Practice NMLS test - 20 Hour Safe Exam
Questions and Answers Graded A+
An application must be accompanied by fingerprints when applying for
a. Licensed MLO
b. Registered MLO
c. not required
d. required for both licensed and registered MLO - Correct answer-d
Quarterly mortgage call reports must be filed
a. within 30 days of the end of the calendar quarter
b. within 30 days of the end of the fiscal quarter
c. within 45 days of the end of the calendar quarter
d. within 45 days of the end of the fiscal quarter - Correct answer-c. within45 days
of the end of the calendar quarter
Which of the following Government Sponsored Entities does NOT buy mortgage
loans in the secondary market?
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,a. Fannie Mae
b. Ginnie Mae
c. Freddie Mac
d. All of these GSEs buy loans in the secondary market - Correct answer-B. Ginnie
Mae does not buy or sell loans - it guarantees principal and interest payment for
investors who buy mortgage pools
Which of the following would be ways that Fannie Mae impacts the primary
mortgage market?
a. it ultimately serves to provide additional funds for the primary market
b. it influences lenders' standards for making mortgage loans
c. both
d. none - Correct answer-c. Fannie Mae buys mortgages in the secondary mortgage
market which makes more funds available to lenders to make loans in the primary
market. It also sets standards for the qualifying requirements lenders use when they
make loans in the primary market, since they want to be able to sell loans to Fannie
Mae
A person who has failed the national portion of the NMLS examination the third
attempt:
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,a. is prohibited from taking the test again
b. must wait one year to retake the test
c. must wait 180 days to retake the test
d. must wait 30 days to retake the test - Correct answer-c 180 days
A registered LO must complete how many hours of continuing education courses
each year?
a. 20
b. 12
c. 0
d. 8 - Correct answer-c
In order to become a state licensed LO, the applicant must complete how many
hours of prelicense education courses
within 30 days of the end of the fiscal quarter
a. 45
b. 30
c. 25
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, d. 20 - Correct answer-d
A lender which will make mortgage loans to customers, but will immediately sell
each of their loans to a larger lender (under a contract relationship) is called a:
a. Wholesale lender
b. Retail lender
c. Correspondent lender
d. Mortgage broker - Correct answer-C. Correspondent lender, since it immediately
sells its loans to a larger (often wholesale) lender
If the Fed where to buy government securities, the money supply would likely:
a. Decrease
b. Increase
c. Stabilize
d. Appreciate - Correct answer-B. When the Fed buys US Government securities,
the money supply would increase, since the money would go out into the economy
The primary difference between a mortgage banker and a mortgage broker is:
a. whether it is regulated by the state or federal government
b. whether it is a depository institution
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Questions and Answers Graded A+
An application must be accompanied by fingerprints when applying for
a. Licensed MLO
b. Registered MLO
c. not required
d. required for both licensed and registered MLO - Correct answer-d
Quarterly mortgage call reports must be filed
a. within 30 days of the end of the calendar quarter
b. within 30 days of the end of the fiscal quarter
c. within 45 days of the end of the calendar quarter
d. within 45 days of the end of the fiscal quarter - Correct answer-c. within45 days
of the end of the calendar quarter
Which of the following Government Sponsored Entities does NOT buy mortgage
loans in the secondary market?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,a. Fannie Mae
b. Ginnie Mae
c. Freddie Mac
d. All of these GSEs buy loans in the secondary market - Correct answer-B. Ginnie
Mae does not buy or sell loans - it guarantees principal and interest payment for
investors who buy mortgage pools
Which of the following would be ways that Fannie Mae impacts the primary
mortgage market?
a. it ultimately serves to provide additional funds for the primary market
b. it influences lenders' standards for making mortgage loans
c. both
d. none - Correct answer-c. Fannie Mae buys mortgages in the secondary mortgage
market which makes more funds available to lenders to make loans in the primary
market. It also sets standards for the qualifying requirements lenders use when they
make loans in the primary market, since they want to be able to sell loans to Fannie
Mae
A person who has failed the national portion of the NMLS examination the third
attempt:
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,a. is prohibited from taking the test again
b. must wait one year to retake the test
c. must wait 180 days to retake the test
d. must wait 30 days to retake the test - Correct answer-c 180 days
A registered LO must complete how many hours of continuing education courses
each year?
a. 20
b. 12
c. 0
d. 8 - Correct answer-c
In order to become a state licensed LO, the applicant must complete how many
hours of prelicense education courses
within 30 days of the end of the fiscal quarter
a. 45
b. 30
c. 25
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, d. 20 - Correct answer-d
A lender which will make mortgage loans to customers, but will immediately sell
each of their loans to a larger lender (under a contract relationship) is called a:
a. Wholesale lender
b. Retail lender
c. Correspondent lender
d. Mortgage broker - Correct answer-C. Correspondent lender, since it immediately
sells its loans to a larger (often wholesale) lender
If the Fed where to buy government securities, the money supply would likely:
a. Decrease
b. Increase
c. Stabilize
d. Appreciate - Correct answer-B. When the Fed buys US Government securities,
the money supply would increase, since the money would go out into the economy
The primary difference between a mortgage banker and a mortgage broker is:
a. whether it is regulated by the state or federal government
b. whether it is a depository institution
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
