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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Which of the following is an example of a financial institution that supports home financing?

Investment Bank
Credit Union
Insurance Company
Real Estate Agency

The correct answer is: Credit Union

A credit union serves as a financial institution that supports home financing because it is a member-owned cooperative that offers a range of financial services, including mortgages and home equity loans. Credit unions typically provide competitive interest rates and lower fees compared to traditional banks, making home financing more accessible to their members. They emphasize personalized service and often have a community focus, which can enhance the borrowing experience for individuals seeking home loans. While investment banks, insurance companies, and real estate agencies play roles in the broader financial ecosystem, they do not primarily align with the specific function of supporting home financing in the same direct manner as credit unions do. Investment banks are more engaged in larger corporate financing and securities trading; insurance companies offer products to protect assets rather than directly finance home purchases; and real estate agencies primarily focus on the buying and selling of properties rather than providing financing services.