NMLS Exam Questions and Answers With Verified Solutions 2025
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal residence. His
rescission period is over at midnight on Friday. According to the provisions specified under federal law,
what is the first possible day the loan could fund? - ✔✔Saturday
The amount of the down payment, the amount of the finance charge, or the number of payments
needed are all examples of _______________ under TILA. - ✔✔Trigger Terms
Which of the following is not included in calculating the APR? - ✔✔Escrow Fees
According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA
data collection purposes? - ✔✔Their race
Finance charges always include which of the following? - ✔✔Mortgage broker fee
HOEPA was enacted as a part of: - ✔✔TILA
HOEPA would not apply to: - ✔✔A bridge loan to finance construction
If a creditor denies an application for a first lien mortgage, a copy of the appraisal: - ✔✔Must be
provided within 30 days of the decision to deny
The Loan Originator Compensation Rule defines compensation to include all of the following, except: -
✔✔Payments collected by a mortgage company for services other than loan origination services
Closed-end loans with rates that exceed the average prime offer rate, but are not high enough to trigger
protections under HOEPA, are known as: - ✔✔Higher-priced mortgage loans
The mandatory waiting period between issuance of disclosures and consummation may be waived: -
✔✔If the consumer requests a waiver due to a bona fide financial emergency
,There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual closing costs
if the consumer is allowed to shop for his/her own settlement service provider. - ✔✔10%
The disclosure requirements of RESPA would apply to which of the following loans? - ✔✔A loan to
purchase a duplex and rehabilitate it into a single family dwelling
Mr. Jones's loan application has been denied and he is provided with an Adverse Action Notice as
required by ECOA. Which of the following pieces of information would not be included on the notice? -
✔✔his credit score
MAP rule - ✔✔This Rule applies to commercial communications used to market mortgage loan products
and services to consumers.
credit reporting agency - ✔✔Under the Fair Credit Reporting Act, which of the following entities has the
burden of protecting a consumer's privacy when his/her credit information is being reported?
A borrower's current loan balances - ✔✔Under the Gramm-Leach-Bliley Act, which of the following is
considered nonpublic information?
Note that the applicant has declined to answer and select a race based on visual observation - ✔✔If a
loan applicant chooses not to disclose his or her race on a loan application, what recourse does a
mortgage professional have?
80%; 78% - ✔✔Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI
when their loan balance is less than ____, or a lender may collect PMI until ____ loan-to-value is
reached.
The penalties for paying or accepting an illegal referral fee are: - ✔✔Fines of up to $10,000 and up to
one year in prison
, The consumer is purchasing a home located in a neighborhood primarily occupied by minorities - ✔✔All
but which of the following may serve as a legal, non-discriminatory basis for denying a mortgage loan
application?
steering - ✔✔The Loan Originator Compensation Rule is intended to discourage which of the following
practices?
The Do-Not-Call Registr - ✔✔The Do-Not-Call Implementation Act authorized the implementation and
enforcement of:
Mortgage broker fee - ✔✔Finance charges always include which of the following?
escrow fees - ✔✔Which of the following is not included in calculating the APR?
The broker should obtain access to the Do-Not-Call Registry - ✔✔If a mortgage broker decides to use
telemarketing to establish leads for loan origination, which of the following should occur?
The third business day after the Closing Disclosure is mailed - ✔✔XYZ Mortgage Company just mailed a
Closing Disclosure to a consumer. The waiting period prior to closing will begin:
Within 30 days - ✔✔A customer with an excellent credit score submits a loan application. When does
ECOA require that the applicant be advised of the status of the application?
Prevent escrow overages - ✔✔An annual escrow analysis is used to do which of the following?
HMDA - ✔✔Lenders must report detailed information about loan transactions and demographic
information concerning borrowers in order to prove they are not discriminating. Which of the following
laws creates that reporting requirement?
