FINAL EXAMINATION PAPER dd dd
NMLS SAFE MORTGAGE LOAN ORIGINATOR EXAM QUESTIONS ANSWERS
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STUDENT NAME: ________________________________
dd dd DATE: _____________
dd
COURSE: NMLS Safe Exam dd dd dd TIME: _____________
dd
EXAM CODE: NMLS SAFE MORTGAGE LOAN ORIGINAT
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OR EXAM QUESTIONS ANSWERS-101
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EXAM INSTRUCTIONS:
dd
1. Print your full name and date clearly in the header above.
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2. This exam booklet contains both Test Questions (Part I) and Verified Solutions (Part II).
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3. Answer all multiple-choice questions clearly. Double-check your work.
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4. Do not break the seal or open this booklet until instructed to do so by the proctor.
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Q1. What is the minimum down payment for a USDA loan?
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[Verified Solution]: $0 dd dddd
Q2. How many hours of continuing education are minimally required?
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[Verified Solution]: 8 hours every year
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Q3. Who is responsible for completing the HUD-1/Loan Disclosure?
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[Verified Solution]: The closing agent
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Q4. A mortgagor's title insurance policy is:
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[Verified Solution]: Based on purchase price
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Q5. The assignee of a mortgage and note is participating in the:
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[Verified Solution]: Secondary mortgage market
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Q6. VA loans are:
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[Verified Solution]: Partially guaranteed
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,Q7. The late fee for a VA loan is:
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[Verified Solution]: 4% of principal and interest
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Q8. The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first
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mortgage is in the amount of $200,000 and the second mortgage is $60,000, what is the combin
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ed loan-to-value ratio?
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[Verified Solution]: 80.0% dd dddd
Q9. The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mort
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gage. The loan-to-
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value cannot exceed 85%. What is the maximum amount of the new second mortgage?
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[Verified Solution]: $144,750 dd dddd
Q10. What clause in a mortgage allows the lender to call the entire loan balance due?
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[Verified Solution]: Acceleration dd dddd
Q11. PITI payments do NOT include which of the following:
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[Verified Solution]: Funding fee dd dddd dd
Q12. Who does Fannie Mae hold responsible for the quality of an appraisal?
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[Verified Solution]: Appraiser dd dddd
Q13. Which law is known as Regulation B?
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[Verified Solution]: Equal Credit Opportunity Act
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Q14. Which law prohibits discrimination by lenders?
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[Verified Solution]: Equal Credit Opportunity Act
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Q15. A property sold for $200,000 and was appraised at $180,000. The borrower reserved a lo
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an for $150,000. What is the loan-to-value?
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[Verified Solution]: 83.3% dd dddd
,Q16. How many days does a lender have to send an adverse action notice?
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[Verified Solution]: 30 dd dddd
Q17. The GFE/Loan Estimate must be mailed or given to the borrower within how many day
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s after receiving the signed application?
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[Verified Solution]: 3 business days
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Q18. The enforcement of a lien is known as:
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[Verified Solution]: Foreclosuredd dddd
Q19. What minimum percentage of ownership in a related service requires a conflict of intere
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st disclosure?
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[Verified Solution]: 1% dd dddd
Q20. What minimum percentage of ownership qualifies an individual as self-employed?
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[Verified Solution]: 25% dd dddd
Q21. What government agency enforces ECOA?
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[Verified Solution]: CFPB dd dddd
Q22. A lender can discriminate based on:
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[Verified Solution]: Credit history
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Q23. How many days does a lender have after receipt of an application to notify the applicant
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of its action on the application?
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[Verified Solution]: 30 dd dddd
, Q24. How many days does an applicant have after receipt of an adverse action notice to reque
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st a statement of reasons from the lender?
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[Verified Solution]: 60 dd dddd
Q25. How many days does a lender have to send a statement of reasons for an adverse action
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after receiving a request from an applicant?
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[Verified Solution]: 30 dd dddd
Q26. The Truth-In-Lending Act (TILA) is implemented as:
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[Verified Solution]: Regulation Z
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Q27. The Truth-In-Lending Act (TILA) was implemented by the:
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[Verified Solution]: Federal Reserve Board
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Q28. The Truth-In-Lending Act is administered by:
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[Verified Solution]: CFPB dd dddd
Q29. The TILA disclosure must be given to the applicant within how many days after receivi
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ng the signed loan application for a reverse mortgage?
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[Verified Solution]: 3 business days
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Q30. Which of the following is NOT a trigger term?
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[Verified Solution]: 48 easy payments
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Q31. Which of the following does not constitute mortgage fraud on the part of a borrower?
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[Verified Solution]: Including a public-assistance as part of his or her income
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Q32. Which of the following fraud schemes involves real estate professionals lying to lenders a
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bout the value of a foreclosed property?
