NMLS Final Competency Certification Study Guide Exam Questions with Certified for Accuracy Answers 2023/2024
Acceleration Clause - correct answer Allows lenders to demand payment in full if the borrower defaults on the loan (can be construed as predatory lending)
Alienation Clause (Due on S...
NMLS Final Competency Certification Study
Guide Exam Questions with Certified for
Accuracy Answers 2023/2024
Acceleration Clause - correct answer Allows lenders to
demand payment in full if the borrower defaults on the loan (can
be construed as predatory lending)
Alienation Clause (Due on Sale Clause) - correct answer
Says you must repay your mortgage if you sell your home to a
new owner (loan is not assumable)
Appraiser Independance Requirements replaced HVCC -
correct answer home valuation code of conduct
Due on Demand Clause - correct answer (Considered a
predatory practice) The lender can demand repayment of the
loan in full at anytime for any reason
HOEPA - correct answer Home Ownership and Equity
Protection Act (Reg Z Sec 32) Amends TILA
Nonrecourse Agreement - correct answer Loan agreement
under which the collateral securing a loan is the unltimate
source of repayment, and the lender cannot hold the borrower
personably liable in the event of default. Lender can seize (and
sell) the collateral but cannot seize non-pledged asset or
property.
,ReConveyance - correct answer Method in which a lein is
removed from a property when payment is made in full.
Abusive Act - correct answer Action that materially
interferes with a consumer's ability to understand the product or
service.
Acceleration Clause (in a mortgage) - correct answer Clause
in a promissory note that gives a lender the right to declare the
entire loan balance due immediately because of borrower default
or for violation of other contract provisions
Accrued expenses - correct answer Items on a settlement
statement for which the cost has been incurred, but the expense
has not yet been paid
Acquisition Cost - correct answer The total amount needed
to purchase property, including down payment, loan amount and
any allowable buyer paid closing costs
Adjustable Rate Mortgage (ARM) - correct answer A
mortgage that permits the lender to periodically adjust the
interest rate to reflect fluctuations in the cost of money.
Adverse Action - correct answer The denial of credit or an
increased charge for credit based on information obtained from a
third party
,Advertisment - correct answer A commercial message in any
medium that promotes, directly or indirectly, a credit transaction
Alienation Clause - correct answer In a contract, gives the
lender certain stated rights when there is a transfer of ownership
in a property. Also called a "Due on Sale Clause"
Alt-A Loan - correct answer A type of loan in which the risk
is greater than prime, but less than subprime. The borrower may
have a strong credit history, but the mortgage may have
elements that increase risk. Risk issues could include higher
loan-to-value and debt-to-income ratios, or lack of documentation
about the borrower's income
Amortization - correct answer Reduction of the loan balance
by paying back on a regular basis, some of the principal owed
Annual Renewal Period - correct answer The license
renewal period is November 1 through December 31 of each year
Application - correct answer Submission of a borrower's
financial information in anticipation of a credit decision
Appraisal - correct answer A professional estimate or
opinion of the value of a piece of property (parcel of land), as of a
certain date, that's supported by objective data
Appraisal Management Company - correct answer A
business entity that - for a management fee - administers a
, network of certified and licensed appraisers to fulfill real estate
appraisal assignments on behalf of mortgage lending institutions.
Appraiser - correct answer A person who estimates the
value of property, especially an expert qualified to do so by
education and experience.
Assets - correct answer items of value that a person owns
Assumption - correct answer An action in which one party
agrees to take over payments of another party's debt, with terms
of the note staying unchanged
Average Prime Offer Rate (APOR) - correct answer An
annual percentage rate derived from average interest rates,
points, and other loan pricing terms that are currently offered to
consumers by a representative sample of lenders for mortgage
transactions that have low-risk pricing characteristics.
Balloon Payment - correct answer A final lump sum payment
at the end of a loan term to pay off the entire remaining balance
of principal and interest not covered by payments during the
loan term
Bankruptcy - correct answer A court process that cancels
debts and provides some relief for creditors, Chapter 7,
sometimes called a straight bankruptcy , it is a liquidation
proceeding; Chapter 13, sometimes called a debt repayment
proceeding, is filed by individuals who want to pay off their
debts, in whole or in part, over a period of 3-5 years
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 KieranKent55. 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.
