NMLS PRACTICE TEST EXAM PROFIENCY HARD QUESTIONS
2023/2024 / NATIONWIDE MORTGAGE LICENSING SYSTEM
PRACTICE
TEST HARD QUESTIONS WITH VERIFIED ANSWERS |90% AND
ABOVE PASSRATE
MUST NOT MISS
✓ FEDERAL MORTGAGE RELATED LAW
✓ UNIFORM STATE CONTENT
✓ GENERAL MORTGAGE LAW
✓ MORTGAGE LOAN ORIGINATION
✓ ETHICS
An annual escrow analysis is used to do which of the following?
A. Ensure the loan is properly amortized
B. Prevent escrow overages
C. Reduce burden on the servicer
D. Report underwriting errors -CORRECT ANSWER
-- B. Prevent escrow overages
The disclosure requirements of RESPA would apply to which of the following
loans?
A. A loan to purchase 75 acres of land
B. A farm loan
C. A loan to purchase a property that includes a gas station and convenience store
D. A loan to purchase a duplex and rehabilitate it into a single family dwelling
CORRECT ANSWER-- D. A loan to purchase a duplex and rehabilitate it into a
single family dwelling
1
,According to fair lending laws, which of the following may loan applicants be
asked to disclose for HMDA data collection purposes?
A. If they plan to have more than one child
B. If they will stop working once they have children
C. Their religion
D. Their race
-CORRECT ANSWER-- D. Their race
A customer with an excellent credit score submits a loan application. When does
ECOA require that the applicant be advised of the status of the application?
A. Within 30 days
B. Within 90 days
C. Within three days
D. Within one week
-CORRECT ANSWER-- A. Within 30 days
The amount of the down payment, the amount of the finance charge, or the number
of payments needed are all examples of _______________ under TILA.
A. Components of the finance charge
B. Trigger terms
C. Prohibited disclosures
D. Components of the APR
-CORRECT ANSWER-- B. Trigger terms
Which of the following is not included in calculating the APR?
A. Discount points
B. Underwriting fees
C. PMI
D. Escrow fees
-CORRECT ANSWER-- D. Escrow fees
2
,A borrower has gone to settlement for a cash-out refinance on Tuesday for his
principal residence. His rescission period is over at midnight on Friday. According
to the provisions specified under federal law, what is the first possible day the loan
could fund?
A. Monday, the following
week
B. Friday
C.
Saturday
D.
Tuesday
-CORRECT ANSWER-- C.
Saturday
The mandatory waiting period between issuance of disclosures and consummation
may be waived:
A. Using a pre-printed form from the lender
B. If the loan is a qualified mortgage
C. If the consumer requests a waiver due to a bona fide financial emergency
D. If the loan originator waives it for the consumer
-CORRECT ANSWER-- C. If the consumer requests a waiver due to a bona fide
financial emergency
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
A. Must be provided within 30 days of the decision to deny
B. Is not required to be provided to the consumer
C. Is not required to be provided unless requested in writing
D. Must be included with the notice of adverse action
-CORRECT ANSWER-- A. Must be provided within 30 days of the decision to
deny
HOEPA would not apply to:
A. A bridge loan to finance construction
B. A purchase money mortgage loan
C. An adjustable-rate mortgage loan
D. A closed-end home equity loan
3
, -CORRECT ANSWER-- A. A bridge loan to finance construction
HOEPA was enacted as a part of:
A. ECOA
B. HMDA
C. TILA
D. RESPA
-CORRECT ANSWER-- C. TILA
Closed-end loans with rates that exceed the average prime offer rate, but are not
high enough to trigger protections under HOEPA, are known as:
A. Subprime mortgage loans
B. Reverse mortgages
C. Higher-priced mortgage loans
D. Qualified high-cost mortgages
-CORRECT ANSWER-- C. Higher-priced mortgage loans
This Rule applies to commercial communications used to market mortgage loan
products and services to consumers.
A. MAP Rule
B. RESPA Rule
C. Truth in Advertising Rule
D. Safeguards Rule
-CORRECT ANSWER-- A. MAP Rule
Under the Gramm-Leach-Bliley Act, which of the following is considered
nonpublic information?
