NMLS EXAM ms
Exam Solution
ms
SAFE Mortgage Loan Originator Test 2026 A+ GRADE A
ms ms ms ms ms ms ms ms
SSURED COMPLETE SOLUTIONS AND VERIFIED ANSWE
ms ms ms ms ms
RS (4633E)
ms
QUESTION 1 ms
Prequalification
ANSWER
an estimate of the loan amt. for which the buyer can qualify based on his income/credit under the l
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
enders standards
ms
QUESTION 2 ms
USDA ratio ms
ANSWER
29/41
QUESTION 3 ms
FHA ratio
ms
ANSWER
31/43
QUESTION 4 ms
Asset based loan
ms ms
ANSWER
-loans based on borrowers equity -bad when lenders fail to consider ability to repay
ms ms ms ms ms ms ms ms ms ms ms ms ms
,QUESTION 5 ms
High Cost Loan
ms ms
ANSWER
Reg Z - Sec. 1026.32 -
ms ms ms ms ms
APR will exceed by more than 6.5% for first lien loans or by more than 8.5% for subordinate -
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APOR - average prime offer rate 1. 5% 2. 6.5% 3. 8.5%
ms ms ms ms ms ms ms ms ms ms ms
QUESTION 6 ms
RESPA - Section 8 ms ms ms
ANSWER
Nothing of value for referrals - No kickbacks
ms ms ms ms ms ms ms
QUESTION 7 ms
Respa - Esign Act ms ms ms
ANSWER
can use electronic signature with permission of borrower
ms ms ms ms ms ms ms
QUESTION 8 ms
Gramm Leach Bliley ms ms
ANSWER
-borrower notification must state who company shares info with -consumers can opt-
ms ms ms ms ms ms ms ms ms ms ms
out of info sharing (send notice to consumer) -Protects from phishing -Safeguard Rules
ms ms ms ms ms ms ms ms ms ms ms ms
QUESTION 9 ms
Safeguard Rules ms
ANSWER
-company and staff need to protect the consumers identity -lock up files -part of GLB act
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
QUESTION 10 ms
second mortgage ms
ANSWER
-All money upfront -no escrow as long as first mortgage is paying it
ms ms ms ms ms ms ms ms ms ms ms ms
, QUESTION 11 ms
Subordination Clause ms
ANSWER
A contract clause that puts a mortgage in the first lien position over an earlier recorded mortgage
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
QUESTION 12 ms
Denial Of License ms ms
ANSWER
-any non-financial felony in the past 7 years -financial felony ever -
ms ms ms ms ms ms ms ms ms ms ms
financial misdemeanor (state decides) -License has been revoked in another state -
ms ms ms ms ms ms ms ms ms ms ms
default on a federal student loan
ms ms ms ms ms
QUESTION 13 ms
Income
ANSWER
-Need to years history and 3 more years expected income -
ms ms ms ms ms ms ms ms ms ms
do not include sporadic overtime and bonuses -likelihood of continued income
ms ms ms ms ms ms ms ms ms ms
QUESTION 14 ms
TILA - Respa Integrated Disclosure
ms ms ms ms
ANSWER
-TRID -LE must be disclosed within 3 business days -
ms ms ms ms ms ms ms ms ms
cannot require documentation from borrower without "intent to proceed" -
ms ms ms ms ms ms ms ms ms
Appraisal is considered 0% tolerance ms ms ms ms
QUESTION 15 ms
Do Not Call
ms ms
ANSWER
-$16,000 fine -Area code report cant be over 30 days old -
ms ms ms ms ms ms ms ms ms ms ms
allowed to call closed, declined and cancelled loans 18 months after the fact -
ms ms ms ms ms ms ms ms ms ms ms ms ms
can call 90 days after inquiry or pre-qual -someone says do not call - cant call, email, fax anything -
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
call between 8-9
ms ms
Exam Solution
ms
SAFE Mortgage Loan Originator Test 2026 A+ GRADE A
ms ms ms ms ms ms ms ms
SSURED COMPLETE SOLUTIONS AND VERIFIED ANSWE
ms ms ms ms ms
RS (4633E)
ms
QUESTION 1 ms
Prequalification
ANSWER
an estimate of the loan amt. for which the buyer can qualify based on his income/credit under the l
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
enders standards
ms
QUESTION 2 ms
USDA ratio ms
ANSWER
29/41
QUESTION 3 ms
FHA ratio
ms
ANSWER
31/43
QUESTION 4 ms
Asset based loan
ms ms
ANSWER
-loans based on borrowers equity -bad when lenders fail to consider ability to repay
ms ms ms ms ms ms ms ms ms ms ms ms ms
,QUESTION 5 ms
High Cost Loan
ms ms
ANSWER
Reg Z - Sec. 1026.32 -
ms ms ms ms ms
APR will exceed by more than 6.5% for first lien loans or by more than 8.5% for subordinate -
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
APOR - average prime offer rate 1. 5% 2. 6.5% 3. 8.5%
ms ms ms ms ms ms ms ms ms ms ms
QUESTION 6 ms
RESPA - Section 8 ms ms ms
ANSWER
Nothing of value for referrals - No kickbacks
ms ms ms ms ms ms ms
QUESTION 7 ms
Respa - Esign Act ms ms ms
ANSWER
can use electronic signature with permission of borrower
ms ms ms ms ms ms ms
QUESTION 8 ms
Gramm Leach Bliley ms ms
ANSWER
-borrower notification must state who company shares info with -consumers can opt-
ms ms ms ms ms ms ms ms ms ms ms
out of info sharing (send notice to consumer) -Protects from phishing -Safeguard Rules
ms ms ms ms ms ms ms ms ms ms ms ms
QUESTION 9 ms
Safeguard Rules ms
ANSWER
-company and staff need to protect the consumers identity -lock up files -part of GLB act
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
QUESTION 10 ms
second mortgage ms
ANSWER
-All money upfront -no escrow as long as first mortgage is paying it
ms ms ms ms ms ms ms ms ms ms ms ms
, QUESTION 11 ms
Subordination Clause ms
ANSWER
A contract clause that puts a mortgage in the first lien position over an earlier recorded mortgage
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
QUESTION 12 ms
Denial Of License ms ms
ANSWER
-any non-financial felony in the past 7 years -financial felony ever -
ms ms ms ms ms ms ms ms ms ms ms
financial misdemeanor (state decides) -License has been revoked in another state -
ms ms ms ms ms ms ms ms ms ms ms
default on a federal student loan
ms ms ms ms ms
QUESTION 13 ms
Income
ANSWER
-Need to years history and 3 more years expected income -
ms ms ms ms ms ms ms ms ms ms
do not include sporadic overtime and bonuses -likelihood of continued income
ms ms ms ms ms ms ms ms ms ms
QUESTION 14 ms
TILA - Respa Integrated Disclosure
ms ms ms ms
ANSWER
-TRID -LE must be disclosed within 3 business days -
ms ms ms ms ms ms ms ms ms
cannot require documentation from borrower without "intent to proceed" -
ms ms ms ms ms ms ms ms ms
Appraisal is considered 0% tolerance ms ms ms ms
QUESTION 15 ms
Do Not Call
ms ms
ANSWER
-$16,000 fine -Area code report cant be over 30 days old -
ms ms ms ms ms ms ms ms ms ms ms
allowed to call closed, declined and cancelled loans 18 months after the fact -
ms ms ms ms ms ms ms ms ms ms ms ms ms
can call 90 days after inquiry or pre-qual -someone says do not call - cant call, email, fax anything -
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
call between 8-9
ms ms