NMLS SAFE EXAM (2022/2023) Questions & Detailed Answers
Primary Mortgage Market - Where credit institutions originate loans
C. The maximum the rate
... [Show More] can increase over the life of the loan - When an ARM has rate caps of 5/2/6, the 6 refers to what?
A. The maximum rate increase at the initial adjustment
B. The start rate for the loan
C. The maximum the rate can increase over the life of the loan
D. The rate maximum the rate can decrease over the life of the loan
B. The borrower qualified at the buydown rate - When utilizing a temporary buydown to lower the interest rate on a FHA loan, which of the following are correct
A. The borrower qualified at the note rate
B. The borrower qualified at the buydown rate
C. The rate cannot be more than 2% below the note rate
D. Seller or builder can pay the discount points to buydown the rate
A. Age - All of the following are violations of the Fair Housing Act EXCEPT
A. Age
B. National Origin
C. Disability
D.Religion
Encrumbrance - Claim against property held by one who is not the legal owner
Trigger Term - Advertised term that requires additional disclosures
Advertising Disclosure - An advertisement must be presented "clearly and conspicuously" to keep from being deceptive, unfair, or otherwise violate a Commission rule
Waving Right of Rescission - Extenuating circumstances such as "bona fide personal financial emergency
Right of Rescission - Right that borrowers have to cancel a loan or line of credit with a lender within three days of closing
Business Day - When creditors office is open to the public, a calendar working day except Sunday or a federal holiday
Application - Financial information used for purposes of obtaining an extension of credit
Disclosure - The act of making new information known
FTC
Federal Trade Commission - Mission is to promote consumer protection and eliminate and prevent anticompetitive business practices
CFPB
Consumer Financial Protection Bureau - Regulatory agency charged with overseeing financial products and services offered to consumers
TILA
Truth in Lending Act - Enacted 1968 promotes the informed use of consumer credit by requiring disclosures about terms and costs and standardizes the manner in which costs with borrowing are calculated and disclosed
Per Diem Interest - Interest charged on a loan for one or more days
Annual Interest Rate Formula - Principal (X) Interest Rate = Annual Interest Rate [Show Less]