NMLS Test Prep Questions and answers 2026
If a creditor violates ECOA, how many years does a consumer have in which to take civil
action? - 5
A real estate agent receives a $50 restaurant gift certificate from a mrotgage broker as a
token of appreciation for referring a home buyer to the mortgage broker. Which of law was
violated as a result of this transaction? - RESPA
When must a lender advise loan applicants about the status of their application? - Within 30
days
Which of the following scenarios would violate Section 8 of RESPA and its prohibition against
unearned fees?
a. a broker accepts a loan origination fee
b. an attorney accepts payment for performing a title search
c. a broker charges $50 to obtain a $50 credit report
d. a title company pays a mortgage broker $100 per client for referral of settlement business
- a title company pays a mortgage broker $100 per client for referral of settlement business
RESPA does not apply to:
a. loans for business, commercial, and agricultural purposes
b. subprime mortgage loans
c. loans secured by a lien on a principal dwelling
d. Federally related mortgage loans - loans for business, commercial, and agricultural
purposes
What is the primary purpose of the Truth-in-Lending Act? - To ensure that creditors provide
consumers clear disclosure of the terms of credit
,Murphy is a mortgage broker who has an ownership interest in a local title insurance
company. When his clients apply for loans and request referrals to a title compnay, Murphy
must: - Immediately provide an affiliated business arrangement disclosure if he refers them
to the title company in which he has an ownership interes
What federal statute primarily serves to control the settlement costs of residential mortgage
loans? - RESPA
The rule that established requirements for ensuring that a borrower can afford to take on a
mortgage loan is known as the: - Ability to Repay Rule
If a mortgage broker decides to use telemarketing to establish leads for loan origination,
which of the following should occur? - The broker should obtain access to the Do-Not-Call
Registry
Five siblings have ownership rights to a property. If a refinance transaction affecting the
property is subject to rescission, how many of these individuals must submit a rescission
notice in order to void the loan? - any one of the 5
The Real Estate Settlement Procedures Act applies to: - Residential Loans
There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual
closing costs if the consumer is allowed to shop for hi/her own settlement service provider. -
10%
Which federal agencies has supervisory responsibilities for TILA compliance? - CFPB
Under ECOA, when is a notice concerning the right to obtain a copy of the appraisal due to a
consumer? - within three business days of loan application
, Under the Fair Credit Reporting Act, which of the following entities has the burden of
protecting a consumer's privacy when his/her credit information is being reported? - Credit
reporting agency
RESPA applies to: - Federally-related mortgage loans
Requiring a spouse to serve as a cosigner on a loan is not a discriminatory practice when: -
The signature is required by law in a community property state
According to fair lending laws, which of the following may loan applicants be asked to
disclose for HMDA data collection purposes? - Their race
Which of the following is true of the Home Loan Toolkit booklet?
a. if there are multiple borrowers, it is only required to be given to one of them
b. it can be used for HELOC transactions
c. Mortgage professionals can add or remove any information deemed necessary
d. It must be given at least 24 hours before consummation - if there are multiple borrowers,
it is only required to be given to one of them
Who is ultimately responsible for ensuring that the Loan Estimate is provided? - The creditor
Which of the following payments is a violation of RESPA?
a. a mortgage broker offers real estate agents pencils which include the broker's name
b. a mortgage broker pays a fee to determine if a property is located in a flood zone
c. a mortgage broker accepts a fee for sending its customers to a title company
d. a mortgage broker charges a loan applicant the average $50 charge for a credit report
instead of the $45 it actually cost - a mortgage broker accepts a fee for sending its customers
to a title company
If a creditor violates ECOA, how many years does a consumer have in which to take civil
action? - 5
A real estate agent receives a $50 restaurant gift certificate from a mrotgage broker as a
token of appreciation for referring a home buyer to the mortgage broker. Which of law was
violated as a result of this transaction? - RESPA
When must a lender advise loan applicants about the status of their application? - Within 30
days
Which of the following scenarios would violate Section 8 of RESPA and its prohibition against
unearned fees?
a. a broker accepts a loan origination fee
b. an attorney accepts payment for performing a title search
c. a broker charges $50 to obtain a $50 credit report
d. a title company pays a mortgage broker $100 per client for referral of settlement business
- a title company pays a mortgage broker $100 per client for referral of settlement business
RESPA does not apply to:
a. loans for business, commercial, and agricultural purposes
b. subprime mortgage loans
c. loans secured by a lien on a principal dwelling
d. Federally related mortgage loans - loans for business, commercial, and agricultural
purposes
What is the primary purpose of the Truth-in-Lending Act? - To ensure that creditors provide
consumers clear disclosure of the terms of credit
,Murphy is a mortgage broker who has an ownership interest in a local title insurance
company. When his clients apply for loans and request referrals to a title compnay, Murphy
must: - Immediately provide an affiliated business arrangement disclosure if he refers them
to the title company in which he has an ownership interes
What federal statute primarily serves to control the settlement costs of residential mortgage
loans? - RESPA
The rule that established requirements for ensuring that a borrower can afford to take on a
mortgage loan is known as the: - Ability to Repay Rule
If a mortgage broker decides to use telemarketing to establish leads for loan origination,
which of the following should occur? - The broker should obtain access to the Do-Not-Call
Registry
Five siblings have ownership rights to a property. If a refinance transaction affecting the
property is subject to rescission, how many of these individuals must submit a rescission
notice in order to void the loan? - any one of the 5
The Real Estate Settlement Procedures Act applies to: - Residential Loans
There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual
closing costs if the consumer is allowed to shop for hi/her own settlement service provider. -
10%
Which federal agencies has supervisory responsibilities for TILA compliance? - CFPB
Under ECOA, when is a notice concerning the right to obtain a copy of the appraisal due to a
consumer? - within three business days of loan application
, Under the Fair Credit Reporting Act, which of the following entities has the burden of
protecting a consumer's privacy when his/her credit information is being reported? - Credit
reporting agency
RESPA applies to: - Federally-related mortgage loans
Requiring a spouse to serve as a cosigner on a loan is not a discriminatory practice when: -
The signature is required by law in a community property state
According to fair lending laws, which of the following may loan applicants be asked to
disclose for HMDA data collection purposes? - Their race
Which of the following is true of the Home Loan Toolkit booklet?
a. if there are multiple borrowers, it is only required to be given to one of them
b. it can be used for HELOC transactions
c. Mortgage professionals can add or remove any information deemed necessary
d. It must be given at least 24 hours before consummation - if there are multiple borrowers,
it is only required to be given to one of them
Who is ultimately responsible for ensuring that the Loan Estimate is provided? - The creditor
Which of the following payments is a violation of RESPA?
a. a mortgage broker offers real estate agents pencils which include the broker's name
b. a mortgage broker pays a fee to determine if a property is located in a flood zone
c. a mortgage broker accepts a fee for sending its customers to a title company
d. a mortgage broker charges a loan applicant the average $50 charge for a credit report
instead of the $45 it actually cost - a mortgage broker accepts a fee for sending its customers
to a title company
