NMLS FINAL EXAM 2027 QUESTIONS
AND ANSWERS
1. Under RESPA Section 8, what is considered a ‘thing of value’ regarding kickbacks and
referral fees?
A. Only cash payments exceeding $100
B. Direct monetary transfers between licensed entities
C. Any compensation, gift, or opportunity to make money
D. Referral fees paid to unlicensed relatives
Answer: C
Conceptual Explanation: RESPA Section 8 prohibits giving or accepting anything of value
in exchange for referrals of settlement services. ‘Thing of value’ is broadly defined to
include credits, services, trips, or any opportunity to profit.
2. According to the Truth in Lending Act (TILA), a consumer has a right to rescind a loan on a
principal residence within how many business days of closing?
A. Three business days
B. Two business days
,C. Seven business days
D. Ten business days
Answer: A
Conceptual Explanation: Regulation Z (TILA) provides a three-business-day right of
rescission for most non-purchase transactions involving a consumer’s principal dwelling.
3. Under ECOA (Regulation B), a lender must notify an applicant of action taken on a
completed application within how many days?
A. 30 days
B. 20 days
C. 15 days
D. 60 days
Answer: A
Conceptual Explanation: ECOA requires creditors to notify applicants of action taken
within 30 days of receiving a completed application.
4. Which federal law requires lenders to report data regarding the ethnicity, race, and gender
of loan applicants?
A. RESPA
B. TILA
C. HMDA
, D. FCRA
Answer: C
Conceptual Explanation: The Home Mortgage Disclosure Act (HMDA/Regulation C)
requires lenders to collect and report demographic data to identify potential
discriminatory lending patterns.
5. What is the minimum pre-licensing education requirement for an MLO under the SAFE Act?
A. 20 hours
B. 15 hours
C. 10 hours
D. 30 hours
Answer: A
Conceptual Explanation: The SAFE Act requires a minimum of 20 hours of pre-licensing
education for state-licensed Mortgage Loan Originators.
6. A high-cost mortgage is defined under which regulation?
A. HOEPA
B. HPA
C. HMDA
D. FCRA
AND ANSWERS
1. Under RESPA Section 8, what is considered a ‘thing of value’ regarding kickbacks and
referral fees?
A. Only cash payments exceeding $100
B. Direct monetary transfers between licensed entities
C. Any compensation, gift, or opportunity to make money
D. Referral fees paid to unlicensed relatives
Answer: C
Conceptual Explanation: RESPA Section 8 prohibits giving or accepting anything of value
in exchange for referrals of settlement services. ‘Thing of value’ is broadly defined to
include credits, services, trips, or any opportunity to profit.
2. According to the Truth in Lending Act (TILA), a consumer has a right to rescind a loan on a
principal residence within how many business days of closing?
A. Three business days
B. Two business days
,C. Seven business days
D. Ten business days
Answer: A
Conceptual Explanation: Regulation Z (TILA) provides a three-business-day right of
rescission for most non-purchase transactions involving a consumer’s principal dwelling.
3. Under ECOA (Regulation B), a lender must notify an applicant of action taken on a
completed application within how many days?
A. 30 days
B. 20 days
C. 15 days
D. 60 days
Answer: A
Conceptual Explanation: ECOA requires creditors to notify applicants of action taken
within 30 days of receiving a completed application.
4. Which federal law requires lenders to report data regarding the ethnicity, race, and gender
of loan applicants?
A. RESPA
B. TILA
C. HMDA
, D. FCRA
Answer: C
Conceptual Explanation: The Home Mortgage Disclosure Act (HMDA/Regulation C)
requires lenders to collect and report demographic data to identify potential
discriminatory lending patterns.
5. What is the minimum pre-licensing education requirement for an MLO under the SAFE Act?
A. 20 hours
B. 15 hours
C. 10 hours
D. 30 hours
Answer: A
Conceptual Explanation: The SAFE Act requires a minimum of 20 hours of pre-licensing
education for state-licensed Mortgage Loan Originators.
6. A high-cost mortgage is defined under which regulation?
A. HOEPA
B. HPA
C. HMDA
D. FCRA
