NMLS SAFE ACT MLO Exam - Ethics and
Fraud (Latest 2026/ 2027 Update)
questions and answers 100% Correct
[Grade A]
What federal legislation requires that all printed advertising include the Equal Housing
Opportunity logo?
A. Equal Credit Opportunity Act
B. Fair Credit Reporting Act
C. Fair Housing Act
D. Truth in Lending Act - Correct answer C. Fair Housing Act
The Fair Housing Act requires that the Equal Housing Opportunity logo be displayed in
all printed material and the term "equal housing lender" must be used when broadcast
over the airwaves.
When an appraiser "gives a mortgage loan originator what's needed" on the appraisal
report, the consumer usually ends up
,A. borrowing too much on the property.
B. refinancing the property.
C. not being able to sell the property.
D. paying more discount points at closing. - Correct answer A. borrowing too much on
the property.
The cooperation between the appraiser and the loan originator in "giving what's
needed" on the appraisal report leads to the consumer borrowing too much, resulting
in an upside-down loan.
The late payment charged, or method of computation used for a late payment charge,
is required to be disclosed under
A. FCRA.
B. ECOA.
C. TILA.
D. HMDA. - Correct answer C. TILA.
,A late payment fee is a true cost of credit and, therefore, must be disclosed to the
consumer under the Truth in Lending Act.
A mortgage loan broker assistant should not permit an unlicensed assistant to do
which of the following:
A. All of the other options should not be permitted.
B. Make an appointment
C. Research the rates
D. Explain the significance of a document to the parties - Correct answer D. Explain the
significance of a document to the parties
A mortgage loan broker assistant should not permit an unlicensed assistant to explain
the significance of a document (e.g. an inspection report)
Which is NOT a triggering term according to TILA, requiring additional disclosing in
advertising?
, A. "Pay only $800 per month"
B. "$3,000 down"
C. "360 easy payments"
D. "Terms to fit your budget" - Correct answer D. "Terms to fit your budget"
Generic statements that do not state specific loan information are exempt from
additional disclosing of referencing specific information concerning loan terms.
A loan originator tells his friend that he can get him a good deal on a loan, and then
proceeds to pay his friend's closing costs and points out of his projected income from
the transaction. If the employing mortgage broker's fees are not affected by this, which
of the following is true?
A. The loan originator's action is unethical, as he cannot provide better deals to his
friends.
B. The loan originator violated no laws, but the friend did, in accepting the better deal.
C. Neither the loan originator nor the friend have behaved unethically or illegally.
Fraud (Latest 2026/ 2027 Update)
questions and answers 100% Correct
[Grade A]
What federal legislation requires that all printed advertising include the Equal Housing
Opportunity logo?
A. Equal Credit Opportunity Act
B. Fair Credit Reporting Act
C. Fair Housing Act
D. Truth in Lending Act - Correct answer C. Fair Housing Act
The Fair Housing Act requires that the Equal Housing Opportunity logo be displayed in
all printed material and the term "equal housing lender" must be used when broadcast
over the airwaves.
When an appraiser "gives a mortgage loan originator what's needed" on the appraisal
report, the consumer usually ends up
,A. borrowing too much on the property.
B. refinancing the property.
C. not being able to sell the property.
D. paying more discount points at closing. - Correct answer A. borrowing too much on
the property.
The cooperation between the appraiser and the loan originator in "giving what's
needed" on the appraisal report leads to the consumer borrowing too much, resulting
in an upside-down loan.
The late payment charged, or method of computation used for a late payment charge,
is required to be disclosed under
A. FCRA.
B. ECOA.
C. TILA.
D. HMDA. - Correct answer C. TILA.
,A late payment fee is a true cost of credit and, therefore, must be disclosed to the
consumer under the Truth in Lending Act.
A mortgage loan broker assistant should not permit an unlicensed assistant to do
which of the following:
A. All of the other options should not be permitted.
B. Make an appointment
C. Research the rates
D. Explain the significance of a document to the parties - Correct answer D. Explain the
significance of a document to the parties
A mortgage loan broker assistant should not permit an unlicensed assistant to explain
the significance of a document (e.g. an inspection report)
Which is NOT a triggering term according to TILA, requiring additional disclosing in
advertising?
, A. "Pay only $800 per month"
B. "$3,000 down"
C. "360 easy payments"
D. "Terms to fit your budget" - Correct answer D. "Terms to fit your budget"
Generic statements that do not state specific loan information are exempt from
additional disclosing of referencing specific information concerning loan terms.
A loan originator tells his friend that he can get him a good deal on a loan, and then
proceeds to pay his friend's closing costs and points out of his projected income from
the transaction. If the employing mortgage broker's fees are not affected by this, which
of the following is true?
A. The loan originator's action is unethical, as he cannot provide better deals to his
friends.
B. The loan originator violated no laws, but the friend did, in accepting the better deal.
C. Neither the loan originator nor the friend have behaved unethically or illegally.
