NMLS Safe Test Mortgage Licensing Practice Exam
Newest 2026 Questions and Correct Detailed Answers
Already Graded A+
A borrower is buying a house for $180,000. He provides a down payment of
$40,000. If he pays three discount points, what is the total cost of the points? -
CORRECT ANSWER-$4200
Which day is counted as part of the CD three business day delivery period? -
CORRECT ANSWER-Monday-Saturday
A Latina applies to a mortgage company for a home loan. She is refused based on
the reputation of the neighborhood for a high number of foreclosures. This is an
example of what illegal practice? - CORRECT ANSWER-Redlining
Which Act amended the Truth in Lending Act, establishing disclosure
requirements and prohibiting equity stripping and other abusive practices in
connection with "high cost" mortgages? - CORRECT ANSWER-Home
Ownership and Equity Protection Act (HOEPA)
,Which federal law requires that the Loan Estimate be provided to the borrower
within three business days of the time of loan application is taken? - CORRECT
ANSWER-TILA
What type of scam entails homeowners who are encouraged to refinance their
property over and over until little or no equity remains? - CORRECT ANSWER-
Loan flipping or churning
After a loan closing, funds are disbursed. When are the funds disbursed for an
owner-occupied, residential refinance? - CORRECT ANSWER-After 3 business-
day rescission period
What is the adjustable number used to compute the interest rate on an ARM
called? - CORRECT ANSWER-Index
The type of mortgage that can provide the borrower with a monthly check instead
of the borrower paying a monthly payments is known as - CORRECT ANSWER-
Reverse mortgage
According to the Fair Credit Reporting Act, if adverse action is taken against a
credit applicant because of information on a credit report, the lender who used
that report is required to - CORRECT ANSWER-provide to the consumer the
,name, address, and telephone number of the consumer reporting agency that
furnished the report and the credit score used
At closing, the buyers realizes that the lender changed the terms of the loan, but
since he was facing foreclosure, he felt he had no choice but to go ahead with the
refinance or lose the house. This could be an example of - CORRECT ANSWER-
Predatory lending
The SAFE Act - CORRECT ANSWER-Establishes minimum standards for licensing
and registering mortgage loan originators
In a note, what gives the lender the right to charge the borrower a fee for retiring
the loan early? - CORRECT ANSWER-Prepayment penalty
Regulation B implements the Equal Credit Opportunity Act. True or False? -
CORRECT ANSWER-True
Which item is NOT included in the calculation that determines the annual
percentage rate?
a. the broker's origination fee
, b. the lender's discount points
c. the mortgage insurance premium
d. the title insurance premium - CORRECT ANSWER-The title insurance
premium (D)
Under RESPA, who would be subject to fines and penalties if a kickback is paid? -
CORRECT ANSWER-All parties paying or receiving a kickback
A conforming loan is a loan that - CORRECT ANSWER-Follows the secondary
market criteria set by Fannie Mae/Freddie Mac
MLO Jon from ABC Mortgage is meeting with a potential borrower. What may Jon
NEVER ask about during the loan application process? - CORRECT ANSWER-
Religion
The clause in the mortgage that makes the note due in full upon sale or transfer
of a property is call a(n) - CORRECT ANSWER-Alienation clause AKA "due at
sale clause"
Newest 2026 Questions and Correct Detailed Answers
Already Graded A+
A borrower is buying a house for $180,000. He provides a down payment of
$40,000. If he pays three discount points, what is the total cost of the points? -
CORRECT ANSWER-$4200
Which day is counted as part of the CD three business day delivery period? -
CORRECT ANSWER-Monday-Saturday
A Latina applies to a mortgage company for a home loan. She is refused based on
the reputation of the neighborhood for a high number of foreclosures. This is an
example of what illegal practice? - CORRECT ANSWER-Redlining
Which Act amended the Truth in Lending Act, establishing disclosure
requirements and prohibiting equity stripping and other abusive practices in
connection with "high cost" mortgages? - CORRECT ANSWER-Home
Ownership and Equity Protection Act (HOEPA)
,Which federal law requires that the Loan Estimate be provided to the borrower
within three business days of the time of loan application is taken? - CORRECT
ANSWER-TILA
What type of scam entails homeowners who are encouraged to refinance their
property over and over until little or no equity remains? - CORRECT ANSWER-
Loan flipping or churning
After a loan closing, funds are disbursed. When are the funds disbursed for an
owner-occupied, residential refinance? - CORRECT ANSWER-After 3 business-
day rescission period
What is the adjustable number used to compute the interest rate on an ARM
called? - CORRECT ANSWER-Index
The type of mortgage that can provide the borrower with a monthly check instead
of the borrower paying a monthly payments is known as - CORRECT ANSWER-
Reverse mortgage
According to the Fair Credit Reporting Act, if adverse action is taken against a
credit applicant because of information on a credit report, the lender who used
that report is required to - CORRECT ANSWER-provide to the consumer the
,name, address, and telephone number of the consumer reporting agency that
furnished the report and the credit score used
At closing, the buyers realizes that the lender changed the terms of the loan, but
since he was facing foreclosure, he felt he had no choice but to go ahead with the
refinance or lose the house. This could be an example of - CORRECT ANSWER-
Predatory lending
The SAFE Act - CORRECT ANSWER-Establishes minimum standards for licensing
and registering mortgage loan originators
In a note, what gives the lender the right to charge the borrower a fee for retiring
the loan early? - CORRECT ANSWER-Prepayment penalty
Regulation B implements the Equal Credit Opportunity Act. True or False? -
CORRECT ANSWER-True
Which item is NOT included in the calculation that determines the annual
percentage rate?
a. the broker's origination fee
, b. the lender's discount points
c. the mortgage insurance premium
d. the title insurance premium - CORRECT ANSWER-The title insurance
premium (D)
Under RESPA, who would be subject to fines and penalties if a kickback is paid? -
CORRECT ANSWER-All parties paying or receiving a kickback
A conforming loan is a loan that - CORRECT ANSWER-Follows the secondary
market criteria set by Fannie Mae/Freddie Mac
MLO Jon from ABC Mortgage is meeting with a potential borrower. What may Jon
NEVER ask about during the loan application process? - CORRECT ANSWER-
Religion
The clause in the mortgage that makes the note due in full upon sale or transfer
of a property is call a(n) - CORRECT ANSWER-Alienation clause AKA "due at
sale clause"
