NMLS SAFE EXAM QUESTIONS WITH ANSWERS,

NMLS SAFE EXAM QUESTIONS WITH |\ |\ |\ |\ |\




ANSWERS


Where credit institutions originate loans - CORRECT ANSWERS
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✔✔Primary Mortgage Market |\ |\




When an ARM has rate caps of 5/2/6, the 6 refers to what?
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A. The maximum rate increase at the initial adjustment
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B. The start rate for the loan
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C. The maximum the rate can increase over the life of the loan
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D. The rate maximum the rate can decrease over the life of the
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loan - CORRECT ANSWERS ✔✔C. The maximum the rate can
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increase over the life of the loan |\ |\ |\ |\ |\ |\




When utilizing a temporary buydown to lower the interest rate on
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a FHA loan, which of the following are correct
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A. The borrower qualified at the note rate
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B. The borrower qualified at the buydown rate
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C. The rate cannot be more than 2% below the note rate
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D. Seller or builder can pay the discount points to buydown the
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rate - CORRECT ANSWERS ✔✔B. The borrower qualified at the
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buydown rate |\




All of the following are violations of the Fair Housing Act EXCEPT
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A. Age|\

,B. National Origin
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C. Disability
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D.Religion - CORRECT ANSWERS ✔✔A. Age |\ |\ |\ |\ |\




Claim against property held by one who is not the legal owner -
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CORRECT ANSWERS ✔✔Encrumbrance |\ |\




Advertised term that requires additional disclosures - CORRECT
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ANSWERS ✔✔Trigger Term |\ |\




An advertisement must be presented "clearly and conspicuously"
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to keep from being deceptive, unfair, or otherwise violate a
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Commission rule - CORRECT ANSWERS ✔✔Advertising Disclosure |\ |\ |\ |\ |\ |\




Extenuating circumstances such as "bona fide personal financial |\ |\ |\ |\ |\ |\ |\ |\


emergency - CORRECT ANSWERS ✔✔Waving Right of Rescission |\ |\ |\ |\ |\ |\ |\




Right that borrowers have to cancel a loan or line of credit with a
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lender within three days of closing - CORRECT ANSWERS
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✔✔Right of Rescission |\ |\




When creditors office is open to the public, a calendar working
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day except Sunday or a federal holiday - CORRECT ANSWERS
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✔✔Business Day |\




Financial information used for purposes of obtaining an extension
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of credit - CORRECT ANSWERS ✔✔Application
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,The act of making new information known - CORRECT ANSWERS
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✔✔Disclosure


Mission is to promote consumer protection and eliminate and
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prevent anticompetitive business practices - CORRECT ANSWERS
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✔✔FTC
Federal Trade Commission
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Regulatory agency charged with overseeing financial products
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and services offered to consumers - CORRECT ANSWERS ✔✔CFPB
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Consumer Financial Protection Bureau
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Enacted 1968 promotes the informed use of consumer credit by
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requiring disclosures about terms and costs and standardizes the
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manner in which costs with borrowing are calculated and
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disclosed - CORRECT ANSWERS ✔✔TILA
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Truth in Lending Act
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Interest charged on a loan for one or more days - CORRECT
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ANSWERS ✔✔Per Diem Interest |\ |\ |\




Principal (X) Interest Rate = Annual Interest Rate - CORRECT
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ANSWERS ✔✔Annual Interest Rate Formula
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, Mortgage where the mortgagor is only required to pay off the
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interest that arises from the principal that is borrowed for a set
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period - CORRECT ANSWERS ✔✔Interest Only Mortgage
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Borrower chooses to pay additional "discount points" to buy down
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the interest rate for the life of the mortgage note - CORRECT
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ANSWERS ✔✔Permanent Buydown |\ |\




Used on fixed rate loans over two years
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Set of two initial temporary-start interest rates that increase in
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stair-step fashion until a permanent interest rate is reached -
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CORRECT ANSWERS ✔✔2/1 Buydown |\ |\ |\




A form of pre-paid interest which effectively increases the yield
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on the loan above the amount of the stated interest rate -
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CORRECT ANSWERS ✔✔Discount Point |\ |\ |\




An amount in addition to the Loan to Value, which simply
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represents the first position mortgage or loan as a percentage of |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


the property's value - CORRECT ANSWERS ✔✔CLTV
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Combined Loan to Value |\ |\ |\




Ratio of a loan to the value of an asset purchased - CORRECT
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ANSWERS ✔✔LTV |\




Loan to Value |\ |\




Principal, Interest, Taxes, Insurance |\ |\ |\