MLO NMLS SAFE EXAM STUDY GUIDE|ACTUAL
QUESTIONS AND VERIFIED ANSWERS |LATEST
2026/2027 UPDATE|GRADED A+
Question 1
If a consumer believes that information on a credit report is inaccurate, what must the credit
bureau do?
A. Notify any lender of the alleged discrepancy
B. Confirm and remove inaccurate information within 30 days
C. Provide a credit score at no charge
D. Prevent creditors from accessing the report
ANSWER
B
Question 2
A lender that is transferring the servicing of a loan to another lender must provide the
Servicing Transfer Disclosure within what timeframe?
A. 3 business days before the transfer
B. 3 business days after the transfer
C. 15 business days before the transfer
D. 15 business days after the transfer
ANSWER
C
Question 3
1
@THE STUDY VAULT
,Although some exceptions apply, in general, overtime income should be in order to be used
for qualifying purposes:
A. Averaged over the past 18 months
B. Averaged over the past 2 years
C. Used as a compensating factor only
D. Received for more than 1 year
ANSWER
B
Question 4
Under RESPA, when is it acceptable for a property seller to condition a sale on the buyer's
use of a specific title company?
A. When full disclosure is provided
B. Under no circumstances
C. When the property contains more than one dwelling unit
D. When the loan amount exceeds the conforming loan limit
ANSWER
B
Question 5
If a consumer disputes an item on his/her credit report that they believe to be inaccurate,
the dispute must be investigated by the bureau(s) and any inaccurate, incomplete or
unverifiable information must be removed within:
A. 15 days
B. 30 days
C. 45 days
D. 60 days
2
@THE STUDY VAULT
,ANSWER
B
Question 6
In certain flood hazard areas, flood insurance may not be available because:
A. individuals cannot afford it
B. the community does not participate in the National Flood Insurance
Program
C. the National Flood Insurance Program has rejected the community for lack of funds
D. the community has not flooded within the last five years
ANSWER
B
Question 7
The document that determines the sales price for a property is called the:
A. Appraisal report
B. Commitment letter
C. Sales contract
D. Truth in Lending disclosure
ANSWER
C
Question 8
3
@THE STUDY VAULT
, Before the MLO Compensation rule took effect, mortgage brokers were often able to
increase their compensation by providing borrowers with a higher interest rate than that for
which they qualified. Such compensation was referred to as:
A. Lender-paid compensation
B. Service-release premium
C. Double-dipping
D. Yield-spread premium
ANSWER
D
Question 9
If a loan is neither insured nor guaranteed by the Federal Government, it is
referred to as a:
A. FHA loan
B. HELOC
C. Conforming loan
D. Conventional loan
ANSWER
D
Question 10
Which federal agency is responsible for writing and promulgating the rules contained in
Regulation X?
A. CFPB
B. HUD
C. FTC
4
@THE STUDY VAULT
QUESTIONS AND VERIFIED ANSWERS |LATEST
2026/2027 UPDATE|GRADED A+
Question 1
If a consumer believes that information on a credit report is inaccurate, what must the credit
bureau do?
A. Notify any lender of the alleged discrepancy
B. Confirm and remove inaccurate information within 30 days
C. Provide a credit score at no charge
D. Prevent creditors from accessing the report
ANSWER
B
Question 2
A lender that is transferring the servicing of a loan to another lender must provide the
Servicing Transfer Disclosure within what timeframe?
A. 3 business days before the transfer
B. 3 business days after the transfer
C. 15 business days before the transfer
D. 15 business days after the transfer
ANSWER
C
Question 3
1
@THE STUDY VAULT
,Although some exceptions apply, in general, overtime income should be in order to be used
for qualifying purposes:
A. Averaged over the past 18 months
B. Averaged over the past 2 years
C. Used as a compensating factor only
D. Received for more than 1 year
ANSWER
B
Question 4
Under RESPA, when is it acceptable for a property seller to condition a sale on the buyer's
use of a specific title company?
A. When full disclosure is provided
B. Under no circumstances
C. When the property contains more than one dwelling unit
D. When the loan amount exceeds the conforming loan limit
ANSWER
B
Question 5
If a consumer disputes an item on his/her credit report that they believe to be inaccurate,
the dispute must be investigated by the bureau(s) and any inaccurate, incomplete or
unverifiable information must be removed within:
A. 15 days
B. 30 days
C. 45 days
D. 60 days
2
@THE STUDY VAULT
,ANSWER
B
Question 6
In certain flood hazard areas, flood insurance may not be available because:
A. individuals cannot afford it
B. the community does not participate in the National Flood Insurance
Program
C. the National Flood Insurance Program has rejected the community for lack of funds
D. the community has not flooded within the last five years
ANSWER
B
Question 7
The document that determines the sales price for a property is called the:
A. Appraisal report
B. Commitment letter
C. Sales contract
D. Truth in Lending disclosure
ANSWER
C
Question 8
3
@THE STUDY VAULT
, Before the MLO Compensation rule took effect, mortgage brokers were often able to
increase their compensation by providing borrowers with a higher interest rate than that for
which they qualified. Such compensation was referred to as:
A. Lender-paid compensation
B. Service-release premium
C. Double-dipping
D. Yield-spread premium
ANSWER
D
Question 9
If a loan is neither insured nor guaranteed by the Federal Government, it is
referred to as a:
A. FHA loan
B. HELOC
C. Conforming loan
D. Conventional loan
ANSWER
D
Question 10
Which federal agency is responsible for writing and promulgating the rules contained in
Regulation X?
A. CFPB
B. HUD
C. FTC
4
@THE STUDY VAULT