Money laundering - ✔✔Suspicious Activity Reports (SARs) are used to help detect and prevent:
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal residence. His
rescission period is over at midnight on Friday. According to the provisions specified under federal law,
what is the first possible day the loan could fund? - ✔✔Saturday
The amount of the down payment, the amount of the finance charge, or the number of payments
needed are all examples of _______________ under TILA. - ✔✔Trigger Terms
Which of the following is not included in calculating the APR? - ✔✔Escrow Fees
According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA
data collection purposes? - ✔✔Their race
Finance charges always include which of the following? - ✔✔Mortgage broker fee
HOEPA was enacted as a part of: - ✔✔TILA
HOEPA would not apply to: - ✔✔A bridge loan to finance construction
If a creditor denies an application for a first lien mortgage, a copy of the appraisal: - ✔✔Must be
provided within 30 days of the decision to deny
The Loan Originator Compensation Rule defines compensation to include all of the following, except: -
✔✔Payments collected by a mortgage company for services other than loan origination services
Closed-end loans with rates that exceed the average prime offer rate, but are not high enough to trigger
protections under HOEPA, are known as: - ✔✔Higher-priced mortgage loans
The mandatory waiting period between issuance of disclosures and consummation may be waived: -
✔✔If the consumer requests a waiver due to a bona fide financial emergency
,There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual closing costs
if the consumer is allowed to shop for his/her own settlement service provider. - ✔✔10%
The disclosure requirements of RESPA would apply to which of the following loans? - ✔✔A loan to
purchase a duplex and rehabilitate it into a single family dwelling
Mr. Jones's loan application has been denied and he is provided with an Adverse Action Notice as
required by ECOA. Which of the following pieces of information would not be included on the notice? -
✔✔his credit score
MAP rule - ✔✔This Rule applies to commercial communications used to market mortgage loan products
and services to consumers.
credit reporting agency - ✔✔Under the Fair Credit Reporting Act, which of the following entities has the
burden of protecting a consumer's privacy when his/her credit information is being reported?
A borrower's current loan balances - ✔✔Under the Gramm-Leach-Bliley Act, which of the following is
considered nonpublic information?
Note that the applicant has declined to answer and select a race based on visual observation - ✔✔If a
loan applicant chooses not to disclose his or her race on a loan application, what recourse does a
mortgage professional have?
80%; 78% - ✔✔Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI
when their loan balance is less than ____, or a lender may collect PMI until ____ loan-to-value is
reached.
The penalties for paying or accepting an illegal referral fee are: - ✔✔Fines of up to $10,000 and up to
one year in prison
, The consumer is purchasing a home located in a neighborhood primarily occupied by minorities - ✔✔All
but which of the following may serve as a legal, non-discriminatory basis for denying a mortgage loan
application?
steering - ✔✔The Loan Originator Compensation Rule is intended to discourage which of the following
practices?
The Do-Not-Call Registr - ✔✔The Do-Not-Call Implementation Act authorized the implementation and
enforcement of:
Mortgage broker fee - ✔✔Finance charges always include which of the following?
escrow fees - ✔✔Which of the following is not included in calculating the APR?
The broker should obtain access to the Do-Not-Call Registry - ✔✔If a mortgage broker decides to use
telemarketing to establish leads for loan origination, which of the following should occur?
The third business day after the Closing Disclosure is mailed - ✔✔XYZ Mortgage Company just mailed a
Closing Disclosure to a consumer. The waiting period prior to closing will begin:
Within 30 days - ✔✔A customer with an excellent credit score submits a loan application. When does
ECOA require that the applicant be advised of the status of the application?
Prevent escrow overages - ✔✔An annual escrow analysis is used to do which of the following?
HMDA - ✔✔Lenders must report detailed information about loan transactions and demographic
information concerning borrowers in order to prove they are not discriminating. Which of the following
laws creates that reporting requirement?
Money laundering - ✔✔Suspicious Activity Reports (SARs) are used to help detect and prevent:
