Exam (elaborations)
NMLS PRACTICE QUESTIONS AND ANSWERS
NMLS PRACTICE QUESTIONS AND ANSWERS
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NMLS PRACTICE QUESTIONS AND ANSWERSThe purpose of a Market Conditions Addendum is to CORRECT ANS-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? CORRECT ANS-
DISABILITIES
a 240/60, 20k loan is made with interest at 9% per year. Which is true? CORRECT ANS-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 CORRECT ANS-PREPAID FINANCE CHARGES
the rules relating to the Federal Trade Commission's "no call" registry allows calls to persons
on the "no call" list CORRECT ANS-for up to 18 months after business transaction has been
completed with them and up to 3 months after they inquiry
, NMLS PRACTICE QUESTIONS AND ANSWERS
a copy of the appraisal is provided CORRECT ANS-at close of escrow
the risk that an agent may not have his clients best interest at heart is called CORRECT
ANS-Principal-Agent risk
the federal regulation that implements the Real Estate Settlement Procedures Act (RESPA) is
CORRECT ANS-Regulation X
a loan applicnats employment is usually verified by a CORRECT ANS-VEO (VERIFICATION
OF EMPLOYMENT)
The UNIFORM RESIDENTIAL LOAN APPLICATION (1003) includes a section reqiesting
information for government monitoring. applicants must complete this section CORRECT
ANS-ONLY IF THEY WISH
interest onlu has what feature? CORRECT ANS-can be paid off faster than fully amortized
Right to Rescind is not valid on which of the following CORRECT ANS-Commercial Purchase
, NMLS PRACTICE QUESTIONS AND ANSWERS
the HUD-1 Settlement Statement includes all of the following Except CORRECT ANS-
housing expense ratio
which federal agency administers Regulation B implementing ECOA, Rgulation C implementig
HMDA and Regulation Z implementing TILA? CORRECT ANS-FEDERAL RESERVE SYSTEM
the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the
CORRECT ANS-Acceleration Clause
at closing a borrower may deposit funds to establish reserves for which of the following?
CORRECT ANS-TAXES AND INSURANCE
in a qualification of an applicant who receives child support and alimony CORRECT ANS-
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? CORRECT ANS-
His TLTV is 94%
, NMLS PRACTICE QUESTIONS AND ANSWERS
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? CORRECT ANS-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 CORRECT ANS-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... CORRECT ANS-Notify the real estate broker to try to get an
extension of closing deadline
The lowest payment option for an option ARM is CORRECT ANS-minumum payment
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