NMLS SAFE MLO EXAM 2025
QUESTIONS AND ANSWERS
Where do you buy Flood Insurance? - ANS NFIP (national flood insurance program)
Min and Max Flood Insurance? - ANS $100,000 & $250,000
Penalty for violating FCRA? Enforced by who? - ANS $1000 (enforced by FTC)
Penalty for violating FACTA - ANS $5000 and/or 1 year in jail
Penalty for violating ECOA? Enforced by who? - ANS $10,000 (enforced by CFPB)
Penalty for violating RESPA? Enforced by who? - ANS $10,000 and/or 1 year in jail (enforced
by CFPB)
Penalty for violating SAFE ACT? - ANS $30,058
Penalty for violating the DNC? - ANS $43,280
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Penalty for violating TRID? - ANS first time = $5000, second=$25,000, third=$1,000,000
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@COPYRIGHT BRAINBARTER 2025/2026
, Penalty for violating GLBA - ANS up to 5 years in a jail and a fine
Penalty for violating 1003 - ANS may face a 5 year jail term
Penalty for violating TRID - ANS $1,000,000 per day
For violating Mortgage fraud - ANS 30 years in federal prison or $1,000,000
When must the borrower receive the Privacy Policy Notice? - ANS At first contact, and
thereafter, once a year as long as they remain a customer
4 elements of a valid contract - ANS CMLC;
Competent Parties
Mutual Agreement
Legal Object
Consideration
APR - Whats included? - ANS - fees related to the actual mortgage
Finance charges
Interest
Loan origination fees
Mortgage broker fees
Credit lift insurance fees
Premiums for property and liability insurance
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FHA's Downpayment is? - ANS down payment if FICO 500-579 = 10%
@COPYRIGHT BRAINBARTER 2025/2026
, down payment if FICO 580 + = 3.5%
FHA loans - ANS Low down payments and no prepayment penalties
Down payment can come from the borrower's own funds, gift funds or housing authority grants
Are assumable
FHA - Borrower must occupy the property within how many days after closing and plan to
occupy the property for at least how long? - ANS The borrower must occupy the property
within
60 days after closing and plan to occupy the property for at least one (1) year
How many months of PITI must be verified for a non-owner occupied property? Owner
occupied property? - ANS 6 months, 2 months
If the credit report doesn't show a required minimum payment amount, the lender should use
an amount equal to how much of the outstanding balance. - ANS 5%
Commission, OT, bonus, and part time income must be averaged over how long? - ANS 2
years
When calculating DTI ratios, if less than how many installments, its not included? - ANS 10
installments, leases are always included
FHA 203(b) - ANS (basic) FHA Fixed Rate Loan
FHA 203(k) - ANS FHA Rehabilitation loan
FHA 203(g) - ANS (good neighbor, good people) for teachers, firemen...
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@COPYRIGHT BRAINBARTER 2025/2026
QUESTIONS AND ANSWERS
Where do you buy Flood Insurance? - ANS NFIP (national flood insurance program)
Min and Max Flood Insurance? - ANS $100,000 & $250,000
Penalty for violating FCRA? Enforced by who? - ANS $1000 (enforced by FTC)
Penalty for violating FACTA - ANS $5000 and/or 1 year in jail
Penalty for violating ECOA? Enforced by who? - ANS $10,000 (enforced by CFPB)
Penalty for violating RESPA? Enforced by who? - ANS $10,000 and/or 1 year in jail (enforced
by CFPB)
Penalty for violating SAFE ACT? - ANS $30,058
Penalty for violating the DNC? - ANS $43,280
1
Penalty for violating TRID? - ANS first time = $5000, second=$25,000, third=$1,000,000
Page
@COPYRIGHT BRAINBARTER 2025/2026
, Penalty for violating GLBA - ANS up to 5 years in a jail and a fine
Penalty for violating 1003 - ANS may face a 5 year jail term
Penalty for violating TRID - ANS $1,000,000 per day
For violating Mortgage fraud - ANS 30 years in federal prison or $1,000,000
When must the borrower receive the Privacy Policy Notice? - ANS At first contact, and
thereafter, once a year as long as they remain a customer
4 elements of a valid contract - ANS CMLC;
Competent Parties
Mutual Agreement
Legal Object
Consideration
APR - Whats included? - ANS - fees related to the actual mortgage
Finance charges
Interest
Loan origination fees
Mortgage broker fees
Credit lift insurance fees
Premiums for property and liability insurance
2
Page
FHA's Downpayment is? - ANS down payment if FICO 500-579 = 10%
@COPYRIGHT BRAINBARTER 2025/2026
, down payment if FICO 580 + = 3.5%
FHA loans - ANS Low down payments and no prepayment penalties
Down payment can come from the borrower's own funds, gift funds or housing authority grants
Are assumable
FHA - Borrower must occupy the property within how many days after closing and plan to
occupy the property for at least how long? - ANS The borrower must occupy the property
within
60 days after closing and plan to occupy the property for at least one (1) year
How many months of PITI must be verified for a non-owner occupied property? Owner
occupied property? - ANS 6 months, 2 months
If the credit report doesn't show a required minimum payment amount, the lender should use
an amount equal to how much of the outstanding balance. - ANS 5%
Commission, OT, bonus, and part time income must be averaged over how long? - ANS 2
years
When calculating DTI ratios, if less than how many installments, its not included? - ANS 10
installments, leases are always included
FHA 203(b) - ANS (basic) FHA Fixed Rate Loan
FHA 203(k) - ANS FHA Rehabilitation loan
FHA 203(g) - ANS (good neighbor, good people) for teachers, firemen...
3
Page
@COPYRIGHT BRAINBARTER 2025/2026
