NMLS SAFE EXAM KEY WORDS 2023/2024 Retest Placement test Exam Questions with complete solutions
Equity - correct answer Equity is the amount your property is currently worth minus the amount of any existing mortgage on your property.
Escrow - correct answer An escrow account is set up by ...
NMLS SAFE EXAM KEY WORDS 2023/2024
Retest Placement test Exam Questions with
complete solutions
Equity - correct answer Equity is the amount your property
is currently worth minus the amount of any existing mortgage on
your property.
Escrow - correct answer An escrow account is set up by
your mortgage lender to pay certain property-related expenses,
like property taxes and homeowner's insurance. A portion of your
monthly payment goes into the account. If your mortgage doesn't
have an escrow account, you pay the property-related expenses
directly.
Fannie Mae - correct answer The Federal National
Mortgage Association (Fannie Mae) purchases and guarantees
mortgages from lending institutions in an effort to increase
affordable lending. Fannie Mae is not a federal agency. It is a
government-sponsored enterprise under the conservatorship of
the Federal Housing Finance Agency (FHFA).
FHA funding fee - correct answer The Federal Housing
Administration (FHA) requires an FHA funding fee and a monthly
insurance premium (MIP) for most of its single-family programs.
This upfront mortgage insurance premium is sometimes called
an upfront mortgage insurance premium (UFMIP).
FHA loan - correct answer FHA loans are loans from private
lenders that are regulated and insured by the Federal Housing
,Administration (FHA). FHA loans differ from conventional loans
because they allow for lower credit scores and down payments as
low as 3.5 percent of the total loan amount. Maximum loan
amounts vary by county.
FHA mortgage limits - correct answer FHA mortgage limits
are the dollar amount limits for qualifying mortgages that the
FHA will insure as part of its single-family home mortgage
program. These limits are based upon location and they may be
revised each year.
Finance charge - correct answer A finance charge is the
total amount of interest and loan charges you would pay over the
entire life of the mortgage loan.
First-time home buyers (FTHB) loan programs - correct
answer First-time home buyers (FTHB) may use a number of
different types of loan programs to purchase their first home.
Popular FTHB loans include programs offered by FHA, VA,
USDA, Fannie Mae, and Freddie Mac with low down payments.
Some programs define a FTHB as someone who hasn't purchased
a home in three years or more.
Fixed-rate mortgage - correct answer A fixed-rate mortgage
is a type of home loan for which the interest rate is set when you
take out the loan and it will not change during the term of the
loan.
Forbearance - correct answer Forbearance is when your
servicer allows you temporarily to pay your mortgage at a lower
rate or temporarily to stop paying your mortgage. Your servicer
, may grant you forbearance if, for example, you recently lost your
job, suffered from a disaster, or from an illness or injury that
increased your health care costs. Forbearance is a type of loss
mitigation.
Force-placed insurance - correct answer Your servicer may
require force-placed insurance when you do not have your own
insurance policy or if your own policy doesn't meet your
servicer's requirements. Force-placed insurance usually protects
only the lender, not you. The servicer will charge you for the
insurance. Force-placed insurance is usually more expensive
than finding an insurance policy yourself.
Foreclosure - correct answer Foreclosure is when the lender
or servicer takes back property after the homeowner fails to
make mortgage payments. In some states, the lender has to go to
court to foreclose on your property (judicial foreclosure), but
other states do not require a court process (non-judicial
foreclosure). Generally, borrowers must be notified if the lender
or servicer begins foreclosure proceedings. Federal rules may
apply to when the foreclosure may start.If you're concerned
about foreclosure,
Freddie Mac - correct answer The Federal Home Loan
Mortgage Corporation (Freddie Mac) is a private corporation
founded by Congress. Its mission is to promote stability and
affordability in the housing market by purchasing mortgages
from banks and other loan makers. The corporation is currently
under conservatorship, under the direction of the Federal
Housing Finance Agency (FHFA).
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