MLO SAFE NMLS safe test Practice Exam
Question and Answers Latest Updates
2026 Graded A+
Which act of 1968 provides guidelines and restrictions regarding the
financing, selling and renting of real property?
The Civil Rights Act of 1968. AKA, The Civil Rights Act, AKA Title VIII, AKA
The Fair Housing Act
Which act prohibits asking questions regarding child bearing
intentions or birth control practices?
ECOA/Regulation B, the Equal Credit Opportunity Act
Based on objective criteria regarding the condition and value of the
property or area, may a lender deny loans in neighborhoods where
property values are declining?
YES, loans can be denied in a geographic area, but not for discriminatory
reasons relative to the population of the area.
A teaser rate occurs in an ARM when the starting rate is less than the
.
Fully indexed rate.
Per ECOA, is it true that while a lender must consider reliable
alimony, child support or separate maintenance payments as income,
the applicant is not required to disclose such income?
Yes, it is true. Only income intended to be used for qualifying has to be
disclosed and verified.
Of the following, who make a flood zone determination?
1. The Lender
2. The Appraiser
3. The Surveyor
4. The Underwriter
2. The Appraiser makes the flood zone determination.
Force-placed insurance protects the .
,a. Lender
b. borrower
c. both
a. lender
FHA requires mortgage insurance on all loans for a period of
years.
5 (five) years.
A property sells for $300,000 and requires a 20% down payment. The
origination fee will be two points. How much is the origination fee?
$4,800, $300,000 X 20% = $60,000 down payment
$300,000 X 80% LTV = $240,000,
$240,000 X 2% = $4,800
HOEPA prohibits amortization.
Negative. Increasing the principal balance, usually because of not paying
sufficient interest which then is added to the principal balance of the loa.
How often does the external Do Not Call list get updated?
Every 3 months or 90 days.
What does VA stand for?
The Department of Veteran's Affairs
The three functions of a direct endorser include ,
and .
Originate, underwrite and close loans.
What is the down payment requirement on a VA guaranteed loan?
0, Zero. There is no down payment required.
The APR is also know at the rate.
Effective rate.
The term of a loan effects the APR. The longer the term the
the APR.
Lower.
Business days exclude and .
Sundays and Federal Holidays.
Per the TILA the three business days Right of Rescission applies to
the of a dwelling.
The refinance of a primary residence.
,GLBA stand for the .
GRAMM-LEACH-BLILEY ACT
A "qualified" mortgage is one with points and fees not exceeding
% of the loan amount, do not have terms that exceed
year and do not result in
amortization.
3%, 30 years and negative amortization
On qualified mortgages, prepayment penalties are prohibited except
for some loans.
Fixed rate
With regard to a credit score, the Dodd-Frank Act amended the FCRA
to require creditors to provide the score to a consumer at $
cost.
$0, no charge
From a banks perspective, the term that describes depositors
withdrawing their funds is .
Disintermediation
What is a 360/180 loan?
This loan would require payments as if amortized over 30 years but will
become due or balloon in 15 years.
In a fully amortizing loan the principle portion of the payment
and the interest portion .
Principle portion increases and interest portion decreases.
The name of the loan used to complete construction is a
.
Gap Loan (sometimes bridge loan).
An interest only loan is also called a mortgage or
note.
Term mortgage or a straight note
The term that describes a banks gathering of funds from depositors
for the sake of investing the combined funds is .
Intermediation
Regulation B is also known as .
ECOA, The Equal Credit Opportunity Act.
, Refusing to make a loan in a specific area to exclude a specific class
of people is called .
Redlining
When inquiring about the marital status, what are the only three
acceptable categories?
Married, unmarried or separted
If an individual place a phone number on a Do-Not-Call list, how
frequently does their entry have to be renewed to stay active?
Never, per the Do-Not-Call Improvement Act of 2007 which amended the
original Telemarketing Sales Rule
According to FACTA, any person who regularly extends, renews or
continues credit is a .
Creditor
A is someone who allows his/her name and
personal details to be used to obtain a mortgage loan for a property
he/she has no intention of inhabiting.
Straw Buyer
The Red Flag Rules were created by the FTC pursuant to FACTA.
They are primarily concerned with .
Identity Theft
The Federal Fair Housing Act of 1968 prohibits discrimination in
residential credit but is not protected.
Age
The HMDA enacted by Congress in 1975 is also known as Regulation
.
C, The Home Mortgage Disclosure Act, Regulation C
The HMDA deals with institutions with over $ in
assets.
$10,000,000; Ten Million Dollars
A disclosure is required to be provided to the
borrower when the referring provider has greater than 1% ownership
interest in the business being referred.
AfBA, Affiliated Business Arrangement Disclsoure
An annual escrow analysis is required by which Federal Law?
