NMLS Safe Exam Practice Questions 2025/2026 with Correct complete Answers
PITI payments do NOT include which of the following: - ANSWER-Funding fee
Who does Fannie Mae hold responsible for the quality of an appraisal? - ANSWER-Appraiser
Which law is known as Regulation B? - ANSWER-Equal Credit Opportunity Act
Which law prohibits discrimination by lenders? - ANSWER-Equal Credit Opportunity Act
A property sold for $200,000 and was appraised at $180,000. The borrower reserved a loan for
$150,000. What is the loan-to-value? - ANSWER-83.3%
How many days does a lender have to send an adverse action notice? - ANSWER-30
The GFE/Loan Estimate must be mailed or given to the borrower within how many days after
receiving the signed application? - ANSWER-3 business days
The enforcement of a lien is known as: - ANSWER-Foreclosure
What minimum percentage of ownership in a related service requires a conflict of interest
disclosure? - ANSWER-1%
What minimum percentage of ownership qualifies an individual as self-employed? - ANSWER-
25%
What is the minimum down payment for a USDA loan? - ANSWER-$0
,How many hours of continuing education are minimally required? - ANSWER-8 hours every year
Who is responsible for completing the HUD-1/Loan Disclosure? - ANSWER-The closing agent
A mortgagor's title insurance policy is: - ANSWER-Based on purchase price
The assignee of a mortgage and note is participating in the: - ANSWER-Secondary mortgage
market
VA loans are: - ANSWER-Partially guaranteed
The late fee for a VA loan is: - ANSWER-4% of principal and interest
The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first
mortgage is in the amount of $200,000 and the second mortgage is $60,000, what is the
combined loan-to-value ratio? - ANSWER-80.0%
The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mortgage.
The loan-to-value cannot exceed 85%. What is the maximum amount of the new second
mortgage? - ANSWER-$144,750
What clause in a mortgage allows the lender to call the entire loan balance due? - ANSWER-
Acceleration
What government agency enforces ECOA? - ANSWER-CFPB
A lender can discriminate based on: - ANSWER-Credit history
,How many days does a lender have after receipt of an application to notify the applicant of its
action on the application? - ANSWER-30
How many days does an applicant have after receipt of an adverse action notice to request a
statement of reasons from the lender? - ANSWER-60
How many days does a lender have to send a statement of reasons for an adverse action after
receiving a request from an applicant? - ANSWER-30
The Truth-In-Lending Act (TILA) is implemented as: - ANSWER-Regulation Z
The Truth-In-Lending Act (TILA) was implemented by the: - ANSWER-Federal Reserve Board
The Truth-In-Lending Act is administered by: - ANSWER-CFPB
The TILA disclosure must be given to the applicant within how many days after receiving the
signed loan application for a reverse mortgage? - ANSWER-3 business days
Which of the following is NOT a trigger term? - ANSWER-48 easy payments
Which of the following does not constitute mortgage fraud on the part of a borrower? -
ANSWER-Including a public-assistance as part of his or her income
Which of the following fraud schemes involves real estate professionals lying to lenders about
the value of a foreclosed property? - ANSWER-House flipping
, Which of the following is a red flag that suggests fraud has probably occurred? - ANSWER-A
buyer sells his house a month after buying it for 30% more than he paid
Which of the following documents would not be needed at a typical closing? - ANSWER-A roof
letter
Which of the following is not true of jumbo mortgages? - ANSWER-They played a
disproportionate role in the housing crisis
The Real Estate Settlement Procedures Act (RESPA) is also known as - ANSWER-Regulation X
The sales price of a home is $100,000 on a 90% LTV 30-year fixed mortgage. Fannie
Mae/Freddie Mac requires 25% coverage, giving us a rate of 0.62%. What is the loan amount? -
ANSWER-$90,000
Under the SAFE Act, a state has all of the following authorities EXCEPT - ANSWER-To waive the
requirement for fingerprints for an initial license application
What type of loan has a non-refundable funding fee? - ANSWER-VA loan
Under the CFPB, the following groups are identified as types of consumer and protection laws
EXCEPT - ANSWER-Credit Authorization and Security
The primary purpose of Truth in Lending is to: - ANSWER-Disclose the true costs of obtaining
credit.
The Rose family owns a home in a semi-rural area, which is about five years old. Recently
announced plans for a new regional airport will place their home directly in line with a main
runway ending 1 mile before their home. If the airport is constructed, will this diminish the
value of the Rose Home? - ANSWER-Yes, because of economic obsolescence.
