Exam (elaborations)
Mortgage NMLS Exam With Explained Questions And Answers 2024
- Course
- Institution
Mortgage NMLS Exam With Explained Questions And Answers 2024
[Show more]
Content preview
Mortgage NMLS Exam With ExplainedQuestions And Answers 2024
Annual rPercentage rRate r(APR) r- rcorrect ranswer.Consumer's rtrue rannual rcost rof
rborrowing rfunds raccording rto rthe rFederal rTruth-in-Lending rAct. rCalculates ran reffective
rinterest rrate rbased ron rmost rof ra rloan's rup-front rfees rand rthe rstated rannual rinterest rrate.
Closing r- rcorrect ranswer.Process rwhereby ra rseller rdelivers rownership rrights rin rreal
rproperty rto rthe rbuyer. rMay ralso rdescribe rthe rcompletion rof rthe rloan rprocess rwhere rthe
rborrower rreceives ruse rof rthe rfunds rfrom rthe rlender rin rreturn rfor rpromising rto rrepay rthe
rloan rand rallowing rthe rlender rto rplace ra rlien ron rthe rreal rproperty.
Closing rCosts r- rcorrect ranswer.Fees rand rcosts rassociated rwith robtaining rloans rand
rpurchasing rreal restate rabove rthe rsale rprice rof rthe rreal rproperty. rTypically rconsist rof rfees
rpaid rto rthe rgovernment, rlenders, rloan roriginators, rappraisers, rreal restate rbrokers,
rsurveyors, rinspectors, rtitle rcompanies, rand rattorneys. rThe rsales rcontract rdictates rwhich
rones rare rpaid rby rthe rbuyer rand rseller.
Deed rof rTrust r- rcorrect ranswer.Legal rdocument rbetween rlender rand rborrower r(aka rthe
rtrustor) rwhich ris rused rin rsome rstates rinstead rof ra rmortgage rto rtransfer ra rproperty's rlegal
rtitle rto ra rneutral rthird rparty r(trustee) rto rsecure rthe rrepayment rof rloan.
Discount rPoints r- rcorrect ranswer.Fees rcharged rby ra rlender rto rborrowers rat rclosing rto
rlower rthe rstated rinterest rrate rand rthe rinterest rportion rof reach rmonthly rpayment.
Ethics r- rcorrect ranswer.Set rof rvalues, rconduct, rand rprinciples rthat rconsistently rguide rour
rbehavior rand rdecisions rto rdeliver rfair rand rhonest rservice rto rall rparties
Equity r- rcorrect ranswer.Market rvalue rof ra rproperty rin rexcess rof rthe ramount rowed rby rthe
rborrower
Home rEquity rLine rof rCredit r(HELOC) r- rcorrect ranswer.Type rof rloan rbased ron ra rsecured
rby rthe rvalue rof rthe rhome rthat rexceeds rthe ramount ralready rowed rby rthe rborrower rto
rother rmore rsenior rlien rholders. rTypically rhave rvariable rinterest rrates rand rare ropen-
ended r- rfunds rcan rbe rborrowed rand rrepaid rover rand rover ragain.
Home rEquity rLoan r- rcorrect ranswer.Loan rbased ron rthe rdifference rbetween rthe rvalue rof
rthe rhome rand rthe ramount rowed
, Investor r- rcorrect ranswer.Person ror rentity rthat rfunds rthe rloan, raka ra rlender ror rmortgagee
Loan rOriginator r(MLO) r- rcorrect ranswer.Licensed rindividual rworking rfor ra rlender ror
racting ras ran rindependent rcontractor rto ra rmortgage rbroker rwho rtakes ra rresidential
rmortgage rloan rapplication rand rnegotiates rterms rof ra rloan rfor rcompensation ror rgain.
Loan rServicing r- rcorrect ranswer.Collecting ra rborrower's rmonthly rpayments rand
rdisbursing rpayments rto rthe rcurrent rowner rof rthe rloan, rdisbursing rtaxes rand rinsurance
rpayments rwhen rdue, rhandling rmailings, rmonitoring rliens ror rencumbrances, rmaking rsure
ra rhomeowner rhas rsufficient rinsurance rto rprotect rlender's rinterest, rand rhandling ra
rforeclosure rwhen rnecessary.
Mortgage r(Contract) r- rcorrect ranswer.Legal rdocument rsigned rby rall rowners rthat rpledge
rtheir rreal rproperty ras rsecurity rfor ra rloan.
Mortgage rBanker r(Mortgage rLender) r- rcorrect ranswer.Licensed rentity rthat rmay roriginate,
rclose, rfund, rsell rand/or rservice rthe rloan
Mortgage rBroker r(New rDefinition) r- rcorrect ranswer.Business rlicensed rto rfacilitate rthe
rmaking rof ra rloan rbetween ra rborrower rand ra rlender rfor rcompensation. rBroker roriginates
rthe rloan, rbut rdoes rnot rclose ror rprovide rfunds rfor rloan.
Mortgage rBrokerage rFee r- rcorrect ranswer.Compensation rpaid rfor rmortgage rbroker
rservices. rInclude rfees rpaid rto rthe rlicensed rmortgage rbroker rbusiness rby rthe rborrower
rand/or rfees rand rcommissions rpaid rby rthe rlender rfor roriginating rthe rloan.
Mortgagee r- rcorrect ranswer.Lender ror rinvestor rproviding rthe rfunds rfor rthe rloan rin
rexchange rfor rboth rthe rborrower's rpromise rto rrepay rand rhis rpermission rto rplace ra rlien ron
rhis rreal rproperty.
Mortgage rFraud r- rcorrect ranswer.Any rmeans rused rby ranyone rinvolved rin rthe rloan
rprocess rto rgain ra rdeceitful ror runfair radvantage rover ranother.
Mortgage rLending r- rcorrect ranswer.Process rby rwhich rindividuals ror rinstitutions rloan
rmoney rto rbuy ror rrefinance rproperty. rIn rreturn, rborrower rgives rlender ra rmortgage rthat
rpledges rthe rreal rproperty ras rsecurity rfor rthe rloan, rcreating ra rlien ron rthe rproperty.
Mortgagor r- rcorrect ranswer.Buyer ror rborrower rwho rallows ra rlien rto rbe rplaced ron rhis rreal
rproperty rin rexchange rfor ra rloan
Origination rFees r- rcorrect ranswer.All rfees rreceived rby rthe rloan roriginator ror rbusiness
rfrom ra rborrower, rnot rincluding rapplication rand rthird-party rfees.
Primary rMarket r- rcorrect ranswer.Group rof rlenders rand rinvestors rmake rloans rdirectly rto
rborrowers.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller RANKGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82013 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now