NMLS PRACTICE QUESTIONS WITH SOLUTIONS LATEST UPDATED 2024
which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA? - answer FEDERAL RESERVE SYSTEM
the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the - answer Acceleration Clause
at closing a borrower may deposit funds to establish reserves for which of the following?
- answer TAXES AND INSURANCE
in a qualification of an applicant who receives child support and alimony - answer CHILD SUPPORT INCOME CAN BE GROSSED UP
a homeowner had a home worth 200k. he has an outstanding loan of 165k and a HELOC with a limit of 30k which he has drawn 12k. Which of the following is not true? - answer His TLTV is 94% you must calculate LTV, CLTV, and TLTV
TLTV is higher than CLTV and LTV
test mortgage transferred servicing rights of some of its mortgage loans to answer mortgage, Lender must send a servicing transfer statement to the affected borrowers how many days before the effective date of transfer? - answer 15 days before the effective date of transfer a Lender must send the servicing transfer statement to the affected borrowers
following section IX (acknowledgements) in the 1003 loan application, the form is to be signed to signify that - answer the applicant represents that all information contained in the form is truthfully represented
As the deadline approaches for the closing date established in the buyer's sale agreement, the buyer's loan application has not yet been approved but seems to be headed for approval. the loan originator should... - answer Notify the real estate broker to try to get an extension of closing deadline
The lowest payment option for an option ARM is - answer minumum payment Fannie Mae requires occupancy with in - answer 60 days
The purpose of a Market Conditions Addendum is to - answer Provide the Lender with a clear understanding of the market trends and conditions in a subject neighborhood
The ECOA prevents discvrimination against which of the following? - answer DISABILITIES
a 240/60, 20k loan is made with interest at 9% per year. Which is true? - answer this is a ballon loan with a loan term of five years 240/12= number of years in loan
60/12= number of years until fully amortized and needs to be paid off or refinance
the acronym PFC stands for - answer PREPAID FINANCE CHARGES
the rules relating to the Federal Trade Commission's "no call" registry allows calls to persons on the "no call" list - answer for up to 18 months after business transaction has been completed with them and up to 3 months after they inquiry
a copy of the appraisal is provided - answer at close of escrow
the risk that an agent may not have his clients best interest at heart is called - answer Principal-Agent risk
the federal regulation that implements the Real Estate Settlement Procedures Act (RESPA) is - answer Regulation X
a loan applicnats employment is usually verified by a - answer VEO (VERIFICATION
OF EMPLOYMENT)
The UNIFORM RESIDENTIAL LOAN APPLICATION (1003) includes a section reqiesting information for government monitoring. applicants must complete this section - answer ONLY IF THEY WISH
interest onlu has what feature? - answer can be paid off faster than fully amortized
Right to Rescind is not valid on which of the following - answer Commercial Purchase
the HUD-1 Settlement Statement includes all of the following Except - answer housing expense ratio
what is the best description for a 360/180 loan? - answer Ballon loan a property that is appraised with a higher than market value results in - answer an inflated appraisal
which law prohibits a lender/ mortgage broker from makinf any oral/ written statement, in advertising or otherwise to applicants or prospective applicants that would discourage
a reasonable person from making or pursuing an application - answer ECOA
an applicant for a real estate loan can not be asked about his - answer RELIGION
RESPA does not require lender disclosures of closing costs and procedures for which of
the following loans? - answer CONSTRUSCTION LOANS
A lender is obligated to provide a borrower with a HUD-1 Settlement Statement how many days prior to closing? - answer 1day
which of the following is true regarding prepayment penalties in todays mortgage market? - answer the are almost always used in predatory loans
when is the appraisal disclosure required to be delivered - answer when complete application is taken
service release premium represents - answer the profits a bank makes when selling the servicing rights to a loan
what is the variance allowed on adjustments for appraisals according to FNM and Freddie? - answer 20%
the primary purpose of ECOA is to ensure that - answer all borrowers get equal chance to loan
what is considered a illegal referral? - answer Lead generating loan originator gets %
of loan amount on closed deal
a Loan oroginator creates a marketing plan to make between 2-4k per loan. He agrees to do the 300k loan for his cousin for a 0.75% commission and 400$ processing fee. this
transaction is - answer legal and Ethical because he is with in his marketing plan
it is ok to discriminate on age when? - answer NEVER
Truth in Lending provides for a right to rescind certain loans secured by a principal residence. The rescission period is - answer 3 business days
which of the following would result in the combined Loan to ratio? - answer total of all
loans/ property value
which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA? - answer FEDERAL RESERVE SYSTEM
the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the - answer Acceleration Clause
at closing a borrower may deposit funds to establish reserves for which of the following?
