically
after an initial fixed period.
Amortization - ✔✔Gradual repayment of loan principal + interest over time.
Appraisal - ✔✔Professional evaluation of a property's value.
APR (Annual Percentage Rate) - ✔✔True cost of credit including interest + fees.
Closing - ✔✔Final step in a mortgage transaction where funds are disbursed and
documents signed.
Closing Disclosure (CD) - ✔✔Final settlement disclosure; must be given 3
business days before closing.
Debt-to-Income (DTI) - ✔✔Total monthly debt ÷ Gross monthly income; used to
qualify borrowers.
ECOA (Reg B) - ✔✔Equal Credit Opportunity Act; prohibits discrimination on
credit based on race, color, religion, sex, marital status, age, or public
assistance.
with Correct Answers | Verified Solutions
1003 Form - ✔✔Uniform Residential Loan Application; borrower info form.
Adjustable-Rate Mortgage (ARM) - ✔✔Interest rate can change periodically
after an initial fixed period.
Amortization - ✔✔Gradual repayment of loan principal + interest over time.
Appraisal - ✔✔Professional evaluation of a property's value.
APR (Annual Percentage Rate) - ✔✔True cost of credit including interest + fees.
Closing - ✔✔Final step in a mortgage transaction where funds are disbursed and
documents signed.
Closing Disclosure (CD) - ✔✔Final settlement disclosure; must be given 3
business days before closing.
Debt-to-Income (DTI) - ✔✔Total monthly debt ÷ Gross monthly income; used to
qualify borrowers.
ECOA (Reg B) - ✔✔Equal Credit Opportunity Act; prohibits discrimination on
credit based on race, color, religion, sex, marital status, age, or public
assistance.
