NMLS EXAM ACTUAL QUESTIONS AND VERIFIED

NMLS EXAM (ACTUAL / ) QUESTIONS AND VERIFIED

ANSWERS

Which of the following is true of VA loans?

a) They are assumable b) They require a MIP

c) They require a 5.5% borrower investment

d) They are only available for 30-year terms - ---Answers----

a) They are assumable

5/25 and 7/23 are commonly used to designate loans including which of the following?

a) A subordinate lien b) A temporary interest rate buy down c)

A balloon payment

d) A hybrid adjustable rate feature - ---Answers----c) A

balloon payment

Concerning ARMS, margin is best defined as:

a) The maximum up or down that an interest rate can ever

adjust on an ARM

b) The range of flexibility an interest rate has between caps on

traditional ARMs

c) The amount of compensation earned by a mortgage

professional for originating an ARM 1 / 3

d) A number, expressed as a percentage, that represents a

lender's operating costs and profit margin - ---Answers----d) A number, expressed as a percentage, that represents a lender's operating costs and profit margin

Which of the following is the best example of a conventional loan that exceeds Fannie Mae and Freddie Mac's maximum loan limits?

a) A non-conforming loan b) A USDA loan

c) A loan made in a high-cost area with a total loan amount

over $625,500

d) A government loan, such as FHA or VA - ---Answers----a)

A non-conforming loan

If a veteran's loan goes into foreclosure, the government will:

• reimburse the lender for up to the guaranteed amount of the

loan

b) Reimburse the lender for the outstanding loan balance

c) Reimburse the lender for the cost of originating the loan

d) Not reimburse the lender - ---Answers----a) reimburse

the lender for up to the guaranteed amount of the loan

VA loans require which of the following?

a) Eligibility fee b) VA appraiser premium 2 / 3

c) Funding fee d) Mortgage insurance premium - ---Answers-

---c) Funding fee

In order for a small creditor balloon payment mortgage to be qualified mortgage, the small creditor must hold the loan in its

portfolio for:

a) Three years b) Twelve months

c) Five years d) Two years - ---Answers----a) Three years

VA loans require which of the following?

a) Funding fee b) VA appraiser premium

c) Mortgage insurance premium

d) Eligibility fee - ---Answers----a) Funding fee

The Cost of Funds Index is traditionally associated with interest rate calculations for which of the following?

a) Reverse mortgages b) 5 & 30 yr fixed rate programs

c) Home equity lines of credit d) ARM's - ---Answers----d)

ARM's

The Federal Housing Administration:

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