NMLS Test Questions with Complete Solutions
A conventional loan would have what form of backing from the federal government or quasi-
government agencies? CORRECT ANS-They are not issued, insured or guaranteed by any
government agency
Each of the following statements regarding jumbo loans is correct EXCEPT? CORRECT ANS-
When jumbo loans are difficult to obtain, fixed rate loans are usually easier to obtain than
adjustable rate loans
Which of the following types of loans would most likely be assumable? CORRECT ANS-An
FHA Loan (Federal Housing Administration)
What is the down payment requirement for an FHA Loan for a borrower with a credit score at
or above 580? CORRECT ANS-3.5%...Scores from 500-579 are 10% downpayment
What contribution can a seller make towards the buyer's closing costs when the buyer is
obtaining an FHA Loan? CORRECT ANS-6% of the purchase of the property (none go to
down payment)
, NMLS Test Questions with Complete Solutions
In an FHA refinancing loan, what is the amount of the UFMIP? CORRECT ANS-1%, nut in
reality its 1.75%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for FHA loans?
CORRECT ANS-31% and 43%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for VA loans?
CORRECT ANS-41% and 41%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for Conventional
loans? CORRECT ANS-28% and 36%
Which of the following would NOT be considered a depository institution? CORRECT ANS-
Mortgage Broker
The primary difference between a mortgage banker and a mortgage broker is: CORRECT
ANS-Whether it makes loans or acts as intermediary
, NMLS Test Questions with Complete Solutions
A lender which keeps its loans and does not sell them to investors is called a: CORRECT
ANS-Portfolio Lender
Fannie Mae and Freddie Mac can require a lender to repurchase a loan: CORRECT ANS-If
there is evidence of mortgage fraud
If the Fed were to buy government securities, the money supply would likely: CORRECT
ANS-Increase
Under which of the following circumstances would the clerical employee of a MLO be
required to be personally registered or licensed as a mortgage loan originator? CORRECT
ANS-The employee offers a lower rate to the applicant
A Registered or State Licensed MLO is identified in the NMLS by his or her: CORRECT ANS-
Unique Identifier
If a State Licensed MLO allows his or her license to expire, that person will have to retest if the
license is not renewed within: CORRECT ANS-5 years
A conventional loan would have what form of backing from the federal government or quasi-
government agencies? CORRECT ANS-They are not issued, insured or guaranteed by any
government agency
Each of the following statements regarding jumbo loans is correct EXCEPT? CORRECT ANS-
When jumbo loans are difficult to obtain, fixed rate loans are usually easier to obtain than
adjustable rate loans
Which of the following types of loans would most likely be assumable? CORRECT ANS-An
FHA Loan (Federal Housing Administration)
What is the down payment requirement for an FHA Loan for a borrower with a credit score at
or above 580? CORRECT ANS-3.5%...Scores from 500-579 are 10% downpayment
What contribution can a seller make towards the buyer's closing costs when the buyer is
obtaining an FHA Loan? CORRECT ANS-6% of the purchase of the property (none go to
down payment)
, NMLS Test Questions with Complete Solutions
In an FHA refinancing loan, what is the amount of the UFMIP? CORRECT ANS-1%, nut in
reality its 1.75%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for FHA loans?
CORRECT ANS-31% and 43%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for VA loans?
CORRECT ANS-41% and 41%
What is the Maximum Housing Ratio and Debt-to-Income Ratio, respectively, for Conventional
loans? CORRECT ANS-28% and 36%
Which of the following would NOT be considered a depository institution? CORRECT ANS-
Mortgage Broker
The primary difference between a mortgage banker and a mortgage broker is: CORRECT
ANS-Whether it makes loans or acts as intermediary
, NMLS Test Questions with Complete Solutions
A lender which keeps its loans and does not sell them to investors is called a: CORRECT
ANS-Portfolio Lender
Fannie Mae and Freddie Mac can require a lender to repurchase a loan: CORRECT ANS-If
there is evidence of mortgage fraud
If the Fed were to buy government securities, the money supply would likely: CORRECT
ANS-Increase
Under which of the following circumstances would the clerical employee of a MLO be
required to be personally registered or licensed as a mortgage loan originator? CORRECT
ANS-The employee offers a lower rate to the applicant
A Registered or State Licensed MLO is identified in the NMLS by his or her: CORRECT ANS-
Unique Identifier
If a State Licensed MLO allows his or her license to expire, that person will have to retest if the
license is not renewed within: CORRECT ANS-5 years
