NMLS SAFE EXAM || MOST RECENT EXAM 2026-2027
ACTUAL COMPLETE REAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ | BRAND NEW!! JUST RELEASED!!
(D) wait to see if there is anymore suspicious activity - ANSWER-An
MLO takes an application and becomes suspicious of the applicants
Soc Sec. #; what should the MLO do?
(A) contact the police
(B) deny loan
(C) call soc sec admin and verify Soc Sec #
(D) wait to see if there is anymore suspicious activity
B). A Liability - ANSWER-A young couple is applying for a loan for a
new home purchase. A portion of their down payment is a loan from a
Grandparent for $25,000. The money was already given to them and
placed in their account three months prior to the loan application. The
loan payments won't start for one year, how should the $25,000 be
reported on the mortgage application?
A. Asset
B. A Liability
C. Gift of funds
D. Not reported at all
A.) Ignore the situation as it may be a family matter - ANSWER-What
action should an MLO take if during a refinance involving a mother
,and son the MLO gets the feeling the mother is hesitant about the
refinance?
a.) Ignore the situation as it may be a family matter
b.) Pull the mother aside to discuss
c.) Refer the transaction to the AML department
d.) Pull the son aside to discuss
D.)Terminate both - ANSWER-MLO went on a vacation and had her
LOA meet with her client. When the MLO came back it was found that
the LOA was signing documents as the MLO, turns out this practice
was happening often and with MLO's permission. What should be
done?
a.Terminate the LO
b.)Terminate LOA
c.)Report to authorities
d.)Terminate both
C.) Ask the borrower to obtain a statement of terms - ANSWER-A
borrower applies for a loan and while in process notifies the MLO they
have just financed the purchase of a car for their daughter who plans
to make the payments. The payments do not show on the borrower's
current credit report. What action should the MLO take? a. Don't
report the information since it is not on credit
b. Advise the UW and let them handle it
c. Ask the borrower to obtain a statement of terms
d. Turn the loan down
,Fraud for profit - think
insider
Fraud for housing - think consumer - ANSWER-2
types of fraud:
B.) The applicants currently own & live in a property in the same
neighborhood as the property for the loan - ANSWER-Which of the
following could be an indication of possible fraud on an application
for an owner occupied purchase transaction? a. The applicants
currently live with their parents
b. The applicants currently own & live in a property in the same
neighborhood as the property for the loan
c. The property is out of state
d. There are 4 applicants on the application
Property Flipping - ANSWER-Usually involves an appraiser and a
group of people who
buy and resell to each
other at
inflated prices and ultimately to another person.
Air Loan - ANSWER-A loan on a fictitious home that does not exist on
the land
C.) Stated Loans - ANSWER-Which is not an example of fraud?
a. shot
gunning
b. straw
buyer c-
, stated
loans
d- silent seconds
c.) If sufficient use the income on the tax return - ANSWER-A
borrower who is employed as a waiter applied for a mortgage
loan. He told the MLO that he did not report all his tip income on
his tax return. What step should the MLO take ? a.) Contact the
employer to verify the tip income
b.) Tell the borrower to re-do his taxes correctly
c.) If sufficient use the income on the tax return
d.) Use the tip income anyway
b.) Ask the borrower if they have undeclared assets - ANSWER-The
client's appraisal comes in lower than expected causing the
borrower to bring $10,000 to the closing to complete the refinance.
The borrower advises the MLO he only has $8,000 available to close.
What should the MLO advise the client to do? a.) Ask a relative for
the rest
b.) Ask the borrower if they have undeclared assets
c.) Loan the borrower $2,000 and have them repay after closing
d.) Tell the borrower to take a cash advance on one of the credit cards
being paid off.
5 years - ANSWER-Concerning FHA loans, a mortgage insurance
premium is required
until/for:
A. One year.
ACTUAL COMPLETE REAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ | BRAND NEW!! JUST RELEASED!!
(D) wait to see if there is anymore suspicious activity - ANSWER-An
MLO takes an application and becomes suspicious of the applicants
Soc Sec. #; what should the MLO do?
(A) contact the police
(B) deny loan
(C) call soc sec admin and verify Soc Sec #
(D) wait to see if there is anymore suspicious activity
B). A Liability - ANSWER-A young couple is applying for a loan for a
new home purchase. A portion of their down payment is a loan from a
Grandparent for $25,000. The money was already given to them and
placed in their account three months prior to the loan application. The
loan payments won't start for one year, how should the $25,000 be
reported on the mortgage application?
A. Asset
B. A Liability
C. Gift of funds
D. Not reported at all
A.) Ignore the situation as it may be a family matter - ANSWER-What
action should an MLO take if during a refinance involving a mother
,and son the MLO gets the feeling the mother is hesitant about the
refinance?
a.) Ignore the situation as it may be a family matter
b.) Pull the mother aside to discuss
c.) Refer the transaction to the AML department
d.) Pull the son aside to discuss
D.)Terminate both - ANSWER-MLO went on a vacation and had her
LOA meet with her client. When the MLO came back it was found that
the LOA was signing documents as the MLO, turns out this practice
was happening often and with MLO's permission. What should be
done?
a.Terminate the LO
b.)Terminate LOA
c.)Report to authorities
d.)Terminate both
C.) Ask the borrower to obtain a statement of terms - ANSWER-A
borrower applies for a loan and while in process notifies the MLO they
have just financed the purchase of a car for their daughter who plans
to make the payments. The payments do not show on the borrower's
current credit report. What action should the MLO take? a. Don't
report the information since it is not on credit
b. Advise the UW and let them handle it
c. Ask the borrower to obtain a statement of terms
d. Turn the loan down
,Fraud for profit - think
insider
Fraud for housing - think consumer - ANSWER-2
types of fraud:
B.) The applicants currently own & live in a property in the same
neighborhood as the property for the loan - ANSWER-Which of the
following could be an indication of possible fraud on an application
for an owner occupied purchase transaction? a. The applicants
currently live with their parents
b. The applicants currently own & live in a property in the same
neighborhood as the property for the loan
c. The property is out of state
d. There are 4 applicants on the application
Property Flipping - ANSWER-Usually involves an appraiser and a
group of people who
buy and resell to each
other at
inflated prices and ultimately to another person.
Air Loan - ANSWER-A loan on a fictitious home that does not exist on
the land
C.) Stated Loans - ANSWER-Which is not an example of fraud?
a. shot
gunning
b. straw
buyer c-
, stated
loans
d- silent seconds
c.) If sufficient use the income on the tax return - ANSWER-A
borrower who is employed as a waiter applied for a mortgage
loan. He told the MLO that he did not report all his tip income on
his tax return. What step should the MLO take ? a.) Contact the
employer to verify the tip income
b.) Tell the borrower to re-do his taxes correctly
c.) If sufficient use the income on the tax return
d.) Use the tip income anyway
b.) Ask the borrower if they have undeclared assets - ANSWER-The
client's appraisal comes in lower than expected causing the
borrower to bring $10,000 to the closing to complete the refinance.
The borrower advises the MLO he only has $8,000 available to close.
What should the MLO advise the client to do? a.) Ask a relative for
the rest
b.) Ask the borrower if they have undeclared assets
c.) Loan the borrower $2,000 and have them repay after closing
d.) Tell the borrower to take a cash advance on one of the credit cards
being paid off.
5 years - ANSWER-Concerning FHA loans, a mortgage insurance
premium is required
until/for:
A. One year.
