Exam (elaborations)
NMLS Exam Questions Containing Correct Answers
NMLS Exam Questions Containing Correct Answers
[Show more]
Seller
Follow
Content preview
NMLS Exam Questions Containing CorrectAnswers
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
the consumer would be eligible - 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
,NMLS Exam Questions Containing Correct
Answers
B. None; Leilani's tasks are complete
C. She must provide another set of disclosures, showing final costs and expenses
D. She must record the transaction with the county recorder - Answer B. None; Leilani's tasks
are complete
In order for a small creditor to originate a balloon payment qualified mortgage, the small
creditor must hold the loan in its portfolio for:
A. Twelve months
B. Three years
C. Two years
D. Five years - Answer B. Three years
When a seller provides all or part of the financing for the borrower in order to finance a
purchase transaction, it is known as:
A. For sale by owner (FSBO)
B. Seller carry-back
C. Seller concessions
D. Seller self-financed - Answer B. Seller carry-back
Which section of the URLA contains questions which, depending on the applicant's answer,
could result in immediate rejection of the application?
A. Information for Government Monitoring Purposes
B. Declarations
C. Details of the Transaction
D. Acknowledgement and Agreement - Answer B. Declarations
With what type of loan do payments, including principal and interest, remain constant
throughout the life of the loan?
A. A balloon loan, as long as the maturity date is beyond ten years
B. An ARM with a conversion option
C. Fixed rate
D. An FHA loan - Answer C. Fixed rate
If a financial institution intends to share consumer information with nonaffiliated third parties,
an initial privacy notice is due to a consumer at what point?
A. Within seven business days of a customer providing nonpublic personal information sufficient
to pull a credit report
B. Within three business days of initial contact between the consumer and the financial
institution
C. No later than three business days prior to settlement
, NMLS Exam Questions Containing Correct
Answers
D. No later than the time at which a customer relationship is established - Answer D. No later
than the time at which a customer relationship is established
In January of 2020, Wella and Kip agreed to purchase a home at a purchase price of $546,300.
They would like to hold onto as much of their savings as they can, but they have chosen to make
a down payment sufficient enough to qualify for a conforming loan. What is the minimum down
payment they can make to reach the conforming loan limit but still retain savings?
A. $47,900
B. $35,900
C. $95,800
D. $54,900 - Answer B. $35,900
Which of the following is the least-expensive type of reverse mortgage?
A. HECM
B. Proprietary mortgage
C. Non-recourse
D. Single purpose - Answer D. Single purpose
A single-purpose reverse mortgage is a low-cost loan offered to low-income borrowers by state
and local agencies or non-profit organizations. They are typically made for purposes such as
payment of property taxes or payment for home improvements.
What information, if found during a title search, is likely to prevent the completion of a
transaction to refinance a first mortgage?
A. A tax lien
B. A utility easement
C. A second mortgage
D. A judgment that was secured by a property lien, but recently paid in full - Answer A. A tax
lien
Tax liens can take priority over mortgage liens and are, therefore, likely to prevent the
completion of a transaction.
Which of the following features would be permitted for a non-qualified mortgage, but not for a
qualified mortgage?
A. A term of 15 years
B. An adjustable interest rate
C. A debt-to-income ratio of 43%
D. An interest-only option - Answer D. An interest-only option
The size of the government's guarantee on a VA loan depends on:
A. Whether the interest rate is fixed or adjustable
B. Whether this is the first time a veteran uses the guarantee or a subsequent transaction
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Silvah. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67163 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now