NMLS SAFE Exam Questions and Answers |Fall 2025/2026
Update | 100% Correct
Question 1
Which of the following is not considered a drawback in a Bi-Weekly payment mortgage?
A. Greater risk of late payments.
B. Each payment has an administrative service fee.
C. Bi-weekly programs offer lesser interest rates.
D. Borrower makes an extra payment each year.
Correct Answer
D. Borrower makes an extra payment each year
Question 2
When a mortgage company is earning YSP on the origination of a mortgage loan which disclosure indicates the amount?
A. Settlement statement
B. TIL disclosure
C. Loan origination agreement required under federal law.
D. Affiliated business arrangement disclosure
Correct Answer
A. Settlement statement
Page 1 of 186
,Question 3
Starts as a seminar or program where the scam artist pitches real estate investments to an investor and uses their personal
information to obtain mortgages.
Correct Answer
Chunking
Question 4
This was designed to protect potential homeowners and enable them to become more intelligent consumers. It requires
that lenders provide greater amounts of information to prospective borrowers at certain points in the loan settlement
process
Correct Answer
RESPA
Real Estate Settlement Procedures Act
Question 5
Independent federal agency created to regulate, charter, and supervise federal credit unions
Correct Answer
NCUA
National Credit Union Administration
Page 2 of 186
,Question 6
More popular in higher rate times for subprime
borrowers as they shorter term provided a lower rate and payment
Correct Answer
Ballon Mortgages
Question 7
Offers to help a homeowner in financial difficulty refinance their loan or obtain a mortgage modification to avoid
foreclosures but doesn't deliver in the end, leaving the homeowner in even worse financial shape than before
Correct Answer
Foreclosure Rescue Scheme
Question 8
The final disclosure of settlement costs provided to the borrower at closing
Correct Answer
HUD-1
Question 9
Rate higher than a benchmark rate
Correct Answer
Average Prime Offer Rate
Page 3 of 186
, Question 10
What type of MLO must be licensed?
Correct Answer
An MLO of a non-depository firm that arranges mortgages for clients
Question 11
Which is not an example of fraud?
a. shot gunning
b. straw buyer
c- stated loans
d- silent seconds
Correct Answer
C.) Stated Loans
Question 12
What can you not refer to the borrower as on an application?
Correct Answer
Seperated
Page 4 of 186
Update | 100% Correct
Question 1
Which of the following is not considered a drawback in a Bi-Weekly payment mortgage?
A. Greater risk of late payments.
B. Each payment has an administrative service fee.
C. Bi-weekly programs offer lesser interest rates.
D. Borrower makes an extra payment each year.
Correct Answer
D. Borrower makes an extra payment each year
Question 2
When a mortgage company is earning YSP on the origination of a mortgage loan which disclosure indicates the amount?
A. Settlement statement
B. TIL disclosure
C. Loan origination agreement required under federal law.
D. Affiliated business arrangement disclosure
Correct Answer
A. Settlement statement
Page 1 of 186
,Question 3
Starts as a seminar or program where the scam artist pitches real estate investments to an investor and uses their personal
information to obtain mortgages.
Correct Answer
Chunking
Question 4
This was designed to protect potential homeowners and enable them to become more intelligent consumers. It requires
that lenders provide greater amounts of information to prospective borrowers at certain points in the loan settlement
process
Correct Answer
RESPA
Real Estate Settlement Procedures Act
Question 5
Independent federal agency created to regulate, charter, and supervise federal credit unions
Correct Answer
NCUA
National Credit Union Administration
Page 2 of 186
,Question 6
More popular in higher rate times for subprime
borrowers as they shorter term provided a lower rate and payment
Correct Answer
Ballon Mortgages
Question 7
Offers to help a homeowner in financial difficulty refinance their loan or obtain a mortgage modification to avoid
foreclosures but doesn't deliver in the end, leaving the homeowner in even worse financial shape than before
Correct Answer
Foreclosure Rescue Scheme
Question 8
The final disclosure of settlement costs provided to the borrower at closing
Correct Answer
HUD-1
Question 9
Rate higher than a benchmark rate
Correct Answer
Average Prime Offer Rate
Page 3 of 186
, Question 10
What type of MLO must be licensed?
Correct Answer
An MLO of a non-depository firm that arranges mortgages for clients
Question 11
Which is not an example of fraud?
a. shot gunning
b. straw buyer
c- stated loans
d- silent seconds
Correct Answer
C.) Stated Loans
Question 12
What can you not refer to the borrower as on an application?
Correct Answer
Seperated
Page 4 of 186
