Exam – Test Free sample - NMLS Mortgage Licensing Training

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This exam contains 15 questions.
Good luck!

1.

Select the answer that best describes the requirements surrounding the unique identifier of any person originating a residential mortgage loan.

It shall be clearly shown on all personal mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the Commissioner

It shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the Commissioner

It shall be clearly shown on all fixed-interest home mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the Commissioner

It shall be clearly shown on all commercial mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or by order of the Commissioner

1 out of 15

2.

A borrower's total monthly housing expense is often referred to as PITI and includes all of the following except:

PMI Insurance (if applicable)

Local and state property taxes (if applicable)

Principal, interest, hazard insurance, and utilities

Principal, interest, and mortgage insurance

2 out of 15

3.

Unethical practices in the mortgage industry have been blamed for all but which of the following?

Rising foreclosure rates

The housing bubble bursting

Mortgage fraud

The subprime meltdown

3 out of 15

4.

Which of the following was one purpose of the HERA?

Establishing the NMLSR

Recovering from the mortgage crisis

Improving the stock market

Pursuing and prosecuting terrorists

4 out of 15

5.

At what LTV is a mortgage servicer required to remove PMI on a “high-risk” loan, assuming that the borrower’s loan is current?

80%

77%

22%

78%

5 out of 15

6.

What is the Model State Law?

A model created by the CSBS and the AARMR to guide states in implementing the legislation required by the Mortgage Licensing Act

A document created by the CSBS and the AARMR to guide states in implementing the legislation required by the SAFE Act

A book created by the CSBS and the AARMR to guide mortgage companies in implementing the legislation required by the SAFE Act

A form composed by the CSBS and the AARMR to guide banks in implementing the legislation required by the SAFE Act

6 out of 15

7.

Which of the following mortgage broker policies would violate fair lending laws?

Originating loans only for customers who live within 100 miles of the broker’s location

Refusing to originate loans in zip codes known to be economically depressed

Doing business only with customers who are seeking loans for residential properties

Refusing to originate loans in an earthquake zone

7 out of 15

8.

What was developed by the CSBS and AARMR and what was it for?

The NMLS State Guidelines, to assist states in complying with the SAFE Act

The CFPB Audit Rules, to ensure compliance with Model State Law

The SAFE Act, to provide for the licensing and registration of mortgage loan originators

The MSL, to assist states in complying with the SAFE Act

8 out of 15

9.

A mortgage broker is unable to assist a client and refers him to another mortgage broker for origination services. The second broker pays the referring broker a fee for providing the lead. Which of the following is correct?

The fee is illegal unless the brokers provide a disclosure to the client

The fee is legal as long as the brokers do not have a pre-existing marketing service agreement in place for payment of referral fees

Payment of the fee is illegal

The fee is legal as long as the brokers have a pre-existing marketing service agreement in place

9 out of 15

10.

The two types of title insurance available through the purchase of a primary residence are:

Owner’s and investor’s

Lender’s and hazard

Lender’s and owner’s

Owner’s and occupier’s

10 out of 15

11.

A refinance requires ...

A new promissory note and a new security instrument

A revised promissory note and a new security instrument

A new promissory note and a revised security instrument

A revised promissory note and a revised security instrument

11 out of 15

12.

Which of the following is a mortgage applicant asked to disclose voluntarily?

Her marital status

Her age

Her years of education

Her sex

12 out of 15

13.

Each of the following statements are true about a deed except:

The deed need not be in writing

The deed is a legal document and must use a legal description to identify the property

The deed is recorded into public record

The grantor must sign the deed

13 out of 15

14.

Which of the following was not a component to the Guidance on Nontraditional Mortgage Product Risks?

Risk management practices

Subprime abuses

Loan terms and underwriting standards

Consumer Protection Issues

14 out of 15

15.

Which of the following loans would not be assumable?

A VA loan

A traditional conventional loan

An FHA loan

An ARM

15 out of 15

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