NMLS FINAL TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ A loan closes on May 14. When is the first mortgage payment due?
A. ) May 15
B. ) June 1
C. ) June 15
D. ) July 1.
Answer: D.) July 145 days
◍ ________________________ is another name for Section 114 of FACTA
and also amends FCR
A. .
Answer: The Red Flag Rules
◍ The Red Flag Rules were created by the FTC pursuant to FACT
A. They are primarily concerned with ______________________..
Answer: Identity Theft
◍ HOEPA prohibits ____________________ amortization..
Answer: Negative. Increasing the principal balance, usually because of not
paying sufficient interest which then is added to the principal balance of the
loa.
◍ From the following, the GLBA requires that a consumer be given how much
time to opt out of disclosure of their personal financial information to a third
party?1. Never2. Seven days3. Thirty days4. A reasonable period of time.
Answer: 4. A reasonable period of time
◍ The applicant confides that his recent marriage may lead to a change in
employment. May this information be used to deny the loan?.
Answer: No, income and familial status (having one or more individuals
under 18 years of age in the household) may never be considered in a credit
, application.
◍ Per TIL, if only the ___________is disclosed in an advertisement, additional
terms do not have to be disclosed..
Answer: APR, annual percentage rate
◍ A Company is required to update the names on the internal "do not call list"
every ______________ days..
Answer: 30 days
◍ The enforcement of a lien is known as:
A. ) Closing
B. ) Foreclosure
C. ) Warranty inspection
D. ) Police Action.
Answer: B.) Foreclosure
◍ Which is NOT a component of a valid contract?
A. ) Agreement
B. ) Consideration
C. ) Two witnesses
D. ) Competent parties.
Answer: C.) Two witnesses
◍ Which law requires that the Special Information booklet be given to
borrowers?
A. ) Truth in Lending
B. ) Real Estate Settlement Procedures Act
C. ) Homeowner's Protection Act
D. ) The Equal Credit Opportunity Act.
Answer: B.) Real Estate Settlement Procedures Act
◍ Which appraisal approach is most suitable for an office building?
A. ) Sales comparison approach
B. ) Cost approach
C. ) Income capitalization approach
, D. ) Tenant collection approach.
Answer: C.) Income capitalization approachInvestopediaThe income
approach is a real estate appraisal method that allows investors to estimate
the value of a property by taking the net operating income of the rent
collected and dividing it by the capitalization rate.
◍ What is the FHA minimum down payment?
A. ) $0
B. ) 3.5%
C. ) 5%
D. ) 10%.
Answer: B.) 3.5%
◍ How many days does a lender have to send an adverse action notice?
A. ) 5
B. ) 10
C. ) 30
D. ) 60.
Answer: C.) 30
◍ A discount point is BEST described as a charge the borrower pays to:
A. ) A lender to decrease the interest rate on the mortgage loan
B. ) A mortgage broker at the time of application to obtain a favorable rate
C. ) The seller as part of the closing costs of a loan
D. ) A lender to ensure against foreclosure.
Answer: A.) A lender to decrease the interest rate on the mortgage loan
◍ FACTA modifies FCRA regarding ________________
__________________..
Answer: FACTA requires the disclosure of the credit score.
◍ According to FACTA, any person who regularly extends, renews or
continues credit is a ______________________..
Answer: Creditor
◍ Per ECOA, is it true that while a lender must consider reliable alimony,
, child support or separate maintenance payments as income, the applicant is
not required to disclose such income?.
Answer: Yes, it is true. Only income intended to be used for qualifying has
to be disclosed and verified.
◍ Who insures an FHA loan?.
Answer: FHA, the Federal Housing Administration
◍ The Financial Modernization Act of 1999 which includes provisions in title
V to protect and regulate the disclosure of consumers' personal financial
information is also know as the __________________..
Answer: GLB Act, Gramm-Leach-Bliley Act
◍ Which of the following is NOT a fully amortized loan?
A. ) Term mortgage
B. ) Fixed-rate mortgage
C. ) Adjustable-rate mortgage
D. ) Bi-weekly mortgage.
Answer: A.) Term mortgage
◍ How many hours of continuing education are minimally required?
A. ) 8 hours every year
B. ) 14 hours every year
C. ) 14 hours every 2 years
D. ) 20 hours every 2 years.
Answer: A.) 8 hours every year
◍ An interest only term mortgage is also known as a ___________note..
Answer: Straight note
◍ Because of the impact of the Dodd-Frank Act, an APR exceeding the
_______________ by ___________________% is the trigger that defines a
high cost loan on a second lien priority..
Answer: APOR (average prime offer rate) / 8.5%
◍ Per RESPA, if a borrower and co-borrower are applying for a loan to
purchase a primary residence, how many copies of HUD's booklet regarding
CORRECT ANSWERS GRADED A+
◍ A loan closes on May 14. When is the first mortgage payment due?
