NMLS Practice Test Exam with Questions
and Correct Answers 2025
regulation ,b ,- ,CORRECT ,ANSWER-Equal ,Credit ,Opportunity ,Act ,/ ,1974
Regulation ,C ,- ,CORRECT ,ANSWER-Home ,Mortgage ,Disclosure ,Act ,/ ,1975
Regulation ,V ,- ,CORRECT ,ANSWER-Fair ,Credit ,Reporting ,Act ,/ ,1968
Regulation ,X ,- ,CORRECT ,ANSWER-Real ,Estate ,Settlement ,Procedures ,Act ,/ ,1974
Regulation ,Z ,- ,CORRECT ,ANSWER-Truth ,in ,Lending ,Act/ ,1968
Safe ,- ,CORRECT ,ANSWER-Secure ,and ,Fair ,Enforcement ,/2008
Fact ,- ,CORRECT ,ANSWER-Fair ,and ,Accurate ,credit ,transactions/ ,2003
GLB ,- ,CORRECT ,ANSWER-Gramm-Leach-Bliley ,Act ,/1999
Higher ,Priced ,Loans ,- ,CORRECT ,ANSWER-1.5,2.5,3.5% ,/ ,2008
HOEPA ,- ,Home ,Ownership ,and ,Equity ,Protection ,Act ,- ,CORRECT ,ANSWER-Home
,Ownership ,and ,Equity ,Protection ,Act, ,Section ,32 ,, ,1994
Fair ,Housing ,Act ,- ,CORRECT ,ANSWER-1968
HPA ,- ,CORRECT ,ANSWER-Homeowners ,Protection ,Act: ,PMI ,/1998
Civil ,Rights ,Act ,- ,CORRECT ,ANSWER-Race ,1866
Section ,1 ,- ,CORRECT ,ANSWER-Type ,of ,mortgage
Section ,2 ,- ,CORRECT ,ANSWER-Property ,Info
Section ,3 ,- ,CORRECT ,ANSWER-Borrowers ,information
Section ,4 ,- ,CORRECT ,ANSWER-Employment ,Information
Section ,5 ,- ,CORRECT ,ANSWER-Income
Section ,6 ,- ,CORRECT ,ANSWER-Assets ,& ,liabilities
,Section ,7 ,- ,CORRECT ,ANSWER-Details ,of ,transaction
Section ,8 ,- ,CORRECT ,ANSWER-Declarations
Section ,9 ,- ,CORRECT ,ANSWER-Acknowledgement ,and ,Agreement
Section ,10 ,- ,CORRECT ,ANSWER-Information ,for ,government
Regulation ,H ,- ,CORRECT ,ANSWER-Uniform ,State ,Test
Code ,of ,Federal ,Regulations ,1938 ,- ,CORRECT ,ANSWER-Codification ,of ,the ,general
,and ,permanent ,rules ,and ,regulations ,published ,in ,the ,Federal ,Register ,by ,the ,executive
,departments ,and ,agencies ,of ,the ,federal ,government ,of ,the ,United ,States.
Consumer ,Financial ,Protection ,Bureau ,2011 ,- ,CORRECT ,ANSWER-An ,independent
,bureau ,within ,the ,Federal ,Reserve ,that ,helps ,consumers ,make ,financial ,decisions ,and ,is
,responsible ,for ,consumer ,protection ,in ,the ,financial ,sector.
