Exam (elaborations)
NMLS TEST EXAM WITH QUESTIONS AND ANSWERS (VERIFIED AND WELL DETAILED ANSWERS) LATEST UPDATE 2024/2025
NMLS TEST EXAM WITH QUESTIONS AND ANSWERS (VERIFIED AND WELL DETAILED ANSWERS) LATEST UPDATE 2024/2025
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NMLS TEST EXAM WITH QUESTIONS AND ANSWERS(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2024/2025
Which of the following would NOT be considered a depository
institution? - CORRECT ANSWER Mortgage Broker
The primary difference between a mortgage banker and a mortgage
broker is: - CORRECT ANSWER Whether it makes loans or acts as
intermediary
A lender which keeps its loans and does not sell them to investors is
called a: - CORRECT ANSWER Portfolio Lender
Fannie Mae and Freddie Mac can require a lender to repurchase a loan: -
CORRECT ANSWER If there is evidence of mortgage fraud
If the Fed were to buy government securities, the money supply would
likely: - CORRECT ANSWER Increase
Under which of the following circumstances would the clerical
employee of a MLO be required to be personally registered or licensed
as a mortgage loan originator? - CORRECT ANSWER The employee
offers a lower rate to the applicant
,A Registered or State Licensed MLO is identified in the NMLS by his or
her: - CORRECT ANSWER Unique Identifier
If a State Licensed MLO allows his or her license to expire, that person
will have to retest if the license is not renewed within: - CORRECT
ANSWER 5 years
A Registered Mortgage Loan Originator must complete how many hours
of continuing education courses each year? - CORRECT ANSWER
0...A State Licensed Originator has to take 8 hours
A person who has failed the national portion of the NMLS exam on the
third attempt: - CORRECT ANSWER Must wait 180 days to retake the
test
A borrower takes out a fixed rate, fully amortized loan. As each payment
is made due, which of the following statements is correct? - CORRECT
ANSWER The interest portion of the payment will decrease and the
principal portion will increase
A conventional loan would have what form of backing from the federal
government or quasi-government agencies? - CORRECT ANSWER
They are not issued, insured or guaranteed by any government agency
Each of the following statements regarding jumbo loans is correct
EXCEPT? - CORRECT ANSWER When jumbo loans are difficult to
, obtain, fixed rate loans are usually easier to obtain than adjustable rate
loans
Which of the following types of loans would most likely be assumable?
- CORRECT ANSWER An FHA Loan (Federal Housing
Administration)
What is the down payment requirement for an FHA Loan for a borrower
with a credit score at or above 580? - CORRECT ANSWER
3.5%...Scores from 500-579 are 10% downpayment
What contribution can a seller make towards the buyer's closing costs
when the buyer is obtaining an FHA Loan? - CORRECT ANSWER 6%
of the purchase of the property (none go to down payment)
In an FHA refinancing loan, what is the amount of the UFMIP? -
CORRECT ANSWER 1%, nut in reality its 1.75%
What is the Maximum Housing Ratio and Debt-to-Income Ratio,
respectively, for FHA loans? - CORRECT ANSWER 31% and 43%
What is the Maximum Housing Ratio and Debt-to-Income Ratio,
respectively, for VA loans? - CORRECT ANSWER 41% and 41%
What is the Maximum Housing Ratio and Debt-to-Income Ratio,
respectively, for Conventional loans? - CORRECT ANSWER 28% and
36%
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