NMLS ACTUAL EXAM SCRIPT 2026
QUESTIONS AND SOLUTIONS GRADED
A+.
■ The requirement for private mortgage insurance is generally is
continued when the loan-to-value ratio falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90%. Answer: C.) 80%
■ Which of the following documents itemizes all settlement costs
including lender charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement. Answer: B.) HUD-1/closing Disclosure
■ According to the Truth-in-Lending Act (TILA), the term "refinance"
applies to
,A.) A change in a payment schedule
B.) A reduction in annual percentage rate
C.) The renewal of a single payment obligation with no change in the
original terms
D.) The satisfaction of an existing obligation and its replacement by a
new obligation. Answer: D.) The satisfaction of an existing obligation
and its replacement by a new obligation
■ What does a loan originator use to determine the estimated value of a
property based on an analytical comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis. Answer: A.) An appraisal
■ Which of the following methods of disclosure does NOT meet the
requirements of Equal Credit Opportunity Act (ECOA)?
A.) E-mail
B.) Mailed letter
C.) Telephone
,D.) Faxed letter. Answer: C.) Telephone
■ Term "20 basis points" expressed as a percentage is:
A.) 0.2%
B.) 0.20%
C.) 2.00%
D.) 20.00%. Answer: B.) 0.20%
one hundredth of one percent, used chiefly in expressing differences of
interest rates. 0.01
so 0.01 x20 = 0.2
■ According to the Truth-in-Lending Act (TILA), which if the following
fees is EXCLUDED from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums. Answer: A.) Hazard insurance
■ FHA loans are:
, A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled. Answer: A.) Partially guaranteed
■ The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest. Answer: C.) 5% of principle and
interest
■ A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan. Answer: B.) VA loan
■ A Mortgage Insurance Premium is required on:
QUESTIONS AND SOLUTIONS GRADED
A+.
■ The requirement for private mortgage insurance is generally is
continued when the loan-to-value ratio falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90%. Answer: C.) 80%
■ Which of the following documents itemizes all settlement costs
including lender charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement. Answer: B.) HUD-1/closing Disclosure
■ According to the Truth-in-Lending Act (TILA), the term "refinance"
applies to
,A.) A change in a payment schedule
B.) A reduction in annual percentage rate
C.) The renewal of a single payment obligation with no change in the
original terms
D.) The satisfaction of an existing obligation and its replacement by a
new obligation. Answer: D.) The satisfaction of an existing obligation
and its replacement by a new obligation
■ What does a loan originator use to determine the estimated value of a
property based on an analytical comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis. Answer: A.) An appraisal
■ Which of the following methods of disclosure does NOT meet the
requirements of Equal Credit Opportunity Act (ECOA)?
A.) E-mail
B.) Mailed letter
C.) Telephone
,D.) Faxed letter. Answer: C.) Telephone
■ Term "20 basis points" expressed as a percentage is:
A.) 0.2%
B.) 0.20%
C.) 2.00%
D.) 20.00%. Answer: B.) 0.20%
one hundredth of one percent, used chiefly in expressing differences of
interest rates. 0.01
so 0.01 x20 = 0.2
■ According to the Truth-in-Lending Act (TILA), which if the following
fees is EXCLUDED from the calculation of the annual percentage rate?
A.) Hazard insurance
B.) Wire transfer
C.) Prepaid interest
D.) Mortgage insurance premiums. Answer: A.) Hazard insurance
■ FHA loans are:
, A.) Partially guaranteed
B.) 100% insured
C.) Exempt
D.) Entitled. Answer: A.) Partially guaranteed
■ The late fee for a conventional loan is:
A.) 3% of principle and interest
B.) 4% of principle and interest
C.) 5% of principle and interest
D.) 10% of principle and interest. Answer: C.) 5% of principle and
interest
■ A funding fee if required for a:
A.) FHA loan
B.) VA loan
C.) Jumbo loan
D.) Conventional loan. Answer: B.) VA loan
■ A Mortgage Insurance Premium is required on:
