NMLS Safe Test Mortgage Licensing Practice Exam Questions
and Answers |Fall 2025/2026 Update | 100% Correct
Question 1
What do the initials NMLS stand for?
Correct Answer
Nationwide Mortgage Licensing System and Registry
Question 2
Which Federal Law regulates credit reporting agencies like Experian, Equifax, and Trans Union that might deny credit to a
borrower to provide a free credit report to a buyer within 30 days of denial
Correct Answer
FCRA (Reg V)
Question 3
Under which federal legislation does the consumer have the right to receive a copy of the appraisal report on a dwelling
that is to be used as collateral for a loan?
Correct Answer
ECOA
Page 1 of 99
,Question 4
Private mortgage insurance (PMI) is NOT required when
Correct Answer
the loan has been paid down to less than 78% of the property's current value
Question 5
Which law ensures lenders use an APR so that the borrowers have the information they need to make informed
comparisons?
Correct Answer
TILA
Question 6
Morality appears to be _________ and _________ in nature
Correct Answer
Esoteric and qualitative'
Question 7
HOEPA is an addendum to what law?
Correct Answer
TILA'
Page 2 of 99
,Question 8
Closing costs may be paid by:
Correct Answer
The seller or the buyer
Question 9
Who ensures the accuracy of a title report?
Correct Answer
The insurance company'
Question 10
What does CSBS stand for?
Correct Answer
Conference of State Bank Supervisors
Question 11
Ownership of ____% or more of a business is considered self-employed in mortgage underwriting?
Correct Answer
25%
Page 3 of 99
, Question 12
Does the annual percentage rate affect the amount of the monthly payments directly?
Correct Answer
No, it does not affect the amount of the monthly payments
Question 13
Donald applied for a loan on August 1. The Mortgage Company rejected his loan application on August 5. By what date
must the Mortgage Company send him a written explanation of their decision?
Correct Answer
August 30'
Question 14
Which year was Truth in Lending Act Enacted?
Correct Answer
Truth in Lending Act Enacted in ' 1968'
Question 15
Does the buyer necessarily need to pay the premium for the owner's title insurance policy?
Correct Answer
No, he's not required to pay for the owner's title insurance policy. He is required to pay the lenders title policy.
Page 4 of 99
and Answers |Fall 2025/2026 Update | 100% Correct
Question 1
What do the initials NMLS stand for?
Correct Answer
Nationwide Mortgage Licensing System and Registry
Question 2
Which Federal Law regulates credit reporting agencies like Experian, Equifax, and Trans Union that might deny credit to a
borrower to provide a free credit report to a buyer within 30 days of denial
Correct Answer
FCRA (Reg V)
Question 3
Under which federal legislation does the consumer have the right to receive a copy of the appraisal report on a dwelling
that is to be used as collateral for a loan?
Correct Answer
ECOA
Page 1 of 99
,Question 4
Private mortgage insurance (PMI) is NOT required when
Correct Answer
the loan has been paid down to less than 78% of the property's current value
Question 5
Which law ensures lenders use an APR so that the borrowers have the information they need to make informed
comparisons?
Correct Answer
TILA
Question 6
Morality appears to be _________ and _________ in nature
Correct Answer
Esoteric and qualitative'
Question 7
HOEPA is an addendum to what law?
Correct Answer
TILA'
Page 2 of 99
,Question 8
Closing costs may be paid by:
Correct Answer
The seller or the buyer
Question 9
Who ensures the accuracy of a title report?
Correct Answer
The insurance company'
Question 10
What does CSBS stand for?
Correct Answer
Conference of State Bank Supervisors
Question 11
Ownership of ____% or more of a business is considered self-employed in mortgage underwriting?
Correct Answer
25%
Page 3 of 99
, Question 12
Does the annual percentage rate affect the amount of the monthly payments directly?
Correct Answer
No, it does not affect the amount of the monthly payments
Question 13
Donald applied for a loan on August 1. The Mortgage Company rejected his loan application on August 5. By what date
must the Mortgage Company send him a written explanation of their decision?
Correct Answer
August 30'
Question 14
Which year was Truth in Lending Act Enacted?
Correct Answer
Truth in Lending Act Enacted in ' 1968'
Question 15
Does the buyer necessarily need to pay the premium for the owner's title insurance policy?
Correct Answer
No, he's not required to pay for the owner's title insurance policy. He is required to pay the lenders title policy.
Page 4 of 99
