NMLS EXAM PRACTICE 2

___ occurs when the parties to a loan transaction meet to execute documents and immediately after funds are disbursed?

For VA-guaranteed loans, which statement is TRUE?

Which document actually contains the borrower's promise to repay the loan?

 the verification and documentation process of loan application, “VOD” means:

Regulation B permits the creditor to inquire using any of the following terms, except:

In what area of the Loan Estimate would a borrower be able to see if their loan has a balloon payment?

What laws prohibit "steering" homebuyers based on demographics?

The state Jim works requires a MLO be covered, a surety bond must be maintained in an amount that reflects:

With ECOA, in __ calendar days of receiving a completed application lenders must notify applicants of a credit decision.

Which of the following transactions would be exempt from the ATR Rule?

The primary purpose of the Fair and Accurate Credit Transactions Act is to protect consumers from:

Under Regulation X, the term "loan originator" applies to a:

What entity assists in providing mortgage loans to low- and very-low-income applicants in eligible rural areas?

A loan which allows the borrower to take a lump sum distribution without any monthly repayment requirements is a(n):

Which process includes taking a loan application, negotiating terms, preparing paperwork, and funding the loan?

Which of the following is not a responsibility imposed on states to ensure licensee compliance with the SAFE Act?

The underwriting process:

Federal/state laws prohibit licensed MLOs from certain acts. Which of the following is NOT one of these prohibited acts?

The process of releasing a lien on a property is called:

All of the following are prohibited for high-cost mortgage loans, except:

A borrower elects to buy down the interest rate on their mortgage loan. This appears on the Loan Estimate as a:

What type of form would be used by an MLO to verify employment information that an applicant has listed on a URLA?

When preparing a Loan Estimate, commissions of real estate brokers or agents are listed in what subsection on page two?

The Loan Estimate must include the address of the property. If the address is unavailable:

What type of lien takes priority?

Which of the following contains only items which should be used in calculating a borrower's debt-to-income ratio?

Assessment of borrower repayment ability is not required for:

In addition to any authority allowed under state law, a state licensing agency must have the authority to:

Which of the following is a liquid asset that a lender will accept as a source to make a cash down payment?

The Truth-in-Lending Act is intended to help consumers by:

The maximum allowable mortgage for an FHA loan:

The Government National Mortgage Association:

For an appraisal on a residential property, which of the following would be included as part of the gross living area?

How much hazard insurance does Fannie Mae require on a property?

The types of high-cost mortgages that may be subject to HOEPA include all of the following, except:

For FDIC supervised institutions, the Fair Housing Act requires the use of what slogan in all broadcast advertising?

The funding fee for a first-time user who is regular military, purchasing a home using a VA loan, is 2.15%.

A borrower wanting to be approved for an FHA-insured loan may:

For an ARM, the interest rate that should be listed on the Loan Terms table of the Loan Estimate is:

Generally, the first lien recorded has priority, with the possible exception of:

The Federal National Mortgage Association (Fannie Mae) is:

Title insurance is required for all loans by the:

The estimate for the interest rate shown on a Loan Estimate must be available for at least ___ business days.

A debt or expense associated with which of the following should not be recorded in the URLA as a recurring liability?

A ____ loan is a loan that exceeds the Fannie Mae and Freddie Mac conforming mortgage loan limits.

Which of the following is a trigger term for advertisements for both open-end and closed-end mortgage loans?

When a credit report shows only a balance on a revolving debt, rather than a payment, an originator should:

In the practice of table funding, what is used to protect the lender against fraudulent activity?

The Notice of Right to Cancel PMI is required by the:

In which of the following transaction must "Your Home Loan Toolkit" be provided?

What is the minimum age required to qualify for a HECM?

According to TILA, a borrower closing on what loan type must be given notice of their right to rescind the loan?

At what point must a creditor automatically terminate private mortgage insurance on a conventional loan?

loan files are disposed in a dumpster at the back of the mortgage company’s office, the company has violated:

The rules and regulations of RESPA apply to:

A loan with a fixed rate at the start that will adjust regularly after a certain period is commonly referred to as a(n):

With a fixed-rate mortgage loan, a change in what item may increase or decrease the monthly payment amount?

