NMLS EXAM PREP Questions And Answers
With Latest Update
In an ARM, margin is determined by: The lender, and it represents the lender's operating
costs and profit margin.
All of the following are true of FHA fixed-rate loans, except: The borrower is only
required to carry MIP until the LTV reaches 78%
Each violation of federal law prohibiting bank fraud may lead to a penalty of up to ________,
imprisonment for up to ________, or both. $1 million; 30 years
An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a
periodic cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what
will the rate be after its first adjustment? 5%
The front end ratio is: A comparison of the borrower's monthly housing expense and his
or her income.
, Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer?
The creditor
An appraiser uses any one of three appraisal approaches to determine the value of a property.
They are: Sales comparison (or market), cost, and income
The generally accepted appraisal standards in the United States are known as: USPAP
Which law restricts the sharing of information given when a consumer applies for a mortgage
loan? Gramm Leach Bliley Act
If a lender wants to obtain copies of a borrower's tax returns, the borrower is asked to sign what?
4506-T
The Telemarketing Sales Rule prohibits calls made to consumers: Who have specifically
asked a mortgage professional not to contact them
When a loan is characterized as "conforming," it means the loan: Meets guidelines
established by Fannie Mae and Freddie Mac
With Latest Update
In an ARM, margin is determined by: The lender, and it represents the lender's operating
costs and profit margin.
All of the following are true of FHA fixed-rate loans, except: The borrower is only
required to carry MIP until the LTV reaches 78%
Each violation of federal law prohibiting bank fraud may lead to a penalty of up to ________,
imprisonment for up to ________, or both. $1 million; 30 years
An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a
periodic cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what
will the rate be after its first adjustment? 5%
The front end ratio is: A comparison of the borrower's monthly housing expense and his
or her income.
, Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer?
The creditor
An appraiser uses any one of three appraisal approaches to determine the value of a property.
They are: Sales comparison (or market), cost, and income
The generally accepted appraisal standards in the United States are known as: USPAP
Which law restricts the sharing of information given when a consumer applies for a mortgage
loan? Gramm Leach Bliley Act
If a lender wants to obtain copies of a borrower's tax returns, the borrower is asked to sign what?
4506-T
The Telemarketing Sales Rule prohibits calls made to consumers: Who have specifically
asked a mortgage professional not to contact them
When a loan is characterized as "conforming," it means the loan: Meets guidelines
established by Fannie Mae and Freddie Mac
