NMLS COMPREHENSIVE STUDY GUIDE
2026 FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ The appraisal approach that best applies to vacant land is:.
Answer: Cost Approach
◍ Differences between closing disclosure and the loan estimate.
Answer: - Splitting fees between at closing or after closing- Lender paid
compensation is listed- Fees paid by other parties- No longer discussing
rounded numbers instead the actual amount
◍ Differences between consumer and a customer.
Answer: Consumer is someone who has received financial services from a
financial institution whereas a customer receives financial services and the
relationship maintains servicing rights
◍ Government National Mortgage Association (GNMA).
Answer: - Also referred to as Ginnie Mae- Similar to Fannie and Freddie
◍ Average Prime Offer Rate (APO).
Answer: average of interest rates and terms offered to lower risk consumers,
that can be viewed with new rates every week
◍ 10% tolerance applies to.
Answer: - Recording fees- Third Party fees (Services you can shop for)
◍ GLB.
Answer: Gramm-Leech-Bliley Act
◍ What law created the NMLS?.
Answer: The Safe Act
◍ Social Security Number Fraud.
, Answer: use in a loan of someone other than the applicants social security
number
◍ Predatory Lending.
Answer: Any of a number of fraudulent, deceptive, discriminatory, or
unfavorable lending practices. Many of these practices are illegal, while
others are legal but not in the best interest of the borrowers.
◍ What happens if a borrower chooses just to make the minimum payment?.
Answer: The difference is added onto the end of the mortgage
◍ RESPA Required Disclosures Within 3 Days of Completed Application.
Answer: *HUD Settlement Cost Booklet - contains consumer info regarding
various real estate settlement services*Good Faith Estimate (GFE) of
Settlement Costs - provides an estimate of each charge the buyer is likely to
pay at settlement*Mortgage Servicing Disclosure Statement - discloses to
the borrower whether the lender intends to servicer the loan or transfer
servicing to another lender and provides info about complaint resolution*If
the lender turns down the loan within 3 days, MLO doesn't have to provide
the documents
◍ FTC enfources.
Answer: TILA, FCRA, ECOA
◍ Which regulation requires the borrower to receive the Closing Disclosure
within 3 business days?.
Answer: RESPA - Regulation X
◍ Townhome.
Answer: Similar to a condo but instead it has a small piece of lawn to it
◍ HMDA (C) Home Mortgage Disclosure Act -Regulation C.
Answer: Enacted in 1975 to discover discriminatory practices including
redlining, by analyzing where an institution turns down a disproportionate %
of applications by race gender or ethnicity
◍ Who needs to be given the loan estimate.
, Answer: Only to one borrower on the loan
◍ Which law/regulations states that a Bankruptcy can only remain on your
credit for a MAX of 10 years?.
Answer: FCRA - Fair Credit Reporting Act - Reg V
◍ What does the "R" stand for in the acronym NMLSR?.
Answer: REGISTRY
◍ Reverse Mortgage TILA Disclosures about total cost of credit must include.
Answer: Costs to consumerPayments to consumerAdditional creditor
compensationLimitations on consumer liabilityAssumed annual appreciation
ratesAssume loan period
◍ 8 factors set up by ATR that lenders should access when considering
someones ability to repay debt.
Answer: 1. Consumers expected income or assets 2. consumers employment
3. monthly mortgage payment they will need to do4. Monthly payments on
existing mortgages5. Monthly payments for property taxes6. Debts from
alimony or child support7. Monthly DTI ratios8. Credit History
◍ 6 categories of points and fees.
Answer: 1. Finance Charges2. LO compensations3. Real Estate Fees4.
Premiums for credit insurance5-6. Prepayment Penalties
◍ EXPA (RESPA).
Answer: Applies to federally related mortgage loansFunds insured by the
government Funds from a lender REGULATED by the government
Intended for sale to Fannie or Freddie Made by a creditor regulated under
TILA
◍ What is recording?.
Answer: The closing agent will take the deed and security instrument to the
county for records.
◍ Alimony payments must continue to be received for how long after the
application date if they are to be included as income?.
, Answer: 3 years
◍ The DNF defines a business relationship as the following.
Answer: A prior or existing relationship formed by a voluntary two way
communication between person and a business because of inquiries,
application
◍ Indicators of Predatory Lending.
Answer: *Steering borrowers to high-rate programs*Falsely identifying
loans as lines of credit*Structuring high-cost loans with unaffordable
payments*Falsifying loan documents*Forging signatures on loan
documents*Changing loan terms at closing*Requiring credit
insurance*Increasing interest rates for late payments*Charging excessive
prepayment penalties*Failing to report good payment history on a
borrower's credit report*Failing to provide the accurate loan balance and
payoff information
◍ MLO Comp can be based on these triggers.
Answer: *Overall loan volume*Long-term loan performance*Hourly
basis*Existing/new customer*Flat fee*Pull-through rate ie. quality of loan
files*Legitimate business expenses*Long-term loan performance*Different
arrangement for each MLO
◍ How long does a person have to sue for a violation under the Fair Housing
Act?.
Answer: 1 year
◍ Who is responsible for providing the closing disclosure to the seller?.
Answer: Settlement Agent/Title Agent
◍ Shortage.
Answer: A shortage is in the name itself when an account comes up shorter
than it normally would
◍ Education to calculate monthly payments.