Federal ,Reserve ,System ,1913 ,- ,CORRECT ,ANSWER-A ,Federal ,charter ,for ,banks ,that
,permits ,them ,to ,make ,real ,estate ,loans
Federal ,Home ,Loan ,Bank ,Act ,1932 ,- ,CORRECT ,ANSWER-Established ,Federal ,Home
,Loan ,Banks ,and ,gives ,authority ,to ,lend ,money ,to ,banks
Banking ,Act ,of ,1933 ,- ,CORRECT ,ANSWER-The ,law ,that ,established ,the ,Federal
,Deposit ,Insurance ,Corporation ,(FDIC) ,to ,insure ,bank ,deposits. ,It ,also ,prohibited
,commercial ,banks ,from ,selling ,insurance ,or ,acting ,as ,investment ,banks. ,Also ,Known ,as
,the ,Glass ,Steagall ,Act
Federal ,Deposit ,Insurance ,Corporation ,(FDIC) ,- ,CORRECT ,ANSWER-An ,agency
,created ,in ,1933 ,to ,insure ,individuals' ,bank ,accounts, ,protecting ,people ,against ,losses
,due ,to ,bank ,failures, ,Insures ,up ,to ,$250k
National ,Housing ,act ,of ,1934 ,- ,CORRECT ,ANSWER-Created ,Federal ,Housing
,Administration ,to ,insure ,loans ,by ,private ,lending ,agencies ,for ,upgrading ,farms ,and ,small
,businesses
Federal ,Savings ,and ,Loan ,Insurance ,Corporation ,(FSLIC) ,- ,CORRECT ,ANSWER-
Abolished ,in ,1988 ,by ,Financial ,Institution ,Reform ,Recovery ,and ,Enforcement ,Act, ,it ,was
,an ,institution ,that ,administered ,deposit ,insurance ,for ,savings ,and ,loan ,institutions ,in ,the
,United ,States
Financial ,Institution ,Reform ,Recovery ,and ,Enforcement ,Act ,1989 ,- ,CORRECT ,ANSWER-
Established ,the ,Resolution ,Trust ,Corporation ,to ,close ,hundreds ,of ,insolvent ,thrifts ,and
,provided ,funds ,to ,pay ,out ,insurance ,to ,their ,depositors.
Savings ,Association ,Insurance ,Fund ,(SAIF) ,1989 ,- ,CORRECT ,ANSWER-Part ,of ,the
,FDIC ,that ,insures ,holders ,of ,accounts ,in ,savings ,and ,loan ,associations
Federal ,Home ,Loan ,Banks ,(FHL ,Banks) ,1932 ,- ,CORRECT ,ANSWER-12 ,regional ,Banks
,that ,the ,U.S. ,Lending ,institutions ,use ,to ,finance ,housing ,& ,economic ,development
,Affordable ,Housing ,Program ,(AHP) ,1990 ,- ,CORRECT ,ANSWER-Profit ,10% ,of ,the ,FHL
,Banks ,Income
Federal ,Housing ,Administration ,(FHA) ,1934 ,- ,CORRECT ,ANSWER-Created ,by ,the
,national ,housing ,act ,to ,provide ,mortgage ,insurance
FHA ,Loans ,Have ,- ,CORRECT ,ANSWER-No ,Income ,Limits
FHA ,Reimbursement ,- ,CORRECT ,ANSWER-Banks ,are ,Reimbursed ,when ,Borrowers
,become ,default ,on ,their ,loan
Government ,Sponsored ,Enterprises ,(GSEs) ,- ,CORRECT ,ANSWER-Organizations
,created ,by ,the ,federal ,government ,(Fannie ,Mae, ,Freddie ,Mac, ,Farmer ,Mac, ,Ginnie ,Mae)
,to ,help ,increase ,loan ,opportunities ,for ,homebuyers.
Office ,of ,Thrift ,Supervision ,(OTS) ,1989 ,- ,CORRECT ,ANSWER-Division ,Of ,the ,U.S.
,Department ,of ,treasury ,that ,chartered, ,supervised, ,and ,regulated ,all ,federally ,chartered
,and ,state-chartered ,savings ,banks ,and ,savings ,and ,loans ,associations
Office ,of ,the ,Comptroller ,of ,the ,Currency ,(OCC) ,1863 ,- ,CORRECT ,ANSWER-Charters,
,regulates, ,and ,supervises ,all ,national ,banks ,and ,thrift ,institutions ,and ,the ,federally
,licensed ,branches ,and ,agencies ,of ,foreign ,banks ,in ,the ,United ,States.
