NMLS MLO EXAM QUESTIONS AND ANSWERS

NMLS MLO EXAM QUESTIONS AND ANSWERS

LATEST 2024-2025 LATEST UPDATE WITH

VERIFIED SOLUTIONS

The requirement for private mortgage insurance is generally is continued when the loan-to-value

ratio falls below:

A.) 20%

B.) 50%

C.) 80%

D.) 90%

C.) 80%

Which of the following documents itemizes all settlement costs including lender charges?A.) Agreement of sale B.) HUD-1/closing Disclosure C.) Form 1003 D.) Forbearance agreement B.) HUD-1/closing Disclosure

According to the Truth-in-Lending Act (TILA), the term "refinance" applies to A.) A change in a payment schedule B.) A reduction in annual percentage rate C.) The renewal of a single payment obligation with no change in the original terms

D.) The satisfaction of an existing obligation and its replacement by a new obligation D.) The satisfaction of an existing obligation and its replacement by a new obligation

What does a loan originator use to determine the estimated value of a property based on an analytical comparison of similar property sales?A.) An appraisal B.) A market survey C.) An area survey D.) A Cost-benefit analysis A.) An appraisal

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 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 to be credited at closing on property with sale price of $160,000. If the required down payment is 20%, how much additional money will the buyer need to provide toward the down payment at closing?

A.) $32,000

B.) $27,000

C.) $30,000

D.) $25,000

D.) $25,000

$160,000 x .20 (20%) = 32000 - $7,000 = $25,000

If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicant's monthly income?

A.) $2,163.20

B.) $2,343.47

C.) $2,379.52

D.) $2,487.68

B.) $2,343.47

$13.52x 40 hours = $540.8 x 52 weeks = $28,121.6 annually /12month = $2,343.47 Monthly income

Which of the following methods of disclosure does NOT meet the requirements of Equal Credit Opportunity Act (ECOA)?A.) E-mail B.) Mailed letter C.) Telephone D.) Faxed letter C.) Telephone

Term "20 basis points" expressed as a percentage is:

A.) 0.2%

B.) 0.20%

C.) 2.00%

D.) 20.00%

B.) 0.20%

one hundredth of one percent, used chiefly in expressing differences of interest rates. 0.01

so 0.01 x20 = 0.2

According to the Truth-in-Lending Act (TILA), which if the following fees is EXCLUDED from the calculation of the annual percentage rate?A.) Hazard insurance B.) Wire transfer C.) Prepaid interest D.) Mortgage insurance premiums A.) Hazard insurance

FHA loans are:

A.) Partially guaranteed B.) 100% insured C.) Exempt D.) Entitled A.) Partially guaranteed

The late fee for a conventional loan is:

A.) 3% of principle and interest B.) 4% of principle and interest C.) 5% of principle and interest D.) 10% of principle and interest C.) 5% of principle and interest