NMLS MLO Exam Questions and Answers | Latest Version | 2024/2025 | Already Passed

NMLS MLO Exam Questions and Answers | Latest Version | 2024/2025 | Already Passed 2/3/6 caps ARM initial adjustment max is 2%, subsequent adjustment period max is 3%, and lifetime cap of 6% 3rd party recording fee tolerance? 10% 5/6 ARM with 2/6 caps, what does the 5/6 represent? Initial rate is fixed for first 5 years and may adjust once every 6 months thereafter A borrower is entitled to request and obtain a copy of the HUD-1 Settlement Statement how many days before closing? 1 day A company is required is required to take corrective action after conducting self-testing and discovering that a violation of ECOA: more likely than not occurred A consumer with a loan for closed-end credit may exercise his or her right to rescind: Until midnight on the 3rd business day after signing the lending agreement A High-Cost mortgage has a prepayment penalty of 3% when paid off in the first year. If a borrower has a mortgage of $245,000 and pays it all off in their first year owning the mortgage (because he/she won the lottery) how much will the prepayment penalty cost them? A High- Cost mortgage cannot have a prepayment penalty, the borrower should report this illegal loan A legally binding letter from the lender to the mortgagor stating the terms of the loan is: A commitment letter A lender requires a borrower to submit his W2's and tax returns prior to receiving the Loan Estimate. This is illegal, the borrower cannot be required to submit any documents prior to the delivery of the estimate. A lender that works with licensed loan originators is a: Wholesale lender A lender won't lose money funding what type of loan? FHA A Loan Estimate and Closing Disclosure would not be required for: Reverse mortgage, loan to buy a mobile home, HELOC, etc. A loan in which interest is subsidized for a stated period of time is a: Buy-down mortgage A loan originator who accepts an upfront fee for negotiating a loan modification is violating which law? MARS A mortgage note that does NOT limit recovery solely from the property is called a: Note Endorsed with Recourse A mortgage on personal property is: Chattel mortgage A mortgagor's title insurance policy is based on purchase price. True or False? True A Point of Beginning is used in what type of property survey? Metes and Bounds (the most accurate) A Reverse Mortgage is a non-recourse loan. True or False? True A shrubbery hedge is one example of an: A. Encumbrance B. Easement C. Entitlement D. Acceptable title impediment D. Acceptable title impediment According to the Dodd-Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? 5%