NMLS EXAM vc
Exam Solution vc
Exam 7 & ***NMLS final exam *** 2026 A+ GRADE ASSURvc vc vc vc vc vc vc vc vc vc
ED COMPLETE SOLUTIONS AND VERIFIED ANSWERS (7
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07D8)
QUESTION 1 vc
At the time of disclosure there was an unknown tax lien on the property, and that disqua
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lifies the borrower for a specific product but still qualifies for a different product with di
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fferent charges, which of the following is true?
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ANSWER
New information specific to the consumer or transaction that the lender did not rely on when providing
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the disclosures is an acceptable changed circumstance
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QUESTION 2 vc
HOEPA applies to vc vc
ANSWER
Purchase money loans, Refinances, and HELOCs.vc vc vc vc vc
QUESTION 3 vc
An MLO is looking to drive some business so he decides to specifically target an inner-
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city neighborhood in the hopes that he can get a ton of smaller loans, but he will charge t
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hem more than he charges his more local customers. This is an example of
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ANSWER
Reverse Redlining vc
QUESTION 4 vc
A borrower purchases a loan for his brother, but says he will be the one occupying the pr
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operty. This is termed vc vc vc
,ANSWER
Occupancy fraud is a type of mortgage fraud, whereby the borrower lies about whether or not the home
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will be owner-occupied.
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QUESTION 5 vc
RESPA is also known as vc vc vc vc
ANSWER
Reg X vc
QUESTION 6 vc
A government agency can help with down payment assistance and can provide a borrow
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er money for their down payment. Family members can gift a borrower funds for their d
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own payment. The seller cannot......
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ANSWER
help a borrower with their down payment, but they can help by giving the borrower seller concessions
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QUESTION 7 vc
If you refuse to take a loan application for a credit worthy applicant on a prohibited basi
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s, what law would you be violating?
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ANSWER
ECOA
QUESTION 8 vc
ECOA requires a lender to provide the loan applicant with a credit decision within how
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many days of receiving sufficient information to make a credit decision
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ANSWER
(30) days of receiving the completed application.
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QUESTION 9 vc
If an MLO fails to renew their license, some states allow until when to renew with late fe
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e.
ANSWER
Most states who allow reinstatement, have a deadline of February 28th.
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,QUESTION 10 vc
Per FACTA, in a situation where a creditor discloses to a consumer credit reporting agen
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cy negative information the creditor must disclose that information to the consumer. Th
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e disclosure must be made to the consumer no later than:
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ANSWER
No later than thirty (30) days after the negative information was provided to the credit bureau(s).
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QUESTION 11 vc
The mortgage loan originator receives the required key pieces of information from the b
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orrower on Wednesday. The lender is not open on the weekend, when is the MLO requir
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ed to provide the Loan Estimate by the end of what day of the week?
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ANSWER
A business day is day on which the lender's offices are open to the public for carrying out substantially
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all its business functions. Since the lender is not open on Saturday or Sunday, the LE would need to go o
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ut by Monday. Do not count the day info is given!
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QUESTION 12 vc
MLO Joe is working with a borrower and has been for six months. Joe has yet to be able t
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o find a loan product for this borrower, so he's decided to tell his borrower he can't help
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him, but he owes him $1,000 for his time. This act is.......
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ANSWER
This is collecting a fee for best efforts and is unethical and illegal under the SAFE Act.
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QUESTION 13 vc
Calculate the loan's Loan-to- vc vc vc
Value? Appraisal value = $300,000; Purchase price = $295,000; Loan amount = $236,000
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ANSWER
000To determine a borrower's loan to value, the MLO or underwriter is going to take a loan amount an
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d divide it by the borrower's purchase price or the property's appraised value (whichever is lower). $23
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6,000/$295,000 = 80% vc vc
QUESTION 14 vc
The MLO discovers after pulling the borrower's credit, that his credit score is too low to
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obtain a conforming loan. The MLO discourages the borrower from making application a
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, t this time, even though the borrower insists they want to try and qualify. What law has t
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he MLO violated?vc vc
ANSWER
ECOA prohibits discrimination.
