NMLS Final Practice Exam: Understanding Mortgage Loans and Their Types, Exams of Nursing

Download NMLS Final Practice Exam: Understanding Mortgage Loans and Their Types and more Exams Nursing in PDF only on Docsity! NMLS Final practice Exam module 2 Questions with Answers Graded A + Concerning ARMS, margin is best defined as: - Correct answer A number, expressed as a percentage, that represents a lenders operating costs and profit margin VA loans require which of the following - Correct answer Funding Fee Which of the following types of loans offers backing from the federal government without using tax payer dollars? - Correct answer FHA loans Why are FHA loans beneficial to lenders? - Correct answer They are insured by the federal government Which of the following loan programs does not require repayment as long as the owner lives in the home? - Correct answer Reverse mortgage In order for a small creditor balloon payment mortgage to be qualified mortgage, the small creditor must hold the loan in its portfolio for: - Correct answer Three years Which of the following is another term for a junior lien? - Correct answer Subordinate lien USDA loans are primarily for properties located in - Correct answer Rural area MIP would be used for which of the following? - Correct answer FHA loan Which of the following best represents a loan that fails to meet Fannie Mae and Freddie Macs underwriting guidelines? - Correct answer non-conforming loan What does APR mean? - Correct answer Annual percentage rate Community mortgage bank is a smaller creditor in a rural area. CMB holds the loans it originates in its portfolio until they are paid in full. CMB tries to limit its transactions to those for qualified mortgages. In a balloon payment QM transaction, the transaction must meet all of the following criteria, except: - Correct answer the borrower must have a debt to income ratio of no more than 43% Balloon payment QM transactions must have all of the following criteria - Correct answer 1. The loan term must be at least 5 years and no more than 30 years 2. The loan must have a fixed interest rate 3. The borrower must have an established ability to repay The federal housing administration - Correct answer Insures loans What is used to determine the interest rate change on an ARM - Correct answer index and margin The ability to repay rule applies to - Correct answer Most transaction except reverse mortgages and A creditor may include a prepayment provision in which of the following mortgages? - Correct answer A fixed-rate qualified mortgage that is not a higher-priced mortgage Which of the following is the best example of a conventional loan that exceeds Fannie mea and Freddie mac's maximum loan limits? - Correct answer a non-conforming loan PFC stands for - Correct answer Prepaid finance charge