A. The street address of the property a borrower intends to purchase
B. The assessed value of a subject property
C. Former owners of a particular property
D. A borrower's current loan balances
-CORRECT ANSWER-- D. A borrower's current loan balances
If a loan applicant chooses not to disclose his or her race on a loan application,
what recourse does a mortgage professional have? A. Provide the applicant
with an Adverse Action Notice
B. Inform the applicant of the implications of the FBI Mortgage Fraud Warning
4
2023/2024 / NATIONWIDE MORTGAGE LICENSING SYSTEM
PRACTICE
TEST HARD QUESTIONS WITH VERIFIED ANSWERS |90% AND
ABOVE PASSRATE
MUST NOT MISS
✓ FEDERAL MORTGAGE RELATED LAW
✓ UNIFORM STATE CONTENT
✓ GENERAL MORTGAGE LAW
✓ MORTGAGE LOAN ORIGINATION
✓ ETHICS
An annual escrow analysis is used to do which of the following?
A. Ensure the loan is properly amortized
B. Prevent escrow overages
C. Reduce burden on the servicer
D. Report underwriting errors -CORRECT ANSWER
-- B. Prevent escrow overages
The disclosure requirements of RESPA would apply to which of the following
loans?
A. A loan to purchase 75 acres of land
B. A farm loan
C. A loan to purchase a property that includes a gas station and convenience store
D. A loan to purchase a duplex and rehabilitate it into a single family dwelling
CORRECT ANSWER-- D. A loan to purchase a duplex and rehabilitate it into a
single family dwelling
1
,According to fair lending laws, which of the following may loan applicants be
asked to disclose for HMDA data collection purposes?
A. If they plan to have more than one child
B. If they will stop working once they have children
C. Their religion
D. Their race
-CORRECT ANSWER-- D. Their race
A customer with an excellent credit score submits a loan application. When does
ECOA require that the applicant be advised of the status of the application?
A. Within 30 days
B. Within 90 days
C. Within three days
D. Within one week
-CORRECT ANSWER-- A. Within 30 days
The amount of the down payment, the amount of the finance charge, or the number
of payments needed are all examples of _______________ under TILA.
A. Components of the finance charge
B. Trigger terms
C. Prohibited disclosures
D. Components of the APR
-CORRECT ANSWER-- B. Trigger terms
Which of the following is not included in calculating the APR?
A. Discount points
B. Underwriting fees
C. PMI
D. Escrow fees
-CORRECT ANSWER-- D. Escrow fees
2
,A borrower has gone to settlement for a cash-out refinance on Tuesday for his
principal residence. His rescission period is over at midnight on Friday. According
to the provisions specified under federal law, what is the first possible day the loan
could fund?
A. Monday, the following
week
B. Friday
C.
Saturday
D.
Tuesday
-CORRECT ANSWER-- C.
Saturday
The mandatory waiting period between issuance of disclosures and consummation
may be waived:
A. Using a pre-printed form from the lender
B. If the loan is a qualified mortgage
C. If the consumer requests a waiver due to a bona fide financial emergency
D. If the loan originator waives it for the consumer
-CORRECT ANSWER-- C. If the consumer requests a waiver due to a bona fide
financial emergency
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
A. Must be provided within 30 days of the decision to deny
B. Is not required to be provided to the consumer
C. Is not required to be provided unless requested in writing
D. Must be included with the notice of adverse action
-CORRECT ANSWER-- A. Must be provided within 30 days of the decision to
deny
HOEPA would not apply to:
A. A bridge loan to finance construction
B. A purchase money mortgage loan
C. An adjustable-rate mortgage loan
D. A closed-end home equity loan
3
, -CORRECT ANSWER-- A. A bridge loan to finance construction
HOEPA was enacted as a part of:
A. ECOA
B. HMDA
C. TILA
D. RESPA
-CORRECT ANSWER-- C. TILA
Closed-end loans with rates that exceed the average prime offer rate, but are not
high enough to trigger protections under HOEPA, are known as:
A. Subprime mortgage loans
B. Reverse mortgages
C. Higher-priced mortgage loans
D. Qualified high-cost mortgages
-CORRECT ANSWER-- C. Higher-priced mortgage loans
This Rule applies to commercial communications used to market mortgage loan
products and services to consumers.
A. MAP Rule
B. RESPA Rule
C. Truth in Advertising Rule
D. Safeguards Rule
-CORRECT ANSWER-- A. MAP Rule
Under the Gramm-Leach-Bliley Act, which of the following is considered
nonpublic information?
A. The street address of the property a borrower intends to purchase
B. The assessed value of a subject property
C. Former owners of a particular property
D. A borrower's current loan balances
-CORRECT ANSWER-- D. A borrower's current loan balances
If a loan applicant chooses not to disclose his or her race on a loan application,
what recourse does a mortgage professional have? A. Provide the applicant
with an Adverse Action Notice
B. Inform the applicant of the implications of the FBI Mortgage Fraud Warning
4