The FHA insures against foreclosure?

Assets are typically classified as liquid or not liquid. Which of the following is not a liquid asset?

Which of the following is not an example of an FHA loan product?

__ mortgage loan is one that's made by a private/institutional lender that the government neither guarantees or insures:

A borrower is more likely to consider an adjustable-rate mortgage (ARM) when:

HOEPA protects against predatory lending by restricting ___which may lock consumers into loans that no longer suit them.

Homeownership counseling is required in transactions for all of the following, EXCEPT:

When using the market appraisal approach to arrive at an opinion of value, an appraiser looks:

Dividing the PITI by the amount of a borrower’s monthly gross income determines the:

With a HECM, the amount that a person is able to borrow will depend on all of the following, except:

The ______ within the GLB Act governs the collection and disclosure of nonpublic personal information to third parties.

Per TILA, which of the following fees would not be considered a finance charge as part of the APR calculation?

Which of the following is LEAST likely to be a red flag that fraud is occurring?

PMI applies to which of the following type of loan transaction?

Creditor takes steps legally to force the sale of a property to collect on a loan in default, it is known as:

An FHA-insured loan is an example of:

With a ____ mortgage, borrower only pays interest on the loan for a certain/time throughout the duration of the loan

Of the following four liens on Marcia’s property, which is in first priority when a property is foreclosed and sold?

Which of the following income sources may not be included in the income calculation used for loan qualification?

Which of the following would be considered a credit report red flag?

All of the following are true of FHA fixed-rate loans, except:

A background check for a loan originator license would not include:

HUD is still responsible for implementation of:

Combining stated income with a nontraditional mortgage product is an example of:

All of the following are included in the calculation of the APR, EXCEPT:

The tolerance for change for transfer taxes as provided on the Loan Estimate and Closing Disclosure is:

A qualified mortgage may not include which of the following features?

Why might a borrower take a piggyback loan?

Under TILA guidelines, all of the following disclosures are provided for an adjustable-rate loan, except:

A margin value will never change once set on a loan.

Property that is transitory and can be moved is known as:

Which of the following fees must be included in the calculation of finances charges?

An MLO is planning an advertisement that indicates the number of payments required to pay off a specific loan this is a:

A Loan Estimate must be delivered or placed in the mail at least how many business days prior to consummation?

An __ is defined as any claim, lien, charge, or liability that affects or limits the fee simple title to real property.

What type of property is involved in an air loan fraud scheme?

Fixed rate QM includes a prepayment penalty, the penalty may not be charged after the first 5 years of loan term

All of the following may affect the amount of a VA funding fee EXCEPT:

According to the SAFE Act definition, a nontraditional mortgage loan is:

The appraisal approach that is most appropriate for commercial real estate is the:

Which of the following best describe the order in which payment will be applied according to the standard deed of trust?

______ a sale to be conditioned on the use of a particular title company chosen by the seller.

All of the following are common indices used for adjustable rates, except:

Which of the following is NOT a characteristic of a traditional conventional mortgage loan?

Which of the following liabilities is considered to be a recurring debt or expense?

A HELOC is a type of mortgage loan:

Which of the following transactions of would a creditor not be required to provide the consumer with a Loan Estimate?

An 80-10-10 loan is an example of a:

The general acceptable front-end housing ratio for a USDA loan is:

Seller contributions may be used to pay down all of the following, EXCEPT:

On an ARM loan, which of the following will not be found on the note?

Oversight for FCRA is shared between the FTC and:

The ___ is ultimately responsible for ensuring that the borrower receives a Closure Disclosure?

The submission of a loan/application register is due by March 1 of each year. This requirement is imposed by the:

Owner's title insurance protects the claim to title from:

Which of the following be subject to the ATR Rule?

Licensed lenders or brokers may be subject to an investigation of their affairs, business, premises, and records by:

the servicer may charge a cushion that can be equal/less than __of the estimated annual payments from the escrow account

The cost approach uses the value of the land and the reproduction cost of any improvements.

which of the following is a charge that would always appear in LE/CD as a service the borrower cannot shop for?

A fee may be charged for preparing or delivering a Closing Disclosure if:

A balloon loan is defined as:

To be eligible for an FHA-insured loan, one must be: