NMLS (NMLS)

standard index Correct Answer: Once the initial rate has been set for an adjustable rate mortgage (ARM), future interest rate adjustments are based on the upward and downward movements of Par Rate Correct Answer: when the borrower neither pays discount points nor receives a premium for the rate received from the creditor servicing a mortgage loan Correct Answer: collecting payments and maintaining a payment schedule and escrows, which can be optional, for a mortgage loan. loan to val...

What does TILA stand for? Correct Answer: Truth-In-Lending Act, Regulation Z What is a HELOC loan? Correct Answer: a secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? Correct Answer: LTV stands for Correct Answer: Loan to Value Define PMI and state what the acronym stands for. Correct Answer: Private mortgage insurance- on conventional loans Define one time variable funding fee and people in what situations is it...

1) Seller can Sell property at a premium/profit with Fannie Mae financing after? 30 days •60 days •90 days Correct Answer: •90 days 2) A COFI index is defined as? Cost of funds index •Cost of financial index •Cost of funding insurance Correct Answer: cost of fund index 3) Subordinate financing relates to •seller financing. •second mortgages. •financing in the secondary mortgage market. •subprime loans. Correct Answer: second mortgage 4) Explain what I...

If an application for credit is DENIED based on the appraisal under ECOA (Reg B), how many days does the borrower have to request a copy and how many days does the lender have to deliver? Correct Answer: The borrower has 90 to request and the lender as 30 days to deliver. Appraisal equals? Correct Answer: Value What law allows the borrower to challenge the value stated in the appraisal? Correct Answer: ECOA (Reg B), Equal Credit Opportunity Act What is ECOA? Correct Answer: Equal Cr...

Qualified mortgages do not include risky features. What are they? Correct Answer: Permanent There are four categories of Qualified Mortgages. The following is not included. Correct Answer: No negative amortization, No interest only, no loan terms over 30 years and a limit on points and fees charged. The DTI limit for a general QM is: Correct Answer: 43% The General QM requires that the qualifying rate for a borrower is based on the highest a rate can go within the first______ years o...

which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA? Correct Answer: FEDERAL RESERVE SYSTEM the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the Correct Answer: Acceleration Clause at closing a borrower may deposit funds to establish reserves for which of the following? Correct Answer: TAXES AND INSURANCE in a qualification of an applicant who receives child support an...

What's a straw buyer? Correct Answer: The real buyer will use the straw buyers name and qualifying information on the mortgage application to mask the actual buyers intent to purchase the property. Regardless of reduced documentation loans, what totes the MLO need? Correct Answer: Verification of Employment (VOE), Credit Report Review, Appraisal Prepayment penalties are allowed on fixed rate QM loans that are not higher priced if what following criteria are met? Correct Answer: The pre...

Fraud for money Laundering Correct Answer: -Criminal uses scheme known as value tampering -Criminal offers to buy house at reduced rate -Seller must sell at appraised value on paper, but after closing, seller give the criminal the difference in cash. Adverse Action Correct Answer: An unfavorable credit decision rendered against a consumer made on the basis of information contained on the credit application. If a lender takes adverse action against an applicant, the lender must notify th...

A 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 Correct Answer: 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...

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 ...