Exam (elaborations)
NMLS PRACTICE TEST HARD QUESTIONS
NMLS PRACTICE TEST HARD QUESTIONS
[Show more]
Content preview
NMLS PRACTICE TEST HARD QUESTIONSA discount point is BEST described as a charge the borrower pays to:
A.) A lender to decrease the interest rate on the mortgage loan
B.) A mortgage broker at the time of application to obtain a favorable rate
C.) The seller as part of the closing costs of a loan
D.) A lender to ensure against foreclosure - Answers -A.) A lender to decrease the
interest rate on the mortgage loan
A buyer has made an earnest money payment of $5,000. The buyer pays an additional
$2,000 in option money to be credited at closing on property with sale price of
$160,000. If the required down payment is 20%, how much additional money will the
buyer need to provide toward the down payment at closing?
A.) $32,000
B.) $27,000
C.) $30,000
D.) $25,000 - Answers -D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
If an applicant works 40 hours every week and is paid $13.52 per hour, what is the
applicant's monthly income?
A.) $2,163.20
B.) $2,343.47
C.) $2,379.52
D.) $2,487.68 - Answers -B.) $2,343.47
$13.52x 40 hours = $540.8 x 52 weeks = $28,121.6 annually /12month = $2,343.47
Monthly income
The requirement for private mortgage insurance is generally is continued when the loan-
to-value ratio falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90% - Answers -C.) 80%
,Which of the following documents itemizes all settlement costs including lender
charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement - Answers -B.) HUD-1/closing Disclosure
According to the Truth-in-Lending Act (TILA), the term "refinance" applies to
A.) A change in a payment schedule
B.) A reduction in annual percentage rate
C.) The renewal of a single payment obligation with no change in the original terms
D.) The satisfaction of an existing obligation and its replacement by a new obligation -
Answers -D.) The satisfaction of an existing obligation and its replacement by a new
obligation
What does a loan originator use to determine the estimated value of a property based
on an analytical comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis - Answers -A.) An appraisal
Which of the following methods of disclosure does NOT meet the requirements of Equal
Credit Opportunity Act (ECOA)?
A.) E-mail
B.) Mailed letter
C.) Telephone
D.) Faxed letter - Answers -C.) Telephone
Term "20 basis points" expressed as a percentage is:
A.) 0.2%
B.) 0.20%
C.) 2.00%
D.) 20.00% - Answers -B.) 0.20%
one hundredth of one percent, used chiefly in expressing differences of interest rates.
0.01
so 0.01 x20 = 0.2
, According to the Truth-in-Lending Act (TILA), which if the following fees is EXCLUDED
from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums - Answers -A.) Hazard insurance
FHA loans are:
A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled - Answers -A.) Partially guaranteed
The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest - Answers -C.) 5% of principle and interest
The purchase price of a home is $200,000 and the loan amount is $180,000. The
borrower pays 6% interest with 1 discount point and 1 origination point. What is the cost
of the points?
A.) $1,800
B.) $2,000
C.) $3,600
D.) $4,000 - Answers -C.) $3,600
The key to this question is POINTS last time i accidentally added the 6% interest. There
is 2 points so $180,000 x .02 = $3,600
If the Gross Rent Multiplier (GRM) decreases, the property value:
A.) Increases
B.) Decreases
C.) Does not change
D.) Can increase or decrease - Answers -B.) Decreases
What is the maximum allowable amount of VA seller concessions?
A.) 2%
B.) 3%
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 GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. 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