NMLS MLO Exam Questions and Answers Updated 2026

NMLS MLO Exam
Questions and Answers
Updated 2026
WhatBmustBaBborrowerBdoBtoBavoidBhavingBlateBpaymentsBreportedBtoBaBcreditBburea
u?B-BAnswerPayBwithinB30BdaysBofBdueBdate



MaxBpenaltyBifBaBborrowerBisBrequiredBtoBuseBaBspecificBtitleBcompanyBorBsettlementB
agent?B-BAnswer3BtimesBtheBfee



WhatBshouldBnotBbeBover-weightedBinBanBanalysisBofBborrowerBrepaymentBcapacity?B-
BAnswerCreditBscores



MaxBprepaymentBpenaltyBonBresidentialBmortgagesBinBtheBfirstByearBofBtheBloanB-
BAnswer3%



WhatBmustBcondominiumBassociationsBdoBwithBrespectBtoBpropertyBinsurance?B-
BAnswerKeepBaB"blanket"BpolicyBthatBprotectsBtheBentireBstructure



IfBaBlenderBisBplanningBonBreferringBaBborrowerBtoBaBtitleBcompanyBthatBtheBlenderBh
asBownershipBin,BwhenBmustBtheBAFBABmustBbeBprovidedBtoBtheBborrower?B-
BAnswerBeforeBtheBreferralBtoBtheBtitleBcompanyBisBmade



WebsiteBtoBobtainBcopyBofByourBcreditBreportBthatBtheBcreditBbureausBareBrequiredBto
BprovideBonceBperByearBatBnoBchargeB-BAnswerannualcreditreport.com



2/3/6BcapsB-
BAnswerARMBinitialBadjustmentBmaxBisB2%,BsubsequentBadjustmentBperiodBmaxBisB3%,
BandBlifetimeBcapBofB6%

,WhatBdoesBFHLBBstandBforBandBwhatBdoBtheyBprovide?B-
BAnswerFederalBHomeBLoanBBank,BandBtheyBprovideBadvancesBtoBfinancialBinstitutions
BforBresidentialBmortgageBloans



AccordingBtoBtheBDodd-
FrankBAct,BhowBmuchBriskBmustBbeBretainedBbyBtheBsecuritizerBforBaBloanBthatBdoesB
notBmeetBQRMBguidelines?B-BAnswer5%



OnBaBpurchaseBtransaction,BwhatBdocumentBcontainsBtheBpurchaseBpriceBforBaBpropert
y?B-BAnswerSalesBContract



AfterBaBloanBhasBbeenBclosedBandBfunded,BtheBcreditorBnoticesBaBtoleranceBviolationB
withBaBfeeBbetweenBtheBLEBandBCD.BHowBlongBdoesBtheBcreditorBhaveBtoBreimburseB
theBborrowerBforBtheBoverchargeBbeforeBbeingBconsideredBinBviolationBofBtheBTRIDBrul
e?B-BAnswer60BdaysBafterBclosing



AccordingBtoBtheBDodd-
FrankBAct,BhowBmuchBriskBmustBbeBretainedBbyBtheBsecuritizerBforBaBloanBthatBdoesB
notBmeetBQRMBguidelines?B-BAnswer5%



OvertBDiscriminationB-
BAnswerRefusingBserviceBtoBanyoneBofBaBcertainBrace,Bethnicity,Betc.



UnderBECOABcanByouBaskBhowBmanyBchildrenBaBborrowerBhas?B-BAnswerNo



WhatBdocumentBspecifiesBthatBaBpropertyBisBbeingBusedBasBsecurityBinBtheBeventBofB
nonpaymentBofBaBdebt?B-BAnswerMortgage



OnBtheBLE,BwhichBpieceBofBdataBtellsBapplicantsBhowBmuchBtheyBwillBbeBpayingBinBint
erestBoverBtheBlifeBofBtheBloanBasBaBpercentageBofBtheBloan?B-
BAnswerTIPB(TotalBInterestBPercentage)

, COFIBcomesBfromBwhatBregionBinBtheBcountry?B-
BAnswerTheB11thBFederalBHomeBLoanBBankB(Arizona,BCalifornia,BandBNevada)



WhatBdisclosureBisBrequiredBtoBbeBprovidedBtoBtheBapplicantBwithinB3BdaysBofBapplica
tionBunderBregBx?B-BAnswerMortgageBLoanBServicingBDisclosure



VerificationBofBcashBusedBinBaBclosingBisBdocumentedBby:B-BAnswerlastB2-
3BmonthsBbankBstatements



TheBfinanceBchargeBisBtheBtotalBcostBof:B-
BAnswertheBloanBinBdollars,BincludingBpointsBandBmortgageBinsurance



WhatBIRSBformsBwouldByouBrequrestBfromBaBborrowerBwhoBisB40%BshareholderBinBaB
C-Corporation?B-BAnswerFormB1120



ImpersonatingBsomeoneBelseBinBanBattemptBtoBobtainBtheirBpersonalBfinancialBinformat
ionBisBcalled:B-BAnswerPretexting



WhatBtypeBofBfundingBoccursBwhenBaBlenderBobtainsBfundsBfromBaBlineBofBcreditBatBa
BcommercialBbank?B-BAnswerWarehouseBfunding



LateBfeeBforBFHABandBVABloansB-BAnswer4%



GinnieBMaeB_____BloansB-BAnswerGuarantees



ABmortgageBonBpersonalBpropertyBis:B-BAnswerChattelBmortgage



WhoBcanBtransferBtitleBinsuranceBpolicy?B-BAnswerMortgagee



WhatBdocumentBisBNOTBrecorded?B-BAnswerTheBNote