NMLS Practice Exam #6 Question and
Answers Latest Updates 2026 Graded A+
Term "20 basis points" expressed as a percentage is:
A.) 0.2%
A.) 0.20%
B.) 2.00%
C.) 20.00%
B.) 0.20%
one hundredth of one percent, used chiefly in expressing
differences of interest rates. 0.01
so 0.01 x20 = 0.2
According to the Truth-in-Lending Act (TILA), which if the
following fees is EXCLUDED from the calculation of the
annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums
A.) Hazard insurance
FHA loans are:
A.) Partially guaranteed
B.) 100% insured
,C.) Exempt
D.) Entitled
A.) Partially guaranteed
The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest
C.) 5% of principle and interest
A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan
B.) VA loan
A Mortgage Insurance Premium is required on:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan
A.) FHA loan
The mortgagee is the:
A.) Borrower
B.) Lender
,C.) Closing agent
D.) Mortgage broker
B.) Lender
The borrower does NOT sign which document:
A.) Deed
B.) HUD-1/Loan Disclosure
C.) Mortgage
D.) Note
A.) Deed
Which documents is usually NOT recorded
A.) Assignment of mortgage
B.) Note
C.) Deed
D.) Mortgage
B.) Note
A mortgage title insurance policy is NOT
A.) Based on the loan amount
B.) Transferable
C.) Optional
D.) Required by the lender
C.) Optional
Which parties sign the deed?
A.) Grantor, grantee and two witnesses
B.) Grantor and two witnesses
, C.) Grantee and two witnesses
D.) Grantee only
B.) Grantor and two witnesses
When the mortgagor and the mortgagee title insurance
policies are issued at the same time, this is known as:
A.) Simultaneous issue
B.) Concurrent issue
C.) Subsequent issue
D.) Dual issue
A.) Simultaneous issue
A shrubbery hedge is one example of an:
A.) Encumbrance
B.) Easement
C.) Entitlement
D.) Acceptable title impediment
D.) Acceptable title impediment
A loan on personal property only known as:
A.) Package mortgage
B.) Chattel mortgage
C.) Furnishing mortgage
D.) Exotic mortgage
B.) Chattel mortgage
Investopedia
Chattel mortgage is a legal term used to describe a loan
arrangement in which an item of movable personal property is
Answers Latest Updates 2026 Graded A+
Term "20 basis points" expressed as a percentage is:
A.) 0.2%
A.) 0.20%
B.) 2.00%
C.) 20.00%
B.) 0.20%
one hundredth of one percent, used chiefly in expressing
differences of interest rates. 0.01
so 0.01 x20 = 0.2
According to the Truth-in-Lending Act (TILA), which if the
following fees is EXCLUDED from the calculation of the
annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums
A.) Hazard insurance
FHA loans are:
A.) Partially guaranteed
B.) 100% insured
,C.) Exempt
D.) Entitled
A.) Partially guaranteed
The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest
C.) 5% of principle and interest
A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan
B.) VA loan
A Mortgage Insurance Premium is required on:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan
A.) FHA loan
The mortgagee is the:
A.) Borrower
B.) Lender
,C.) Closing agent
D.) Mortgage broker
B.) Lender
The borrower does NOT sign which document:
A.) Deed
B.) HUD-1/Loan Disclosure
C.) Mortgage
D.) Note
A.) Deed
Which documents is usually NOT recorded
A.) Assignment of mortgage
B.) Note
C.) Deed
D.) Mortgage
B.) Note
A mortgage title insurance policy is NOT
A.) Based on the loan amount
B.) Transferable
C.) Optional
D.) Required by the lender
C.) Optional
Which parties sign the deed?
A.) Grantor, grantee and two witnesses
B.) Grantor and two witnesses
, C.) Grantee and two witnesses
D.) Grantee only
B.) Grantor and two witnesses
When the mortgagor and the mortgagee title insurance
policies are issued at the same time, this is known as:
A.) Simultaneous issue
B.) Concurrent issue
C.) Subsequent issue
D.) Dual issue
A.) Simultaneous issue
A shrubbery hedge is one example of an:
A.) Encumbrance
B.) Easement
C.) Entitlement
D.) Acceptable title impediment
D.) Acceptable title impediment
A loan on personal property only known as:
A.) Package mortgage
B.) Chattel mortgage
C.) Furnishing mortgage
D.) Exotic mortgage
B.) Chattel mortgage
Investopedia
Chattel mortgage is a legal term used to describe a loan
arrangement in which an item of movable personal property is
