Exam (elaborations)
NMLS SAFE EXAM WITH COMPLETE SOLUTIONS
NMLS SAFE EXAM WITH COMPLETE SOLUTIONS
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NMLS SAFE EXAM WITH COMPLETE SOLUTIONSAdvertising Disclosure CORRECT ANS-An advertisement must be presented "clearly and
conspicuously" to keep from being deceptive, unfair, or otherwise violate a Commission rule
Waving Right of Rescission CORRECT ANS-Extenuating circumstances such as "bona fide
personal financial emergency
Right of Rescission CORRECT ANS-Right that borrowers have to cancel a loan or line of
credit with a lender within three days of closing
Business Day CORRECT ANS-When creditors office is open to the public, a calendar
working day except Sunday or a federal holiday
Application CORRECT ANS-Financial information used for purposes of obtaining an
extension of credit
Disclosure CORRECT ANS-The act of making new information known
, NMLS SAFE EXAM WITH COMPLETE SOLUTIONS
FTC
Federal Trade Commission CORRECT ANS-Mission is to promote consumer protection and
eliminate and prevent anticompetitive business practices
CFPB
Consumer Financial Protection Bureau CORRECT ANS-Regulatory agency charged with
overseeing financial products and services offered to consumers
TILA
Truth in Lending Act CORRECT ANS-Enacted 1968 promotes the informed use of consumer
credit by requiring disclosures about terms and costs and standardizes the manner in which
costs with borrowing are calculated and disclosed
Per Diem Interest CORRECT ANS-Interest charged on a loan for one or more days
Annual Interest Rate Formula CORRECT ANS-Principal (X) Interest Rate = Annual Interest
Rate
, NMLS SAFE EXAM WITH COMPLETE SOLUTIONS
Primary Mortgage Market CORRECT ANS-Where credit institutions originate loans
C. The maximum the rate can increase over the life of the loan CORRECT ANS-When an
ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the initial adjustment
B. The start rate for the loan
C. The maximum the rate can increase over the life of the loan
D. The rate maximum the rate can decrease over the life of the loan
B. The borrower qualified at the buydown rate CORRECT ANS-When utilizing a temporary
buydown to lower the interest rate on a FHA loan, which of the following are correct
A. The borrower qualified at the note rate
B. The borrower qualified at the buydown rate
C. The rate cannot be more than 2% below the note rate
D. Seller or builder can pay the discount points to buydown the rate
A. Age CORRECT ANS-All of the following are violations of the Fair Housing Act EXCEPT
, NMLS SAFE EXAM WITH COMPLETE SOLUTIONS
A. Age
B. National Origin
C. Disability
D.Religion
Encrumbrance CORRECT ANS-Claim against property held by one who is not the legal
owner
Trigger Term CORRECT ANS-Advertised term that requires additional disclosures
Interest Only Mortgage CORRECT ANS-Mortgage where the mortgagor is only required to
pay off the interest that arises from the principal that is borrowed for a set period
Permanent Buydown CORRECT ANS-Borrower chooses to pay additional "discount points"
to buy down the interest rate for the life of the mortgage note
2/1 Buydown CORRECT ANS-Used on fixed rate loans over two years
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