PITI payments do NOT include which of the following: - ANSWER-Funding fee
Who does Fannie Mae hold responsible for the quality of an appraisal? - ANSWER-Appraiser
Which law is known as Regulation B? - ANSWER-Equal Credit Opportunity Act
Which law prohibits discrimination by lenders? - ANSWER-Equal Credit Opportunity Act
A property sold for $200,000 and was appraised at $180,000. The borrower reserved a loan for
$150,000. What is the loan-to-value? - ANSWER-83.3%
How many days does a lender have to send an adverse action notice? - ANSWER-30
The GFE/Loan Estimate must be mailed or given to the borrower within how many days after
receiving the signed application? - ANSWER-3 business days
The enforcement of a lien is known as: - ANSWER-Foreclosure
What minimum percentage of ownership in a related service requires a conflict of interest
disclosure? - ANSWER-1%
What minimum percentage of ownership qualifies an individual as self-employed? - ANSWER-
25%
What is the minimum down payment for a USDA loan? - ANSWER-$0
,How many hours of continuing education are minimally required? - ANSWER-8 hours every year
Who is responsible for completing the HUD-1/Loan Disclosure? - ANSWER-The closing agent
A mortgagor's title insurance policy is: - ANSWER-Based on purchase price
The assignee of a mortgage and note is participating in the: - ANSWER-Secondary mortgage
market
VA loans are: - ANSWER-Partially guaranteed
The late fee for a VA loan is: - ANSWER-4% of principal and interest
The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first
mortgage is in the amount of $200,000 and the second mortgage is $60,000, what is the
combined loan-to-value ratio? - ANSWER-80.0%
The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mortgage.
The loan-to-value cannot exceed 85%. What is the maximum amount of the new second
mortgage? - ANSWER-$144,750
What clause in a mortgage allows the lender to call the entire loan balance due? - ANSWER-
Acceleration
What government agency enforces ECOA? - ANSWER-CFPB
A lender can discriminate based on: - ANSWER-Credit history
,How many days does a lender have after receipt of an application to notify the applicant of its
action on the application? - ANSWER-30
How many days does an applicant have after receipt of an adverse action notice to request a
statement of reasons from the lender? - ANSWER-60
How many days does a lender have to send a statement of reasons for an adverse action after
receiving a request from an applicant? - ANSWER-30
The Truth-In-Lending Act (TILA) is implemented as: - ANSWER-Regulation Z
The Truth-In-Lending Act (TILA) was implemented by the: - ANSWER-Federal Reserve Board
The Truth-In-Lending Act is administered by: - ANSWER-CFPB
The TILA disclosure must be given to the applicant within how many days after receiving the
signed loan application for a reverse mortgage? - ANSWER-3 business days
Which of the following is NOT a trigger term? - ANSWER-48 easy payments
Which of the following does not constitute mortgage fraud on the part of a borrower? -
ANSWER-Including a public-assistance as part of his or her income
Which of the following fraud schemes involves real estate professionals lying to lenders about
the value of a foreclosed property? - ANSWER-House flipping
, Which of the following is a red flag that suggests fraud has probably occurred? - ANSWER-A
buyer sells his house a month after buying it for 30% more than he paid
Which of the following documents would not be needed at a typical closing? - ANSWER-A roof
letter
Which of the following is not true of jumbo mortgages? - ANSWER-They played a
disproportionate role in the housing crisis
The Real Estate Settlement Procedures Act (RESPA) is also known as - ANSWER-Regulation X
The sales price of a home is $100,000 on a 90% LTV 30-year fixed mortgage. Fannie
Mae/Freddie Mac requires 25% coverage, giving us a rate of 0.62%. What is the loan amount? -
ANSWER-$90,000
Under the SAFE Act, a state has all of the following authorities EXCEPT - ANSWER-To waive the
requirement for fingerprints for an initial license application
What type of loan has a non-refundable funding fee? - ANSWER-VA loan
Under the CFPB, the following groups are identified as types of consumer and protection laws
EXCEPT - ANSWER-Credit Authorization and Security
The primary purpose of Truth in Lending is to: - ANSWER-Disclose the true costs of obtaining
credit.
The Rose family owns a home in a semi-rural area, which is about five years old. Recently
announced plans for a new regional airport will place their home directly in line with a main
runway ending 1 mile before their home. If the airport is constructed, will this diminish the
value of the Rose Home? - ANSWER-Yes, because of economic obsolescence.
