NMLS SAFE EXAM 2022 ALREADY
PASSED
What does TILA stand for? ✔✔Truth-In-Lending Act, Regulation Z
What is a HELOC loan? ✔✔a secured loan in that you are borrowing against the equity that has
been built in your house
...
NMLS SAFE EXAM 2022 ALREADY
PASSED
What does TILA stand for? ✔✔Truth-In-Lending Act, Regulation Z
What is a HELOC loan? ✔✔a secured loan in that you are borrowing against the equity that has
been built in your house
What is a REFI loan? ✔✔
LTV stands for ✔✔Loan to Value
Define PMI and state what the acronym stands for. ✔✔Private mortgage insurance- on
conventional loans
Define one time variable funding fee and people in what situations is it waived for? ✔✔Disabled
veterans and surviving spouses.
USDA loans are also called what? ✔✔502 loans
Define MIP ✔✔Can be paid up front or in installments. Mortgage insurance premium used by
FHA to protect themselves against higher-risk borrowers who are more likely to default on loans
Define APR ✔✔annual percentage rate
Define APOR ✔✔average prime offer rate
Define HPML ✔✔High price mortgage loans or Section 35 loans. A mortgage with an annual
percentage rate (APR) that's higher than the average prime offer rate (APOR)
When is a loan considered to be a section 35 loan? (High price mortgage loan) ✔✔- When the
APR exceeds APOR by 1.5% on a first lien, 2.5% on Jumbo first lien or 3.5% on subordinate lien
What requirements are placed on section 35 loans? (High price mortgage loans) ✔✔APE
A- ATR / ability to repay
P- no PREPAYMENT penalty unless in the first 2 years
E- requires ESCROW of the taxes and hazard insurance for the first 5 years
Define ATR ✔✔Ability to repay
8 Factors of ATR ✔✔MICE DOES
M- Monthly mortgage
I- Income + assets
C- Credit history
E- Employment
D- Debt to Income Ratio
O- Other debts
E- Expenses
S- Simultaneous mortgage
What are section 32 loans? ✔✔High cost mortgage loans. Considered to be HCML when APR
exceeds APOR by 6.5% on first lien on loan $50,000 or higher, or 8.5% on first lien on a loan
that's less than $50,000 or 8.5% on subordinate lien.
What requirements are placed on Section 32 loans / HCML / High cost mortgage loans? ✔✔BAPS
B- no BALLOON payment
A- must have ATR
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