CALIFORNIA STATE NMLS EXAM 2025 WITH 100% ACCURATE
SOLUTIONS
"Federal banking agencies" include:
Answers
A. The Director of the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System,
and FDIC
B. Fannie Mae and Freddie Mac
C. The Comptroller of the Currency and the National Credit Union Administration
D. A and C - ✅✅✅CORRECT -D.
A borrower approaches a lender to refinance their existing negative amortization loan, which was
originated by that
same lender. Which of the following statements is incorrect?
A. The lender must make due regard for the borrower's ability to repay the new loan.
B. The new loan cannot be a stated income pay option arm.
C. The lender can collect a prepayment penalty, as long as it does not exceed 1.75% of the principal
balance.
D. If their existing mortgage is a reverse mortgage, it is not considered a negative amortization loan. -
✅✅✅CORRECT -C.
,A borrower cannot be required to pay interest on the principal balance of a loan secured by a mortgage
on real
property more than how many days prior the date that loan proceeds are disbursed from escrow?
Answers
A. One (1) day
B. Three (3) days
C. Five (5) days
D. Seven (7) days - ✅✅✅CORRECT -A.
A borrower's file requires a VOD, however currently, the borrower has no money but is expecting an
inheritance check.
What can the MLO do?
Answers
A. The MLO may request the VOD takes place after the funds are deposited
B. Request the borrower to take out a pay day advance loan, put it in his account, and repay it once the
verification is done
C. The MLO may loan the borrower money and take it back after the VOD is complete -
✅✅✅CORRECT -A.
A foreclosure consultant may not charge a fee in which exceeds ___ percent per annum of a loan which
the consultant makes to the owner.
Answers
,A. 10%
B. 20%
C. 3%
D. 5% - ✅✅✅CORRECT -A.
A late charge may be imposed for late payment of an installment due on a mortgage loan or deed of
trust but cannot exceed greater than $5 or ___ percent of the installment due.
Answers
A. One (1) percent
B. Three (3) percent
C. Five (5) percent
D. Ten (10) percent - ✅✅✅CORRECT -C.
A mortgage broker's fiduciary duty to a client involves which of the following?
Answers
A. A duty of exclusivity
B. Full disclosure to the client, even at the expense of another client
C. Putting the client's economic interest ahead of the broker's own
, D. Securing the best loan which the client could hope to find - ✅✅✅CORRECT -C.
A mortgage company advertises for loans in both Spanish and English. Which of the following statements
is true?
Answers
A. The mortgage company must provide the key disclosures such as the TIL and Good Faith Estimate in
Spanish to their Spanish speaking
clients.
B. At least 40% of the employees of the company must be bilingual.
C. The company must have at least one native Spanish speaker available during regular business hours.
D. The actual loan documents (note, mortgage, deed, etc.) must be provided in Spanish. -
✅✅✅CORRECT -A.
A mortgage loan originator must pass the licensing test in order to obtain a new license if he has failed to
maintain a license over how many years?
Answers
A. Five (5) years
B. Seven (7) years
C. Ten (10) years
D. MLOs do not ever have to retake the licensing test - ✅✅✅CORRECT -A.
SOLUTIONS
"Federal banking agencies" include:
Answers
A. The Director of the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System,
and FDIC
B. Fannie Mae and Freddie Mac
C. The Comptroller of the Currency and the National Credit Union Administration
D. A and C - ✅✅✅CORRECT -D.
A borrower approaches a lender to refinance their existing negative amortization loan, which was
originated by that
same lender. Which of the following statements is incorrect?
A. The lender must make due regard for the borrower's ability to repay the new loan.
B. The new loan cannot be a stated income pay option arm.
C. The lender can collect a prepayment penalty, as long as it does not exceed 1.75% of the principal
balance.
D. If their existing mortgage is a reverse mortgage, it is not considered a negative amortization loan. -
✅✅✅CORRECT -C.
,A borrower cannot be required to pay interest on the principal balance of a loan secured by a mortgage
on real
property more than how many days prior the date that loan proceeds are disbursed from escrow?
Answers
A. One (1) day
B. Three (3) days
C. Five (5) days
D. Seven (7) days - ✅✅✅CORRECT -A.
A borrower's file requires a VOD, however currently, the borrower has no money but is expecting an
inheritance check.
What can the MLO do?
Answers
A. The MLO may request the VOD takes place after the funds are deposited
B. Request the borrower to take out a pay day advance loan, put it in his account, and repay it once the
verification is done
C. The MLO may loan the borrower money and take it back after the VOD is complete -
✅✅✅CORRECT -A.
A foreclosure consultant may not charge a fee in which exceeds ___ percent per annum of a loan which
the consultant makes to the owner.
Answers
,A. 10%
B. 20%
C. 3%
D. 5% - ✅✅✅CORRECT -A.
A late charge may be imposed for late payment of an installment due on a mortgage loan or deed of
trust but cannot exceed greater than $5 or ___ percent of the installment due.
Answers
A. One (1) percent
B. Three (3) percent
C. Five (5) percent
D. Ten (10) percent - ✅✅✅CORRECT -C.
A mortgage broker's fiduciary duty to a client involves which of the following?
Answers
A. A duty of exclusivity
B. Full disclosure to the client, even at the expense of another client
C. Putting the client's economic interest ahead of the broker's own
, D. Securing the best loan which the client could hope to find - ✅✅✅CORRECT -C.
A mortgage company advertises for loans in both Spanish and English. Which of the following statements
is true?
Answers
A. The mortgage company must provide the key disclosures such as the TIL and Good Faith Estimate in
Spanish to their Spanish speaking
clients.
B. At least 40% of the employees of the company must be bilingual.
C. The company must have at least one native Spanish speaker available during regular business hours.
D. The actual loan documents (note, mortgage, deed, etc.) must be provided in Spanish. -
✅✅✅CORRECT -A.
A mortgage loan originator must pass the licensing test in order to obtain a new license if he has failed to
maintain a license over how many years?
Answers
A. Five (5) years
B. Seven (7) years
C. Ten (10) years
D. MLOs do not ever have to retake the licensing test - ✅✅✅CORRECT -A.
