FREE NMLS Practice Test

Question 1

A mortgage-loan advertisement aimed at consumers must comply with which law and regulation?

Truth-in-Lending Act and Regulation Z Religion FHA loan Payment

Correct Answer:

Truth-in-Lending Act and Regulation Z

Explanation:

Correct answer: Truth-in-Lending Act and Regulation Z

Question 2

When giving required information to an applicant for an adjustable-rate mortgage (ARM), which of the following does not have to be disclosed?

Payment The exact interest rate after the first adjustment period A service provider that owns or has a financial stake in another settlement provider used in the same transaction Enhance financial-system transparency, increase accountability, and prevent “too-big-to-fail” bailouts

Correct Answer:

The exact interest rate after the first adjustment period

Explanation:

Correct answer: The exact interest rate after the first adjustment period

Question 3

Expressed as a percentage, “20 basis points” equals:

1.2% -0.8% 0.20 % 0.4%

Correct Answer:

0.20 %

Explanation:

Correct answer: 0.20 %

Question 4

“Periodic adjustment caps” on an ARM:

High-Priced Mortgage Loan The MLO has gathered sufficient information to make a credit decision A buyer planning to sell before the final balloon payment is due Put a strict ceiling on how far the interest rate may rise or fall at any one adjustment

Correct Answer:

Put a strict ceiling on how far the interest rate may rise or fall at any one adjustment

Explanation:

Correct answer: Put a strict ceiling on how far the interest rate may rise or fall at any one adjustment

Question 5

For the overall quality of an appraisal, Fannie Mae ultimately holds which party responsible?

Lender Verification of Employment (VOE) If the applicant is below the age limit of entering into a legally binding contract Warehousing

Correct Answer:

Lender

Explanation:

Correct answer: Lender

Exam overview

About this Exam

Prepare with the FREE NMLS Practice Test practice quiz. This question bank includes 125 questions covering loan, mortgage, lender, applicant, and percentage. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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FREE NMLS Practice Test

This practice set contains 125 questions from the matching question bank and focuses on loan, mortgage, lender, applicant, and percentage. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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FREE NMLS Practice Test

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