Established ,by ,the ,National ,Currency ,Act ,of ,1863 ,- ,CORRECT ,ANSWER-Office ,of ,the
,Comptroller ,of ,the ,Currency
National ,Credit ,Union ,Administration ,(NCUA) ,1970 ,- ,CORRECT ,ANSWER-The ,federal
,agency ,that ,regulates ,credit ,unions ,and ,administers ,the ,insurance ,fund ,that ,insures
,member ,credit ,unions' ,deposits. ,Depositors' ,accounts ,with ,member ,credit ,unions ,are
,insured ,up ,to ,$250,000..
Federal ,Financial ,Institutions ,Examination ,Council ,(FFIEC) ,1979 ,- ,CORRECT ,ANSWER-
Federal ,Examination ,of ,financial ,institutions ,by ,the ,board ,of ,governors ,of ,the ,Federal
,Reserve
Federal ,Housing ,Finance ,Agency ,- ,CORRECT ,ANSWER-Created ,by ,the ,federal ,housing
,finance ,regulatory ,reform ,act ,of ,2008. ,Has ,Oversight ,go ,the ,14 ,Related ,GSE's
Department ,of ,Housing ,and ,Urban ,Development ,(HUD) ,- ,CORRECT ,ANSWER-A ,federal
,cabinet ,department ,active ,in ,national ,housing ,programs. ,Among ,its ,many ,programs ,are
,urban ,renewal, ,public ,housing, ,model ,cities, ,rehabilitation ,loans, ,FHA ,subsidies, ,fair
,housing ,enforcement, ,and ,water ,and ,sewer ,grants.
Commercial ,Banks ,- ,CORRECT ,ANSWER-Financial ,Institutions ,that ,provide ,a ,variety ,of
,financial ,services ,including ,loans
Demand ,Deposits ,- ,CORRECT ,ANSWER-A ,deposit ,of ,money ,that ,can ,be ,withdrawn
,without ,prior ,notice.
Certificate ,of ,Deposit ,- ,CORRECT ,ANSWER-A ,certificate ,issued ,by ,a ,bank ,to ,a ,person
,depositing ,money ,for ,a ,specified ,length ,of ,time.
, savings ,and ,loan ,association ,(S&Ls) ,- ,CORRECT ,ANSWER-A ,depository ,institution ,that
,has ,traditionally ,obtained ,most ,of ,its ,funds ,by ,accepting ,savings ,deposits, ,which ,have
,been ,used ,primarily ,to ,make ,mortgage ,loans
Disintermediation ,- ,CORRECT ,ANSWER-The ,loss ,of ,deposits ,to ,competing ,investments
,that ,offer ,much ,higher ,returns
Mortgage ,banking ,companies: ,- ,CORRECT ,ANSWER-Institutions ,that ,specialize ,in
,making ,only ,mortgage ,loans ,to ,consumers
Mortgage ,Banker ,- ,CORRECT ,ANSWER-Company, ,or ,individual, ,that ,originates
,mortgage ,loans, ,sells ,them ,to ,other ,investors, ,services ,the ,monthly ,payments, ,keeps
,related ,records, ,and ,acts ,as ,escrow ,agen ,to ,disperse ,funds ,for ,taxes ,and ,insurance.
