NMLS TEST PREP COMPUCRAM
COMPREHENSIVE TEST BANK 2026
QUESTIONS WITH ACCURATE ANSWERS
⩥ Fair Lending, Fair Housing and ECOA. Answer: Any person wanting
to apply for a mortgage, must be allowed to do so, unless they are under
18.
⩥ Truth in Lending (TILA) and Reg Z. Answer: 1) MDIA - Mortgage
Disclosure Improvement Act 2) Advertising 3) HOEPA 4) Loan Estimate
5) Annual Percentage Rate (APR) 6) Qualified Mortgage (QM) 7) Loan
Officer Compensation 8) CHARM Booklet
⩥ RESPA. Answer: Real Estate Settlement Procedures Act
⩥ Reverse Mortgage. Answer: a) Negative Amortization - mortgage
balance goes up every month because the interest is not paid (no
mortgage payments) b) No Escrows, the borrower is responsible to pay
their own taxes and insurance c) Minimum age 62 d) Mandatory
counseling before they can apply e) Non-Recourse Mortgage - if the
mortgage balance is higher than the value a the end of the loan. FHA
absorbs the loss.
⩥ USDA (United States Department of Agriculture). Answer: a) in areas
of less than 35,000 people
,b) 100% financing. Income limitations to be eligible
c) 29/41 Underwriting ratios
d) MIP - Government mortgage insurance is required for the life of the
loan.
e) USDA must underwrite and fund all loans
⩥ FHA (Federal Housing Administration). Answer: a) maximum LTV is
96.5
b) 31/43 underwriting ratios
c) MIP is required for the life of the loan if over 90% LTV
d) seller concessions is limited to 6%
⩥ HELOC - Home Equity Line of Credit. Answer: a) term is usually 8-
10 years
b) floating interest rate
c) no principal payment required unless the borrower chooses to or at the
end of the loan
d) Borrower does not pay interest on the land unless hey draw part of the
proceeds. Then each month they will pay interest on the balance they
have drawn
⩥ Application or the 1003. Answer: Uniform Residential Loan
Application (URLA)
,⩥ Seller Concessions. Answer: may include title insurance, origination
fees, processing fees, etc.
⩥ PMI (Private Mortgage Insurance). Answer: required on all
conventional/conforming loans when the down payment is less than 20%
or if the loan has an LTV of 80 percent or higher
⩥ FHA (Federal Housing Administration). Answer: loans insured by the
Department of Housing and Urban Development (HUD) FHA are
generally easier to obtains as their underwriting guidelines are more
lenient than conventional guidelines.
⩥ CAIVRS (Credit Alert Verification Reporting System). Answer: a
underwriter will use this system to determine whether a borrower has
ever failed to repay debts or obligations
⩥ FHA Streamline. Answer: Refinance product. Borrowers with current
FHA mortgages would like to reduce their mortgage insurance, interest
rate or payment. Require less documentation and underwriting and may
not need an appraisal.
⩥ Regulatory Authority. Answer: can't issue a license
⩥ The Regulatory Authority may impose penalties for each violation up
to, and not exceeding:. Answer: $25,000
, ⩥ Who determines continuing education requirements and dates for
license renewal?. Answer: The state Regulatory Authority as established
under the SAFE Act
⩥ Surety bonds must be maintained by:. Answer: All licensees, unless
excluded by the Regulatory Authority.
⩥ The Nationwide Multistate Licensing System and Registry is
developed and maintained by which of the following:. Answer: The
Conference of State Bank Supervisors and The American Association of
Residential Mortgage Regulators
⩥ After failing three (3) exams, an applicant must wait how long before
taking the exam again. Answer: 6 months
⩥ (HECM). Answer: Home Equity Conversion Mortgage
⩥ S.A.F.E. is the short title for what Mortgage Licensing act of 2008?.
