NMLS EXAM QUESTIONS AND ANSWERS

The preferred debt-to-income ratio for applicants for VA loans is: A. 35% B. 43% C. 50% D. 41% - Answer- D. 41% When would a license be suspended without a hearing? A. If a licensee fails to renew B. If a licensee fails to request a hearing with the state regulator C. If a licensee has failed to complete pre-licensing requirements D. If a licensee has already executed a right to a hearing for a previous violation - Answer- B. If a licensee fails to request a hearing with the state regulator After a borrower allows the assumption of his or her VA loan, he or she may use his or her VA privilege again only after: A. Five years have passed B. The home is sold to a new owner C. The original VA loan is satisfied D. The original VA loan is moved from his or her name into the name of the assuming borrower - Answer- C. The original VA loan is satisfied In order to qualify for an adjustable-rate mortgage, a consumer must be able to show that he or she can: A. Make regularly scheduled payments that are calculated using the loan's introductory rate B. Make amortizing payments that are calculated using the fully indexed rate for the ARM C. Make amortizing payments that are calculated using the loan's rate after the first interest rate adjustment occurs D. Make regularly scheduled payments that are calculated using the fixed interest rate for which - Answer- B. Make amortizing payments that are calculated using the fully indexed rate for the ARM Money paid by a buyer to a seller at the time of entering into a contract to indicate intent and ability to carry out the contract is called: A. Down payment B. Earnest money C. Escrow funds D. Service release premium - Answer- B. Earnest money The Pois have just closed on their mortgage loan at a formal settlement meeting. What is mortgage loan originator Leilani Luau's responsibility after loan closing? A. She must provide any required re-disclosures B. None; Leilani's tasks are complete