A. ) May 15
B. ) June 1
C. ) June 15
D. ) July 1.
Answer: D.) July 145 days
◍ ________________________ is another name for Section 114 of FACTA
and also amends FCR
A. .
Answer: The Red Flag Rules
◍ The Red Flag Rules were created by the FTC pursuant to FACT
A. They are primarily concerned with ______________________..
Answer: Identity Theft
◍ HOEPA prohibits ____________________ amortization..
Answer: Negative. Increasing the principal balance, usually because of not
paying sufficient interest which then is added to the principal balance of the
loa.
◍ From the following, the GLBA requires that a consumer be given how much
time to opt out of disclosure of their personal financial information to a third
party?1. Never2. Seven days3. Thirty days4. A reasonable period of time.
Answer: 4. A reasonable period of time
◍ The applicant confides that his recent marriage may lead to a change in
employment. May this information be used to deny the loan?.
Answer: No, income and familial status (having one or more individuals
under 18 years of age in the household) may never be considered in a credit
, application.
◍ Per TIL, if only the ___________is disclosed in an advertisement, additional
terms do not have to be disclosed..
Answer: APR, annual percentage rate
◍ A Company is required to update the names on the internal "do not call list"
every ______________ days..
Answer: 30 days
◍ The enforcement of a lien is known as:
A. ) Closing
B. ) Foreclosure
C. ) Warranty inspection
D. ) Police Action.
Answer: B.) Foreclosure
◍ Which is NOT a component of a valid contract?
A. ) Agreement
B. ) Consideration
C. ) Two witnesses
D. ) Competent parties.
Answer: C.) Two witnesses
◍ Which law requires that the Special Information booklet be given to
borrowers?
A. ) Truth in Lending
B. ) Real Estate Settlement Procedures Act
C. ) Homeowner's Protection Act
D. ) The Equal Credit Opportunity Act.
Answer: B.) Real Estate Settlement Procedures Act
◍ Which appraisal approach is most suitable for an office building?
A. ) Sales comparison approach
B. ) Cost approach
C. ) Income capitalization approach
, D. ) Tenant collection approach.
Answer: C.) Income capitalization approachInvestopediaThe income
approach is a real estate appraisal method that allows investors to estimate
the value of a property by taking the net operating income of the rent
collected and dividing it by the capitalization rate.
◍ What is the FHA minimum down payment?
A. ) $0
B. ) 3.5%
C. ) 5%
D. ) 10%.
Answer: B.) 3.5%
◍ How many days does a lender have to send an adverse action notice?
A. ) 5
B. ) 10
C. ) 30
D. ) 60.
Answer: C.) 30
◍ A discount point is BEST described as a charge the borrower pays to:
A. ) A lender to decrease the interest rate on the mortgage loan
B. ) A mortgage broker at the time of application to obtain a favorable rate
C. ) The seller as part of the closing costs of a loan
D. ) A lender to ensure against foreclosure.
Answer: A.) A lender to decrease the interest rate on the mortgage loan
◍ FACTA modifies FCRA regarding ________________
__________________..
Answer: FACTA requires the disclosure of the credit score.
◍ According to FACTA, any person who regularly extends, renews or
continues credit is a ______________________..
Answer: Creditor
◍ Per ECOA, is it true that while a lender must consider reliable alimony,
, child support or separate maintenance payments as income, the applicant is
not required to disclose such income?.
Answer: Yes, it is true. Only income intended to be used for qualifying has
to be disclosed and verified.
◍ Who insures an FHA loan?.
Answer: FHA, the Federal Housing Administration
◍ The Financial Modernization Act of 1999 which includes provisions in title
V to protect and regulate the disclosure of consumers' personal financial
information is also know as the __________________..
Answer: GLB Act, Gramm-Leach-Bliley Act
◍ Which of the following is NOT a fully amortized loan?
A. ) Term mortgage
B. ) Fixed-rate mortgage
C. ) Adjustable-rate mortgage
D. ) Bi-weekly mortgage.
Answer: A.) Term mortgage
◍ How many hours of continuing education are minimally required?
A. ) 8 hours every year
B. ) 14 hours every year
C. ) 14 hours every 2 years
D. ) 20 hours every 2 years.
Answer: A.) 8 hours every year
◍ An interest only term mortgage is also known as a ___________note..
Answer: Straight note
◍ Because of the impact of the Dodd-Frank Act, an APR exceeding the
_______________ by ___________________% is the trigger that defines a
high cost loan on a second lien priority..
Answer: APOR (average prime offer rate) / 8.5%
◍ Per RESPA, if a borrower and co-borrower are applying for a loan to
purchase a primary residence, how many copies of HUD's booklet regarding
