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NMLS ACTUAL EXAM WITH Q&A TESTED
AND APPROVED NEWLY MODIFIED EXAM!!!
According to the Truth-in-Lending Act (TILA), which if the following fees is EXCLUDED
from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums -- ANSWER--A.) Hazard insurance
FHA loans are:
A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled -- ANSWER--A.) Partially guaranteed
The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
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D.) 10% of principle and interest -- ANSWER--C.) 5% of principle and interest
A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan -- ANSWER--B.) VA loan
A Mortgage Insurance Premium is required on:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan -- ANSWER--A.) FHA loan
The mortgagee is the:
A.) Borrower
B.) Lender
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C.) Closing agent
D.) Mortgage broker -- ANSWER--B.) Lender
The borrower does NOT sign which document:
A.) Deed
B.) HUD-1/Loan Disclosure
C.) Mortgage
D.) Note -- ANSWER--A.) Deed
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 -- ANSWER--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
C.) The renewal of a single payment obligation with no change in the original terms
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D.) The satisfaction of an existing obligation and its replacement by a new obligation --
ANSWER--D.) The satisfaction of an existing obligation and its replacement by a new
obligation
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
D.) $25,000 -- ANSWER--D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
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 -- ANSWER--A.) A lender to decrease the interest
rate on the mortgage loan
NMLS ACTUAL EXAM WITH Q&A TESTED
AND APPROVED NEWLY MODIFIED EXAM!!!
According to the Truth-in-Lending Act (TILA), which if the following fees is EXCLUDED
from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums -- ANSWER--A.) Hazard insurance
FHA loans are:
A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled -- ANSWER--A.) Partially guaranteed
The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
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D.) 10% of principle and interest -- ANSWER--C.) 5% of principle and interest
A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan -- ANSWER--B.) VA loan
A Mortgage Insurance Premium is required on:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan -- ANSWER--A.) FHA loan
The mortgagee is the:
A.) Borrower
B.) Lender
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C.) Closing agent
D.) Mortgage broker -- ANSWER--B.) Lender
The borrower does NOT sign which document:
A.) Deed
B.) HUD-1/Loan Disclosure
C.) Mortgage
D.) Note -- ANSWER--A.) Deed
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 -- ANSWER--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
C.) The renewal of a single payment obligation with no change in the original terms
, Page 4 of 125
D.) The satisfaction of an existing obligation and its replacement by a new obligation --
ANSWER--D.) The satisfaction of an existing obligation and its replacement by a new
obligation
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
D.) $25,000 -- ANSWER--D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
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 -- ANSWER--A.) A lender to decrease the interest
rate on the mortgage loan