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[Verified Solution]: House flipping
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NMLS SAFE MORTGAGE LOAN ORIGINATOR EXAM QUESTIONS ANSWERS
dd dd dd dd dd dd dd dd
STUDENT NAME: ________________________________
dd dd DATE: _____________
dd
COURSE: NMLS Safe Exam dd dd dd TIME: _____________
dd
EXAM CODE: NMLS SAFE MORTGAGE LOAN ORIGINAT
dd dd dd dd dd dd
OR EXAM QUESTIONS ANSWERS-101
dd dd dd
EXAM INSTRUCTIONS:
dd
1. Print your full name and date clearly in the header above.
dd dd dd dd dd dd dd dd dd dd dd
2. This exam booklet contains both Test Questions (Part I) and Verified Solutions (Part II).
dd dd dd dd dd dd dd dd dd dd dd dd dd dd
3. Answer all multiple-choice questions clearly. Double-check your work.
dd dd dd dd dd dd dd dd
4. Do not break the seal or open this booklet until instructed to do so by the proctor.
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
Q1. What is the minimum down payment for a USDA loan?
dddd dd dd dd dd dd dd dd dd dd
[Verified Solution]: $0 dd dddd
Q2. How many hours of continuing education are minimally required?
dddd dd dd dd dd dd dd dd dd
[Verified Solution]: 8 hours every year
dd dddd dd dd dd
Q3. Who is responsible for completing the HUD-1/Loan Disclosure?
dddd dd dd dd dd dd dd dd
[Verified Solution]: The closing agent
dd dddd dd dd
Q4. A mortgagor's title insurance policy is:
dddd dd dd dd dd dd
[Verified Solution]: Based on purchase price
dd dddd dd dd dd
Q5. The assignee of a mortgage and note is participating in the:
dddd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: Secondary mortgage market
dd dddd dd dd
Q6. VA loans are:
dddd dd dd
[Verified Solution]: Partially guaranteed
dd dddd dd
,Q7. The late fee for a VA loan is:
dddd dd dd dd dd dd dd dd
[Verified Solution]: 4% of principal and interest
dd dddd dd dd dd dd
Q8. The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
mortgage is in the amount of $200,000 and the second mortgage is $60,000, what is the combin
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ed loan-to-value ratio?
dd dd
[Verified Solution]: 80.0% dd dddd
Q9. The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mort
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
gage. The loan-to-
dd dd
value cannot exceed 85%. What is the maximum amount of the new second mortgage?
dd dd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: $144,750 dd dddd
Q10. What clause in a mortgage allows the lender to call the entire loan balance due?
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: Acceleration dd dddd
Q11. PITI payments do NOT include which of the following:
dddd dd dd dd dd dd dd dd dd
[Verified Solution]: Funding fee dd dddd dd
Q12. Who does Fannie Mae hold responsible for the quality of an appraisal?
dddd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: Appraiser dd dddd
Q13. Which law is known as Regulation B?
dddd dd dd dd dd dd dd
[Verified Solution]: Equal Credit Opportunity Act
dd dddd dd dd dd
Q14. Which law prohibits discrimination by lenders?
dddd dd dd dd dd dd
[Verified Solution]: Equal Credit Opportunity Act
dd dddd dd dd dd
Q15. A property sold for $200,000 and was appraised at $180,000. The borrower reserved a lo
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
an for $150,000. What is the loan-to-value?
dd dd dd dd dd dd
[Verified Solution]: 83.3% dd dddd
,Q16. How many days does a lender have to send an adverse action notice?
dddd dd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: 30 dd dddd
Q17. The GFE/Loan Estimate must be mailed or given to the borrower within how many day
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
s after receiving the signed application?
dd dd dd dd dd
[Verified Solution]: 3 business days
dd dddd dd dd
Q18. The enforcement of a lien is known as:
dddd dd dd dd dd dd dd dd
[Verified Solution]: Foreclosuredd dddd
Q19. What minimum percentage of ownership in a related service requires a conflict of intere
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd
st disclosure?
dd
[Verified Solution]: 1% dd dddd
Q20. What minimum percentage of ownership qualifies an individual as self-employed?
dddd dd dd dd dd dd dd dd dd dd
[Verified Solution]: 25% dd dddd
Q21. What government agency enforces ECOA?
dddd dd dd dd dd
[Verified Solution]: CFPB dd dddd
Q22. A lender can discriminate based on:
dddd dd dd dd dd dd
[Verified Solution]: Credit history
dd dddd dd
Q23. How many days does a lender have after receipt of an application to notify the applicant
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
of its action on the application?
dd dd dd dd dd dd
[Verified Solution]: 30 dd dddd
, Q24. How many days does an applicant have after receipt of an adverse action notice to reque
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
st a statement of reasons from the lender?
dd dd dd dd dd dd dd
[Verified Solution]: 60 dd dddd
Q25. How many days does a lender have to send a statement of reasons for an adverse action
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
after receiving a request from an applicant?
dd dd dd dd dd dd
[Verified Solution]: 30 dd dddd
Q26. The Truth-In-Lending Act (TILA) is implemented as:
dddd dd dd dd dd dd dd
[Verified Solution]: Regulation Z
dd dddd dd
Q27. The Truth-In-Lending Act (TILA) was implemented by the:
dddd dd dd dd dd dd dd dd
[Verified Solution]: Federal Reserve Board
dd dddd dd dd
Q28. The Truth-In-Lending Act is administered by:
dddd dd dd dd dd dd
[Verified Solution]: CFPB dd dddd
Q29. The TILA disclosure must be given to the applicant within how many days after receivi
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ng the signed loan application for a reverse mortgage?
dd dd dd dd dd dd dd dd
[Verified Solution]: 3 business days
dd dddd dd dd
Q30. Which of the following is NOT a trigger term?
dddd dd dd dd dd dd dd dd dd
[Verified Solution]: 48 easy payments
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Q31. Which of the following does not constitute mortgage fraud on the part of a borrower?
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: Including a public-assistance as part of his or her income
dd dddd dd dd dd dd dd dd dd dd dd
Q32. Which of the following fraud schemes involves real estate professionals lying to lenders a
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd
bout the value of a foreclosed property?
dd dd dd dd dd dd
[Verified Solution]: House flipping
dd dddd dd