Mini-Correspondents ,- ,CORRECT ,ANSWER-Small ,Corresponding ,Lenders ,with ,lesser
,net ,worth ,but ,have ,relations ,to ,investors
Mortgage ,Broker ,- ,CORRECT ,ANSWER-A ,company ,or ,individual ,who, ,for ,a ,fee, ,places
,loans ,with ,wholesale ,lenders, ,but ,does ,not ,service ,such ,loans
Credit ,Unions ,- ,CORRECT ,ANSWER-Financial ,institutions ,owned ,and ,controlled ,by ,their
,members ,in ,order ,to ,pool ,deposits ,thus ,offering ,better ,interest ,rates ,among ,its ,members
Finance ,Companies ,- ,CORRECT ,ANSWER-Organizations ,that ,specially ,in ,high ,risk
,loans ,at ,bigger ,interest ,rates
Mutual ,Savings ,Banks ,- ,CORRECT ,ANSWER-State/Federally-chartered ,financial
,institutions ,operated ,by ,trustees ,for ,the ,benefit ,of ,depositors
Portfolio ,Lending ,- ,CORRECT ,ANSWER-A ,term ,to ,describe ,the ,strategy ,where ,financial
,institutions ,that ,make ,real ,estate ,loans ,keep ,and ,service ,those ,loans ,in-house ,as ,part ,of
,their ,investment ,portfolios, ,instead ,of ,selling ,on ,the ,secondary ,market.
Mortgage-backed ,securities ,- ,CORRECT ,ANSWER-Debt ,Obligations ,That ,represent
,claims ,to ,the ,cash ,flows ,from ,pools ,of ,mortgage ,loans
Securitization ,- ,CORRECT ,ANSWER-Securities ,issued ,to ,claims ,on ,the ,payment ,and
,Interest ,payments ,made ,by ,the ,borrowers ,of ,loans ,in ,the ,pool
Pass ,Through ,Securities ,- ,CORRECT ,ANSWER-Most ,common, ,proportionate ,interest ,in
,the ,cash ,flow ,generated ,by ,the ,pool, ,payments, ,interest, ,prepayment ,penalties
STRIPped ,mortgage-backed ,securities ,(SMBSs) ,- ,CORRECT ,ANSWER-Mortgage-
backed ,securities ,that ,represent ,separated ,interest ,and ,principal ,payments.
Collateralized ,Mortgage ,Obligations ,- ,CORRECT ,ANSWER-Bonds ,that ,represent ,claims
,to ,specific ,cash ,flows ,from ,large ,pools ,of ,mortgages
Tranches ,- ,CORRECT ,ANSWER-Collateralized ,mortgage ,obligations ,are ,separated
,into___
and Correct Answers 2025
regulation ,b ,- ,CORRECT ,ANSWER-Equal ,Credit ,Opportunity ,Act ,/ ,1974
Regulation ,C ,- ,CORRECT ,ANSWER-Home ,Mortgage ,Disclosure ,Act ,/ ,1975
Regulation ,V ,- ,CORRECT ,ANSWER-Fair ,Credit ,Reporting ,Act ,/ ,1968
Regulation ,X ,- ,CORRECT ,ANSWER-Real ,Estate ,Settlement ,Procedures ,Act ,/ ,1974
Regulation ,Z ,- ,CORRECT ,ANSWER-Truth ,in ,Lending ,Act/ ,1968
Safe ,- ,CORRECT ,ANSWER-Secure ,and ,Fair ,Enforcement ,/2008
Fact ,- ,CORRECT ,ANSWER-Fair ,and ,Accurate ,credit ,transactions/ ,2003
GLB ,- ,CORRECT ,ANSWER-Gramm-Leach-Bliley ,Act ,/1999
Higher ,Priced ,Loans ,- ,CORRECT ,ANSWER-1.5,2.5,3.5% ,/ ,2008
HOEPA ,- ,Home ,Ownership ,and ,Equity ,Protection ,Act ,- ,CORRECT ,ANSWER-Home
,Ownership ,and ,Equity ,Protection ,Act, ,Section ,32 ,, ,1994
Fair ,Housing ,Act ,- ,CORRECT ,ANSWER-1968
HPA ,- ,CORRECT ,ANSWER-Homeowners ,Protection ,Act: ,PMI ,/1998
Civil ,Rights ,Act ,- ,CORRECT ,ANSWER-Race ,1866
Section ,1 ,- ,CORRECT ,ANSWER-Type ,of ,mortgage
Section ,2 ,- ,CORRECT ,ANSWER-Property ,Info
Section ,3 ,- ,CORRECT ,ANSWER-Borrowers ,information
Section ,4 ,- ,CORRECT ,ANSWER-Employment ,Information
Section ,5 ,- ,CORRECT ,ANSWER-Income
Section ,6 ,- ,CORRECT ,ANSWER-Assets ,& ,liabilities
,Section ,7 ,- ,CORRECT ,ANSWER-Details ,of ,transaction
Section ,8 ,- ,CORRECT ,ANSWER-Declarations
Section ,9 ,- ,CORRECT ,ANSWER-Acknowledgement ,and ,Agreement
Section ,10 ,- ,CORRECT ,ANSWER-Information ,for ,government
Regulation ,H ,- ,CORRECT ,ANSWER-Uniform ,State ,Test
Code ,of ,Federal ,Regulations ,1938 ,- ,CORRECT ,ANSWER-Codification ,of ,the ,general
,and ,permanent ,rules ,and ,regulations ,published ,in ,the ,Federal ,Register ,by ,the ,executive
,departments ,and ,agencies ,of ,the ,federal ,government ,of ,the ,United ,States.
