MLO 2026 EXAM QUESTIONS WITH
CORRECT ANSWERS
What does the National Do Not Call Registry deem illegal? - Answer- calling phone
numbers on the DNC
-if they reach out to you asking for something you can call
How often are sellers & telemarketers required to check the DNC registry? - Answer- At
least once every 31 days
Can companies call consumers (even if on DNC) with whom they have established a
business relationship with?
For how many months? - Answer- Yes, up to 18 months
Regulation N or the MAP Rule does what? - Answer- -issued by CFBP, prohibit unfair or
deceptive acts related to mortgage loans ADVERTISING to public
-no misrepresentation
- no misrepresentation of rate, APR/any rate, fees, cost, terms
MAP Rule (regulation N) stands for - Answer- Mortgage Acts and Practices-Advertising
Rule
MAP Rule is also what regulation - Answer- Regulation N
Regulation N (MAP Rule) requires loan ads & commercial communication regarding
mortgage credit report be retained for how long? - Answer- 2 years
When advertising, if advertising a rate or number, you need to state what? - Answer- the
things they need to qualify for that
Product Association is prohibited advertising that - Answer- leads consumers to believe
the product is affiliated with another organization or gov. entity
-ex: similar symbol to another known company
Regulation N (MAP advertising rule) applies to who & doesnt apply to who - Answer-
Applies to anyone who advertises mortgage products & is under FTC's enforcement
authority
Doesn't apply to banks, federal credit unions, federal savings & loan instits.
,Which one of the following is NOT required to comply with Regulation N?
a) federal credit unions
b) mortgage brokers
c) mortgage lenders
d) mortgage loan originators - Answer- A
Federal credit union workers dont need license. T or F? - Answer- True, they operate
under the credit union's license
RESPA stands for - Answer- Real Estate Settlement Procedures Act
Purpose of RESPA - Answer- -disclosures to consumers (better-informed shoppers)
-outlaws kickbacks that increase cost of settlement (closing) services or limit consumer
choice
RESPA regulations apply to loans granted on how many family residential properties?
*residential - Answer- 1-4- family residential properties (1-4 units)
How many family residential properties (or units) can we grant a loan for? - Answer- 1-4
units
RESPA Requires the lender provides the borrower with what 2 forms of written
disclosures for settlement (closing)? - Answer- LE (loan estimate)
CD (closing disclosure)
Mortgage - Answer- Loan offered exclusively for purchasing house, vacant property,
improved land, or other forms of real estate
The Real Estate product being purchased serves as what for the loan? - Answer-
Collateral
The collateral is what product? - Answer- the home (real estate product)
Borrower pays the Lender back over time via: - Answer- -series of payments (applied to
interest & principle)
-sometimes to property taxes & insurance
Biggest Providers of the Secondary Market - Answer- Fannie Mae & Freddie Mac
Fannie Mae stands for - Answer- Federal National Mortgage Association
Prime Loans definition - Answer- Loans acceptable to Fannie Mae on secondary market
(good risk for investors)
, Subprime Loans definition - Answer- Loans unacceptable to FHA, made to borrowers
with low credit scores & higher risk of defaulting (failing)
Definition of Secondary Market - Answer- someone who purchases mortgages to make
money off the interest
What loans can/can't be sold on secondary market? - Answer- CAN: qualified loans
CAN'T: non-qualified loans
MLO Definition - Answer- Someone who "for compensation or gain, or in the
expectation of compensation or gain, takes a loan application or offers or negotiates the
terms of a mortgage loan"
MLO stands for - Answer- Mortgage Loan Originator
Key terms for MLO - Answer- takes a loan application; OFFERS or NEGOTIATES the
terms of a mortgage loan
MLO doesn't do: - Answer- -only admin tasts
-only real estate brokerage activities & is licensed or registered as real estate broker
-soley involved in extensions of credit related to time share plans
Registered MLOs - Answer- -Financial institutions
-Non-depository institutions
-NMLS
If you see "offers or negotiates the terms of a mortgage loan" this person must be -
Answer- Licensed - an MLO
Lender (MLO) vs. Broker - Answer- -broker works w/ dif banks and for a fee finds the
best rate from the banks they works with
-with broker you'll probably get better rate but higher closing cost
-MLO's work for single lender & only offer that institution's loan products
NMLS stands for - Answer- Nationwide Multistate Licensing System (and Registry)
NMLS definition - Answer- national registry and database that records license status
and disciplinary actions for each registered MLO. All MLOs must be registered &
maintain an active account w/ NMLS
How did the New Deal affect the mortgage industry? - Answer- Made mortgages more
consumer friendly
What happened to the mortgage market post World-War II? - Answer- mortgage lending
boomed!
