Nmls Safe Mortgage Loan Originator Exam A+ Grade Assured Complete Solutions And Verified Answers

NMLS EXAM ms




Exam Solution
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Exam 7 & ***NMLS final exam *** 2026 A+ GRADE ASSU
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RED COMPLETE SOLUTIONS AND VERIFIED ANSWERS (
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E1DAB)




QUESTION 1 ms




At the time of disclosure there was an unknown tax lien on the property, and that dis
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qualifies the borrower for a specific product but still qualifies for a different product
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with different 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 provi
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ding the disclosures is an acceptable changed circumstance
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QUESTION 2 ms




HOEPA applies to ms ms




ANSWER

Purchase money loans, Refinances, and HELOCs.
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QUESTION 3 ms




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 char
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ge them more than he charges his more local customers. This is an example of
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ANSWER

Reverse Redlining ms




QUESTION 4 ms

,A borrower purchases a loan for his brother, but says he will be the one occupying th
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e property. This is termed
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ANSWER

Occupancy fraud is a type of mortgage fraud, whereby the borrower lies about whether or not the h
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ome will be owner-occupied.
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QUESTION 5 ms




RESPA is also known as ms ms ms ms




ANSWER

Reg X ms




QUESTION 6 ms




A government agency can help with down payment assistance and can provide a borr
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ower money for their down payment. Family members can gift a borrower funds for t
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heir down 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 concessi
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ons



QUESTION 7 ms




If you refuse to take a loan application for a credit worthy applicant on a prohibited b
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asis, what law would you be violating?
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ANSWER

ECOA



QUESTION 8 ms




ECOA requires a lender to provide the loan applicant with a credit decision within ho
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w 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 ms

,If an MLO fails to renew their license, some states allow until when to renew with late
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fee.
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ANSWER

Most states who allow reinstatement, have a deadline of February 28th.
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QUESTION 10 ms




Per FACTA, in a situation where a creditor discloses to a consumer credit reporting ag
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ency negative information the creditor must disclose that information to the consume
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r. The 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 ms




The mortgage loan originator receives the required key pieces of information from th
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e borrower on Wednesday. The lender is not open on the weekend, when is the MLO
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required 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 substanti
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ally all its business functions. Since the lender is not open on Saturday or Sunday, the LE would nee
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d to go out by Monday. Do not count the day info is given!
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QUESTION 12 ms




MLO Joe is working with a borrower and has been for six months. Joe has yet to be a
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ble to find a loan product for this borrower, so he's decided to tell his borrower he ca
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n't help 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 ms




Calculate the loan's Loan-to- ms ms ms



Value? Appraisal value = $300,000; Purchase price = $295,000; Loan amount = $236,0
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00
ANSWER

, 000To determine a borrower's loan to value, the MLO or underwriter is going to take a loan amoun
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t and divide it by the borrower's purchase price or the property's appraised value (whichever is low
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er). $236,000/$295,000 = 80%
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QUESTION 14 ms




The MLO discovers after pulling the borrower's credit, that his credit score is too low
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to obtain a conforming loan. The MLO discourages the borrower from making applicat
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ion at this time, even though the borrower insists they want to try and qualify. What l
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aw has the MLO violated?
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ANSWER

ECOA prohibits discrimination.
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QUESTION 15 ms




What would be considered a prohibited factor when the state agency reviews a mortg
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age 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 a
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nother state could impact whether the new state will approve a license.
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QUESTION 16 ms




When a mortgage loan originator closes a loan for a client on the do not call registry,
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they 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 ms




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
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Victor ask Jennifer if she is married or not?
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ANSWER

Victor cannot ask about marital status unless the application is for joint credit
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QUESTION 18 ms




A CD is provided on a Thursday, what is the earliest that the loan can close?
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