Consumer ,Financial ,Protection ,Bureau ,2011 ,- ,CORRECT ,ANSWER-An ,independent
,bureau ,within ,the ,Federal ,Reserve ,that ,helps ,consumers ,make ,financial ,decisions ,and ,is
,responsible ,for ,consumer ,protection ,in ,the ,financial ,sector.
Federal ,Reserve ,System ,1913 ,- ,CORRECT ,ANSWER-A ,Federal ,charter ,for ,banks ,that
,permits ,them ,to ,make ,real ,estate ,loans
Federal ,Home ,Loan ,Bank ,Act ,1932 ,- ,CORRECT ,ANSWER-Established ,Federal ,Home
,Loan ,Banks ,and ,gives ,authority ,to ,lend ,money ,to ,banks
Banking ,Act ,of ,1933 ,- ,CORRECT ,ANSWER-The ,law ,that ,established ,the ,Federal
,Deposit ,Insurance ,Corporation ,(FDIC) ,to ,insure ,bank ,deposits. ,It ,also ,prohibited
,commercial ,banks ,from ,selling ,insurance ,or ,acting ,as ,investment ,banks. ,Also ,Known ,as
,the ,Glass ,Steagall ,Act
Federal ,Deposit ,Insurance ,Corporation ,(FDIC) ,- ,CORRECT ,ANSWER-An ,agency
,created ,in ,1933 ,to ,insure ,individuals' ,bank ,accounts, ,protecting ,people ,against ,losses
,due ,to ,bank ,failures, ,Insures ,up ,to ,$250k
National ,Housing ,act ,of ,1934 ,- ,CORRECT ,ANSWER-Created ,Federal ,Housing
,Administration ,to ,insure ,loans ,by ,private ,lending ,agencies ,for ,upgrading ,farms ,and ,small
,businesses
Federal ,Savings ,and ,Loan ,Insurance ,Corporation ,(FSLIC) ,- ,CORRECT ,ANSWER-
Abolished ,in ,1988 ,by ,Financial ,Institution ,Reform ,Recovery ,and ,Enforcement ,Act, ,it ,was
,an ,institution ,that ,administered ,deposit ,insurance ,for ,savings ,and ,loan ,institutions ,in ,the
,United ,States
Financial ,Institution ,Reform ,Recovery ,and ,Enforcement ,Act ,1989 ,- ,CORRECT ,ANSWER-
Established ,the ,Resolution ,Trust ,Corporation ,to ,close ,hundreds ,of ,insolvent ,thrifts ,and
,provided ,funds ,to ,pay ,out ,insurance ,to ,their ,depositors.
