NMLS (MLO) Exam Questions and Answers With Verified Solutions 2025
What law deals with credit, APR & advertising of consumer loans? - ✔✔TILA/REGULATION Z
Which regulation prohibits kickbacks? - ✔✔RESPA section 8 (reg X)
Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV? - ✔✔HPA -
Homeowners Protection Act
Which regulation prohibits fee splitting? - ✔✔RESPA
Regulation X is the letter used to describe which Law? - ✔✔RESPA
RESPA is the acronym used to describe which law? - ✔✔Real Estate Settlement Procedures Act
What type of mortgage requires a non-refundable funding fee? - ✔✔VA Loan
What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
DEFAULTS on the loan? - ✔✔Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
TRANSFERS the loan? - ✔✔Alienation Clause
What does CFPB stand for? - ✔✔Consumer Financial Protection Bureau
What two laws created the CFBP? - ✔✔Dodd Frank Act and Consumer Finance Protection Act
Which regulations is designed to help meet the Credit Needs of the Communities in which it operates? -
✔✔CRA - Community Reinvestment Act
,Under ECOA rules and regulations, how many days does the borrower have to request a copy of an
appraisal report? - ✔✔90
Under ECOA rules and regulations, how many days does the lender have to provide a copy of an
appraisal report, once requested by the borrower? - ✔✔30
If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of the
appraisal be provided to the borrower? - ✔✔3 business days
Conforming Loans follow the guidelines of which regulators? - ✔✔Fannie Mae and Freddie Mac
Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers? - ✔✔ECOA -
Regulation B
How old must a borrower be to qualify for a Reverse Mortgage? - ✔✔62 years old
Which regulation has the primary function of preventing Identity Theft? - ✔✔FACT Act
Which regulation has SECTION 114 Rules? - ✔✔FACT Act
Which regulation requires the creditor to verify the VALIDITY of any change of address received? -
✔✔SECTION 114 of the FACT Act
What is the payment method used in a reverse mortgage that allows the homeowners to receive a
monthly check while living in the property? - ✔✔TENURE Method
What is the fraud scheme where a borrower uses someone else's name to purchase the property, but
that person WILL NOT be living at the property? - ✔✔Straw Borrower
What government lender "insures" mortgages"? - ✔✔FHA
, What government lender "guarantees" mortgages? - ✔✔VA Loans
What government lender loans money to fund purchases in rural areas? - ✔✔USDA/Dept. of
Argriculture
What is the value remaining in property after all liens and debts have been paid? - ✔✔Equity
A borrower is refinancing his home. How much time does Reg Z give him to change his mind? - ✔✔3
days
Which Regulation established the 3-day right of recession rule? - ✔✔TILA/REG Z
Redlining is part of which regulation/Law? - ✔✔Fair Housing Act
Blockbusting is part of which regulation/Law? - ✔✔Fair Housing Act
Steering is part of which regulation/Law? - ✔✔Fair Housing Act
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is moving in
the neighborhood is called? - ✔✔Blockbusting/panic selling
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race, religion
or ethnicity is called? - ✔✔STEERING
Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is called? -
✔✔Redlining
What does HOEPA stand for? - ✔✔Home Ownership and Equity Protection Act
HOEPA Loans are part of which larger regulation? - ✔✔Reg Z/Tila
What law deals with credit, APR & advertising of consumer loans? - ✔✔TILA/REGULATION Z
Which regulation prohibits kickbacks? - ✔✔RESPA section 8 (reg X)
Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV? - ✔✔HPA -
Homeowners Protection Act
Which regulation prohibits fee splitting? - ✔✔RESPA
Regulation X is the letter used to describe which Law? - ✔✔RESPA
RESPA is the acronym used to describe which law? - ✔✔Real Estate Settlement Procedures Act
What type of mortgage requires a non-refundable funding fee? - ✔✔VA Loan
What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
DEFAULTS on the loan? - ✔✔Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full repayment if the borrower
TRANSFERS the loan? - ✔✔Alienation Clause
What does CFPB stand for? - ✔✔Consumer Financial Protection Bureau
What two laws created the CFBP? - ✔✔Dodd Frank Act and Consumer Finance Protection Act
Which regulations is designed to help meet the Credit Needs of the Communities in which it operates? -
✔✔CRA - Community Reinvestment Act
,Under ECOA rules and regulations, how many days does the borrower have to request a copy of an
appraisal report? - ✔✔90
Under ECOA rules and regulations, how many days does the lender have to provide a copy of an
appraisal report, once requested by the borrower? - ✔✔30
If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of the
appraisal be provided to the borrower? - ✔✔3 business days
Conforming Loans follow the guidelines of which regulators? - ✔✔Fannie Mae and Freddie Mac
Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers? - ✔✔ECOA -
Regulation B
How old must a borrower be to qualify for a Reverse Mortgage? - ✔✔62 years old
Which regulation has the primary function of preventing Identity Theft? - ✔✔FACT Act
Which regulation has SECTION 114 Rules? - ✔✔FACT Act
Which regulation requires the creditor to verify the VALIDITY of any change of address received? -
✔✔SECTION 114 of the FACT Act
What is the payment method used in a reverse mortgage that allows the homeowners to receive a
monthly check while living in the property? - ✔✔TENURE Method
What is the fraud scheme where a borrower uses someone else's name to purchase the property, but
that person WILL NOT be living at the property? - ✔✔Straw Borrower
What government lender "insures" mortgages"? - ✔✔FHA
, What government lender "guarantees" mortgages? - ✔✔VA Loans
What government lender loans money to fund purchases in rural areas? - ✔✔USDA/Dept. of
Argriculture
What is the value remaining in property after all liens and debts have been paid? - ✔✔Equity
A borrower is refinancing his home. How much time does Reg Z give him to change his mind? - ✔✔3
days
Which Regulation established the 3-day right of recession rule? - ✔✔TILA/REG Z
Redlining is part of which regulation/Law? - ✔✔Fair Housing Act
Blockbusting is part of which regulation/Law? - ✔✔Fair Housing Act
Steering is part of which regulation/Law? - ✔✔Fair Housing Act
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is moving in
the neighborhood is called? - ✔✔Blockbusting/panic selling
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race, religion
or ethnicity is called? - ✔✔STEERING
Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is called? -
✔✔Redlining
What does HOEPA stand for? - ✔✔Home Ownership and Equity Protection Act
HOEPA Loans are part of which larger regulation? - ✔✔Reg Z/Tila
