Nationwide Mortgage Licensing System (NMLS) Practice Exam

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Prepare for the Nationwide Mortgage Licensing System (NMLS) Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Ensure your success by getting thoroughly prepared!

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Alimony payments must continue to be received for how long after the application date if they are to be included as income?

  1. 10 months

  2. 2 years

  3. 3 years

  4. 4 years

The correct answer is: 3 years

To include alimony payments as income in a mortgage application, they must be verifiably received for a minimum duration following the application date. This requirement ensures that the borrower has a stable and consistent source of income, which is crucial in determining their ability to repay the mortgage loan. The guideline specifies that alimony payments need to be received for at least three years from the application date. This period allows lenders to assess the sustainability of the income source, as alimony can sometimes be temporary and subject to change. By requiring a three-year verification, lenders can make more informed decisions about the borrower's financial stability and reliability regarding monthly mortgage payments.

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