NMLS Final Exam
_____ effects from the application of minimal required periodic bills that are not sufficient to
cover the interest that is due
a. Negative amortization
b. Amortizing payments
c. Negative fairness
d. Lower credit ratings - ANS-Negative amortization
10 years
c. $50,000 - ANS-
15. HMDA's implementing law is:
a. Regulation c
b. Regulation a
c. Regulation z
d. Regulation x - ANS-Regulation c
30 years
b. $2 mil - ANS-
30 years - ANS-
forty years
d. $one hundred,000 - ANS-
50 years - ANS-$1 mil
A borrower asks for the definition of a "bargain factor" which of the subsequent great
describes what a point is in a mortgage transaction?
A. Mathematical conversion of a finance fee to APR
b. Incentive earned by LO's for locking a positive hobby price
c. 1% of the mortgage amount: points are paid to reduce the fee
d. Incremental measurement used for ARM adjustments - ANS-1% of the loan quantity:
factors are paid to lessen the charge
A borrower has long past to agreement for a coins-out refinance on Tuesday for his major
residence. His rescission period is over at the hours of darkness on Friday. According to the
provisions detailed underneath federal law, what's the primary viable day the mortgage ought
to fund?
A. Monday the following week
b. Friday
c. Saturday
d. Tuesday - ANS-Saturday
,A borrower is a sixty five-yr-vintage retiree with a fixed profits and good sized fairness in his
domestic. Which of the following would be the exceptional option to complement his cash
float?
A. HECM
b. HELOC
c. ARM
d. SISA - ANS-HECM
A creditor may include a prepayment penalty provision in which of the subsequent
mortgages?
A. An arm with a loan term of 15 years
b. An adjustable rate certified loan that is a higher-priced loan
c. A fixed-price qualified loan that isn't a better priced mortgage
d. A high-value loan - ANS-A constant-rate certified loan that is not a better priced loan
A purchaser with an brilliant credit score rating submits a loan application. When does ECOA
require that the applicant be suggested of the status of the software?
A. Within one week
b. Within ninety days
c. Within 30 days
d. Within three days - ANS-Within 30 days
A front end ratio is:
a. A contrast of the price of the assets and the amount of the loan
b. A assessment of the borrower's month-to-month housing fee and his or her profits
c. A assessment of the quantity of the mortgage and the borrower's earnings
d. A comparison of the borrower's total month-to-month duties and gross month-to-month
income - ANS-A assessment of the borrower's monthly housing fee and his or her income
A Hazard insurance employer hosts a dinner for the employees of a mortgage broking. The
specified dealer encourages the employees to send customers to the insurance
organisation. Who has violated RESPA?
A. Neither parties
b. Mortgage broking
c. Both events
d. Hazard insurance enterprise - ANS-Both events
A lender is permitted to disclaim an applicant credit based on which of the following factors?
A. The applicant has participated in a consumer counseling program
b. The applicant has public assistance income
c. The applicant lacks income balance
d. The applicant is divorced - ANS-The applicant lacks profits stability
A loan-degree price adjustment LLPA is first-class described as:
a. Handling charges charged with the aid of GSEs while lenders promote loans to them
b. An delivered price systematically charged by using GSEs while purchasing loans made to
purchasers with credit score score below 620
, c. GSE costs that result in better interest quotes when purchaser eligibility or mortgage
capabilities gift a better hazard of default
d. Premium pricing paid through GSEs to purchase loans made to rather creditworthy
customers - ANS-GSE prices that result in better hobby costs while patron eligibility or
mortgage capabilities gift a better danger of default
A mortgage broking enters into a condo agreement with a actual estate agent in which the
rent for the workplace space is on the prevailing marketplace fee. Who has violated RESPA?
A. The mortgage dealer
b. The real estate agent
c. Both parties
d. Neither events - ANS-Neither parties
A mortgage dealer has 49% ownership in a title enterprise. The loan broking refers
commercial enterprise to the identify corporation and additionally affords written disclosures
to the borrower detailing the enterprise courting. The written disclosure also makes it clean
that the borrower isn't required to use the services of the name corporation. Who is in
violation of RESPA?
A. The name organization
b. The loan broker
c. Neither the name co nor the mortgage broking
d. Both the name coverage agency and the loan dealer - ANS-Neither the identify co nor the
mortgage dealer
A mortgage broking is required to provide an opt-out note wherein of the subsequent cases?
A. The loan dealer most effective shares private information with affiliates
b. Only lets in its LO's and the employee supervising the organisation's safety program to get
entry to private private information
c. The mortgage dealer handiest stocks nonpublic non-public info with third events who
perform settlement offerings for the purchaser
d. The loan dealer shares nonpublic private data with non-affiliated third events - ANS-The
mortgage broker shares nonpublic non-public records with non-affiliated 1/3 events
A loan broker is not able to help a purchaser and refers him to another mortgage broking for
origination services. The 2nd broking can pay the referring broking a charge for providing the
lead. Which of the subsequent is accurate?
