Mortgage Loan Originator SAFE Exam – Practice
Examination 2025 – 2026 Questions From Actual Exams
Complete 100 Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New!!
Content covered (most tested areas):
Federal Mortgage Laws (TILA, RESPA, ECOA, HMDA, SAFE Act)
• Loan Origination Activities • Mortgage Loan Products •
Ethics and Fraud Prevention • General Mortgage Knowledge •
Qualification and Underwriting Basics • Closing and
Settlement Procedures • Consumer Protection
1. A borrower receives a Loan Estimate after applying for a mortgage loan.
Within how many business days must the lender provide this document?
A. 1 business day
B. 3 business days
C. 5 business days
D. 7 business days
Answer: B. 3 business days
Explanation: Under the Truth in Lending Act integrated disclosure rules, lenders
must provide the Loan Estimate within three business days after receiving a
completed mortgage loan application.
2. Which federal law requires lenders to provide borrowers with information
about settlement costs and prohibits kickbacks between settlement service
providers?
A. ECOA
B. HMDA
,C. RESPA
D. SAFE Act
Answer: C. RESPA
Explanation: The Real Estate Settlement Procedures Act requires disclosure of
settlement costs and prohibits referral fees and kickbacks between real estate
settlement service providers.
3. Which act requires mortgage loan originators to be licensed and registered
through the Nationwide Multistate Licensing System (NMLS)?
A. SAFE Act
B. TILA
C. FHA Act
D. RESPA
Answer: A. SAFE Act
Explanation: The Secure and Fair Enforcement for Mortgage Licensing Act
established licensing and registration requirements for mortgage loan
originators through the NMLS.
4. A lender must provide the Closing Disclosure to a borrower how many
business days before closing?
A. 1 day
B. 2 days
C. 3 days
D. 5 days
Answer: C. 3 days
Explanation: The TRID rule requires the Closing Disclosure to be delivered at
least three business days before consummation of the loan.
5. Which loan type is insured by the Federal Housing Administration?
A. VA loan
B. FHA loan
,C. Conventional loan
D. USDA loan
Answer: B. FHA loan
Explanation: FHA loans are insured by the Federal Housing Administration,
which protects lenders against losses from borrower default.
6. Which federal law prohibits discrimination in lending based on race,
religion, sex, marital status, age, or national origin?
A. ECOA
B. TILA
C. RESPA
D. SAFE Act
Answer: A. ECOA
Explanation: The Equal Credit Opportunity Act prohibits discriminatory lending
practices and requires fair treatment of all applicants.
7. What does APR represent in a mortgage loan?
A. Monthly payment amount
B. Annual Percentage Rate
C. Adjustable payment rate
D. Annual property rate
Answer: B. Annual Percentage Rate
Explanation: APR reflects the true yearly cost of borrowing including interest
and certain loan fees.
8. A borrower applies for a loan and pays for an appraisal. Later the loan is
denied. What must the lender do with the appraisal report?
A. Keep it confidential
B. Destroy it
C. Provide a copy to the borrower
D. Send it to the credit bureau
, Answer: C. Provide a copy to the borrower
Explanation: The ECOA Valuations Rule requires lenders to provide borrowers
with copies of appraisal and valuation reports.
9. Which mortgage loan product has an interest rate that can change
periodically based on an index?
A. Fixed-rate mortgage
B. Balloon mortgage
C. Adjustable-rate mortgage
D. Interest-only mortgage
Answer: C. Adjustable-rate mortgage
Explanation: An ARM adjusts periodically according to an index plus a margin.
10.Which government agency guarantees loans for eligible military veterans?
A. FHA
B. VA
C. USDA
D. HUD
Answer: B. VA
Explanation: The Department of Veterans Affairs guarantees mortgage loans for
qualified veterans and service members.
11.A borrower’s ability to repay a loan must be verified under which rule?
A. Ability-to-Repay Rule
B. SAFE Act
C. RESPA Rule
D. HMDA Rule
Answer: A. Ability-to-Repay Rule
Explanation: Lenders must reasonably verify a borrower’s ability to repay the
mortgage before approval.
