NMLS Exam Questions and Answers With Verified Solutions 2025
An annual escrow analysis is used to do which of the following?
A. Ensure the loan is properly amortized
B. Prevent escrow overages
C. Reduce burden on the servicer
D. Report underwriting errors - ✔✔B. Prevent escrow overages
The disclosure requirements of RESPA would apply to which of the following loans?
A. A loan to purchase 75 acres of land
B. A farm loan
C. A loan to purchase a property that includes a gas station and convenience store
D. A loan to purchase a duplex and rehabilitate it into a single family dwelling - ✔✔D. A loan to purchase
a duplex and rehabilitate it into a single family dwelling
According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA
data collection purposes?
A. If they plan to have more than one child
B. If they will stop working once they have children
C. Their religion
D. Their race - ✔✔D. Their race
A customer with an excellent credit score submits a loan application. When does ECOA require that the
applicant be advised of the status of the application?
A. Within 30 days
B. Within 90 days
,C. Within three days
D. Within one week - ✔✔A. Within 30 days
The amount of the down payment, the amount of the finance charge, or the number of payments
needed are all examples of _______________ under TILA.
A. Components of the finance charge
B. Trigger terms
C. Prohibited disclosures
D. Components of the APR - ✔✔B. Trigger terms
Which of the following is not included in calculating the APR?
A. Discount points
B. Underwriting fees
C. PMI
D. Escrow fees - ✔✔D. Escrow fees
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal residence. His
rescission period is over at midnight on Friday. According to the provisions specified under federal law,
what is the first possible day the loan could fund?
A. Monday, the following week
B. Friday
C. Saturday
D. Tuesday - ✔✔C. Saturday
The mandatory waiting period between issuance of disclosures and consummation may be waived:
A. Using a pre-printed form from the lender
B. If the loan is a qualified mortgage
, C. If the consumer requests a waiver due to a bona fide financial emergency
D. If the loan originator waives it for the consumer - ✔✔C. If the consumer requests a waiver due to a
bona fide financial emergency
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
A. Must be provided within 30 days of the decision to deny
B. Is not required to be provided to the consumer
C. Is not required to be provided unless requested in writing
D. Must be included with the notice of adverse action - ✔✔A. Must be provided within 30 days of the
decision to deny
HOEPA would not apply to:
A. A bridge loan to finance construction
B. A purchase money mortgage loan
C. An adjustable-rate mortgage loan
D. A closed-end home equity loan - ✔✔A. A bridge loan to finance construction
HOEPA was enacted as a part of:
A. ECOA
B. HMDA
C. TILA
D. RESPA - ✔✔C. TILA
Closed-end loans with rates that exceed the average prime offer rate, but are not high enough to trigger
protections under HOEPA, are known as:
A. Subprime mortgage loans
B. Reverse mortgages
C. Higher-priced mortgage loans
D. Qualified high-cost mortgages - ✔✔C. Higher-priced mortgage loans
An annual escrow analysis is used to do which of the following?
A. Ensure the loan is properly amortized
B. Prevent escrow overages
C. Reduce burden on the servicer
D. Report underwriting errors - ✔✔B. Prevent escrow overages
The disclosure requirements of RESPA would apply to which of the following loans?
A. A loan to purchase 75 acres of land
B. A farm loan
C. A loan to purchase a property that includes a gas station and convenience store
D. A loan to purchase a duplex and rehabilitate it into a single family dwelling - ✔✔D. A loan to purchase
a duplex and rehabilitate it into a single family dwelling
According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA
data collection purposes?
A. If they plan to have more than one child
B. If they will stop working once they have children
C. Their religion
D. Their race - ✔✔D. Their race
A customer with an excellent credit score submits a loan application. When does ECOA require that the
applicant be advised of the status of the application?
A. Within 30 days
B. Within 90 days
,C. Within three days
D. Within one week - ✔✔A. Within 30 days
The amount of the down payment, the amount of the finance charge, or the number of payments
needed are all examples of _______________ under TILA.
A. Components of the finance charge
B. Trigger terms
C. Prohibited disclosures
D. Components of the APR - ✔✔B. Trigger terms
Which of the following is not included in calculating the APR?
A. Discount points
B. Underwriting fees
C. PMI
D. Escrow fees - ✔✔D. Escrow fees
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal residence. His
rescission period is over at midnight on Friday. According to the provisions specified under federal law,
what is the first possible day the loan could fund?
A. Monday, the following week
B. Friday
C. Saturday
D. Tuesday - ✔✔C. Saturday
The mandatory waiting period between issuance of disclosures and consummation may be waived:
A. Using a pre-printed form from the lender
B. If the loan is a qualified mortgage
, C. If the consumer requests a waiver due to a bona fide financial emergency
D. If the loan originator waives it for the consumer - ✔✔C. If the consumer requests a waiver due to a
bona fide financial emergency
If a creditor denies an application for a first lien mortgage, a copy of the appraisal:
A. Must be provided within 30 days of the decision to deny
B. Is not required to be provided to the consumer
C. Is not required to be provided unless requested in writing
D. Must be included with the notice of adverse action - ✔✔A. Must be provided within 30 days of the
decision to deny
HOEPA would not apply to:
A. A bridge loan to finance construction
B. A purchase money mortgage loan
C. An adjustable-rate mortgage loan
D. A closed-end home equity loan - ✔✔A. A bridge loan to finance construction
HOEPA was enacted as a part of:
A. ECOA
B. HMDA
C. TILA
D. RESPA - ✔✔C. TILA
Closed-end loans with rates that exceed the average prime offer rate, but are not high enough to trigger
protections under HOEPA, are known as:
A. Subprime mortgage loans
B. Reverse mortgages
C. Higher-priced mortgage loans
D. Qualified high-cost mortgages - ✔✔C. Higher-priced mortgage loans
