NMLS EXAM 2024/25; Questions with
Complete Solutions
Fraud for money Laundering - answer-Criminal uses scheme known as value
tampering
-Criminal offers to buy house at reduced rate
-Seller must sell at appraised value on paper, but after closing, seller give the
criminal the
difference in cash.
Adverse Action - answerAn unfavorable credit decision rendered against a
consumer made on
the basis of information contained on the credit application. If a lender takes
adverse
action against an applicant, the lender must notify the applicant in writing. If the
adverse
action is taken as a result of information contained on the credit report, the
notice must
also provide the name, address and toll-free phone number of the credit bureau
that
, NMLS EXAM 2024/25; Questions with
Complete Solutions
supplied the information.
American Association of Residential Mortgage Regulators (AARMR): - answerA
national
association of individuals who are charged with administering and regulating
various aspects of
residential mortgage lending. It played a major role in the formation of the
NMLS-R and in the
drafting of the model licensing law.
Annual percentage rate (APR): - answerDoes NOT include...TEN ACT-
(Title,Escrow,Notary,Appraisal,Credit Report,Termite)A measurement of the
total cost of the
credit, expressed as an annual rate. The APR includes those paid at the time of
closing and those
paid over the term of the loan. It includes all items that are part of the finance
charge, such as
interest, discount points, mortgage insurance premiums and administrative fees.
, NMLS EXAM 2024/25; Questions with
Complete Solutions
Application - answerA request for a residential mortgage loan and includes the
borrower-related
information that lenders commonly use when considering the request. Someone
who takes an
application from a consumer is generally considered to be acting as a loan
originator, even when
gathering application information over the phone or Internet
ARM Disclosure: - answerA disclosure required to be presented to the applicant
within three days
of application on any ARM loan. This disclosure provides the applicant with
information about the
specific ARM product for which they are applying, such as a historical index
value
Balloon mortgage: - answerA type of fixed-rate mortgage loan with monthly
payments based on a
, NMLS EXAM 2024/25; Questions with
Complete Solutions
30-year amortization schedule, setting a maturity date for a shorter period of
time - usually five,
seven, 10 or 15 years. This allows the borrower to make lower monthly
payments for that shorter
period of time, with a large payment of the full remaining principal balance and
interest due at the
maturity date
Bank Secrecy Act (BSA): - answerA federal law requiring that financial
institutions take steps to
prevent and report cases of money laundering.
Bridge loan: - answerA bridge loan is a loan for a short duration of time and can
be used when one
is purchasing one property but is dependent on the equity from another
property that has not yet
been sold. Once the property is sold then the bridge loan is repaid.
Complete Solutions
Fraud for money Laundering - answer-Criminal uses scheme known as value
tampering
-Criminal offers to buy house at reduced rate
-Seller must sell at appraised value on paper, but after closing, seller give the
criminal the
difference in cash.
Adverse Action - answerAn unfavorable credit decision rendered against a
consumer made on
the basis of information contained on the credit application. If a lender takes
adverse
action against an applicant, the lender must notify the applicant in writing. If the
adverse
action is taken as a result of information contained on the credit report, the
notice must
also provide the name, address and toll-free phone number of the credit bureau
that
, NMLS EXAM 2024/25; Questions with
Complete Solutions
supplied the information.
American Association of Residential Mortgage Regulators (AARMR): - answerA
national
association of individuals who are charged with administering and regulating
various aspects of
residential mortgage lending. It played a major role in the formation of the
NMLS-R and in the
drafting of the model licensing law.
Annual percentage rate (APR): - answerDoes NOT include...TEN ACT-
(Title,Escrow,Notary,Appraisal,Credit Report,Termite)A measurement of the
total cost of the
credit, expressed as an annual rate. The APR includes those paid at the time of
closing and those
paid over the term of the loan. It includes all items that are part of the finance
charge, such as
interest, discount points, mortgage insurance premiums and administrative fees.
, NMLS EXAM 2024/25; Questions with
Complete Solutions
Application - answerA request for a residential mortgage loan and includes the
borrower-related
information that lenders commonly use when considering the request. Someone
who takes an
application from a consumer is generally considered to be acting as a loan
originator, even when
gathering application information over the phone or Internet
ARM Disclosure: - answerA disclosure required to be presented to the applicant
within three days
of application on any ARM loan. This disclosure provides the applicant with
information about the
specific ARM product for which they are applying, such as a historical index
value
Balloon mortgage: - answerA type of fixed-rate mortgage loan with monthly
payments based on a
, NMLS EXAM 2024/25; Questions with
Complete Solutions
30-year amortization schedule, setting a maturity date for a shorter period of
time - usually five,
seven, 10 or 15 years. This allows the borrower to make lower monthly
payments for that shorter
period of time, with a large payment of the full remaining principal balance and
interest due at the
maturity date
Bank Secrecy Act (BSA): - answerA federal law requiring that financial
institutions take steps to
prevent and report cases of money laundering.
Bridge loan: - answerA bridge loan is a loan for a short duration of time and can
be used when one
is purchasing one property but is dependent on the equity from another
property that has not yet
been sold. Once the property is sold then the bridge loan is repaid.