Question and Answers Latest Updates
2026 Graded A+
Which act of 1968 provides guidelines and restrictions regarding the
financing, selling and renting of real property?
The Civil Rights Act of 1968. AKA, The Civil Rights Act, AKA Title VIII, AKA
The Fair Housing Act
Which act prohibits asking questions regarding child bearing
intentions or birth control practices?
ECOA/Regulation B, the Equal Credit Opportunity Act
Based on objective criteria regarding the condition and value of the
property or area, may a lender deny loans in neighborhoods where
property values are declining?
YES, loans can be denied in a geographic area, but not for discriminatory
reasons relative to the population of the area.
A teaser rate occurs in an ARM when the starting rate is less than the
.
Fully indexed rate.
Per ECOA, is it true that while a lender must consider reliable
alimony, child support or separate maintenance payments as income,
the applicant is not required to disclose such income?
Yes, it is true. Only income intended to be used for qualifying has to be
disclosed and verified.
Of the following, who make a flood zone determination?
1. The Lender
2. The Appraiser
3. The Surveyor
4. The Underwriter
2. The Appraiser makes the flood zone determination.
Force-placed insurance protects the .
,a. Lender
b. borrower
c. both
a. lender
FHA requires mortgage insurance on all loans for a period of
years.
5 (five) years.
A property sells for $300,000 and requires a 20% down payment. The
origination fee will be two points. How much is the origination fee?
$4,800, $300,000 X 20% = $60,000 down payment
$300,000 X 80% LTV = $240,000,
$240,000 X 2% = $4,800
HOEPA prohibits amortization.
Negative. Increasing the principal balance, usually because of not paying
sufficient interest which then is added to the principal balance of the loa.
How often does the external Do Not Call list get updated?
Every 3 months or 90 days.
What does VA stand for?
The Department of Veteran's Affairs
The three functions of a direct endorser include ,
and .
Originate, underwrite and close loans.
What is the down payment requirement on a VA guaranteed loan?
0, Zero. There is no down payment required.
The APR is also know at the rate.
Effective rate.
The term of a loan effects the APR. The longer the term the
the APR.
Lower.
Business days exclude and .
Sundays and Federal Holidays.
Per the TILA the three business days Right of Rescission applies to
the of a dwelling.
The refinance of a primary residence.
,GLBA stand for the .
GRAMM-LEACH-BLILEY ACT
A "qualified" mortgage is one with points and fees not exceeding
% of the loan amount, do not have terms that exceed
year and do not result in
amortization.
3%, 30 years and negative amortization
On qualified mortgages, prepayment penalties are prohibited except
for some loans.
Fixed rate
With regard to a credit score, the Dodd-Frank Act amended the FCRA
to require creditors to provide the score to a consumer at $
cost.
$0, no charge
From a banks perspective, the term that describes depositors
withdrawing their funds is .
Disintermediation
What is a 360/180 loan?
This loan would require payments as if amortized over 30 years but will
become due or balloon in 15 years.
In a fully amortizing loan the principle portion of the payment
and the interest portion .
Principle portion increases and interest portion decreases.
The name of the loan used to complete construction is a
.
Gap Loan (sometimes bridge loan).
An interest only loan is also called a mortgage or
note.
Term mortgage or a straight note
The term that describes a banks gathering of funds from depositors
for the sake of investing the combined funds is .
Intermediation
Regulation B is also known as .
ECOA, The Equal Credit Opportunity Act.
, Refusing to make a loan in a specific area to exclude a specific class
of people is called .
Redlining
When inquiring about the marital status, what are the only three
acceptable categories?
Married, unmarried or separted
If an individual place a phone number on a Do-Not-Call list, how
frequently does their entry have to be renewed to stay active?
Never, per the Do-Not-Call Improvement Act of 2007 which amended the
original Telemarketing Sales Rule
According to FACTA, any person who regularly extends, renews or
continues credit is a .
Creditor
A is someone who allows his/her name and
personal details to be used to obtain a mortgage loan for a property
he/she has no intention of inhabiting.
Straw Buyer
The Red Flag Rules were created by the FTC pursuant to FACTA.
They are primarily concerned with .
Identity Theft
The Federal Fair Housing Act of 1968 prohibits discrimination in
residential credit but is not protected.
Age
The HMDA enacted by Congress in 1975 is also known as Regulation
.
C, The Home Mortgage Disclosure Act, Regulation C
The HMDA deals with institutions with over $ in
assets.
$10,000,000; Ten Million Dollars
A disclosure is required to be provided to the
borrower when the referring provider has greater than 1% ownership
interest in the business being referred.
AfBA, Affiliated Business Arrangement Disclsoure
An annual escrow analysis is required by which Federal Law?
