©THESTAR 2025 ALL RIGHTS RESERVED
NMLS EXAM PREP Questions and Answers
100% Pass
On what page of the Closing Disclosure would the consumer find information about the cash
needed to close, in comparison to information on the Loan Estimate? - ANS Page 3
This is calculated by dividing PITI by the borrower's monthly gross income: - ANS Housing
expense ratio
You have taken a loan application from a customer with an excellent credit score. When should
you advise him/her about the status of the application? - ANS Within 30 days
The Smiths are buying a house for $200,000. After their 10% down payment, they've decided to
pay two discount points. What is the dollar amount of the discount points? - ANS $3,600
A mortgage broker structures a higher-priced loan with two points in borrower credit because
the borrower has limited cash to close, and suggests the borrower use the premium generated
to subsidize the closing costs. After consideration, the borrower agrees and moves forward.
This is: - ANS Legal and ethical
On which portion of the loan application would one find a street address and legal description
of the property? - ANS Section II
The regulations issued for the implementation of ECOA are known as: - ANS Regulation B
, ©THESTAR 2025 ALL RIGHTS RESERVED
What is the maximum fee that may be charged for preparation of the Closing Disclosure? -
ANS .1% of the loan amount
$50
$0
1% of the loan amount X
Regulations in Section 32 of Regulation Z deal strictly with: - ANS Consumer protections
triggered by high-cost loan scenarios.
Don is refinancing his home in order to save money. If the loan goes through, his payment will
drop from $2,000 per month (PITI) to $1,500 per month (PITI). Don's gross income each month
is $6,800, but he has a $300 car payment, a $150 credit card payment, and monthly alimony
payments of $1,300. What is Don's housing ratio on the proposed loan? - ANS 22%
The most commonly used type of reverse mortgage is known as a: - ANS Home equity
conversion mortgage.
In an ARM, margin is determined by: - ANS The lender, and it represents the lender's
operating costs and profit margin.
All of the following are true of FHA fixed-rate loans, except: - ANS The borrower is only
required to carry MIP until the LTV reaches 78%
Each violation of federal law prohibiting bank fraud may lead to a penalty of up to ________,
imprisonment for up to ________, or both. - ANS $1 million; 30 years
An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a
periodic cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what
will the rate be after its first adjustment? - ANS 5%
NMLS EXAM PREP Questions and Answers
100% Pass
On what page of the Closing Disclosure would the consumer find information about the cash
needed to close, in comparison to information on the Loan Estimate? - ANS Page 3
This is calculated by dividing PITI by the borrower's monthly gross income: - ANS Housing
expense ratio
You have taken a loan application from a customer with an excellent credit score. When should
you advise him/her about the status of the application? - ANS Within 30 days
The Smiths are buying a house for $200,000. After their 10% down payment, they've decided to
pay two discount points. What is the dollar amount of the discount points? - ANS $3,600
A mortgage broker structures a higher-priced loan with two points in borrower credit because
the borrower has limited cash to close, and suggests the borrower use the premium generated
to subsidize the closing costs. After consideration, the borrower agrees and moves forward.
This is: - ANS Legal and ethical
On which portion of the loan application would one find a street address and legal description
of the property? - ANS Section II
The regulations issued for the implementation of ECOA are known as: - ANS Regulation B
, ©THESTAR 2025 ALL RIGHTS RESERVED
What is the maximum fee that may be charged for preparation of the Closing Disclosure? -
ANS .1% of the loan amount
$50
$0
1% of the loan amount X
Regulations in Section 32 of Regulation Z deal strictly with: - ANS Consumer protections
triggered by high-cost loan scenarios.
Don is refinancing his home in order to save money. If the loan goes through, his payment will
drop from $2,000 per month (PITI) to $1,500 per month (PITI). Don's gross income each month
is $6,800, but he has a $300 car payment, a $150 credit card payment, and monthly alimony
payments of $1,300. What is Don's housing ratio on the proposed loan? - ANS 22%
The most commonly used type of reverse mortgage is known as a: - ANS Home equity
conversion mortgage.
In an ARM, margin is determined by: - ANS The lender, and it represents the lender's
operating costs and profit margin.
All of the following are true of FHA fixed-rate loans, except: - ANS The borrower is only
required to carry MIP until the LTV reaches 78%
Each violation of federal law prohibiting bank fraud may lead to a penalty of up to ________,
imprisonment for up to ________, or both. - ANS $1 million; 30 years
An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a
periodic cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what
will the rate be after its first adjustment? - ANS 5%
