MLO SAFE NMLS SAFE 2026 ACTUAL EXAM
WITH QUESTIONS AND CORRECT
ANSWERS GRADED A+
Section 8 of RESPA prohibits _____________________. Correct
Answer Kickbacks for referrals.
A refinance of the borrower's residence that closes on Monday
will fund on _________________________. Correct Answer
Friday (three business day right of rescission period ends after
midnight on Thursday)
Per RESPA the maximum origination fee that may be charged on
a loan is ____________________. Correct Answer Unknown,
RESPA requires disclosure of origination fees but does not set the
maximum fee that can be charged.
Per the Dodd-Frank Act does a "qualified mortgage" provide a
"safe harbor" regarding compliance with the ability-to-repay
requirement? Correct Answer Yes
Relative to the Do-Not-Call registry a company may call a
consumer for up to __________________________ months after
,the consumer makes an inquiry or submits an application to the
company. Correct Answer 3 Months
There are three (3) groups of laws under the CFPB includig 1.
financial disclosure, 2. privacy, protection and consumer
identification and 3. __________________________. Correct
Answer 3. Prohibition of Predatory Lending
The 3/7/3 Rule is a provision of the _______________ Act related
to required disclosures and waiting periods. Correct Answer TILA,
Truth in Lending Act
The illegal practice of inducing owners to sell their homes by
suggesting that the ethnic or racial composition of the
neighborhood is changing is called
_____________________________. Correct Answer
Blockbusting
The borrower's ability to pay a loan is referred to as
_________________________. Correct Answer Capacity
The Fair Housing Act of 1968 protects against discrimination
based on race, color, religion, sex, national origin, disability and
__________________________. Correct Answer Familial Status
,Which law requires that all mortgage loan originators pass a
national licensing exam? Correct Answer The SAFE Act, The
Secure and Fair Enforcement for the mortgage licensing act of
2008.
Two sources of funds that may be used for a down payment on an
FHA insured loan include ___________ and _______________.
Correct Answer (1) A gift from a family member and (2) down
payment assistance grant
The documents issues by the VA which state the value of the
subject property based on an approved appraisal is called the
_______________________. Correct Answer CRV, Certificate of
Reasonable Value or NOV, Notice of Value
Instead of notifying a borrower with the actual details of adverse
action taken within 30 days of the loan application, the lender
notified the borrower that he has the right to request the actual
details. Is that acceptable per ECOA's guidelines? Correct
Answer Yes, When adverse action is taken, actual details or the
right to those details has to be disclosed within 30 days of
application. The borrower can request specific reasons within 60
days.
Broker A has a client and Broker B has access to a loan product
that will satisfy the clients needs. A and B Brokers decide to share
the brokerage fee. Accordingly, B pays A a referral fee. Has either
, Broker violated any law? If so, which law and who committed the
violation? Correct Answer Both Brokers A and B have violated
Section 8 of RESPA. Per the Real Estate Settlement Procedures
Act one cannot give or receive a thing of value in exchange for a
referral.
Why is it not acceptable to post privacy policies in a prominent
location in an office? Correct Answer Federally mandated
disclosures must be made directly to the consumer so that the
consumer has a copy of the notice.
All federal laws were enforced by the FTC and now the CFPB and
possibly other agencies. The maximum penalty that can be
imposed is incarceration for __________________ year(s) and a
maximum fine of $___________________. Correct Answer 1 year
and a $10,000 fine
Per ECOA, what section of the 1003 must an originator complete,
with or without the help of the borrower? Correct Answer Section
X of the 1003 (section 10 of the 1003 loan application)
What class is protected under Regulation B (ECOA) but, not
under Regulation V (Fair Housing Act)? Correct Answer Age
Monies paid by a lender to lower the cash out-of-pocket expenses
for a borrower at closing, by raising the interest rate on the loan
WITH QUESTIONS AND CORRECT
ANSWERS GRADED A+
Section 8 of RESPA prohibits _____________________. Correct
Answer Kickbacks for referrals.
A refinance of the borrower's residence that closes on Monday
will fund on _________________________. Correct Answer
Friday (three business day right of rescission period ends after
midnight on Thursday)
Per RESPA the maximum origination fee that may be charged on
a loan is ____________________. Correct Answer Unknown,
RESPA requires disclosure of origination fees but does not set the
maximum fee that can be charged.
Per the Dodd-Frank Act does a "qualified mortgage" provide a
"safe harbor" regarding compliance with the ability-to-repay
requirement? Correct Answer Yes
Relative to the Do-Not-Call registry a company may call a
consumer for up to __________________________ months after
,the consumer makes an inquiry or submits an application to the
company. Correct Answer 3 Months
There are three (3) groups of laws under the CFPB includig 1.
financial disclosure, 2. privacy, protection and consumer
identification and 3. __________________________. Correct
Answer 3. Prohibition of Predatory Lending
The 3/7/3 Rule is a provision of the _______________ Act related
to required disclosures and waiting periods. Correct Answer TILA,
Truth in Lending Act
The illegal practice of inducing owners to sell their homes by
suggesting that the ethnic or racial composition of the
neighborhood is changing is called
_____________________________. Correct Answer
Blockbusting
The borrower's ability to pay a loan is referred to as
_________________________. Correct Answer Capacity
The Fair Housing Act of 1968 protects against discrimination
based on race, color, religion, sex, national origin, disability and
__________________________. Correct Answer Familial Status
,Which law requires that all mortgage loan originators pass a
national licensing exam? Correct Answer The SAFE Act, The
Secure and Fair Enforcement for the mortgage licensing act of
2008.
Two sources of funds that may be used for a down payment on an
FHA insured loan include ___________ and _______________.
Correct Answer (1) A gift from a family member and (2) down
payment assistance grant
The documents issues by the VA which state the value of the
subject property based on an approved appraisal is called the
_______________________. Correct Answer CRV, Certificate of
Reasonable Value or NOV, Notice of Value
Instead of notifying a borrower with the actual details of adverse
action taken within 30 days of the loan application, the lender
notified the borrower that he has the right to request the actual
details. Is that acceptable per ECOA's guidelines? Correct
Answer Yes, When adverse action is taken, actual details or the
right to those details has to be disclosed within 30 days of
application. The borrower can request specific reasons within 60
days.
Broker A has a client and Broker B has access to a loan product
that will satisfy the clients needs. A and B Brokers decide to share
the brokerage fee. Accordingly, B pays A a referral fee. Has either
, Broker violated any law? If so, which law and who committed the
violation? Correct Answer Both Brokers A and B have violated
Section 8 of RESPA. Per the Real Estate Settlement Procedures
Act one cannot give or receive a thing of value in exchange for a
referral.
Why is it not acceptable to post privacy policies in a prominent
location in an office? Correct Answer Federally mandated
disclosures must be made directly to the consumer so that the
consumer has a copy of the notice.
All federal laws were enforced by the FTC and now the CFPB and
possibly other agencies. The maximum penalty that can be
imposed is incarceration for __________________ year(s) and a
maximum fine of $___________________. Correct Answer 1 year
and a $10,000 fine
Per ECOA, what section of the 1003 must an originator complete,
with or without the help of the borrower? Correct Answer Section
X of the 1003 (section 10 of the 1003 loan application)
What class is protected under Regulation B (ECOA) but, not
under Regulation V (Fair Housing Act)? Correct Answer Age
Monies paid by a lender to lower the cash out-of-pocket expenses
for a borrower at closing, by raising the interest rate on the loan