A. The rate is felony, as long as the agents have a pre-present agreement in place
b. The rate is prison, so long as the agents do not have a pre-existing agreement in location
for price of referral charges
c. The price is illegal, until the agents provide a disclosure to the purchaser
d. The rate is illegal - ANS-The price is unlawful
A mortgage dealer structures a higher-priced loan with points in borrower credit because the
borrower has limited coins to close, and suggests the borrower use the premium generated
to subsidize the remaining prices. After attention, the borrower has the same opinion and
movements forward. This is:
a. Legal and Unethical
b. Illegal and ethical
_____ effects from the application of minimal required periodic bills that are not sufficient to
cover the interest that is due
a. Negative amortization
b. Amortizing payments
c. Negative fairness
d. Lower credit ratings - ANS-Negative amortization
10 years
c. $50,000 - ANS-
15. HMDA's implementing law is:
a. Regulation c
b. Regulation a
c. Regulation z
d. Regulation x - ANS-Regulation c
30 years
b. $2 mil - ANS-
30 years - ANS-
forty years
d. $one hundred,000 - ANS-
50 years - ANS-$1 mil
A borrower asks for the definition of a "bargain factor" which of the subsequent great
describes what a point is in a mortgage transaction?
A. Mathematical conversion of a finance fee to APR
b. Incentive earned by LO's for locking a positive hobby price
c. 1% of the mortgage amount: points are paid to reduce the fee
d. Incremental measurement used for ARM adjustments - ANS-1% of the loan quantity:
factors are paid to lessen the charge
A borrower has long past to agreement for a coins-out refinance on Tuesday for his major
residence. His rescission period is over at the hours of darkness on Friday. According to the
provisions detailed underneath federal law, what's the primary viable day the mortgage ought
to fund?
A. Monday the following week
b. Friday
c. Saturday
d. Tuesday - ANS-Saturday
,A borrower is a sixty five-yr-vintage retiree with a fixed profits and good sized fairness in his
domestic. Which of the following would be the exceptional option to complement his cash
float?
A. HECM
b. HELOC
c. ARM
d. SISA - ANS-HECM
A creditor may include a prepayment penalty provision in which of the subsequent
mortgages?
A. An arm with a loan term of 15 years
b. An adjustable rate certified loan that is a higher-priced loan
c. A fixed-price qualified loan that isn't a better priced mortgage
d. A high-value loan - ANS-A constant-rate certified loan that is not a better priced loan
A purchaser with an brilliant credit score rating submits a loan application. When does ECOA
require that the applicant be suggested of the status of the software?
A. Within one week
b. Within ninety days
c. Within 30 days
d. Within three days - ANS-Within 30 days
A front end ratio is:
a. A contrast of the price of the assets and the amount of the loan
b. A assessment of the borrower's month-to-month housing fee and his or her profits
c. A assessment of the quantity of the mortgage and the borrower's earnings
d. A comparison of the borrower's total month-to-month duties and gross month-to-month
income - ANS-A assessment of the borrower's monthly housing fee and his or her income
A Hazard insurance employer hosts a dinner for the employees of a mortgage broking. The
specified dealer encourages the employees to send customers to the insurance
organisation. Who has violated RESPA?
A. Neither parties
b. Mortgage broking
c. Both events
d. Hazard insurance enterprise - ANS-Both events
A lender is permitted to disclaim an applicant credit based on which of the following factors?
A. The applicant has participated in a consumer counseling program
b. The applicant has public assistance income
c. The applicant lacks income balance
d. The applicant is divorced - ANS-The applicant lacks profits stability
A loan-degree price adjustment LLPA is first-class described as:
a. Handling charges charged with the aid of GSEs while lenders promote loans to them
b. An delivered price systematically charged by using GSEs while purchasing loans made to
purchasers with credit score score below 620
, c. GSE costs that result in better interest quotes when purchaser eligibility or mortgage
capabilities gift a better hazard of default
d. Premium pricing paid through GSEs to purchase loans made to rather creditworthy
customers - ANS-GSE prices that result in better hobby costs while patron eligibility or
mortgage capabilities gift a better danger of default
A mortgage broking enters into a condo agreement with a actual estate agent in which the
rent for the workplace space is on the prevailing marketplace fee. Who has violated RESPA?
A. The mortgage dealer
b. The real estate agent
c. Both parties
d. Neither events - ANS-Neither parties
A mortgage dealer has 49% ownership in a title enterprise. The loan broking refers
commercial enterprise to the identify corporation and additionally affords written disclosures
to the borrower detailing the enterprise courting. The written disclosure also makes it clean
that the borrower isn't required to use the services of the name corporation. Who is in
violation of RESPA?
A. The name organization
b. The loan broker
c. Neither the name co nor the mortgage broking
d. Both the name coverage agency and the loan dealer - ANS-Neither the identify co nor the
mortgage dealer
A mortgage broking is required to provide an opt-out note wherein of the subsequent cases?
A. The loan dealer most effective shares private information with affiliates
b. Only lets in its LO's and the employee supervising the organisation's safety program to get
entry to private private information
c. The mortgage dealer handiest stocks nonpublic non-public info with third events who
perform settlement offerings for the purchaser
d. The loan dealer shares nonpublic private data with non-affiliated third events - ANS-The
mortgage broker shares nonpublic non-public records with non-affiliated 1/3 events
A loan broker is not able to help a purchaser and refers him to another mortgage broking for
origination services. The 2nd broking can pay the referring broking a charge for providing the
lead. Which of the subsequent is accurate?
A. The rate is felony, as long as the agents have a pre-present agreement in place
b. The rate is prison, so long as the agents do not have a pre-existing agreement in location
for price of referral charges
c. The price is illegal, until the agents provide a disclosure to the purchaser
d. The rate is illegal - ANS-The price is unlawful
A mortgage dealer structures a higher-priced loan with points in borrower credit because the
borrower has limited coins to close, and suggests the borrower use the premium generated
to subsidize the remaining prices. After attention, the borrower has the same opinion and
movements forward. This is:
a. Legal and Unethical
b. Illegal and ethical
