NMLS

NMLS EXAM REVIEW QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. What is a Mortgage? Is an agreement between a borrower and a lender in which the borrower conveys an interest in a property to the lender as security for a loan. Mortgage Bankers They are financial intermediaries that serve parties on opposite ends of the mortgage lending transaction by moving capital or money. Originating Developing marking plans, Educating clients about loan programs, Taki...

NMLS EXAM QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. reimbursement time to the borrower what does the loan estimate consist of ? close, servicing, refi, signature where are pre payment penalties shown Oversight of GFE FHFA what is not calculated during VA funding fee what law is HUD responsible for? 5 C's of underwriting 60 days TIP,Rate lock, comparison to 5 years, cash to Loan estimate and closing disclosure Discount po...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. 3 Most RESPA disclosures must be sent within ___ days from application Initial Escrow Statement What document is typically delivered at settlement, yet a lender has 45 days from settlement to deliver it? X RESPA is also known as Regulation ___ 1. Loan Terms 2. Projected Payments 3. Costs at Closing 15 List the 3 main sections on page 1 of the Loan Estimate The Notice of Transfer...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Which law was enacted to eliminate the use of certain 3rd party settlement providers as a condition of getting a loan? RESPA The main purpose of the FCRA is to create reasonable procedures to ensure the confidentiality and accuracy of consumer credit information The Loan ID # IS: the creditor's identification number Which is not a trigger used to define a high cost loan under the HOEPA p...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. the dodd-frank appraisal independence provisions prohibit lenders from which of the following activities? coercing, bribing, or intimidating an appraiser for appraisal firms to influence value which does not include a refusal to extend additional credit under existing credit arrangement where the applicant is either delinquent or in default where additional credit would exceed a previously established credit...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Conventional Front-End Ratio Conventional Back-End Ratio FHA Front-End Ratio FHA Back-End Ratio VA Front-End Ratio VA Back-End Ratio USDA Front-End Ratio USDA Back-End Ratio 31% 43% Not Used 41% 29% 41% Wet settlement occurs when... subsequently disbursed. Dry settlement occurs when... 28% 36%

NMLS EXAM QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. mortgage A loan for the purchase of real property, secured by the lien on the property Traditional Mortgage - 30 year fixed rate mortgage Pros and cons of traditional mortgage? Pro: most affordable Con: Lot of the payments goes towards the interest (longer the loan = longer you have to pay interest) PMI Private Mortgage Insurance What is PMI for and for what type of loan? - to place ins...

NMLS EXAM QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. 5 Lenders require property tax & HOI escrow account to be maintained for a minimum of ___ years What type of mtg. follows stated guidelines intended to reduce a lender's potential liability? Qualified mortgage Effective 2015 & modified disclosure reqrmts 4 most closed-end loans, not for rev. mortgages TRID If escrow account closed for any reason, notice must be sent___business days prior to closure 30

NMLS EXAM QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Conventional Loan Front end 28% Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans. Good credit, 20% down payment. May have interest only terms FHA Front end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA Back end 45% VA USDA 41% Front end 33% Front End 29% Back End 41%, low

NMLS EXAM QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Conventional Loan Front end 28% Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans. Good credit, 20% down payment. May have interest only terms FHA Front end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA Back end 45% VA USDA 41% Front end 33%