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Mortgage NMLS Exam Questions and Answers 100% Solved | Graded A+ $12.99
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Mortgage NMLS Exam Questions and Answers 100% Solved | Graded A+

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Mortgage NMLS Exam Questions and Answers 100% Solved | Graded A+ Annual Percentage Rate (APR) - Consumer's true annual cost of borrowing funds according to the Federal Truth-in-Lending Act. Calculates an effective interest rate based on most of a loan's up-front fees and the stated annual ...

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  • January 27, 2025
  • 19
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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JOSHCLAY
Mortgage NMLS Exam Questions and
Answers 100% Solved | Graded A+

Annual Percentage Rate (APR) - ✔✔Consumer's true annual cost of borrowing

funds according to the Federal Truth-in-Lending Act. Calculates an effective

interest rate based on most of a loan's up-front fees and the stated annual

interest rate.

Closing - ✔✔Process whereby a seller delivers ownership rights in real property

to the buyer. May also describe the completion of the loan process where the

borrower receives use of the funds from the lender in return for promising to

repay the loan and allowing the lender to place a lien on the real property.

Closing Costs - ✔✔Fees and costs associated with obtaining loans and

purchasing real estate above the sale price of the real property. Typically consist

of fees paid to the government, lenders, loan originators, appraisers, real estate

brokers, surveyors, inspectors, title companies, and attorneys. The sales

contract dictates which ones are paid by the buyer and seller.

Deed of Trust - ✔✔Legal document between lender and borrower (aka the

trustor) which is used in some states instead of a mortgage to transfer a




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,property's legal title to a neutral third party (trustee) to secure the repayment

of loan.

Discount Points - ✔✔Fees charged by a lender to borrowers at closing to lower

the stated interest rate and the interest portion of each monthly payment.

Ethics - ✔✔Set of values, conduct, and principles that consistently guide our

behavior and decisions to deliver fair and honest service to all parties

Equity - ✔✔Market value of a property in excess of the amount owed by the

borrower

Home Equity Line of Credit (HELOC) - ✔✔Type of loan based on a secured by the

value of the home that exceeds the amount already owed by the borrower to

other more senior lien holders. Typically have variable interest rates and are

open-ended - funds can be borrowed and repaid over and over again.

Home Equity Loan - ✔✔Loan based on the difference between the value of the

home and the amount owed

Investor - ✔✔Person or entity that funds the loan, aka a lender or mortgagee

Loan Originator (MLO) - ✔✔Licensed individual working for a lender or acting as

an independent contractor to a mortgage broker who takes a residential




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, mortgage loan application and negotiates terms of a loan for compensation or

gain.

Loan Servicing - ✔✔Collecting a borrower's monthly payments and disbursing

payments to the current owner of the loan, disbursing taxes and insurance

payments when due, handling mailings, monitoring liens or encumbrances,

making sure a homeowner has sufficient insurance to protect lender's interest,

and handling a foreclosure when necessary.

Mortgage (Contract) - ✔✔Legal document signed by all owners that pledge their

real property as security for a loan.

Mortgage Banker (Mortgage Lender) - ✔✔Licensed entity that may originate,

close, fund, sell and/or service the loan

Mortgage Broker (New Definition) - ✔✔Business licensed to facilitate the

making of a loan between a borrower and a lender for compensation. Broker

originates the loan, but does not close or provide funds for loan.

Mortgage Brokerage Fee - ✔✔Compensation paid for mortgage broker services.

Include fees paid to the licensed mortgage broker business by the borrower

and/or fees and commissions paid by the lender for originating the loan.




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