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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How many months need to be left on an automobile lease to count it as a debt?

2 months
5 months
10 months
It is always included

The correct answer is: It is always included

An automobile lease is considered a debt regardless of the number of months remaining. This is due to the ongoing financial obligation that the lessee has to fulfill for the duration of the lease. When assessing a borrower's debt-to-income ratio or overall financial profile, lenders must account for all types of recurring debts, including long-term leases like those for automobiles. All remaining months on the lease apply because they represent a binding financial responsibility that the borrower must meet. This comprehensive approach ensures that the lender fully understands the borrower's financial commitments before approving any new credit or mortgage applications. Therefore, the correct response captures the essence of how financial obligations, such as automobile leases, are treated in the context of debt assessment.