Examination 2025 – 2026 Questions From Actual Exams
Complete 100 Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New!!
Content covered (most tested areas):
Federal Mortgage Laws (TILA, RESPA, ECOA, HMDA, SAFE Act)
• Loan Origination Activities • Mortgage Loan Products •
Ethics and Fraud Prevention • General Mortgage Knowledge •
Qualification and Underwriting Basics • Closing and
Settlement Procedures • Consumer Protection
1. A borrower receives a Loan Estimate after applying for a mortgage loan.
Within how many business days must the lender provide this document?
A. 1 business day
B. 3 business days
C. 5 business days
D. 7 business days
Answer: B. 3 business days
Explanation: Under the Truth in Lending Act integrated disclosure rules, lenders
must provide the Loan Estimate within three business days after receiving a
completed mortgage loan application.
2. Which federal law requires lenders to provide borrowers with information
about settlement costs and prohibits kickbacks between settlement service
providers?
A. ECOA
B. HMDA
,C. RESPA
D. SAFE Act
Answer: C. RESPA
Explanation: The Real Estate Settlement Procedures Act requires disclosure of
settlement costs and prohibits referral fees and kickbacks between real estate
settlement service providers.
3. Which act requires mortgage loan originators to be licensed and registered
through the Nationwide Multistate Licensing System (NMLS)?
A. SAFE Act
B. TILA
C. FHA Act
D. RESPA
Answer: A. SAFE Act
Explanation: The Secure and Fair Enforcement for Mortgage Licensing Act
established licensing and registration requirements for mortgage loan
originators through the NMLS.
4. A lender must provide the Closing Disclosure to a borrower how many
business days before closing?
A. 1 day
B. 2 days
C. 3 days
D. 5 days
Answer: C. 3 days
Explanation: The TRID rule requires the Closing Disclosure to be delivered at
least three business days before consummation of the loan.
5. Which loan type is insured by the Federal Housing Administration?
A. VA loan
B. FHA loan
,C. Conventional loan
D. USDA loan
Answer: B. FHA loan
Explanation: FHA loans are insured by the Federal Housing Administration,
which protects lenders against losses from borrower default.
6. Which federal law prohibits discrimination in lending based on race,
religion, sex, marital status, age, or national origin?
A. ECOA
B. TILA
C. RESPA
D. SAFE Act
Answer: A. ECOA
Explanation: The Equal Credit Opportunity Act prohibits discriminatory lending
practices and requires fair treatment of all applicants.
7. What does APR represent in a mortgage loan?
A. Monthly payment amount
B. Annual Percentage Rate
C. Adjustable payment rate
D. Annual property rate
Answer: B. Annual Percentage Rate
Explanation: APR reflects the true yearly cost of borrowing including interest
and certain loan fees.
8. A borrower applies for a loan and pays for an appraisal. Later the loan is
denied. What must the lender do with the appraisal report?
A. Keep it confidential
B. Destroy it
C. Provide a copy to the borrower
D. Send it to the credit bureau
, Answer: C. Provide a copy to the borrower
Explanation: The ECOA Valuations Rule requires lenders to provide borrowers
with copies of appraisal and valuation reports.
9. Which mortgage loan product has an interest rate that can change
periodically based on an index?
A. Fixed-rate mortgage
B. Balloon mortgage
C. Adjustable-rate mortgage
D. Interest-only mortgage
Answer: C. Adjustable-rate mortgage
Explanation: An ARM adjusts periodically according to an index plus a margin.
10.Which government agency guarantees loans for eligible military veterans?
A. FHA
B. VA
C. USDA
D. HUD
Answer: B. VA
Explanation: The Department of Veterans Affairs guarantees mortgage loans for
qualified veterans and service members.
11.A borrower’s ability to repay a loan must be verified under which rule?
A. Ability-to-Repay Rule
B. SAFE Act
C. RESPA Rule
D. HMDA Rule
Answer: A. Ability-to-Repay Rule
Explanation: Lenders must reasonably verify a borrower’s ability to repay the
mortgage before approval.