Savings ,Association ,Insurance ,Fund ,(SAIF) ,1989 ,- ,CORRECT ,ANSWER-Part ,of ,the
,FDIC ,that ,insures ,holders ,of ,accounts ,in ,savings ,and ,loan ,associations
Federal ,Home ,Loan ,Banks ,(FHL ,Banks) ,1932 ,- ,CORRECT ,ANSWER-12 ,regional ,Banks
,that ,the ,U.S. ,Lending ,institutions ,use ,to ,finance ,housing ,& ,economic ,development
,Affordable ,Housing ,Program ,(AHP) ,1990 ,- ,CORRECT ,ANSWER-Profit ,10% ,of ,the ,FHL
,Banks ,Income
Federal ,Housing ,Administration ,(FHA) ,1934 ,- ,CORRECT ,ANSWER-Created ,by ,the
,national ,housing ,act ,to ,provide ,mortgage ,insurance
FHA ,Loans ,Have ,- ,CORRECT ,ANSWER-No ,Income ,Limits
FHA ,Reimbursement ,- ,CORRECT ,ANSWER-Banks ,are ,Reimbursed ,when ,Borrowers
,become ,default ,on ,their ,loan
Government ,Sponsored ,Enterprises ,(GSEs) ,- ,CORRECT ,ANSWER-Organizations
,created ,by ,the ,federal ,government ,(Fannie ,Mae, ,Freddie ,Mac, ,Farmer ,Mac, ,Ginnie ,Mae)
,to ,help ,increase ,loan ,opportunities ,for ,homebuyers.
Office ,of ,Thrift ,Supervision ,(OTS) ,1989 ,- ,CORRECT ,ANSWER-Division ,Of ,the ,U.S.
,Department ,of ,treasury ,that ,chartered, ,supervised, ,and ,regulated ,all ,federally ,chartered
,and ,state-chartered ,savings ,banks ,and ,savings ,and ,loans ,associations
Office ,of ,the ,Comptroller ,of ,the ,Currency ,(OCC) ,1863 ,- ,CORRECT ,ANSWER-Charters,
,regulates, ,and ,supervises ,all ,national ,banks ,and ,thrift ,institutions ,and ,the ,federally
,licensed ,branches ,and ,agencies ,of ,foreign ,banks ,in ,the ,United ,States.
Established ,by ,the ,National ,Currency ,Act ,of ,1863 ,- ,CORRECT ,ANSWER-Office ,of ,the
,Comptroller ,of ,the ,Currency
National ,Credit ,Union ,Administration ,(NCUA) ,1970 ,- ,CORRECT ,ANSWER-The ,federal
,agency ,that ,regulates ,credit ,unions ,and ,administers ,the ,insurance ,fund ,that ,insures
,member ,credit ,unions' ,deposits. ,Depositors' ,accounts ,with ,member ,credit ,unions ,are
,insured ,up ,to ,$250,000..
Federal ,Financial ,Institutions ,Examination ,Council ,(FFIEC) ,1979 ,- ,CORRECT ,ANSWER-
Federal ,Examination ,of ,financial ,institutions ,by ,the ,board ,of ,governors ,of ,the ,Federal
,Reserve
Federal ,Housing ,Finance ,Agency ,- ,CORRECT ,ANSWER-Created ,by ,the ,federal ,housing
,finance ,regulatory ,reform ,act ,of ,2008. ,Has ,Oversight ,go ,the ,14 ,Related ,GSE's
Department ,of ,Housing ,and ,Urban ,Development ,(HUD) ,- ,CORRECT ,ANSWER-A ,federal
,cabinet ,department ,active ,in ,national ,housing ,programs. ,Among ,its ,many ,programs ,are
,urban ,renewal, ,public ,housing, ,model ,cities, ,rehabilitation ,loans, ,FHA ,subsidies, ,fair
,housing ,enforcement, ,and ,water ,and ,sewer ,grants.
Commercial ,Banks ,- ,CORRECT ,ANSWER-Financial ,Institutions ,that ,provide ,a ,variety ,of
,financial ,services ,including ,loans
Demand ,Deposits ,- ,CORRECT ,ANSWER-A ,deposit ,of ,money ,that ,can ,be ,withdrawn
,without ,prior ,notice.