- answer TAXES AND INSURANCE
in a qualification of an applicant who receives child support and alimony - answer CHILD SUPPORT INCOME CAN BE GROSSED UP
a homeowner had a home worth 200k. he has an outstanding loan of 165k and a HELOC with a limit of 30k which he has drawn 12k. Which of the following is not true? - answer His TLTV is 94% you must calculate LTV, CLTV, and TLTV
TLTV is higher than CLTV and LTV
test mortgage transferred servicing rights of some of its mortgage loans to answer mortgage, Lender must send a servicing transfer statement to the affected borrowers how many days before the effective date of transfer? - answer 15 days before the effective date of transfer a Lender must send the servicing transfer statement to the affected borrowers
following section IX (acknowledgements) in the 1003 loan application, the form is to be signed to signify that - answer the applicant represents that all information contained in the form is truthfully represented
As the deadline approaches for the closing date established in the buyer's sale agreement, the buyer's loan application has not yet been approved but seems to be headed for approval. the loan originator should... - answer Notify the real estate broker to try to get an extension of closing deadline
The lowest payment option for an option ARM is - answer minumum payment Fannie Mae requires occupancy with in - answer 60 days
The purpose of a Market Conditions Addendum is to - answer Provide the Lender with a clear understanding of the market trends and conditions in a subject neighborhood
The ECOA prevents discvrimination against which of the following? - answer DISABILITIES
a 240/60, 20k loan is made with interest at 9% per year. Which is true? - answer this is a ballon loan with a loan term of five years 240/12= number of years in loan
60/12= number of years until fully amortized and needs to be paid off or refinance
the acronym PFC stands for - answer PREPAID FINANCE CHARGES
the rules relating to the Federal Trade Commission's "no call" registry allows calls to persons on the "no call" list - answer for up to 18 months after business transaction has been completed with them and up to 3 months after they inquiry
a copy of the appraisal is provided - answer at close of escrow
the risk that an agent may not have his clients best interest at heart is called - answer Principal-Agent risk
the federal regulation that implements the Real Estate Settlement Procedures Act (RESPA) is - answer Regulation X
a loan applicnats employment is usually verified by a - answer VEO (VERIFICATION
OF EMPLOYMENT)
The UNIFORM RESIDENTIAL LOAN APPLICATION (1003) includes a section reqiesting information for government monitoring. applicants must complete this section - answer ONLY IF THEY WISH
interest onlu has what feature? - answer can be paid off faster than fully amortized
Right to Rescind is not valid on which of the following - answer Commercial Purchase
the HUD-1 Settlement Statement includes all of the following Except - answer housing expense ratio
what is the best description for a 360/180 loan? - answer Ballon loan a property that is appraised with a higher than market value results in - answer an inflated appraisal
which law prohibits a lender/ mortgage broker from makinf any oral/ written statement, in advertising or otherwise to applicants or prospective applicants that would discourage
a reasonable person from making or pursuing an application - answer ECOA
an applicant for a real estate loan can not be asked about his - answer RELIGION
RESPA does not require lender disclosures of closing costs and procedures for which of
the following loans? - answer CONSTRUSCTION LOANS
A lender is obligated to provide a borrower with a HUD-1 Settlement Statement how many days prior to closing? - answer 1day
which of the following is true regarding prepayment penalties in todays mortgage market? - answer the are almost always used in predatory loans
when is the appraisal disclosure required to be delivered - answer when complete application is taken
service release premium represents - answer the profits a bank makes when selling the servicing rights to a loan
what is the variance allowed on adjustments for appraisals according to FNM and Freddie? - answer 20%
the primary purpose of ECOA is to ensure that - answer all borrowers get equal chance to loan
what is considered a illegal referral? - answer Lead generating loan originator gets %
of loan amount on closed deal
a Loan oroginator creates a marketing plan to make between 2-4k per loan. He agrees to do the 300k loan for his cousin for a 0.75% commission and 400$ processing fee. this
transaction is - answer legal and Ethical because he is with in his marketing plan
it is ok to discriminate on age when? - answer NEVER
Truth in Lending provides for a right to rescind certain loans secured by a principal residence. The rescission period is - answer 3 business days
which of the following would result in the combined Loan to ratio? - answer total of all
loans/ property value
