NMLS SAFE EXAM NEWEST 2026 QUESTIONS
and CORRECT DETAILED ANSWERS ALREADY
GRADED A+
What must lenders provide under ECOA? - CORRECT ANSWER-A Notice of
Action Taken within 30 days
What is HMDA? - CORRECT ANSWER-Home Mortgage Disclosure Act
(Regulation C), requiring data collection to monitor lending patterns
What does the CFPB stand for? - CORRECT ANSWER-Consumer Financial
Protection Bureau
What does the CFPB oversee? - CORRECT ANSWER-Enforcement of federal
financial laws
What is a Qualified Mortgage (QM)? - CORRECT ANSWER-A loan with features
designed to reduce risk for borrowers and lenders
What is the ATR rule? - CORRECT ANSWER-Ability-to-Repay; lenders must
ensure borrowers can afford their loans
,What is a high-cost mortgage? - CORRECT ANSWER-A loan with very high fees
or interest rates
What does RESPA stand for? - CORRECT ANSWER-Real Estate Settlement
Procedures Act (Regulation X)
What is the main purpose of RESPA? - CORRECT ANSWER-To prevent
kickbacks and ensure transparency in loan settlements
What is a kickback? - CORRECT ANSWER-An illegal payment for referrals in
mortgage transactions
What is the Loan Estimate form? - CORRECT ANSWER-A disclosure showing
the expected costs of a loan
When must the Loan Estimate be provided? - CORRECT ANSWER-Within 3
business days of receiving a complete application
What does TILA stand for? - CORRECT ANSWER-Truth-In-Lending Act
(Regulation Z)
,What is TILA's main purpose? - CORRECT ANSWER-To ensure borrowers can
understand loan costs and terms
What is the Right of Rescission under TILA? - CORRECT ANSWER-Borrowers
can cancel certain loans within 3 business days.
What does ECOA stand for? - CORRECT ANSWER-Equal Credit Opportunity Act
(Regulation B)
What does ECOA prohibit? - CORRECT ANSWER-Discrimination in lending
based on race, gender, or other protected classes
What is a Closing Disclosure? - CORRECT ANSWER-A final breakdown of loan
costs provided before closing
What is predatory lending? - CORRECT ANSWER-Exploiting borrowers through
unfair or abusive practices
What is the SAFE Act? - CORRECT ANSWER-Ensures MLOs are licensed and
meet education standards
, What is the primary role of an MLO? - CORRECT ANSWER-To guide borrowers
through the mortgage process and match them with suitable loan products
What is the loan origination process? - CORRECT ANSWER-Collecting borrower
information, explaining loan options, and submitting applications
What does the Loan Estimate include? - CORRECT ANSWER-Loan terms,
projected payments, and estimated closing costs
When must the Closing Disclosure be provided? - CORRECT ANSWER-At least 3
business days before closing
What is the purpose of underwriting? - CORRECT ANSWER-To assess the
borrower's ability to repay the loan
What is the Loan Application (URLA)? - CORRECT ANSWER-The Uniform
Residential Loan Application (Form 1003)
What are the six key items in a completed loan application? - CORRECT
ANSWER-Name, income, social security number, property address, estimated
property value, and loan amount
and CORRECT DETAILED ANSWERS ALREADY
GRADED A+
What must lenders provide under ECOA? - CORRECT ANSWER-A Notice of
Action Taken within 30 days
What is HMDA? - CORRECT ANSWER-Home Mortgage Disclosure Act
(Regulation C), requiring data collection to monitor lending patterns
What does the CFPB stand for? - CORRECT ANSWER-Consumer Financial
Protection Bureau
What does the CFPB oversee? - CORRECT ANSWER-Enforcement of federal
financial laws
What is a Qualified Mortgage (QM)? - CORRECT ANSWER-A loan with features
designed to reduce risk for borrowers and lenders
What is the ATR rule? - CORRECT ANSWER-Ability-to-Repay; lenders must
ensure borrowers can afford their loans
,What is a high-cost mortgage? - CORRECT ANSWER-A loan with very high fees
or interest rates
What does RESPA stand for? - CORRECT ANSWER-Real Estate Settlement
Procedures Act (Regulation X)
What is the main purpose of RESPA? - CORRECT ANSWER-To prevent
kickbacks and ensure transparency in loan settlements
What is a kickback? - CORRECT ANSWER-An illegal payment for referrals in
mortgage transactions
What is the Loan Estimate form? - CORRECT ANSWER-A disclosure showing
the expected costs of a loan
When must the Loan Estimate be provided? - CORRECT ANSWER-Within 3
business days of receiving a complete application
What does TILA stand for? - CORRECT ANSWER-Truth-In-Lending Act
(Regulation Z)
,What is TILA's main purpose? - CORRECT ANSWER-To ensure borrowers can
understand loan costs and terms
What is the Right of Rescission under TILA? - CORRECT ANSWER-Borrowers
can cancel certain loans within 3 business days.
What does ECOA stand for? - CORRECT ANSWER-Equal Credit Opportunity Act
(Regulation B)
What does ECOA prohibit? - CORRECT ANSWER-Discrimination in lending
based on race, gender, or other protected classes
What is a Closing Disclosure? - CORRECT ANSWER-A final breakdown of loan
costs provided before closing
What is predatory lending? - CORRECT ANSWER-Exploiting borrowers through
unfair or abusive practices
What is the SAFE Act? - CORRECT ANSWER-Ensures MLOs are licensed and
meet education standards
, What is the primary role of an MLO? - CORRECT ANSWER-To guide borrowers
through the mortgage process and match them with suitable loan products
What is the loan origination process? - CORRECT ANSWER-Collecting borrower
information, explaining loan options, and submitting applications
What does the Loan Estimate include? - CORRECT ANSWER-Loan terms,
projected payments, and estimated closing costs
When must the Closing Disclosure be provided? - CORRECT ANSWER-At least 3
business days before closing
What is the purpose of underwriting? - CORRECT ANSWER-To assess the
borrower's ability to repay the loan
What is the Loan Application (URLA)? - CORRECT ANSWER-The Uniform
Residential Loan Application (Form 1003)
What are the six key items in a completed loan application? - CORRECT
ANSWER-Name, income, social security number, property address, estimated
property value, and loan amount
