NMLS Training Exam Questions And
Correct Answers 100% Verified.
A mortgage broker must provide the Washington Department of Financial Institutions with
_______ notice when there is a change in standing with the Washington Secretary of State. -
AnswerTen business days
Washington's Consumer Loan...
NMLS Training Exam Questions And
Correct Answers 100% Verified.
A mortgage broker must provide the Washington Department of Financial Institutions with
_______ notice when there is a change in standing with the Washington Secretary of State. -
Answer✔Ten business days
Washington's Consumer Loan Act prevents a lender from collecting more than ____ days'
prepaid interest when using the simple interest calculation method. - Answer✔31
An individual may act as both a loan originator and real estate broker in the same transaction as
long as: - Answer✔A disclosure is provided to the borrower prior to providing any mortgage
services
The administrative agency that implements regulations and enforces laws regulating mortgage
brokers and loan originators in Washington is: - Answer✔The National Association of Mortgage
Brokers
Washington's predatory lending law applies to - Answer✔Loans defined in the law as
"residential mortgage loans
Which of the following is not a requirement for an individual applying for a loan originator
license under the MBPA? - Answer✔At least three years of industry experience
According to the Washington Usury Act, what is the legal maximum annual interest rate in
Washington? - Answer✔12%
The Mortgage Broker Practices Act requires prior notice of which of the following events: -
Answer✔A mortgage broker's decision to sell a mortgage business
The initial Loan Estimate must be delivered at least how many days prior to consummation? -
Answer✔7 business days
When may a homeowner request PMI to be cancelled? - Answer✔As soon as his/her equity
position is 20% or greater
Tom and Cindy Lewis are buying a house with a $300,000 sales price and their LTV will be 80%.
They paid $3,600 in discount points. How many total points did they pay? - Answer✔1.5
In accordance with Section 8 of the Real Estate Settlement Procedures Act, a mortgage broker
may receive compensation for which of the following? - Answer✔The reasonable value of
goods and/or services actually performed or provided
The Telemarketing Sales Rule prohibits calls made to consumers: - Answer✔Who have
specifically asked a mortgage professional not to contact them
Which document actually contains the borrower's promise to repay the loan? - Answer✔the
note
Overtime income may be considered for an hourly employee: - Answer✔If it has been
consistent for at least two years and is likely to continue
The most commonly used type of reverse mortgage is known as a: - Answer✔Home Equity
Conversion Mortgage
An appraiser uses any one of three appraisal approaches to determine the value of a property.
They are: - Answer✔Sales comparison (or market), cost, and income
Which of the following individuals would not be permitted to hold POA for a borrower? -
Answer✔The borrower's mortgage loan originator
Businesses that conduct telemarketing are required to access the Do-Not-Call Registry every
_______ in order to maintain an updated database of people on the Do-Not-Call List. -
Answer✔31 days
Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer? -
Answer✔the creditor
You have taken a loan application from a customer with an excellent credit score. When should
you advise him/her about the status of the application? - Answer✔within 30 days
An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a
periodic cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what
will the rate be after its first adjustment? - Answer✔5.00%
When a loan is characterized as "conforming," it means the loan: - Answer✔Meets guidelines
established by Fannie Mae and Freddie Mac
Previously used as compensation for mortgage professionals, yield spread premiums must now
be used: - Answer✔As credits to the borrower to help pay settlement costs
An FHA loan, insured by the federal government, protects lenders against: -
Answer✔foreclosure
The front end ratio is: - Answer✔A comparison of the borrower's monthly housing expense and
his or her income
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