NMLS LATEST TEST EXAM 2024/2025 WITH QUESTIONS AND ANSWERS (VERIFIED ANSWERS GRADED A+)

NMLS LATEST TEST EXAM 2024/2025 WITH
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QUESTIONS AND ANSWERS (VERIFIED ANSWERS u u u u u



GRADED A+) u




What is the pass rate for the NMLS Test and how long is it? -
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CORRECT ANSWER 75% of 115 questions, 125 questions long with10
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ungraded
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What is the biggest thing to remember about taking the test? -
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CORRECT ANSWER Read the questions twice, slowly, but do nottake
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over 30 seconds per question the first time through.
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What is the requirement under Fair Lending, Fair Housing, and ECOA?
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-
CORRECT ANSWER All consumers have the right to apply for aloan u
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nless they are under 18 years of age
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Which law and regulation is Home Ownership Equity Protection Act (HOE
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PA) under? -u u


CORRECT ANSWER Truth in Lending Act (TILA)aka Reg Z
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What are the items restricted under Home Ownership Equity ProtectionA
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ct (HOEPA)? -
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CORRECT ANSWER Predatory Lending, Abusing Lending Practices,
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Negative Amortization, Prepayment Penalties, Balloon Lending, Subpri
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me Lending, Equity Stripping, and not meetingAbility to Repay (ATR) re
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quirements.

,What is the minimum period for a balloon? -
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uCORRECT ANSWER A30- u u u


year amortized loan that is due in 60 months.
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What is the Average Prime Offered Rate (APOR)? -
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CORRECT ANSWER An index that is published weekly. It is added to
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High Costand High Priced Triggers.
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Who publishes the Average Prime Offered Rate (APOR) index? -
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uCORRECT ANSWER Federal Financial Institutions ExaminationCounci u u u u u u


l (FFIEC)
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What is the regulation for High Cost Loans? - CORRECT ANSWER
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Section 1026.32 (Section 32) u u u




What are the three triggers for High Cost Lending? -
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CORRECT ANSWER 6.5% on a first mortgage, 8.5% on a second mortga
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ge, and a5% fee trigger for loans over $20,000.
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What are the triggers for High Priced Lending? -
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uCORRECT ANSWER 1.5% for a first mortgage, 3.5% for a second mor u u u u u u u u u u u


tgage, andno fee trigger. u u u u




How do you calculate whether a loan exceeds the High Priced Mortgageli
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mits? - u


CORRECT ANSWER Add the APOR index to 1.5% on a first mortgage + t
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he Annual Percentage. The rate (APR) cannot exceed this.
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,What are the requirements for a High Cost Loan? -
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uCORRECT ANSWER Tax & Insurance escrows for the first 5 years of
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the loan; mandatory counselling; possibly 2 appraisals. Cannot use an Ap
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praisalWaiver. No balloons allowed.
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What are the requirements for a High Priced Loan? -
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CORRECT ANSWER Tax & Insurance escrows for the first 5 years of the
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loan;cannot use an Appraisal Waiver
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Pre-Payment penalties are not allowed by which agencies? -
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CORRECT ANSWER FannieMae, FreddieMac, USDA, FHA, VA
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What is a Pre-Payment Penalty? -
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CORRECT ANSWER Occurs if theloan is paid off within the first 2 years.
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What does ECOA stand for? -
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CORRECT ANSWER Equal CreditOpportunity Act
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What is the Reg Letter for Equal Credit Opportunity Act (ECOA)? -
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CORRECT ANSWER B
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What are the five parts of Equal Credit Opportunity Act (ECOA)? -
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CORRECT ANSWER Age, Discrimination, Underwriting, Appraisal,a
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nd Adverse Action
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What is the minimum age under Equal Credit Opportunity Act (ECOA)to
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obtain a mortgage loan? - CORRECT ANSWER 18
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, Equal Credit Opportunity Act (ECOA) has discriminatory items, whatca
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n't you do with them? - CORRECT ANSWER Make or decline a loan
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What are the discriminatory items under the Equal Credit OpportunityA
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ct (ECOA)? -
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CORRECT ANSWER Sex, Marital Status, Race, Color, Age, Religion,
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National Origin, Public Assistance, and Sexual Orientation
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What can you ask regarding marital status? - CORRECT ANSWER
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Married / Unmarried / Separated u u u u




What 4 areas should you never ask about? - CORRECT ANSWER
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Race, color, religion, & nationality
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What is the requirement for public assistance? -
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uCORRECT ANSWERMust be considered even though you may not be abl u u u u u u u u u u u


e to use it for qualifying
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How long after a complete underwriting package is delivered to the under
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writer does a decision have to be made? -
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CORRECT ANSWER30 days - may be extended if package incomplete
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How many days before closing must the appraisal be delivered to theborro
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wer? - CORRECT ANSWER 3 business days
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