Practice Test Geeks(NMLS) National Mortgage Licensing System Practice Test
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General Mortgage Knowledge Flashcards

7 cards from real NMLS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 General Mortgage Knowledge flashcards as text

  1. What is the current upfront mortgage insurance premium (UFMIP) on most FHA forward mortgages?

    Answer: 1.75%

    FHA charges an upfront MIP of 1.75% of the base loan amount.

  2. Which borrower is generally exempt from the VA funding fee?

    Answer: Veterans receiving VA compensation for a service-connected disability

    Veterans entitled to disability compensation are exempt from the VA funding fee.

  3. The front-end debt-to-income ratio compares gross monthly income to which expense?

    Answer: Housing expense only

    The front-end ratio measures proposed housing expense (PITI plus HOA, etc.) against gross income.

  4. What is the minimum borrower age for a HECM reverse mortgage?

    Answer: 62

    FHA's HECM program requires at least one borrower aged 62 or older.

  5. A home is purchased for $250,000 with a loan of $225,000. What is the LTV?

    Answer: 90%

    $225,000 ÷ $250,000 = 90%.

  6. Under RESPA, what is the maximum cushion a servicer may require in an escrow account?

    Answer: Two months of escrow payments

    RESPA limits the cushion to one-sixth of annual disbursements, or two months.

  7. Ginnie Mae securities are backed by which types of loans?

    Answer: Government-insured or guaranteed loans such as FHA, VA, and USDA

    Ginnie Mae guarantees MBS backed by federally insured or guaranteed loans.

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