Certificate ,of ,Deposit ,- ,CORRECT ,ANSWER-A ,certificate ,issued ,by ,a ,bank ,to ,a ,person
,depositing ,money ,for ,a ,specified ,length ,of ,time.
, savings ,and ,loan ,association ,(S&Ls) ,- ,CORRECT ,ANSWER-A ,depository ,institution ,that
,has ,traditionally ,obtained ,most ,of ,its ,funds ,by ,accepting ,savings ,deposits, ,which ,have
,been ,used ,primarily ,to ,make ,mortgage ,loans
Disintermediation ,- ,CORRECT ,ANSWER-The ,loss ,of ,deposits ,to ,competing ,investments
,that ,offer ,much ,higher ,returns
Mortgage ,banking ,companies: ,- ,CORRECT ,ANSWER-Institutions ,that ,specialize ,in
,making ,only ,mortgage ,loans ,to ,consumers
Mortgage ,Banker ,- ,CORRECT ,ANSWER-Company, ,or ,individual, ,that ,originates
,mortgage ,loans, ,sells ,them ,to ,other ,investors, ,services ,the ,monthly ,payments, ,keeps
,related ,records, ,and ,acts ,as ,escrow ,agen ,to ,disperse ,funds ,for ,taxes ,and ,insurance.
Mini-Correspondents ,- ,CORRECT ,ANSWER-Small ,Corresponding ,Lenders ,with ,lesser
,net ,worth ,but ,have ,relations ,to ,investors
Mortgage ,Broker ,- ,CORRECT ,ANSWER-A ,company ,or ,individual ,who, ,for ,a ,fee, ,places
,loans ,with ,wholesale ,lenders, ,but ,does ,not ,service ,such ,loans
Credit ,Unions ,- ,CORRECT ,ANSWER-Financial ,institutions ,owned ,and ,controlled ,by ,their
,members ,in ,order ,to ,pool ,deposits ,thus ,offering ,better ,interest ,rates ,among ,its ,members
Finance ,Companies ,- ,CORRECT ,ANSWER-Organizations ,that ,specially ,in ,high ,risk
,loans ,at ,bigger ,interest ,rates
Mutual ,Savings ,Banks ,- ,CORRECT ,ANSWER-State/Federally-chartered ,financial
,institutions ,operated ,by ,trustees ,for ,the ,benefit ,of ,depositors
Portfolio ,Lending ,- ,CORRECT ,ANSWER-A ,term ,to ,describe ,the ,strategy ,where ,financial
,institutions ,that ,make ,real ,estate ,loans ,keep ,and ,service ,those ,loans ,in-house ,as ,part ,of
,their ,investment ,portfolios, ,instead ,of ,selling ,on ,the ,secondary ,market.
Mortgage-backed ,securities ,- ,CORRECT ,ANSWER-Debt ,Obligations ,That ,represent
,claims ,to ,the ,cash ,flows ,from ,pools ,of ,mortgage ,loans
Securitization ,- ,CORRECT ,ANSWER-Securities ,issued ,to ,claims ,on ,the ,payment ,and
,Interest ,payments ,made ,by ,the ,borrowers ,of ,loans ,in ,the ,pool
Pass ,Through ,Securities ,- ,CORRECT ,ANSWER-Most ,common, ,proportionate ,interest ,in
,the ,cash ,flow ,generated ,by ,the ,pool, ,payments, ,interest, ,prepayment ,penalties
STRIPped ,mortgage-backed ,securities ,(SMBSs) ,- ,CORRECT ,ANSWER-Mortgage-
backed ,securities ,that ,represent ,separated ,interest ,and ,principal ,payments.
Collateralized ,Mortgage ,Obligations ,- ,CORRECT ,ANSWER-Bonds ,that ,represent ,claims
,to ,specific ,cash ,flows ,from ,large ,pools ,of ,mortgages
Tranches ,- ,CORRECT ,ANSWER-Collateralized ,mortgage ,obligations ,are ,separated
,into___
