NMLS Safe Exam Practice Questions & Answers
Best Rated A+
What is the minimum down payment for a USDA loan? - Answer $0
How many hours of continuing education are minimally required? - Answer 8 hours every year
Who is responsible for completing the HUD-1/Loan Disclosure? - Answer The closing agent
A mortgagor's title insurance policy is: - Answer Based on purchase price
The assignee of a mortgage and note is participating in the: - Answer Secondary mortgage market
VA loans are: - Answer Partially guaranteed
The late fee for a VA loan is: - Answer 4% of principal and interest
The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first mortgage is in
the amount of $200,000 and the second mortgage is $60,000, what is the combined loan-to-value ratio?
- Answer 80.0%
The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mortgage. The
loan-to-value cannot exceed 85%. What is the maximum amount of the new second mortgage? - Answer
$144,750
What clause in a mortgage allows the lender to call the entire loan balance due? - Answer Acceleration
PITI payments do NOT include which of the following: - Answer Funding fee
Who does Fannie Mae hold responsible for the quality of an appraisal? - Answer Appraiser
,Which law is known as Regulation B? - Answer Equal Credit Opportunity Act
Which law prohibits discrimination by lenders? - Answer Equal Credit Opportunity Act
A property sold for $200,000 and was appraised at $180,000. The borrower reserved a loan for
$150,000. What is the loan-to-value? - Answer 83.3%
How many days does a lender have to send an adverse action notice? - Answer 30
The GFE/Loan Estimate must be mailed or given to the borrower within how many days after receiving
the signed application? - Answer 3 business days
The enforcement of a lien is known as: - Answer Foreclosure
What minimum percentage of ownership in a related service requires a conflict of interest disclosure? -
Answer 1%
What minimum percentage of ownership qualifies an individual as self-employed? - Answer 25%
What government agency enforces ECOA? - Answer CFPB
A lender can discriminate based on: - Answer Credit history
How many days does a lender have after receipt of an application to notify the applicant of its action on
the application? - Answer 30
How many days does an applicant have after receipt of an adverse action notice to request a statement
of reasons from the lender? - Answer 60
, How many days does a lender have to send a statement of reasons for an adverse action after receiving
a request from an applicant? - Answer 30
The Truth-In-Lending Act (TILA) is implemented as: - Answer Regulation Z
The Truth-In-Lending Act (TILA) was implemented by the: - Answer Federal Reserve Board
The Truth-In-Lending Act is administered by: - Answer CFPB
The TILA disclosure must be given to the applicant within how many days after receiving the signed loan
application for a reverse mortgage? - Answer 3 business days
Which of the following is NOT a trigger term? - Answer 48 easy payments
Which of the following does not constitute mortgage fraud on the part of a borrower? - Answer
Including a public-assistance as part of his or her income
Which of the following fraud schemes involves real estate professionals lying to lenders about the value
of a foreclosed property? - Answer House flipping
Which of the following is a red flag that suggests fraud has probably occurred? - Answer A buyer sells his
house a month after buying it for 30% more than he paid
Which of the following documents would not be needed at a typical closing? - Answer A roof letter
Which of the following is not true of jumbo mortgages? - Answer They played a disproportionate role in
the housing crisis
The Real Estate Settlement Procedures Act (RESPA) is also known as - Answer Regulation X
Best Rated A+
What is the minimum down payment for a USDA loan? - Answer $0
How many hours of continuing education are minimally required? - Answer 8 hours every year
Who is responsible for completing the HUD-1/Loan Disclosure? - Answer The closing agent
A mortgagor's title insurance policy is: - Answer Based on purchase price
The assignee of a mortgage and note is participating in the: - Answer Secondary mortgage market
VA loans are: - Answer Partially guaranteed
The late fee for a VA loan is: - Answer 4% of principal and interest
The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first mortgage is in
the amount of $200,000 and the second mortgage is $60,000, what is the combined loan-to-value ratio?
- Answer 80.0%
The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mortgage. The
loan-to-value cannot exceed 85%. What is the maximum amount of the new second mortgage? - Answer
$144,750
What clause in a mortgage allows the lender to call the entire loan balance due? - Answer Acceleration
PITI payments do NOT include which of the following: - Answer Funding fee
Who does Fannie Mae hold responsible for the quality of an appraisal? - Answer Appraiser
,Which law is known as Regulation B? - Answer Equal Credit Opportunity Act
Which law prohibits discrimination by lenders? - Answer Equal Credit Opportunity Act
A property sold for $200,000 and was appraised at $180,000. The borrower reserved a loan for
$150,000. What is the loan-to-value? - Answer 83.3%
How many days does a lender have to send an adverse action notice? - Answer 30
The GFE/Loan Estimate must be mailed or given to the borrower within how many days after receiving
the signed application? - Answer 3 business days
The enforcement of a lien is known as: - Answer Foreclosure
What minimum percentage of ownership in a related service requires a conflict of interest disclosure? -
Answer 1%
What minimum percentage of ownership qualifies an individual as self-employed? - Answer 25%
What government agency enforces ECOA? - Answer CFPB
A lender can discriminate based on: - Answer Credit history
How many days does a lender have after receipt of an application to notify the applicant of its action on
the application? - Answer 30
How many days does an applicant have after receipt of an adverse action notice to request a statement
of reasons from the lender? - Answer 60
, How many days does a lender have to send a statement of reasons for an adverse action after receiving
a request from an applicant? - Answer 30
The Truth-In-Lending Act (TILA) is implemented as: - Answer Regulation Z
The Truth-In-Lending Act (TILA) was implemented by the: - Answer Federal Reserve Board
The Truth-In-Lending Act is administered by: - Answer CFPB
The TILA disclosure must be given to the applicant within how many days after receiving the signed loan
application for a reverse mortgage? - Answer 3 business days
Which of the following is NOT a trigger term? - Answer 48 easy payments
Which of the following does not constitute mortgage fraud on the part of a borrower? - Answer
Including a public-assistance as part of his or her income
Which of the following fraud schemes involves real estate professionals lying to lenders about the value
of a foreclosed property? - Answer House flipping
Which of the following is a red flag that suggests fraud has probably occurred? - Answer A buyer sells his
house a month after buying it for 30% more than he paid
Which of the following documents would not be needed at a typical closing? - Answer A roof letter
Which of the following is not true of jumbo mortgages? - Answer They played a disproportionate role in
the housing crisis
The Real Estate Settlement Procedures Act (RESPA) is also known as - Answer Regulation X
