NMLS UST MORTGAGE EXAM 2024/2025 /COMPLETE ACTUAL 416 EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS )
ALREADY GRADED A+.
A consumer calls to ask about a loan product. How does TILA require
you to quote an interest rate to him? - ANSWER-The APR and the
interest rate
A wraparound mortgage: - ANSWER-Occurs when a new mortgage
plus an existing mortgage is structured as a single obligation
Which of the following is true of an FHA borrower? - ANSWER-Only
75% of rental income counts as qualifying income
A mortgage on personal property is a(n): - ANSWER-Chattel Mortgage
In which way does the federal VA participate in mortgage financing? -
ANSWER-It guarantees lender against loss in the case of foreclosure
An FHA-insured loan is an example of: - ANSWER-Government
financing
Amortization is best described as: - ANSWER-Amount of interest
payment decreasing and principle payment increasing
,According to Fannie Mae and Freddie Mac, the ideal debt ratios for a
conforming loan are: - ANSWER-28/36
Which federal legislation requires that, in cases where the borrower
does not wish to provide information as to race or national origin, the
loan officer must use a surname as the basis for this determination? -
ANSWER-Home mortgage disclosure act
Net worth is defined as: - ANSWER-Assets minus liabilities
Title V of the Housing and Economic Recovery Act of 2008 is more
commonly known as the: - ANSWER-The SAFE act
The Fair Credit Reporting Act is enforced by: - ANSWER-The Federal
Trade Commission
Under which federal legislation does the consumer have the right to
receive a copy of the appraisal report on a dwelling that is to be used
as collateral for a loan? - ANSWER-ECOA
A limit on the amount of interest or loan fees a creditor may charge is
imposed by: - ANSWER-State Usury Laws
A Mortgage Servicing Disclosure Statement is required by what law? -
ANSWER-RESPA
,Seven years is the maximum length of time information can be
reported on a credit report according to the Fair Credit Reporting Act,
EXCEPT for: - ANSWER-Criminal convictions
All of the following may be included in calculation of the APR
EXCEPT: - ANSWER-Property insurance Premiums
What law covers Settlement services? - ANSWER-Respa Section 6
What Law covers kickbacks, splitting fees and unearned fees? -
ANSWER-Respa section 8
What covers Title insurance? - ANSWER-Respa Section 9
What law covers Escrow accounts? - ANSWER-Respa Section 10
What law says a borrower can sue for 3x the tremble damages? -
ANSWER-Respa Section 6
A mortgage servicer may not file any type of foreclosure action
against a delinquent borrower until the mortgage loan is _____ days
delinquent. - ANSWER-120 days
An MLO is required to provide _____ loan options to a consumer at
the time of inquiry for each type of transaction in which the consumer
expresses an interest. - ANSWER-3 types
, ECOA states that an MLO may inquire about a borrower's – ANSWER-
Citizenship
A Suspicious Activity Report must be filed within ______ days. -
ANSWER-30 calendar days
A SAR report must be retained for ______ years from the date of
filing. - ANSWER-5 years
When a lender tells a 70-year-old borrower he cannot have a 30-year
loan because of his age but that he does qualify for a 15-year loan,
this is an example of - ANSWER-Overt disparate treatment
To comply with Regulation N, Mortgage Acts and Practices
regulations, a lender must keep proof of its advertising for –
ANSWER-2 years
Sally Thompson applied to XYZ Mortgage for an interest-only loan.
Because Sally ran her own hairstyling business out of her home, she
was unable to provide income documentation and chose instead to
utilize a stated income program offered by XYZ. The combination of
an interest-only loan with stated income is an example of – ANSWER-
Risk layering
A loan contains prepayment penalties. Which of the following
documents would a borrower review to confirm this? - ANSWER-
Servicing Agreement and Promissary more
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