NMLS Practice Test Hard Questions Flashcards

NMLS Practice Test Hard Questions Flashcards How long after the application date must social security payments continue to be received in order to count as income?A.) 3 monthsB.) 10 monthsC.) 2 yearsD.) 3 years D.) 3 years Who enforces RESPA violations?A.) FTCB.) CFPBC.)

FHAD.) FCC

B.) CFPB

The mortgagee is the:A.) BorrowerB.) LenderC.) Closing

agentD.) Mortgage broker B.) Lender According to the Truth-in-Lending Act (TILA), the term "refinance" applies toA.) A change in a payment scheduleB.) A reduction in annual percentage rateC.) The renewal of a single payment obligation with no change in the original termsD.) 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

A Mortgage Insurance Premium is required on:A.) FHA

loanB.) VA loanC.) Jumbo loanD.) Conventional loan A.) FHA loan Which of the following documents itemizes all settlement costs including lender charges?A.) Agreement of saleB.) HUD-1/closing DisclosureC.) Form 1003D.) Forbearance agreement B.) HUD-1/closing Disclosure Which law entitles an applicant to a copy of his property appraisal report?A.) Homeowner's Protection ActB.) The Fair and Accurate Credit Transaction ActC.) Truth-in-LendingD.) The Equal Credit Opportunity Act D.) The Equal Credit Opportunity Act Loan Prospector can NOT be used for which type of loans?A.) ConventionalB.) VAC.) FHAD.) Commercial D.) Commercial The economic concept which states that a knowledgeable buyer will pay no more for one property than they would

pay for an equally desirable comparable property is:A.)

Principle of SubstitutionB.) Principle of Highest and Best UseC.) Principle of Market ValueD.) Principle of Intelligent Purchases A.) Principle of Substitution Who does Fannie Mae hold responsible for the quality of an appraisal?A.) AppraiserB.) BorrowerC.) Mortgage brokerD.) Lender D.) Lender Which clause in a mortgage prevents the lender from foreclosing unless the borrower is in default?A.) DefeasanceB.) EscalationC.) AccelerationD.) Exculpatory A.) Defeasance

A shrubbery hedge is one example of an:A.)

EncumbranceB.) EasementC.) EntitlementD.) Acceptable title impediment D.) Acceptable title impediment

The purchase price of a home is $375,000 and the buyer will assume a $175000 1st mortgage. The loan-to-value cannot exceed 85%. What is the maximum amount of the new 2nd mortgage.A.) $130,000B.) $143,750C.)

$162,030D.) $171,260

B.) $143,750$375,000 x .85 (85%) = $318,750 - $175,000

= $143,750

Which of the following is a negatively amortizing loan?A.) Reverse mortgageB.) Balloon mortgageC.) Term mortgageD.) Wrap mortgage A.) Reverse mortgage Who is responsible for maintaining the national flood maps?A.) HUDB.) FEMAC.) FHAD.) VA

B.) FEMA

Which of the following methods of disclosure does NOT meet the requirements of Equal Credit Opportunity Act (ECOA)?A.) E-mailB.) Mailed letterC.) TelephoneD.) Faxed letter C.) Telephone What is the fine for violating the Federal Do Not Call Rules?A.) $5,000B.) $11,000C.) $16,000D.) $20,000

C.) $16,000

What clause in a mortgage prevents the lender from recovering additional assets from the mortgagor if there is a shortfall in the foreclosure proceedsA.) ForbearanceB.) EscalationC.) AccelerationD.) Exculpatory D.) Exculpatory Which law prohibits discrimination by lenders?A.) Truth-in-LendingB.) Real Estate Settlement Procedures ActC.) Equal Credit Opportunity ActD.) Patriot Act C.) Equal Credit Opportunity Act Which types of loans are meant for rural areas?A.) VAB.)

FHAC.) USDAD.) RAL

C.) USDA

A property sold for $200,000 and was appraised at $180,000. The borrower received a loan for $150,000.What is the loan-to-value?A.) 75%B.) 83.3%C.) 90%D.) 92.4$

B.) 83.3%

Which law allows consumers a free copy of their credit report every year?A.) Homeowner's Protection ActB.) The Fair and Accurate Credit Transaction ActC.) Truth-in-LendingD.) The Equal Credit Opportunity Act B.) The Fair and Accurate Credit Transaction Act 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 insuranceB.) Wire transferC.) Prepaid interestD.) Mortgage insurance premiums A.) Hazard insurance If the Gross Rent Multiplier (GRM) decreases, the property

value:A.) IncreasesB.) DecreasesC.) Does not changeD.)

Can increase or decrease B.) Decreases A discount point is BEST described as a charge the

borrower pays to:A.) A lender to decrease the interest rate

on the mortgage loanB.) A mortgage broker at the time of application to obtain a favorable rateC.) The seller as part

of the closing costs of a loanD.) A lender to ensure against foreclosure A.) A lender to decrease the interest rate on the mortgage loan If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicant's monthly

income?A.) $2,163.20B.) $2,343.47C.) $2,379.52D.)

$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