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NMLS SAFE EXAM all Questions & answers solved accurately with Complete Solution Graded A+ latest version
NMLS SAFE EXAM all Questions & answers solved accurately with Complete Solution Graded A+ latest version
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NMLS SAFE EXAMWhere credit institutions originate loans - CORRECT ANSWER-Primary
Mortgage Market
When an ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the initial adjustment
B. The start rate for the loan
C. The maximum the rate can increase over the life of the loan
D. The rate maximum the rate can decrease over the life of the loan - CORRECT
ANSWER-C. The maximum the rate can increase over the life of the loan
When utilizing a temporary buydown to lower the interest rate on a FHA loan,
which of the following are correct
A. The borrower qualified at the note rate
B. The borrower qualified at the buydown rate
C. The rate cannot be more than 2% below the note rate
D. Seller or builder can pay the discount points to buydown the rate - CORRECT
ANSWER-B. The borrower qualified at the buydown rate
All of the following are violations of the Fair Housing Act EXCEPT
A. Age
B. National Origin
C. Disability
D.Religion - CORRECT ANSWER-A. Age
Claim against property held by one who is not the legal owner - CORRECT
ANSWER-Encrumbrance
Advertised term that requires additional disclosures - CORRECT
ANSWER-Trigger Term
An advertisement must be presented "clearly and conspicuously" to keep from
being deceptive, unfair, or otherwise violate a Commission rule - CORRECT
ANSWER-Advertising Disclosure
,Extenuating circumstances such as "bona fide personal financial emergency -
CORRECT ANSWER-Waving Right of Rescission
Right that borrowers have to cancel a loan or line of credit with a lender within
three days of closing - CORRECT ANSWER-Right of Rescission
When creditors office is open to the public, a calendar working day except
Sunday or a federal holiday - CORRECT ANSWER-Business Day
Financial information used for purposes of obtaining an extension of credit -
CORRECT ANSWER-Application
The act of making new information known - CORRECT ANSWER-Disclosure
Mission is to promote consumer protection and eliminate and prevent
anticompetitive business practices - CORRECT ANSWER-FTC
Federal Trade Commission
Regulatory agency charged with overseeing financial products and services
offered to consumers - CORRECT ANSWER-CFPB
Consumer Financial Protection Bureau
Enacted 1968 promotes the informed use of consumer credit by requiring
disclosures about terms and costs and standardizes the manner in which costs
with borrowing are calculated and disclosed - CORRECT ANSWER-TILA
Truth in Lending Act
Interest charged on a loan for one or more days - CORRECT ANSWER-Per
Diem Interest
Principal (X) Interest Rate = Annual Interest Rate - CORRECT ANSWER-Annual
Interest Rate Formula
Mortgage where the mortgagor is only required to pay off the interest that arises
from the principal that is borrowed for a set period - CORRECT
ANSWER-Interest Only Mortgage
,Borrower chooses to pay additional "discount points" to buy down the interest
rate for the life of the mortgage note - CORRECT ANSWER-Permanent
Buydown
Used on fixed rate loans over two years
Set of two initial temporary-start interest rates that increase in stair-step fashion
until a permanent interest rate is reached - CORRECT ANSWER-2/1 Buydown
A form of pre-paid interest which effectively increases the yield on the loan above
the amount of the stated interest rate - CORRECT ANSWER-Discount Point
An amount in addition to the Loan to Value, which simply represents the first
position mortgage or loan as a percentage of the property's value - CORRECT
ANSWER-CLTV
Combined Loan to Value
Ratio of a loan to the value of an asset purchased - CORRECT ANSWER-LTV
Loan to Value
Principal, Interest, Taxes, Insurance
Refers to the components of a mortgage payment - CORRECT ANSWER-PITI
Housing to Debt
Ratio that measures an individual's ability to manage monthly payment and repay
debts - CORRECT ANSWER-DIF
Agreement between the lender and the borrower to delay foreclosure -
CORRECT ANSWER-Forbearance
A permanent restructuring of the mortgage where one or more of the terms of a
borrower's loan are changed to provide a more affordable payment - CORRECT
ANSWER-Loan Modification
Legal process to collect debt on mortgaged property - CORRECT
ANSWER-Foreclosure
, Document generated and signed by a mortgage lender, acknowledging that the
borrower has paid off the mortgage loan in full and the mortgage is not a lien on
the property - CORRECT ANSWER-Satisfaction of Mortgage Letter
When two mortgages are on a property, this specifies which mortgage takes
precedence - CORRECT ANSWER-Subordination Agreement
Provides homeowner proof the mortgage is paid off - CORRECT
ANSWER-Payoff Statement
Legal presumption that anything recorded in a public record can be known by
anyone - CORRECT ANSWER-Constructive Note
Direct knowledge that one has of the property - CORRECT ANSWER-Actual
Note
Information that should compel a reasonable person to make further inquiries
about some aspect of the property - CORRECT ANSWER-Inquiry Note
Serves as a central repository of information about a parcel of land - CORRECT
ANSWER-Title Record
Payment received by lender after selling a loan Based on market value -
CORRECT ANSWER-SRP
Service Release Premiums
Created in 1968, goal to expand affordable housing under HUD - CORRECT
ANSWER-GNMA
Government National Mortgage Association
Created 1968 works with Fannie Mae to increase affordable lending - CORRECT
ANSWER-FNMA
Federal National Mortgage Association
Insures banks real estate loans and charges borrowers a small premium -
CORRECT ANSWER-FHA
Federal Housing Administration
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