NMLs Practice Exam Questions with accurate answers, Graded A. 2022/2023.

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NMLs Practice Exam Questions with accurate answers, Graded A. 2022/2023. A person wanting a loan originator license in four states - ✔✔must pass the state component of the license test in eac... h state. The correct answer is B. A person can be licensed in all of the states, provided he is employed by the same employer in all the state. His NMLS-approved education need only be taken once. The test results for the national test component are valid in each state; however, he must take and pass the state component for each state. RESPA is administered by - ✔✔The Consumer Financial Protection Bureau. ✅ The correct answer is A. As of 2010, RESPA, formerly administered by HUD, is now administered by the Consumer Financial Protection Bureau. Which of the following types of bankruptcy involves liquidation of assets to cancel the debts? - ✔✔Chapter 7 involves liquidation of assets to cancel the debts, so a person can start fresh. Which of the following may make a loan directly to a borrower when credit is not otherwise available? - ✔✔U.S Department of Agriculture. ✅ The USDA has a direct loan program to make loans directly to creditworthy low-income households in rural areas when lenders will not make such loans. An acceleration clause in a note provides that - ✔✔✅the entire loan balance is due upon default. ? The acceleration clause accelerates the payment schedule, causing the entire loan balance to be due upon default. When a loan has greater credit risk, the lender may compensate by - ✔✔✅charging a loan level price adjustment. ?A loan level price adjustment is a one-time fee charged to compensate for the borrower's credit score, LTV, use of the property, etc. Discount poits lower the interest rate. YSP raises the interest rate to cover borrower closing costs, not to compensate for risk. For a VA loan, if the CRV is below the sales price of the property, the borrower - ✔✔✅may purchase the property at the purchase price, if he pays the additional amount in cash. ?Certificate of reasonable value (appraisal) that is how VA names it ? A veteran may not borrow more than the value shown on the CRV. He can, however, buy the property for the purchase price if he pays the difference in cash. If he does not wish to do so, he can terminate the transaction, and receive a refund of his earnest money, per the escape clause that is required in the VA sales agreement. Which law prohibits a lender or mortgage broker from making any oral or written statement, in advertising or otherwise, to applicants or prospective applicants, that would discourage a reasonable person from making or pursuing an application? - ✔✔✅The Equal Credit Opportunity Act (ECOA) ? ECOA prohibits a business credit grantor from making any oral or written statement, in advertising or otherwise, to applicants or prospective applicants, that would discourage a reasonable person from making or pursuing an application. Which of the following is TRUE about the FHA? - ✔✔✅It insures loans. ?The FHA is not a lender or a mortgagee. It does not make loans or provide money for loans; it only insures loans. A buyer wants an FHA loan. All of the following would be true of the transaction EXCEPT - ✔✔✅ the borrower may obtain an unsecured loan from a lender to pay part of his required cash investment. ? If the home requires flood insurance and is not located in an area where the National Flood Insurance Program is in force, it is not eligible for FHA financing. Prior to agreeing to insure the loan, FHA may require repairs or alterations be made to bring the property up to FHA standards. The borrower [Show More]

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