Answer: Secure and Fair Enforcement
⩥ Consumer Financial Protection Bureau. Answer: CFPB (Regulation
G)
COMPREHENSIVE TEST BANK 2026
QUESTIONS WITH ACCURATE ANSWERS
⩥ Fair Lending, Fair Housing and ECOA. Answer: Any person wanting
to apply for a mortgage, must be allowed to do so, unless they are under
18.
⩥ Truth in Lending (TILA) and Reg Z. Answer: 1) MDIA - Mortgage
Disclosure Improvement Act 2) Advertising 3) HOEPA 4) Loan Estimate
5) Annual Percentage Rate (APR) 6) Qualified Mortgage (QM) 7) Loan
Officer Compensation 8) CHARM Booklet
⩥ RESPA. Answer: Real Estate Settlement Procedures Act
⩥ Reverse Mortgage. Answer: a) Negative Amortization - mortgage
balance goes up every month because the interest is not paid (no
mortgage payments) b) No Escrows, the borrower is responsible to pay
their own taxes and insurance c) Minimum age 62 d) Mandatory
counseling before they can apply e) Non-Recourse Mortgage - if the
mortgage balance is higher than the value a the end of the loan. FHA
absorbs the loss.
⩥ USDA (United States Department of Agriculture). Answer: a) in areas
of less than 35,000 people
,b) 100% financing. Income limitations to be eligible
c) 29/41 Underwriting ratios
d) MIP - Government mortgage insurance is required for the life of the
loan.
e) USDA must underwrite and fund all loans
⩥ FHA (Federal Housing Administration). Answer: a) maximum LTV is
96.5
b) 31/43 underwriting ratios
c) MIP is required for the life of the loan if over 90% LTV
d) seller concessions is limited to 6%
⩥ HELOC - Home Equity Line of Credit. Answer: a) term is usually 8-
10 years
b) floating interest rate
c) no principal payment required unless the borrower chooses to or at the
end of the loan
d) Borrower does not pay interest on the land unless hey draw part of the
proceeds. Then each month they will pay interest on the balance they
have drawn
⩥ Application or the 1003. Answer: Uniform Residential Loan
Application (URLA)
,⩥ Seller Concessions. Answer: may include title insurance, origination
fees, processing fees, etc.
⩥ PMI (Private Mortgage Insurance). Answer: required on all
conventional/conforming loans when the down payment is less than 20%
or if the loan has an LTV of 80 percent or higher
⩥ FHA (Federal Housing Administration). Answer: loans insured by the
Department of Housing and Urban Development (HUD) FHA are
generally easier to obtains as their underwriting guidelines are more
lenient than conventional guidelines.
⩥ CAIVRS (Credit Alert Verification Reporting System). Answer: a
underwriter will use this system to determine whether a borrower has
ever failed to repay debts or obligations
⩥ FHA Streamline. Answer: Refinance product. Borrowers with current
FHA mortgages would like to reduce their mortgage insurance, interest
rate or payment. Require less documentation and underwriting and may
not need an appraisal.
⩥ Regulatory Authority. Answer: can't issue a license
⩥ The Regulatory Authority may impose penalties for each violation up
to, and not exceeding:. Answer: $25,000
, ⩥ Who determines continuing education requirements and dates for
license renewal?. Answer: The state Regulatory Authority as established
under the SAFE Act
⩥ Surety bonds must be maintained by:. Answer: All licensees, unless
excluded by the Regulatory Authority.
⩥ The Nationwide Multistate Licensing System and Registry is
developed and maintained by which of the following:. Answer: The
Conference of State Bank Supervisors and The American Association of
Residential Mortgage Regulators
⩥ After failing three (3) exams, an applicant must wait how long before
taking the exam again. Answer: 6 months
⩥ (HECM). Answer: Home Equity Conversion Mortgage
⩥ S.A.F.E. is the short title for what Mortgage Licensing act of 2008?.
Answer: Secure and Fair Enforcement
⩥ Consumer Financial Protection Bureau. Answer: CFPB (Regulation
G)