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QUESTION 15 vc
What would be considered a prohibited factor when the state agency reviews a mortgage
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banker license for financial responsibility?
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ANSWER
What type of things they've done in other states if they were licensed in other states. Violations in anoth
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
er state could impact whether the new state will approve a license.
vc vc vc vc vc vc vc vc vc vc vc
QUESTION 16 vc
When a mortgage loan originator closes a loan for a client on the do not call registry, the
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y establish a client business relationship allowing you to solicit for
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ANSWER
18 months after the last transaction, even if the consumer is on the Do Not Call Registry
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QUESTION 17 vc
Victor is working with borrower Jennifer. Jennifer is applying for a loan without a co-
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borrower. Jennifer never mentioned a spouse but is wearing a wedding ring, how can Vic
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tor ask Jennifer if she is married or not?
vc vc vc vc vc vc vc vc
ANSWER
Victor cannot ask about marital status unless the application is for joint credit
vc vc vc vc vc vc vc vc vc vc vc vc
QUESTION 18 vc
A CD is provided on a Thursday, what is the earliest that the loan can close?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ANSWER
Creditors are required to provide a Closing Disclosure (CD) at least three (3) business days before cons
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ummation. All calendar days except Sundays and legal public holidays are Business Days in the case of t
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he Closing Disclosure.
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QUESTION 19 vc
Exam Solution vc
Exam 7 & ***NMLS final exam *** 2026 A+ GRADE ASSURvc vc vc vc vc vc vc vc vc vc
ED COMPLETE SOLUTIONS AND VERIFIED ANSWERS (7
vc vc vc vc vc vc
07D8)
QUESTION 1 vc
At the time of disclosure there was an unknown tax lien on the property, and that disqua
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
lifies the borrower for a specific product but still qualifies for a different product with di
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
fferent charges, which of the following is true?
vc vc vc vc vc vc vc
ANSWER
New information specific to the consumer or transaction that the lender did not rely on when providing
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc v
the disclosures is an acceptable changed circumstance
c vc vc vc vc vc vc
QUESTION 2 vc
HOEPA applies to vc vc
ANSWER
Purchase money loans, Refinances, and HELOCs.vc vc vc vc vc
QUESTION 3 vc
An MLO is looking to drive some business so he decides to specifically target an inner-
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
city neighborhood in the hopes that he can get a ton of smaller loans, but he will charge t
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
hem more than he charges his more local customers. This is an example of
vc vc vc vc vc vc vc vc vc vc vc vc vc
ANSWER
Reverse Redlining vc
QUESTION 4 vc
A borrower purchases a loan for his brother, but says he will be the one occupying the pr
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
operty. This is termed vc vc vc
,ANSWER
Occupancy fraud is a type of mortgage fraud, whereby the borrower lies about whether or not the home
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
will be owner-occupied.
vc vc vc
QUESTION 5 vc
RESPA is also known as vc vc vc vc
ANSWER
Reg X vc
QUESTION 6 vc
A government agency can help with down payment assistance and can provide a borrow
vc vc vc vc vc vc vc vc vc vc vc vc vc
er money for their down payment. Family members can gift a borrower funds for their d
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
own payment. The seller cannot......
vc vc vc vc
ANSWER
help a borrower with their down payment, but they can help by giving the borrower seller concessions
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
QUESTION 7 vc
If you refuse to take a loan application for a credit worthy applicant on a prohibited basi
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
s, what law would you be violating?
vc vc vc vc vc vc
ANSWER
ECOA
QUESTION 8 vc
ECOA requires a lender to provide the loan applicant with a credit decision within how
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
many days of receiving sufficient information to make a credit decision
vc vc vc vc vc vc vc vc vc vc
ANSWER
(30) days of receiving the completed application.
vc vc vc vc vc vc
QUESTION 9 vc
If an MLO fails to renew their license, some states allow until when to renew with late fe
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
e.
