NMLS MLO 10 2025 Exam Questions and Answers With Verified Solutions 2025
A type of mortgage lender which would be BOTH a retail lender AND a depository institution would be
a? - ✔✔Savings and loan association;
A higher interest rate charged on a loan in return for lower upfront closing costs would be an example of
a: - ✔✔Yield spread premium;
A partial release clause would be associated with a - ✔✔Blanket mortgage
What is the primary difference between a Graduated Payment Mortgage and a Growth Equity Mortgage
- ✔✔In a Growth Equity Mortgage, the increased payments apply to principal reduction
What is the minimum credit score required to qualify for an FHA loan - ✔✔500 to 579 with 10% down
580 or above 3.5%
Which of the following is NOT a cap on the interest rate of an ARM: - ✔✔Payment cap
The document that makes the property collateral for the debt is the: - ✔✔Mortgage or Trust Deed
If there is no escrow account for the homeowners insurance, and the borrower fails to renew the policy,
the servicing agent for the loan would obtain a hazard insurance policy on the property. This policy is
called a: - ✔✔Forced place policy
When two people are applying for a mortgage, under what circumstances should you recommend that
they each fill out separate applications: - ✔✔When they are unmarried and do not conduct their
financial affairs jointly
Under Fannie Mae and Freddie Mac guidelines for appraisals, what is the maximum gross and net
adjustments, respectively, to any one comparable sale - ✔✔25% gross and 15% net
, An applicant has gross earnings of $2,600 per bi-weekly paycheck. His net bi-weekly paycheck is about
$1,800. The applicant's gross monthly income would be closest to - ✔✔2,600 x 26 divided by 12 =
$5,633.33,
A Registered Loan Originator must complete how many hours of continuing education courses each year
- ✔✔There are NO continuing education requirements for Registered Loan Originators, only for State
Licensed Loan Originators.
Which of the following individuals would NOT need to be licensed as a mortgage loan originator? -
✔✔One who only originated mortgages on residential properties with more than 4 units.
Under the Model State Law, a supervisory agency may rely on examination or investigation reports
made by other government officials: - ✔✔From within or without that state.
If the CFPB determines that a state is out of compliance with the SAFE Act and Regulation H, after its
initial determination of noncompliance it must allow a public comment period for at least - ✔✔30 days
If the CFPB determines that a state supervisory agency is not in compliance with the SAFE Act and
Regulation H, what is the ultimate, highest penalty the CFPB could impose? - ✔✔The CFPB could create
its own state licensing system.
Richard was convicted of securities fraud some years ago. Several years after his release from prison,
Richard applies for a mortgage loan originator license. Under what circumstances might he be granted a
license? - ✔✔Only if Richard has received a pardon for his conviction.
Which of the following loans would be a "nontraditional loan" under the Model State Law? - ✔✔A
nontraditional loan is any loan other than a 30 year fixed rate mortgage
Which of the following laws has as one of its central purposes the desire to prohibit sellers from
requiring buyers to use a specific title insurance company? - ✔✔RESPA
RESPA prohibits sellers from requiring buyers to use a specific title insurance company
A type of mortgage lender which would be BOTH a retail lender AND a depository institution would be
a? - ✔✔Savings and loan association;
A higher interest rate charged on a loan in return for lower upfront closing costs would be an example of
a: - ✔✔Yield spread premium;
A partial release clause would be associated with a - ✔✔Blanket mortgage
What is the primary difference between a Graduated Payment Mortgage and a Growth Equity Mortgage
- ✔✔In a Growth Equity Mortgage, the increased payments apply to principal reduction
What is the minimum credit score required to qualify for an FHA loan - ✔✔500 to 579 with 10% down
580 or above 3.5%
Which of the following is NOT a cap on the interest rate of an ARM: - ✔✔Payment cap
The document that makes the property collateral for the debt is the: - ✔✔Mortgage or Trust Deed
If there is no escrow account for the homeowners insurance, and the borrower fails to renew the policy,
the servicing agent for the loan would obtain a hazard insurance policy on the property. This policy is
called a: - ✔✔Forced place policy
When two people are applying for a mortgage, under what circumstances should you recommend that
they each fill out separate applications: - ✔✔When they are unmarried and do not conduct their
financial affairs jointly
Under Fannie Mae and Freddie Mac guidelines for appraisals, what is the maximum gross and net
adjustments, respectively, to any one comparable sale - ✔✔25% gross and 15% net
, An applicant has gross earnings of $2,600 per bi-weekly paycheck. His net bi-weekly paycheck is about
$1,800. The applicant's gross monthly income would be closest to - ✔✔2,600 x 26 divided by 12 =
$5,633.33,
A Registered Loan Originator must complete how many hours of continuing education courses each year
- ✔✔There are NO continuing education requirements for Registered Loan Originators, only for State
Licensed Loan Originators.
Which of the following individuals would NOT need to be licensed as a mortgage loan originator? -
✔✔One who only originated mortgages on residential properties with more than 4 units.
Under the Model State Law, a supervisory agency may rely on examination or investigation reports
made by other government officials: - ✔✔From within or without that state.
If the CFPB determines that a state is out of compliance with the SAFE Act and Regulation H, after its
initial determination of noncompliance it must allow a public comment period for at least - ✔✔30 days
If the CFPB determines that a state supervisory agency is not in compliance with the SAFE Act and
Regulation H, what is the ultimate, highest penalty the CFPB could impose? - ✔✔The CFPB could create
its own state licensing system.
Richard was convicted of securities fraud some years ago. Several years after his release from prison,
Richard applies for a mortgage loan originator license. Under what circumstances might he be granted a
license? - ✔✔Only if Richard has received a pardon for his conviction.
Which of the following loans would be a "nontraditional loan" under the Model State Law? - ✔✔A
nontraditional loan is any loan other than a 30 year fixed rate mortgage
Which of the following laws has as one of its central purposes the desire to prohibit sellers from
requiring buyers to use a specific title insurance company? - ✔✔RESPA
RESPA prohibits sellers from requiring buyers to use a specific title insurance company
