Florida Mortgage Loan Originator
Licensing Exam With Actual Questions
& Verified Answers,Plus
Rationales/Expert Verified For
Guaranteed Pass Graded A+/2026
/Latest Update/Instant Download Pdf
1. Which of the following federal laws requires lenders to provide
borrowers with a Good Faith Estimate (GFE)?
A. Truth in Lending Act (TILA)
B. Real Estate Settlement Procedures Act (RESPA)
C. Equal Credit Opportunity Act (ECOA)
D. Home Mortgage Disclosure Act (HMDA)
B. Real Estate Settlement Procedures Act (RESPA)
RESPA requires lenders to provide borrowers with a GFE to ensure
transparency in settlement costs.
2. The primary purpose of the SAFE Act is to:
A. Regulate interest rates
B. Establish minimum licensing standards for MLOs
C. Set property appraisal requirements
D. Control foreclosures
B. Establish minimum licensing standards for MLOs
The SAFE Act sets federal minimum standards for mortgage loan
originator licensing and registration.
3. A borrower’s debt-to-income (DTI) ratio is calculated by:
A. Dividing total debts by total assets
B. Dividing monthly debt payments by gross monthly income
, C. Dividing annual debt by annual income
D. Dividing total credit lines by monthly income
B. Dividing monthly debt payments by gross monthly income
DTI measures a borrower’s ability to repay by comparing monthly debts
to gross income.
4. Which of the following is considered a trigger term under TILA?
A. “Low credit score”
B. “10% down payment”
C. “Close on time”
D. “Pre-approved”
B. “10% down payment”
Under TILA, any term that mentions a specific rate, payment, or
amount can trigger disclosure requirements.
5. Which document discloses the APR to a borrower?
A. HUD-1 Settlement Statement
B. Loan Estimate
C. Closing Disclosure
D. Truth-in-Lending Disclosure
D. Truth-in-Lending Disclosure
TILA requires disclosure of the APR to help borrowers compare loan
costs.
6. What is the maximum upfront fee a loan originator may charge a
borrower before providing a Loan Estimate?
A. 0
B. $50
C. $100
D. $500
A. 0
Under TILA-RESPA rules, no fees may be charged before the Loan
Estimate is provided.
7. Which federal law prohibits discrimination based on race, color, religion,
sex, national origin, marital status, or age in credit transactions?
A. ECOA
, B. RESPA
C. TILA
D. FCRA
A. ECOA
The Equal Credit Opportunity Act prohibits discrimination in any credit
transaction.
8. The practice of offering a loan with an initial low rate that later increases
significantly is called:
A. Fixed-rate mortgage
B. Adjustable-rate mortgage
C. Balloon mortgage
D. Predatory lending
B. Adjustable-rate mortgage
ARMs have interest rates that adjust periodically after an initial fixed
period.
9. Which type of mortgage typically has payments that do not cover the full
interest due?
A. Fixed-rate mortgage
B. Interest-only mortgage
C. Balloon mortgage
D. Reverse mortgage
B. Interest-only mortgage
Interest-only loans allow borrowers to pay only interest for a set
period, deferring principal.
10.What is the purpose of the Loan Estimate?
A. Disclose closing costs, loan terms, and fees
B. Set property appraisal requirements
C. Calculate borrower’s credit score
D. Serve as the promissory note
A. Disclose closing costs, loan terms, and fees
The Loan Estimate provides borrowers with standardized, transparent
loan information.
Licensing Exam With Actual Questions
& Verified Answers,Plus
Rationales/Expert Verified For
Guaranteed Pass Graded A+/2026
/Latest Update/Instant Download Pdf
1. Which of the following federal laws requires lenders to provide
borrowers with a Good Faith Estimate (GFE)?
A. Truth in Lending Act (TILA)
B. Real Estate Settlement Procedures Act (RESPA)
C. Equal Credit Opportunity Act (ECOA)
D. Home Mortgage Disclosure Act (HMDA)
B. Real Estate Settlement Procedures Act (RESPA)
RESPA requires lenders to provide borrowers with a GFE to ensure
transparency in settlement costs.
2. The primary purpose of the SAFE Act is to:
A. Regulate interest rates
B. Establish minimum licensing standards for MLOs
C. Set property appraisal requirements
D. Control foreclosures
B. Establish minimum licensing standards for MLOs
The SAFE Act sets federal minimum standards for mortgage loan
originator licensing and registration.
3. A borrower’s debt-to-income (DTI) ratio is calculated by:
A. Dividing total debts by total assets
B. Dividing monthly debt payments by gross monthly income
, C. Dividing annual debt by annual income
D. Dividing total credit lines by monthly income
B. Dividing monthly debt payments by gross monthly income
DTI measures a borrower’s ability to repay by comparing monthly debts
to gross income.
4. Which of the following is considered a trigger term under TILA?
A. “Low credit score”
B. “10% down payment”
C. “Close on time”
D. “Pre-approved”
B. “10% down payment”
Under TILA, any term that mentions a specific rate, payment, or
amount can trigger disclosure requirements.
5. Which document discloses the APR to a borrower?
A. HUD-1 Settlement Statement
B. Loan Estimate
C. Closing Disclosure
D. Truth-in-Lending Disclosure
D. Truth-in-Lending Disclosure
TILA requires disclosure of the APR to help borrowers compare loan
costs.
6. What is the maximum upfront fee a loan originator may charge a
borrower before providing a Loan Estimate?
A. 0
B. $50
C. $100
D. $500
A. 0
Under TILA-RESPA rules, no fees may be charged before the Loan
Estimate is provided.
7. Which federal law prohibits discrimination based on race, color, religion,
sex, national origin, marital status, or age in credit transactions?
A. ECOA
, B. RESPA
C. TILA
D. FCRA
A. ECOA
The Equal Credit Opportunity Act prohibits discrimination in any credit
transaction.
8. The practice of offering a loan with an initial low rate that later increases
significantly is called:
A. Fixed-rate mortgage
B. Adjustable-rate mortgage
C. Balloon mortgage
D. Predatory lending
B. Adjustable-rate mortgage
ARMs have interest rates that adjust periodically after an initial fixed
period.
9. Which type of mortgage typically has payments that do not cover the full
interest due?
A. Fixed-rate mortgage
B. Interest-only mortgage
C. Balloon mortgage
D. Reverse mortgage
B. Interest-only mortgage
Interest-only loans allow borrowers to pay only interest for a set
period, deferring principal.
10.What is the purpose of the Loan Estimate?
A. Disclose closing costs, loan terms, and fees
B. Set property appraisal requirements
C. Calculate borrower’s credit score
D. Serve as the promissory note
A. Disclose closing costs, loan terms, and fees
The Loan Estimate provides borrowers with standardized, transparent
loan information.
