NMLS Exam Questions and Answers With Verified Solutions 2025
The S.A.F.E. Act applies to mortgage loan originators who take applications for, or offer or negotiate
terms of, residential mortgage loans, which would include:
Land to be used for agricultural purposes
An apartment building with 30 units
A dwelling secured by a mortgage, but not secured by a trust deed
A mobile home to be used as a residence, even if it is not attached to the land - ✔✔a mobile home to be
used as a residence, even if it is not attached to the land
What is Freddie Mac's automated underwriting system called?
Desktop Originator
Underwriter Assistant
Loan Product Advisor
AUS - ✔✔Loan Product Advisor
Which of the following situations would be acceptable under RESPA?
-A mortgage loan originator requires all borrowers to use an appraisal company which is owned by the
mortgage loan originator's mortgage company, though this ownership is not disclosed
-A mortgage loan originator requires all borrowers to use his son's title company and takes an
undisclosed share in profits from that company
-A mortgage loan originator refers all borrowers to use the title company which is located in the same
building as the mortgage loan originator, but with which the mortgage loan originator or the mortgage
loan originator's company has no other relationship
-A mortgage loan originator does not require the use of a certain title company, but receives a financial
bonus from a certain title company if the borrowers that she refers use that provider - ✔✔a mortgage
loan originator refers all borrowers to use the title company which is located in the same building as the
mortgage loan originator, but with which the mortgage loan originator or the mortgage loan originator's
company has no other relationship
Which of the following contains only items which should be used in calculating a borrower's debt-to-
income ratio?
,Monthly rent expense on current home, credit card payment, car insurance
Car payment, boat payment, child support obligations
Property tax payment, utility payment, cable bill
Mortgage insurance payment, average grocery costs, electric bill - ✔✔car payment, boat payment, child
support obligations
Which of the following would NOT be required if a mortgage company wishes to utilize electronic
signatures on required disclosures?
Borrowers must be given the option to receive the disclosures in paper form
Borrowers must be able to withdraw their consent to receive the disclosures electronically
The company must record the IP address from which the documents were accessed
The company must disclose hardware and software requirements to borrowers - ✔✔the company must
record the IP address from which the documents were accessed
A loan which allows the borrower to take a lump sum distribution without any monthly repayment
requirements is a(n):
HECM
HELOC
Pay-option mortgage
Equity mortgage - ✔✔HECM
Under the S.A.F.E. Act, a licensed loan originator's responsibilities with regard to recordkeeping include
all of the following, except:
Not knowingly withholding, removing, or destroying any books or records
Making all of the licensee's records available to borrowers upon demand
Permitting interviews of principals, loan originators, and independent contractors by state regulators
Making records and books available to the state regulator - ✔✔making all of the licensee's records
available to borrowers upon demand
, Which of the following federal regulations prohibits discrimination based on race, color, religion, sex,
marital status, or national origin in a credit transaction?
Regulation C
Regulation B
Regulation Z
Regulation G - ✔✔Regulation B. Regulation B implements the provisions of the Equal Credit Opportunity
Act (ECOA), which ensures that all persons, consumers, and businesses are given an equal chance to
obtain credit by prohibiting discrimination based on criteria including race, color, religion, national
origin, sex, marital status, and age (provided the individual is of age to enter into a contract).
All of the following would be common activities in fraud for property, except:
Flipping
Asset fraud
Income and employment fraud
Silent second - ✔✔flipping
In a mortgage transaction subject to RESPA that is secured by the consumer's dwelling, a Loan Estimate
must be delivered or mailed within three business days after receipt of a written application and no later
than:
Three business days before the transaction is consummated
The fifth business day before the transaction is consummated
The seventh business day before the transaction is consummated
The date the transaction is consummated - ✔✔the seventh business day before the transaction is
consummated
Which of the following would convey a property?
Deed rider
The S.A.F.E. Act applies to mortgage loan originators who take applications for, or offer or negotiate
terms of, residential mortgage loans, which would include:
Land to be used for agricultural purposes
An apartment building with 30 units
A dwelling secured by a mortgage, but not secured by a trust deed
A mobile home to be used as a residence, even if it is not attached to the land - ✔✔a mobile home to be
used as a residence, even if it is not attached to the land
What is Freddie Mac's automated underwriting system called?
Desktop Originator
Underwriter Assistant
Loan Product Advisor
AUS - ✔✔Loan Product Advisor
Which of the following situations would be acceptable under RESPA?
-A mortgage loan originator requires all borrowers to use an appraisal company which is owned by the
mortgage loan originator's mortgage company, though this ownership is not disclosed
-A mortgage loan originator requires all borrowers to use his son's title company and takes an
undisclosed share in profits from that company
-A mortgage loan originator refers all borrowers to use the title company which is located in the same
building as the mortgage loan originator, but with which the mortgage loan originator or the mortgage
loan originator's company has no other relationship
-A mortgage loan originator does not require the use of a certain title company, but receives a financial
bonus from a certain title company if the borrowers that she refers use that provider - ✔✔a mortgage
loan originator refers all borrowers to use the title company which is located in the same building as the
mortgage loan originator, but with which the mortgage loan originator or the mortgage loan originator's
company has no other relationship
Which of the following contains only items which should be used in calculating a borrower's debt-to-
income ratio?
,Monthly rent expense on current home, credit card payment, car insurance
Car payment, boat payment, child support obligations
Property tax payment, utility payment, cable bill
Mortgage insurance payment, average grocery costs, electric bill - ✔✔car payment, boat payment, child
support obligations
Which of the following would NOT be required if a mortgage company wishes to utilize electronic
signatures on required disclosures?
Borrowers must be given the option to receive the disclosures in paper form
Borrowers must be able to withdraw their consent to receive the disclosures electronically
The company must record the IP address from which the documents were accessed
The company must disclose hardware and software requirements to borrowers - ✔✔the company must
record the IP address from which the documents were accessed
A loan which allows the borrower to take a lump sum distribution without any monthly repayment
requirements is a(n):
HECM
HELOC
Pay-option mortgage
Equity mortgage - ✔✔HECM
Under the S.A.F.E. Act, a licensed loan originator's responsibilities with regard to recordkeeping include
all of the following, except:
Not knowingly withholding, removing, or destroying any books or records
Making all of the licensee's records available to borrowers upon demand
Permitting interviews of principals, loan originators, and independent contractors by state regulators
Making records and books available to the state regulator - ✔✔making all of the licensee's records
available to borrowers upon demand
, Which of the following federal regulations prohibits discrimination based on race, color, religion, sex,
marital status, or national origin in a credit transaction?
Regulation C
Regulation B
Regulation Z
Regulation G - ✔✔Regulation B. Regulation B implements the provisions of the Equal Credit Opportunity
Act (ECOA), which ensures that all persons, consumers, and businesses are given an equal chance to
obtain credit by prohibiting discrimination based on criteria including race, color, religion, national
origin, sex, marital status, and age (provided the individual is of age to enter into a contract).
All of the following would be common activities in fraud for property, except:
Flipping
Asset fraud
Income and employment fraud
Silent second - ✔✔flipping
In a mortgage transaction subject to RESPA that is secured by the consumer's dwelling, a Loan Estimate
must be delivered or mailed within three business days after receipt of a written application and no later
than:
Three business days before the transaction is consummated
The fifth business day before the transaction is consummated
The seventh business day before the transaction is consummated
The date the transaction is consummated - ✔✔the seventh business day before the transaction is
consummated
Which of the following would convey a property?
Deed rider
