NMLS - Practice Exam
5/25 and 7/23 are generally used to designate loans including which of the following?
A) A subordinate lien b) A transient hobby rate buy down c) A balloon price
d) A hybrid adjustable rate feature - ANS-c) A balloon charge
A scenario wherein a person forces the sale of a domestic at a much decrease price than its
actual worth, then resells the house at its proper fee, is referred to as:
a) Property flopping
b) Short sale
c) Property flipping
d) Air loan - ANS-c) Property flipping
A very best courtroom choice has held that:
a) RESPA does no longer limit unearned prices
b) Markups are not unlawful until they're split
c) RESPA does no longer prohibit markups if they're earned
d) Minimal markups do not violate RESPA - ANS-b) Markups are not unlawful except they're
cut up
According to conforming hints, an appraiser may also make net changes to comparables as
much as ____ in a residential appraisal.
A) 25%
b) 10%
c) 15%
d) 20% - ANS-c) 15%
All of the subsequent functions are prohibited for a qualified loan, except:
a) Adjustable interest costs b) Negative amortization
c) 40 year terms d) Interest rate only - ANS-a) Adjustable hobby costs
An desirable anit-money laundering program have to consist of all but which of the following
elements?
A) Approval via FinCEN prior to its implementation
b) A compliance officer
c) Procedures for meeting USA PATRIOT Act reporting necessities
, d) Employee education and trying out - ANS-a) Approval by way of FinCEN prior to its
implementation
An commercial that states, "Refinance and we will prevent as much as $300 consistent with
month!" is:
a) A TILA violation simplest if the loans are not available
b) Not a contravention of TILA if it presents records on a APRs & bills with same
prominence, as long as the assertion is actual
c) A violation of TILA
d) A TILA violation because it objectives suffering homeowners - ANS-b) Not a contravention
of TILA if it provides records on a APRs & bills with identical prominence, as long as the
declaration is real
An annual escrow analysis is used to do which of the subsequent?
A) Report underwriting mistakes
b) Ensure the loan is well amortized
c) Reduce burden at the servicer
d) Prevent escrow overages - ANS-d) Prevent escrow overages
As a end result of provisions included inside the Dodd-Frank Act, HOEPA turned into revised
to extend its provisions to:
a) Open-cease transactions b) Reverse mortgages
c) Closed-give up transactions d) Open-stop transactions & buy cash mortgages - ANS-d)
Open-give up transactions & purchase money mortgages
Bankruptcy records will stay on a consumer's credit score file for:
a) 5 years
b) 7 years
c) 10 years
d) Life of your credit document - ANS-c) 10 years
C.O.F.I. Stands for... - ANS-Cost of Funds Index
Concerning ARMS, margin is great defined as:
a) The maximum up or down that an interest price can ever adjust on an ARM
b) The variety of flexibility an hobby charge has among caps on traditional ARMs
c) The amount of repayment earned with the aid of a loan expert for originating an ARM
d) A range, expressed as a percent, that represents a lender's working prices and profit
margin - ANS-d) A variety, expressed as a percent, that represents a lender's operating
costs and profit margin
Define: H.O.E.P.A. - ANS-Home Ownership & Equity Protection Act
5/25 and 7/23 are generally used to designate loans including which of the following?
A) A subordinate lien b) A transient hobby rate buy down c) A balloon price
d) A hybrid adjustable rate feature - ANS-c) A balloon charge
A scenario wherein a person forces the sale of a domestic at a much decrease price than its
actual worth, then resells the house at its proper fee, is referred to as:
a) Property flopping
b) Short sale
c) Property flipping
d) Air loan - ANS-c) Property flipping
A very best courtroom choice has held that:
a) RESPA does no longer limit unearned prices
b) Markups are not unlawful until they're split
c) RESPA does no longer prohibit markups if they're earned
d) Minimal markups do not violate RESPA - ANS-b) Markups are not unlawful except they're
cut up
According to conforming hints, an appraiser may also make net changes to comparables as
much as ____ in a residential appraisal.
A) 25%
b) 10%
c) 15%
d) 20% - ANS-c) 15%
All of the subsequent functions are prohibited for a qualified loan, except:
a) Adjustable interest costs b) Negative amortization
c) 40 year terms d) Interest rate only - ANS-a) Adjustable hobby costs
An desirable anit-money laundering program have to consist of all but which of the following
elements?
A) Approval via FinCEN prior to its implementation
b) A compliance officer
c) Procedures for meeting USA PATRIOT Act reporting necessities
, d) Employee education and trying out - ANS-a) Approval by way of FinCEN prior to its
implementation
An commercial that states, "Refinance and we will prevent as much as $300 consistent with
month!" is:
a) A TILA violation simplest if the loans are not available
b) Not a contravention of TILA if it presents records on a APRs & bills with same
prominence, as long as the assertion is actual
c) A violation of TILA
d) A TILA violation because it objectives suffering homeowners - ANS-b) Not a contravention
of TILA if it provides records on a APRs & bills with identical prominence, as long as the
declaration is real
An annual escrow analysis is used to do which of the subsequent?
A) Report underwriting mistakes
b) Ensure the loan is well amortized
c) Reduce burden at the servicer
d) Prevent escrow overages - ANS-d) Prevent escrow overages
As a end result of provisions included inside the Dodd-Frank Act, HOEPA turned into revised
to extend its provisions to:
a) Open-cease transactions b) Reverse mortgages
c) Closed-give up transactions d) Open-stop transactions & buy cash mortgages - ANS-d)
Open-give up transactions & purchase money mortgages
Bankruptcy records will stay on a consumer's credit score file for:
a) 5 years
b) 7 years
c) 10 years
d) Life of your credit document - ANS-c) 10 years
C.O.F.I. Stands for... - ANS-Cost of Funds Index
Concerning ARMS, margin is great defined as:
a) The maximum up or down that an interest price can ever adjust on an ARM
b) The variety of flexibility an hobby charge has among caps on traditional ARMs
c) The amount of repayment earned with the aid of a loan expert for originating an ARM
d) A range, expressed as a percent, that represents a lender's working prices and profit
margin - ANS-d) A variety, expressed as a percent, that represents a lender's operating
costs and profit margin
Define: H.O.E.P.A. - ANS-Home Ownership & Equity Protection Act
