The requirement for private mortgage insurance is generally is continued when the loan-to-
value ratio falls below:
A.) 20%
B.) 50%
,NMLS Practice Test Hard Questions with Solutions 100%
Pass
C.) 80%
D.) 90% CORRECT ANS-C.) 80%
A discount point is BEST described as a charge the borrower pays to:
A.) A lender to decrease the interest rate on the mortgage loan
B.) A mortgage broker at the time of application to obtain a favorable rate
C.) The seller as part of the closing costs of a loan
D.) A lender to ensure against foreclosure CORRECT ANS-A.) A lender to decrease the
interest rate on the mortgage loan
A buyer has made an earnest money payment of $5,000. The buyer pays an additional $2,000
in option money to be credited at closing on property with sale price of $160,000. If the
required down payment is 20%, how much additional money will the buyer need to provide
toward the down payment at closing?
A.) $32,000
B.) $27,000
C.) $30,000
,NMLS Practice Test Hard Questions with Solutions 100%
Pass
D.) $25,000 CORRECT ANS-D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
Which of the following documents itemizes all settlement costs including lender charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement CORRECT ANS-B.) HUD-1/closing Disclosure
According to the Truth-in-Lending Act (TILA), the term "refinance" applies to
A.) A change in a payment schedule
B.) A reduction in annual percentage rate
, NMLS Practice Test Hard Questions with Solutions 100%
Pass
C.) The renewal of a single payment obligation with no change in the original terms
D.) The satisfaction of an existing obligation and its replacement by a new obligation
CORRECT ANS-D.) The satisfaction of an existing obligation and its replacement by a new
obligation
What does a loan originator use to determine the estimated value of a property based on an
analytical comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis CORRECT ANS-A.) An appraisal
Which of the following methods of disclosure does NOT meet the requirements of Equal
Credit Opportunity Act (ECOA)?
A.) E-mail
B.) Mailed letter
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 TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.