ANSWER
Most states who allow reinstatement, have a deadline of February 28th.
vc vc vc vc vc vc vc vc vc vc
,QUESTION 10 vc
Per FACTA, in a situation where a creditor discloses to a consumer credit reporting agen
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
cy negative information the creditor must disclose that information to the consumer. Th
vc vc vc vc vc vc vc vc vc vc vc vc
e disclosure must be made to the consumer no later than:
vc vc vc vc vc vc vc vc vc vc
ANSWER
No later than thirty (30) days after the negative information was provided to the credit bureau(s).
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
QUESTION 11 vc
The mortgage loan originator receives the required key pieces of information from the b
vc vc vc vc vc vc vc vc vc vc vc vc vc
orrower on Wednesday. The lender is not open on the weekend, when is the MLO requir
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ed to provide the Loan Estimate by the end of what day of the week?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ANSWER
A business day is day on which the lender's offices are open to the public for carrying out substantially
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
all its business functions. Since the lender is not open on Saturday or Sunday, the LE would need to go o
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ut by Monday. Do not count the day info is given!
vc vc vc vc vc vc vc vc vc vc
QUESTION 12 vc
MLO Joe is working with a borrower and has been for six months. Joe has yet to be able t
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
o find a loan product for this borrower, so he's decided to tell his borrower he can't help
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
him, but he owes him $1,000 for his time. This act is.......
vc vc vc vc vc vc vc vc vc vc vc
ANSWER
This is collecting a fee for best efforts and is unethical and illegal under the SAFE Act.
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
QUESTION 13 vc
Calculate the loan's Loan-to- vc vc vc
Value? Appraisal value = $300,000; Purchase price = $295,000; Loan amount = $236,000
vc vc vc vc vc vc vc vc vc vc vc vc
ANSWER
000To determine a borrower's loan to value, the MLO or underwriter is going to take a loan amount an
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
d divide it by the borrower's purchase price or the property's appraised value (whichever is lower). $23
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
6,000/$295,000 = 80% vc vc
QUESTION 14 vc
The MLO discovers after pulling the borrower's credit, that his credit score is too low to
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
obtain a conforming loan. The MLO discourages the borrower from making application a
vc vc vc vc vc vc vc vc vc vc vc vc
, t this time, even though the borrower insists they want to try and qualify. What law has t
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
he MLO violated?vc vc
ANSWER
ECOA prohibits discrimination.
vc vc
QUESTION 15 vc
What would be considered a prohibited factor when the state agency reviews a mortgage
vc vc vc vc vc vc vc vc vc vc vc vc vc
banker license for financial responsibility?
vc vc vc vc vc
ANSWER
What type of things they've done in other states if they were licensed in other states. Violations in anoth
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
er state could impact whether the new state will approve a license.
vc vc vc vc vc vc vc vc vc vc vc
QUESTION 16 vc
When a mortgage loan originator closes a loan for a client on the do not call registry, the
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
y establish a client business relationship allowing you to solicit for
vc vc vc vc vc vc vc vc vc vc
ANSWER
18 months after the last transaction, even if the consumer is on the Do Not Call Registry
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
QUESTION 17 vc
Victor is working with borrower Jennifer. Jennifer is applying for a loan without a co-
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
borrower. Jennifer never mentioned a spouse but is wearing a wedding ring, how can Vic
vc vc vc vc vc vc vc vc vc vc vc vc vc vc
tor ask Jennifer if she is married or not?
vc vc vc vc vc vc vc vc
ANSWER
Victor cannot ask about marital status unless the application is for joint credit
vc vc vc vc vc vc vc vc vc vc vc vc
QUESTION 18 vc
A CD is provided on a Thursday, what is the earliest that the loan can close?
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ANSWER
Creditors are required to provide a Closing Disclosure (CD) at least three (3) business days before cons
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
ummation. All calendar days except Sundays and legal public holidays are Business Days in the case of t
vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc vc
he Closing Disclosure.
vc vc
QUESTION 19 vc
