NMLS SAFE EXAM 2025
QUESTIONBANK 300 QUESTIONS AND
DETAILED CORRECT ANSWERS |
ALREADY GRADED A+
A borrower receives a document which contains a list of all
closing costs, a disclosure of the borrower credits received
on the transaction, an estimate of the cash the borrower
needs to bring in to closing, and the sales price. Which of
the following best identifies this document?
a. Loan Closure
b. Closing Disclosure
c. Itemization of Amount Financed
d. Loan Estimate Correct Answer d. Loan Estimate
A lender may charge a borrower for an appraisal fee once
the borrower has received the Loan Estimate and:
a. The Closing Disclosure
b. Indicated an intent to proceed with the loan
c. Paid a credit report fee
d. Met with a financial counselor Correct Answer b.
Indicated an intent to proceed with the loan
Assume that the Loan Estimate is mailed on Tuesday. The
office is open six days a week and closed on Sundays.
What is the earliest day on which the transaction could
close?
,a. The following Wednesday
b. The following Friday
c. The following Monday
d. The following Tuesday Correct Answer a. The following
Wednesday
The Barrows applied for a loan to buy a small duplex in a
suburb of Springfield. However, shortly after they received
the Loan Estimate from their lender, a tornado swept
through Springfield and severely damaged the home they
are purchasing, requiring construction and repairs. Under
these circumstances:
a. The previous Loan Estimate still applies
b. The transaction is void
c. The Barrows must reapply
d. A revised Loan Estimate may be issued Correct Answer
d. A revised Loan Estimate may be issued
When a creditor revises a Loan Estimate, it must deliver
the revised disclosure to the loan applicant:
a. No later than seven business days prior to
consummation
b. No later than four business days prior to consummation
c. On the same date that it delivers a Closing Disclosure
d. At the same time that the revisions are made Correct
Answer b. No later than four business days prior to
consummation
,Based on a valid change in circumstance, a creditor must
re-issue a Loan Estimate:
a. Immediately upon learning of the change
b. Within three business days of learning of the change
c. Within four business day of learning of the change
d. Within five business days of learning of the change
Correct Answer b. Within three business days of learning
of the change
Which of the following would not be required for an
adjustable-rate home equity plan?
a. What You Should Know about Home Equity Lines of
Credit
b. Disclosure of APR, fees, and transaction requirements
c. Disclosure of frequency of APR changes and a
description of how the APR will be determined
d. Loan Estimate and Closing Disclosure Correct Answer
d. Loan Estimate and Closing Disclosure
Which of the following is not considered one of the six
essential pieces of information constituting an application
under RESPA?
a. Borrower Social Security Number
b. Loan program
c. Borrower monthly income
d. Loan amount Correct Answer b. Loan program
, When must loan applicants receive an adverse action
notice if they cannot qualify for a loan?
a. Within 15 days of loan application
b. Within 60 days of loan application
c. Within 30 days of loan application
d. Within 90 days of loan application Correct Answer c.
Within 30 days of loan application
If a borrower waives the right to receive a copy of an
appraisal:
a. They must receive a copy within 30 days of closing
b. The lender is never required to give the borrower a copy
of the appraisal
c. They must receive a copy seven days before closing
d. They must receive a copy at or before consummation
Correct Answer d. They must receive a copy at or before
consummation
Which of the following would be an acceptable reason to
decline a loan application?
a. The borrower is a member of a minority race
b. The borrower fails to disclose their race
c. The borrower has a habit of going on maternity leave
QUESTIONBANK 300 QUESTIONS AND
DETAILED CORRECT ANSWERS |
ALREADY GRADED A+
A borrower receives a document which contains a list of all
closing costs, a disclosure of the borrower credits received
on the transaction, an estimate of the cash the borrower
needs to bring in to closing, and the sales price. Which of
the following best identifies this document?
a. Loan Closure
b. Closing Disclosure
c. Itemization of Amount Financed
d. Loan Estimate Correct Answer d. Loan Estimate
A lender may charge a borrower for an appraisal fee once
the borrower has received the Loan Estimate and:
a. The Closing Disclosure
b. Indicated an intent to proceed with the loan
c. Paid a credit report fee
d. Met with a financial counselor Correct Answer b.
Indicated an intent to proceed with the loan
Assume that the Loan Estimate is mailed on Tuesday. The
office is open six days a week and closed on Sundays.
What is the earliest day on which the transaction could
close?
,a. The following Wednesday
b. The following Friday
c. The following Monday
d. The following Tuesday Correct Answer a. The following
Wednesday
The Barrows applied for a loan to buy a small duplex in a
suburb of Springfield. However, shortly after they received
the Loan Estimate from their lender, a tornado swept
through Springfield and severely damaged the home they
are purchasing, requiring construction and repairs. Under
these circumstances:
a. The previous Loan Estimate still applies
b. The transaction is void
c. The Barrows must reapply
d. A revised Loan Estimate may be issued Correct Answer
d. A revised Loan Estimate may be issued
When a creditor revises a Loan Estimate, it must deliver
the revised disclosure to the loan applicant:
a. No later than seven business days prior to
consummation
b. No later than four business days prior to consummation
c. On the same date that it delivers a Closing Disclosure
d. At the same time that the revisions are made Correct
Answer b. No later than four business days prior to
consummation
,Based on a valid change in circumstance, a creditor must
re-issue a Loan Estimate:
a. Immediately upon learning of the change
b. Within three business days of learning of the change
c. Within four business day of learning of the change
d. Within five business days of learning of the change
Correct Answer b. Within three business days of learning
of the change
Which of the following would not be required for an
adjustable-rate home equity plan?
a. What You Should Know about Home Equity Lines of
Credit
b. Disclosure of APR, fees, and transaction requirements
c. Disclosure of frequency of APR changes and a
description of how the APR will be determined
d. Loan Estimate and Closing Disclosure Correct Answer
d. Loan Estimate and Closing Disclosure
Which of the following is not considered one of the six
essential pieces of information constituting an application
under RESPA?
a. Borrower Social Security Number
b. Loan program
c. Borrower monthly income
d. Loan amount Correct Answer b. Loan program
, When must loan applicants receive an adverse action
notice if they cannot qualify for a loan?
a. Within 15 days of loan application
b. Within 60 days of loan application
c. Within 30 days of loan application
d. Within 90 days of loan application Correct Answer c.
Within 30 days of loan application
If a borrower waives the right to receive a copy of an
appraisal:
a. They must receive a copy within 30 days of closing
b. The lender is never required to give the borrower a copy
of the appraisal
c. They must receive a copy seven days before closing
d. They must receive a copy at or before consummation
Correct Answer d. They must receive a copy at or before
consummation
Which of the following would be an acceptable reason to
decline a loan application?
a. The borrower is a member of a minority race
b. The borrower fails to disclose their race
c. The borrower has a habit of going on maternity leave