Answer: ________
2026 FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ The appraisal approach that best applies to vacant land is:.
Answer: Cost Approach
◍ Differences between closing disclosure and the loan estimate.
Answer: - Splitting fees between at closing or after closing- Lender paid
compensation is listed- Fees paid by other parties- No longer discussing
rounded numbers instead the actual amount
◍ Differences between consumer and a customer.
Answer: Consumer is someone who has received financial services from a
financial institution whereas a customer receives financial services and the
relationship maintains servicing rights
◍ Government National Mortgage Association (GNMA).
Answer: - Also referred to as Ginnie Mae- Similar to Fannie and Freddie
◍ Average Prime Offer Rate (APO).
Answer: average of interest rates and terms offered to lower risk consumers,
that can be viewed with new rates every week
◍ 10% tolerance applies to.
Answer: - Recording fees- Third Party fees (Services you can shop for)
◍ GLB.
Answer: Gramm-Leech-Bliley Act
◍ What law created the NMLS?.
Answer: The Safe Act
◍ Social Security Number Fraud.
, Answer: use in a loan of someone other than the applicants social security
number
◍ Predatory Lending.
Answer: Any of a number of fraudulent, deceptive, discriminatory, or
unfavorable lending practices. Many of these practices are illegal, while
others are legal but not in the best interest of the borrowers.
◍ What happens if a borrower chooses just to make the minimum payment?.
Answer: The difference is added onto the end of the mortgage
◍ RESPA Required Disclosures Within 3 Days of Completed Application.
Answer: *HUD Settlement Cost Booklet - contains consumer info regarding
various real estate settlement services*Good Faith Estimate (GFE) of
Settlement Costs - provides an estimate of each charge the buyer is likely to
pay at settlement*Mortgage Servicing Disclosure Statement - discloses to
the borrower whether the lender intends to servicer the loan or transfer
servicing to another lender and provides info about complaint resolution*If
the lender turns down the loan within 3 days, MLO doesn't have to provide
the documents
◍ FTC enfources.
Answer: TILA, FCRA, ECOA
◍ Which regulation requires the borrower to receive the Closing Disclosure
within 3 business days?.
Answer: RESPA - Regulation X
◍ Townhome.
Answer: Similar to a condo but instead it has a small piece of lawn to it
◍ HMDA (C) Home Mortgage Disclosure Act -Regulation C.
Answer: Enacted in 1975 to discover discriminatory practices including
redlining, by analyzing where an institution turns down a disproportionate %
of applications by race gender or ethnicity
◍ Who needs to be given the loan estimate.
, Answer: Only to one borrower on the loan
◍ Which law/regulations states that a Bankruptcy can only remain on your
credit for a MAX of 10 years?.
Answer: FCRA - Fair Credit Reporting Act - Reg V
◍ What does the "R" stand for in the acronym NMLSR?.
Answer: REGISTRY
◍ Reverse Mortgage TILA Disclosures about total cost of credit must include.
Answer: Costs to consumerPayments to consumerAdditional creditor
compensationLimitations on consumer liabilityAssumed annual appreciation
ratesAssume loan period
◍ 8 factors set up by ATR that lenders should access when considering
someones ability to repay debt.
Answer: 1. Consumers expected income or assets 2. consumers employment
3. monthly mortgage payment they will need to do4. Monthly payments on
existing mortgages5. Monthly payments for property taxes6. Debts from
alimony or child support7. Monthly DTI ratios8. Credit History
◍ 6 categories of points and fees.
Answer: 1. Finance Charges2. LO compensations3. Real Estate Fees4.
Premiums for credit insurance5-6. Prepayment Penalties
◍ EXPA (RESPA).
Answer: Applies to federally related mortgage loansFunds insured by the
government Funds from a lender REGULATED by the government
Intended for sale to Fannie or Freddie Made by a creditor regulated under
TILA
◍ What is recording?.
Answer: The closing agent will take the deed and security instrument to the
county for records.
◍ Alimony payments must continue to be received for how long after the
application date if they are to be included as income?.
, Answer: 3 years
◍ The DNF defines a business relationship as the following.
Answer: A prior or existing relationship formed by a voluntary two way
communication between person and a business because of inquiries,
application
◍ Indicators of Predatory Lending.
Answer: *Steering borrowers to high-rate programs*Falsely identifying
loans as lines of credit*Structuring high-cost loans with unaffordable
payments*Falsifying loan documents*Forging signatures on loan
documents*Changing loan terms at closing*Requiring credit
insurance*Increasing interest rates for late payments*Charging excessive
prepayment penalties*Failing to report good payment history on a
borrower's credit report*Failing to provide the accurate loan balance and
payoff information
◍ MLO Comp can be based on these triggers.
Answer: *Overall loan volume*Long-term loan performance*Hourly
basis*Existing/new customer*Flat fee*Pull-through rate ie. quality of loan
files*Legitimate business expenses*Long-term loan performance*Different
arrangement for each MLO
◍ How long does a person have to sue for a violation under the Fair Housing
Act?.
Answer: 1 year
◍ Who is responsible for providing the closing disclosure to the seller?.
Answer: Settlement Agent/Title Agent
◍ Shortage.
Answer: A shortage is in the name itself when an account comes up shorter
than it normally would
◍ Education to calculate monthly payments.
Answer: ________
