1) Seller can Sell property at a premium/profit with Fannie Mae financing after?
30 days
•60 days
•90 days - ANSWER •90 days
2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance - ANSWER cost of fund index
3) Subordinate fin...
NMLS Practice Test Correct Questions &
Answers(Graded A+)
1) Seller can Sell property at a premium/profit with Fannie Mae financing after? 30 days
•60 days
•90 days - ANSWER •90 days
2) A COFI index is defined as?
Cost of funds index
•Cost of financial index
•Cost of funding insurance - ANSWER cost of fund index
3) Subordinate financing relates to
•seller financing.
•second mortgages.
•financing in the secondary mortgage market.
•subprime loans. - ANSWER second mortgage
4) Explain what Investors with non-recourse loans mean?
•Borrower does not have any recourse on default
•Borrower doesn't occupy the property
•Borrower has 20% equity - ANSWER Borrower does not have any recourse on default
5) Which of the following is true of the COFI?
It stands for the Cost of Future Interest.
•It is the preferred index if interest rates are expected to fall.
•It is only used in the 11th Federal Home Loan Bank District.
•It is the slow-moving Cost of Funds Index. - ANSWER It is the slow moving cost of funds index
6) Who is in charge of discrimination complaints?
•Federal housing authority
•Lender
•ECOA
•Loan Officer - ANSWER Federal housing authority
7) The advantage of a home equity loan over refinancing is •lower interest rate.
•less likelihood of default.
•tax deductibility.
•the ability to pay off part of the total debt separately. - ANSWER the ability to pay off part of the total debt separately
9) When a telemarketer calls a person on the do not call list in violation of the do not call
regulations, he is subject to a fine of
$5,000.
•$7,500.
•$12,000.
•$16,000 - ANSWER 16,000
10) An escrow account
is set up to assure the borrower's loan payments are made promptly.
•is intended to ensure timely payment of taxes and other charges related to the property.
•does not necessitate sending out any statements to the borrower.
•protects the borrower in the event he is unable to make his tax payments. - ANSWER •is intended to ensure timely payment of taxes and other charges related to the property.
11) Hal has an adjustable rate loan with a payment cap that allows him to pay less than the amount needed to pay all of the interest being charged on the loan. The term to describe this is
•partial amortization.
•negative amortization.
•full amortization.
•interest only. - ANSWER negative amortization
12) Government agency that regulates RESPA? •ECOA
•HUD
•FBI - ANSWER HUD
13) The last portion of the 1003 contains government monitoring data on?
Sex and race of applicant •Sex, marital status, and race of applicant
•Race, ethnicity, and gender - ANSWER •Race, ethnicity, and gender
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