NMLS TEST PREP EXAM 639 QUESTIONS WITH COMPLETE SOLUTIONS

The interest rate given by banks to their customers is called the: Correct Answer: Prime rate A borrower applies for a loan. After accessing the borrower's credit, the loan is denied. Which of the following must occur? Correct Answer: A loan denial letter (Adverse Action Notice) must be sent to the borrower within 30 days. According to Regulation B, which of the following is not recommended? Correct Answer: Asking if a borrower intends to have more children. Which of the following are NOT required in connection with an application to a state for licensing as a mortgage loan originator? Correct Answer: Submission of the previous two year's tax returns. Buyers purchased a home for $175,900. They put 10% down, and were charged an origination fee of 1% and discount points of 2.5%. How much money did the buyers have to bring to cover the origination fee and discount points? Correct Answer: 5540.85 The way to compute loan to value for a refinance would be? Correct Answer: Divide the loan amount by the property value. Negative amortization is when the: Correct Answer: Payment is less than the required interest and the loan balance increases. The buyers closed on a mortgage of $240,000 after having put 20% down. Assuming that they were the same, what was the purchase price and appraised value? Correct Answer: Aside from reverse mortgages, most residential mortgages begin through the: Correct Answer: Uniform Residential Loan Application When there is a clause in a mortgage that requires the borrower to pay an extra fee if the loan is paid off early, it is known as a: Correct Answer: Prepayment penalty. Interest rates for an FHA loan are set by: Correct Answer: Market forces and/or negotiation between lender and borrower. On any loan, an adjustable rate disclosure has to be issued if: Correct Answer: There are any periodic rate changes during the term of the loan. For income from alimony and/or child support to be recognized as income, the remaining term of such income must exceed: Correct Answer: Three years