-Soldiers returned from war with interest in buying homes
CORRECT ANSWERS
What does the National Do Not Call Registry deem illegal? - Answer- calling phone
numbers on the DNC
-if they reach out to you asking for something you can call
How often are sellers & telemarketers required to check the DNC registry? - Answer- At
least once every 31 days
Can companies call consumers (even if on DNC) with whom they have established a
business relationship with?
For how many months? - Answer- Yes, up to 18 months
Regulation N or the MAP Rule does what? - Answer- -issued by CFBP, prohibit unfair or
deceptive acts related to mortgage loans ADVERTISING to public
-no misrepresentation
- no misrepresentation of rate, APR/any rate, fees, cost, terms
MAP Rule (regulation N) stands for - Answer- Mortgage Acts and Practices-Advertising
Rule
MAP Rule is also what regulation - Answer- Regulation N
Regulation N (MAP Rule) requires loan ads & commercial communication regarding
mortgage credit report be retained for how long? - Answer- 2 years
When advertising, if advertising a rate or number, you need to state what? - Answer- the
things they need to qualify for that
Product Association is prohibited advertising that - Answer- leads consumers to believe
the product is affiliated with another organization or gov. entity
-ex: similar symbol to another known company
Regulation N (MAP advertising rule) applies to who & doesnt apply to who - Answer-
Applies to anyone who advertises mortgage products & is under FTC's enforcement
authority
Doesn't apply to banks, federal credit unions, federal savings & loan instits.
,Which one of the following is NOT required to comply with Regulation N?
a) federal credit unions
b) mortgage brokers
c) mortgage lenders
d) mortgage loan originators - Answer- A
Federal credit union workers dont need license. T or F? - Answer- True, they operate
under the credit union's license
RESPA stands for - Answer- Real Estate Settlement Procedures Act
Purpose of RESPA - Answer- -disclosures to consumers (better-informed shoppers)
-outlaws kickbacks that increase cost of settlement (closing) services or limit consumer
choice
RESPA regulations apply to loans granted on how many family residential properties?
*residential - Answer- 1-4- family residential properties (1-4 units)
How many family residential properties (or units) can we grant a loan for? - Answer- 1-4
units
RESPA Requires the lender provides the borrower with what 2 forms of written
disclosures for settlement (closing)? - Answer- LE (loan estimate)
CD (closing disclosure)
Mortgage - Answer- Loan offered exclusively for purchasing house, vacant property,
improved land, or other forms of real estate
The Real Estate product being purchased serves as what for the loan? - Answer-
Collateral
The collateral is what product? - Answer- the home (real estate product)
Borrower pays the Lender back over time via: - Answer- -series of payments (applied to
interest & principle)
-sometimes to property taxes & insurance
Biggest Providers of the Secondary Market - Answer- Fannie Mae & Freddie Mac
Fannie Mae stands for - Answer- Federal National Mortgage Association
Prime Loans definition - Answer- Loans acceptable to Fannie Mae on secondary market
(good risk for investors)
, Subprime Loans definition - Answer- Loans unacceptable to FHA, made to borrowers
with low credit scores & higher risk of defaulting (failing)
Definition of Secondary Market - Answer- someone who purchases mortgages to make
money off the interest
What loans can/can't be sold on secondary market? - Answer- CAN: qualified loans
CAN'T: non-qualified loans
MLO Definition - Answer- Someone who "for compensation or gain, or in the
expectation of compensation or gain, takes a loan application or offers or negotiates the
terms of a mortgage loan"
MLO stands for - Answer- Mortgage Loan Originator
Key terms for MLO - Answer- takes a loan application; OFFERS or NEGOTIATES the
terms of a mortgage loan
MLO doesn't do: - Answer- -only admin tasts
-only real estate brokerage activities & is licensed or registered as real estate broker
-soley involved in extensions of credit related to time share plans
Registered MLOs - Answer- -Financial institutions
-Non-depository institutions
-NMLS
If you see "offers or negotiates the terms of a mortgage loan" this person must be -
Answer- Licensed - an MLO
Lender (MLO) vs. Broker - Answer- -broker works w/ dif banks and for a fee finds the
best rate from the banks they works with
-with broker you'll probably get better rate but higher closing cost
-MLO's work for single lender & only offer that institution's loan products
NMLS stands for - Answer- Nationwide Multistate Licensing System (and Registry)
NMLS definition - Answer- national registry and database that records license status
and disciplinary actions for each registered MLO. All MLOs must be registered &
maintain an active account w/ NMLS
How did the New Deal affect the mortgage industry? - Answer- Made mortgages more
consumer friendly
What happened to the mortgage market post World-War II? - Answer- mortgage lending
boomed!
-Soldiers returned from war with interest in buying homes
