NMLS 2025 EXAM
NMLS TEST FINAL EXAM QUESTIONS AND
ANSWERS (VERIFIED AND WELL DETAILED
ANSWERS) LATEST UPDATE 2024/2025
What law deals with credit, APR & Advertising of consumer loans? -
CORRECT ANSWER TILA
Which regulation prohibits kickbacks? - CORRECT ANSWER RESPA
Which regulations require the lender to cancel PMI when the loan
reaches 78% LTV? - CORRECT ANSWER HPA-Homeowners Protection
Act
Which Regulation prohibits fee splitting? - CORRECT ANSWER
RESPA
Regulation X is the letter used to describe which law? - CORRECT
ANSWER RESPA
RESPA is the acronym used to describe which law? - CORRECT ANSWER
Real Estate Settlement Procedures Act
NMLS 2025 EXAM
, NMLS 2025 EXAM
What type of mortgage requires a non-refundable funding fee? -
CORRECT ANSWER VA Loan
NMLS 2025 EXAM
, NMLS 2025 EXAM
What is the provision in a mortgage enabling a lender to demand full
repayment if the borrower DEFAULTS on the loan? - CORRECT ANSWER
Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full
repayment if the borrower TRANSFERS the loan? - CORRECT ANSWER
Alienation Clause
What does CFPB stand for? - CORRECT ANSWER Consumer Financial
Protection Bureau
What two laws created the CFBP? - CORRECT ANSWER Dodd Frank Act
and Consumer Finance Protection Act
Which regulation is designed to help meet the Credit needs of the
Communities in which it operates? - CORRECT ANSWER CRA-
Community Reinvestment Act
Under ECOA rules and regulations, how many days the borrower have
to request a copy of an appraisal report? - CORRECT ANSWER 90
Under ECOA rules and regulations, how many days does the lender have
to provide a copy of an appraisal report, once requested by the
borrower? - CORRECT ANSWER 30
NMLS 2025 EXAM
, NMLS 2025 EXAM
If a loan application is APPROVED, Under ECOA rules & regulations,
when MUST a copy of the appraisal be provided to the borrower? -
CORRECT ANSWER 3 business days
Conforming loans follow guidelines of which regulators? - CORRECT
ANSWER Fannie Mae and Freddie Mac
Which regulation requires the lenders to "BE EQUAL" when extending
credit to borrowers? - CORRECT ANSWER ECOA
How old must a borrower be to qualify for a Reverse Mortgage? -
CORRECT ANSWER 62 years old
Which regulation has the primary function of preventing Identity Theft?
- CORRECT ANSWER FACT Act
Which regulation has Section 114 Rules? - CORRECT ANSWER
FACT Act
Which regulation requires the creditor to verify the VALIDITY of any
change of address received? - CORRECT ANSWER SECTION 114 of the
FACT Act
What is the payment method used in a reverse mortgage that allows
NMLS 2025 EXAM
NMLS TEST FINAL EXAM QUESTIONS AND
ANSWERS (VERIFIED AND WELL DETAILED
ANSWERS) LATEST UPDATE 2024/2025
What law deals with credit, APR & Advertising of consumer loans? -
CORRECT ANSWER TILA
Which regulation prohibits kickbacks? - CORRECT ANSWER RESPA
Which regulations require the lender to cancel PMI when the loan
reaches 78% LTV? - CORRECT ANSWER HPA-Homeowners Protection
Act
Which Regulation prohibits fee splitting? - CORRECT ANSWER
RESPA
Regulation X is the letter used to describe which law? - CORRECT
ANSWER RESPA
RESPA is the acronym used to describe which law? - CORRECT ANSWER
Real Estate Settlement Procedures Act
NMLS 2025 EXAM
, NMLS 2025 EXAM
What type of mortgage requires a non-refundable funding fee? -
CORRECT ANSWER VA Loan
NMLS 2025 EXAM
, NMLS 2025 EXAM
What is the provision in a mortgage enabling a lender to demand full
repayment if the borrower DEFAULTS on the loan? - CORRECT ANSWER
Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full
repayment if the borrower TRANSFERS the loan? - CORRECT ANSWER
Alienation Clause
What does CFPB stand for? - CORRECT ANSWER Consumer Financial
Protection Bureau
What two laws created the CFBP? - CORRECT ANSWER Dodd Frank Act
and Consumer Finance Protection Act
Which regulation is designed to help meet the Credit needs of the
Communities in which it operates? - CORRECT ANSWER CRA-
Community Reinvestment Act
Under ECOA rules and regulations, how many days the borrower have
to request a copy of an appraisal report? - CORRECT ANSWER 90
Under ECOA rules and regulations, how many days does the lender have
to provide a copy of an appraisal report, once requested by the
borrower? - CORRECT ANSWER 30
NMLS 2025 EXAM
, NMLS 2025 EXAM
If a loan application is APPROVED, Under ECOA rules & regulations,
when MUST a copy of the appraisal be provided to the borrower? -
CORRECT ANSWER 3 business days
Conforming loans follow guidelines of which regulators? - CORRECT
ANSWER Fannie Mae and Freddie Mac
Which regulation requires the lenders to "BE EQUAL" when extending
credit to borrowers? - CORRECT ANSWER ECOA
How old must a borrower be to qualify for a Reverse Mortgage? -
CORRECT ANSWER 62 years old
Which regulation has the primary function of preventing Identity Theft?
- CORRECT ANSWER FACT Act
Which regulation has Section 114 Rules? - CORRECT ANSWER
FACT Act
Which regulation requires the creditor to verify the VALIDITY of any
change of address received? - CORRECT ANSWER SECTION 114 of the
FACT Act
What is the payment method used in a reverse mortgage that allows
NMLS 2025 EXAM
