Practice NMLS test - 20 Hour Safe EXAM QUESTIONS WITH ANSWERS

Practice NMLS test - 20 Hour Safe EXAM |\ |\ |\ |\ |\ |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




An application must be accompanied by fingerprints when
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applying for |\ |\




a. Licensed MLO
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b. Registered MLO
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c. not required
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d. required for both licensed and registered MLO - CORRECT
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ANSWERS ✔✔d |\




Quarterly mortgage call reports must be filed
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a. within 30 days of the end of the calendar quarter
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b. within 30 days of the end of the fiscal quarter
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c. within 45 days of the end of the calendar quarter
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d. within 45 days of the end of the fiscal quarter - CORRECT
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ANSWERS ✔✔c. within45 days of the end of the calendar quarter
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Which of the following Government Sponsored Entities does NOT
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buy mortgage loans in the secondary market?
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a. Fannie Mae
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b. Ginnie Mae
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c. Freddie Mac
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d. All of these GSEs buy loans in the secondary market -
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CORRECT ANSWERS ✔✔B. Ginnie Mae does not buy or sell loans -
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,it guarantees principal and interest payment for investors who
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buy mortgage pools
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Which of the following would be ways that Fannie Mae impacts
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the primary mortgage market?
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a. it ultimately serves to provide additional funds for the primary
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market
b. it influences lenders' standards for making mortgage loans
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c. both
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d. none - CORRECT ANSWERS ✔✔c. Fannie Mae buys mortgages
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in the secondary mortgage market which makes more funds
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available to lenders to make loans in the primary market. It also
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sets standards for the qualifying requirements lenders use when
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they make loans in the primary market, since they want to be
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able to sell loans to Fannie Mae
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A person who has failed the national portion of the NMLS
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examination the third attempt: |\ |\ |\




a. is prohibited from taking the test again
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b. must wait one year to retake the test
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c. must wait 180 days to retake the test
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d. must wait 30 days to retake the test - CORRECT ANSWERS
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✔✔c 180 days |\ |\




A registered LO must complete how many hours of continuing
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education courses each year? |\ |\ |\




a. 20 |\

,b. 12 |\




c. 0 |\




d. 8 - CORRECT ANSWERS ✔✔c
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In order to become a state licensed LO, the applicant must
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complete how many hours of prelicense education courses
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within 30 days of the end of the fiscal quarter
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a. 45 |\




b. 30 |\




c. 25 |\




d. 20 - CORRECT ANSWERS ✔✔d
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A lender which will make mortgage loans to customers, but will
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immediately sell each of their loans to a larger lender (under a
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contract relationship) is called a: |\ |\ |\ |\




a. Wholesale lender
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b. Retail lender
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c. Correspondent lender
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d. Mortgage broker - CORRECT ANSWERS ✔✔C. Correspondent
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lender, since it immediately sells its loans to a larger (often
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wholesale) lender |\




If the Fed where to buy government securities, the money supply
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would likely:
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a. Decrease
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b. Increase
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, c. Stabilize
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d. Appreciate - CORRECT ANSWERS ✔✔B. When the Fed buys US
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Government securities, the money supply would increase, since
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the money would go out into the economy
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The primary difference between a mortgage banker and a
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mortgage broker is: |\ |\




a. whether it is regulated by the state or federal government
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b. whether it is a depository institution
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c. whether it participates in the primary or secondary mortgage
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market
d. whether it makes loans or only acts as intermediary -
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CORRECT ANSWERS ✔✔D. Mortgage brokers only act as
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intermediaries, bringing together borrowers and lenders. |\ |\ |\ |\ |\ |\


Mortgage bankers will do that as well, but will also loan out their
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own money |\




If a State Licensed LO allows his or her license to expire, that
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person will have to retest if the license in not renewed within:
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a. 5 yrs
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b. 3 yrs
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c. 2 yrs
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d. 1 yr - CORRECT ANSWERS ✔✔a. 5 years
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Smalltown Bank makes a loan to a homebuyer and immediately
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after closing the loan Smalltown Bank sells the loan to the larger
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Bigcity Bank. Smalltown Bank is acting as a:
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