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

NMLS EXAM @x




Exam Solution @x




NMLS Exam 2026 A+ GRADE ASSURED COMPLETE SOL
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UTIONS AND VERIFIED ANSWERS (86F70) @x @x @x @x




QUESTION 1 @x




Liza is purchasing a new home. The purchase price of the home is $200,000. She has
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put down $2,000 in earnest money. If she is receiving FHA financing, how much mor
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e will she need for her down payment? $18,000 $4,000 $7,000 $5,000
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ANSWER

$5,000 - FHA requires 3.5% down payment
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QUESTION 2 @x




What type of fraud scheme usually includes a "get rich quick" real estate seminar? R
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edlining Churning Illegal Property Flipping Chunking
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ANSWER

Chunking - @x



Chunking occurs when a third party convinces an uninformed borrower to invest in a property (o
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r properties), with no money down and with the third party acting as the borrower's agent. The th
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ird party is also typically the owner of the property or part of a larger group organizing the schem
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e.



QUESTION 3 @x




Andrew has been paying interest-@x @x @x @x



only payments on his mortgage of $500 a month for the past 10 years, the interest r
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ate on the loan was 4%. At year 15, he will be required to pay a balloon payment. T
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he principal balance at the time the loan closed was $172,000. What will be the ballo
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on payment? $68,800 $172,000 $170,000 $103,200
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ANSWER

$172,000 - only required to pay interest only.
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,QUESTION 4 @x




Anna is looking to purchase a new home. She lives in a small town of under 20,000
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people. What loan program would be a good option for her? A VA loan An FHA loan
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A USDA loan A conventional loan
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ANSWER

A USDA loan - A USDA loan is a zero-down home loan meant for low- to moderate-
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income home buyers. You might qualify if you have an average salary for your area, and want to b
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uy a home in a rural or suburban neighborhood. Typically, only areas with a population under 20,0
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00 qualify.
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QUESTION 5 @x




According to FCRA, how often is a consumer entitled to a free copy of their credit sc
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ore? Annually Twice a year Never Once every two years
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ANSWER

Never - @x



FCRA allows for a borrower to receive a free copy of their credit report, but that does not includ
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e the disclosure of a borrower's credit score
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QUESTION 6 @x




Which types of loan are governed by HOEPA? High cost loan Subprime loans Higher
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priced loan Qualified mortgages@x @x @x




ANSWER

High cost loan - @x @x @x



The Home Ownership and Equity Protection Act (HOEPA, or Section 32) governs specifically high-
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cost home loans only. HOEPA falls under TILA and sets out requirements for how to discover whet
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her a loan is a high cost and what steps need to be taken if a loan is determined to be high cost.
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QUESTION 7 @x




Carlisle currently has an ARM and his ARM is going to adjust for the first time. The
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margin on his ARM is 2.25 and his ARM is tied to the LIBOR, and it's currently sittin
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g at 1.25. What would be his interest rate if it adjusted today? 4.50% 1.25% 2.25% 3
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.50%
ANSWER

3.50% - @x



To figure out what his interest rate would be today, add the index and the margin together. 2.25
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+ 1.25 = 3.50%.
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, QUESTION 8 @x




Which of the following must have an MLO license? William, who extends credit solely
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on timeshare plans Jackson who is negotiating the terms of a loan on his primary re
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sidence Lola, who is working as an independent contractor underwriter and is under
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writing loans June, who is working as an attorney and negotiating terms on a loan fo
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r her client as part of her job as an attorney
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ANSWER

Lola, who is working as an independent contractor underwriter and is underwriting loans. -
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Lola is working as an independent contract underwriter and therefore must be licensed as a mort
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gage loan originator. If she were not working as an independent contractor and instead worked as
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2 employee for a single mortgage lender underwriting loans, then she would not be required to be
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licensed.
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QUESTION 9 @x




Which of the following is not a HOEPA trigger test? Points and Fees Test APR Test Pr
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epayment penalty Test Rescission Test @x @x @x @x




ANSWER

Rescission Test - The three tests that a loan must go through to determine whether it is a high-
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cost home loan are the APR Test, the Points and Fees Test, and the Prepayment Penalty Test. If a l
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oan fails any of these tests, then it is considered to be high cost.
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QUESTION 10 @x




What law allows for e-signatures as long as the borrower gives permission? Gramm-
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Leach-
Bliley Homeowners Protection Act The Electronic Signatures in Global and National C
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ommerce Act The Dodd-Frank Act @x @x @x @x




ANSWER

The Electronic Signatures in Global and National Commerce Act
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QUESTION 11 @x




Which of the following would not be a prohibited practice regarding an appraisal? Re
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questing that the appraiser reviews additional comparables Refusing to use an apprai
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ser again if they do not change the value on an appraisal Threatening non-
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payment to manipulate the appraiser into raising the value of the property Bribing t
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he appraiser for a higher appraised value
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ANSWER

Requesting that the appraiser reviews additional comparables
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