& VERIFIED ANSWERS | 2026 |
This NMLS SAFE Mortgage Loan Originator (MLO) Test is a federally mandated exam that
evaluates the knowledge of prospective mortgage loan officers in five core content areas. It
is designed to ensure industry professionals understand the laws and ethical standards
necessary to protect consumers.
Core Content Areas
The exam is weighted across five primary topics:
Nationwide Mortgage Licensing System
Nationwide Mortgage Licensing System
Content Area Weight Key Topics Covered
Federal Mortgage Related Laws 24% TILA, RESPA, ECOA, FCRA/FACTA, and
HMDA.
Mortgage Loan Origination Activities 27% Application process, qualification, underwriting,
and closing procedures.
General Mortgage Knowledge 20% Mortgage products (ARMs, fixed-rate), terms,
and industry terminology.
Ethics 18% Fraud detection, consumer protection, and fair lending practices.
Uniform State Content (UST) 11% State-specific regulatory authority and
prohibited acts.
Quiz_________________?
________ are mortgages that do not fully amortize due to repayment terms of the loan.
A. Reverse annuity mortgages.
1
, B. Balloon mortgages.
C. Graduated payment mortgages.
D. Home equity line of credit. -
ANSWER✅
B. Balloon mortgages
Quiz_________________?
________ must be reported to borrowers on the truth in lending disclosure.
A. Note rates.
B. Finance charges
C. Payment address
D. Servicer's name -
ANSWER✅
B. Finance charges
Quiz_________________?
- 100% Financing NO minimum investment on behalf of the borrower
- Loans ARE Assumable (assumer does NOT have to be a veteran but does have to meet
the lenders
guidelines)
- Qualifying Ratio is 41%
- Only for veterans of armed forces ( active, reserve, national guard)
- Sellers can contribute up to 4%
- No Mortgage Insurance!!
-NOV - Notice of Value
IRRRL - Interest rate reduction refinance loan -
ANSWER✅
2
, Va Loans
Quiz_________________?
- Anyone is eligible for an FHA loan
- Gift funds can be used to close (also, borrower's own funds and grant money can be used
for down payment)
- sellers can contribute 6% towards closing costs
- NO Prepayment Penalties
- Qualifying Ratios are 31%/43%
- 3.5% down payment -
ANSWER✅
Quiz_________________?
-Each Owner gets 2 copies of the right to rescind notice and 1 copy of the disclosure!
- If a borrower is not given the forms, or the APR disclosed was off by max variance the
rescission period extends from 3 days to 3 years! -
ANSWER✅
Quiz_________________?
. Which of the following is NOT a RESPA mandated disclosure?
A. HUD-1 Settlement Statement
B. Good faith estimate
C. Regulation Z Disclosure
D. Special information booklet. -
3
, ANSWER✅
D. Special information booklet
Quiz_________________?
" Know before you Owe'" rule which Integrated RESPA and TILA's upfront disclosures and
is commonly know as -
ANSWER✅
TRID
TILA RESPA Integrated Disclosure
Quiz_________________?
(2) Represents the first adjustment max
(1) Represents all other adjustment periods
(6) max adjustment over term of loan -
ANSWER✅
2/1/6 Cap
Quiz_________________?
(5) is number of years fixed
(1) Adjusts annually -
ANSWER✅
5/1 ARM
Quiz_________________?
4
This NMLS SAFE Mortgage Loan Originator (MLO) Test is a federally mandated exam that
evaluates the knowledge of prospective mortgage loan officers in five core content areas. It
is designed to ensure industry professionals understand the laws and ethical standards
necessary to protect consumers.
Core Content Areas
The exam is weighted across five primary topics:
Nationwide Mortgage Licensing System
Nationwide Mortgage Licensing System
Content Area Weight Key Topics Covered
Federal Mortgage Related Laws 24% TILA, RESPA, ECOA, FCRA/FACTA, and
HMDA.
Mortgage Loan Origination Activities 27% Application process, qualification, underwriting,
and closing procedures.
General Mortgage Knowledge 20% Mortgage products (ARMs, fixed-rate), terms,
and industry terminology.
Ethics 18% Fraud detection, consumer protection, and fair lending practices.
Uniform State Content (UST) 11% State-specific regulatory authority and
prohibited acts.
Quiz_________________?
________ are mortgages that do not fully amortize due to repayment terms of the loan.
A. Reverse annuity mortgages.
1
, B. Balloon mortgages.
C. Graduated payment mortgages.
D. Home equity line of credit. -
ANSWER✅
B. Balloon mortgages
Quiz_________________?
________ must be reported to borrowers on the truth in lending disclosure.
A. Note rates.
B. Finance charges
C. Payment address
D. Servicer's name -
ANSWER✅
B. Finance charges
Quiz_________________?
- 100% Financing NO minimum investment on behalf of the borrower
- Loans ARE Assumable (assumer does NOT have to be a veteran but does have to meet
the lenders
guidelines)
- Qualifying Ratio is 41%
- Only for veterans of armed forces ( active, reserve, national guard)
- Sellers can contribute up to 4%
- No Mortgage Insurance!!
-NOV - Notice of Value
IRRRL - Interest rate reduction refinance loan -
ANSWER✅
2
, Va Loans
Quiz_________________?
- Anyone is eligible for an FHA loan
- Gift funds can be used to close (also, borrower's own funds and grant money can be used
for down payment)
- sellers can contribute 6% towards closing costs
- NO Prepayment Penalties
- Qualifying Ratios are 31%/43%
- 3.5% down payment -
ANSWER✅
Quiz_________________?
-Each Owner gets 2 copies of the right to rescind notice and 1 copy of the disclosure!
- If a borrower is not given the forms, or the APR disclosed was off by max variance the
rescission period extends from 3 days to 3 years! -
ANSWER✅
Quiz_________________?
. Which of the following is NOT a RESPA mandated disclosure?
A. HUD-1 Settlement Statement
B. Good faith estimate
C. Regulation Z Disclosure
D. Special information booklet. -
3
, ANSWER✅
D. Special information booklet
Quiz_________________?
" Know before you Owe'" rule which Integrated RESPA and TILA's upfront disclosures and
is commonly know as -
ANSWER✅
TRID
TILA RESPA Integrated Disclosure
Quiz_________________?
(2) Represents the first adjustment max
(1) Represents all other adjustment periods
(6) max adjustment over term of loan -
ANSWER✅
2/1/6 Cap
Quiz_________________?
(5) is number of years fixed
(1) Adjusts annually -
ANSWER✅
5/1 ARM
Quiz_________________?
4
