NMLS SAFE MLO |ACTUAL QUESTIONS AND
VERIFIED ANSWERS |LATEST 2026/2027
UPDATE|GRADED A+
Question 1
A Good Faith Estimate is not issued until a complete application is received from a consumer.
Which answer is NOT part of the list of information that qualifies as a received application?
A. Consumer's social security number
B. Consumer's assets
C. Address of the property
D. The mortgage loan amount sought
ANSWER
B. Consumer's assets
Question 2
Which type of loan is exempt from Real Estate Settlement Procedures Act (RESPA)?
A. A loan to finance a commercial warehouse
B. A reverse mortgage
C. A home equity line of credit
D. A mortgage to purchase a single family home
ANSWER
A. A loan to finance a commercial warehouse
Question 3
The initial escrow statement includes all of the following EXCEPT
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@THE STUDY VAULT
,A. The amount of the monthly mortgage payment
B. The amount that is collected for homeowners association dues
C. The portion of the monthly payment going into the escrow account
D. The amount of reserves or cushion as determined by the loan servicer
ANSWER
B. The amount that is collected for homeowners association (HOA) dues
Question 4
When is an adverse action notice required?
A. When an application is withdrawn
B. When a counteroffer is extended, and the offer is accepted
C. When a counteroffer is extended, and the offer is rejected
D. When there is a change in the terms of the mortgage
ANSWER
C. When a counteroffer is extended, and the offer is rejected (an adverse action is a
negative action reported to a consumer regarding the denial of the credit application
Question 5
Which factor can be considered when evaluation a loan application?
A. Immigration Status
B. National Origin
C. Pregnancy
D. Marital Status
ANSWER
A. Immigration Status (it can affect their ability to repay the loan)
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@THE STUDY VAULT
,Question 6
Which income source cannot be considered in a loan review?
A. Educational Military Benefits
B. Part-time Income
C. Alimony and Child Support
D. Annuity Income
ANSWER
A. Educational Military Benefits (benefits don't continue after they've finished school)
Question 7
What type of property does a right of recission apply to?
A. A second home
B. A nonowner-occupied duplex
C. A principal residence
D. A nonowner-occupied condominium
ANSWER
C. A Principal Residence
Question 8
All of the following are an example of a finance charge EXCEPT
A. Interest
B. Points
C. A Loan Processing Fee
D. Title Insurance
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@THE STUDY VAULT
, ANSWER
D. Title Insurance
Question 9
To avoid steering a customer to a loan product that may give higher compensation to a
mortgage loan originator, an MLO must provide multiple loan options for a borrower to
review. These loan options must include all of the following EXCEPT
A. The loan with the lowest interest rate
B. The loan with the lowest amount of origination or discount points
C. The loan with the shortest term
D. The loan with the lowest interest rate that does not have a prepayment penalty, interest-
only payments, a negative amortization, or a balloon payment in the first 7 years of the loan
ANSWER
C. The loan with the shortest term
Question 10
All of the following are required to be covered by HOEPA EXCEPT
A. Refinances
B. Reverse mortgages
C. Closed-end Home Equity Loans
D. Purchase Money Mortgages
ANSWER
B. Reverse Mortgages
Question 11
4
@THE STUDY VAULT
VERIFIED ANSWERS |LATEST 2026/2027
UPDATE|GRADED A+
Question 1
A Good Faith Estimate is not issued until a complete application is received from a consumer.
Which answer is NOT part of the list of information that qualifies as a received application?
A. Consumer's social security number
B. Consumer's assets
C. Address of the property
D. The mortgage loan amount sought
ANSWER
B. Consumer's assets
Question 2
Which type of loan is exempt from Real Estate Settlement Procedures Act (RESPA)?
A. A loan to finance a commercial warehouse
B. A reverse mortgage
C. A home equity line of credit
D. A mortgage to purchase a single family home
ANSWER
A. A loan to finance a commercial warehouse
Question 3
The initial escrow statement includes all of the following EXCEPT
1
@THE STUDY VAULT
,A. The amount of the monthly mortgage payment
B. The amount that is collected for homeowners association dues
C. The portion of the monthly payment going into the escrow account
D. The amount of reserves or cushion as determined by the loan servicer
ANSWER
B. The amount that is collected for homeowners association (HOA) dues
Question 4
When is an adverse action notice required?
A. When an application is withdrawn
B. When a counteroffer is extended, and the offer is accepted
C. When a counteroffer is extended, and the offer is rejected
D. When there is a change in the terms of the mortgage
ANSWER
C. When a counteroffer is extended, and the offer is rejected (an adverse action is a
negative action reported to a consumer regarding the denial of the credit application
Question 5
Which factor can be considered when evaluation a loan application?
A. Immigration Status
B. National Origin
C. Pregnancy
D. Marital Status
ANSWER
A. Immigration Status (it can affect their ability to repay the loan)
2
@THE STUDY VAULT
,Question 6
Which income source cannot be considered in a loan review?
A. Educational Military Benefits
B. Part-time Income
C. Alimony and Child Support
D. Annuity Income
ANSWER
A. Educational Military Benefits (benefits don't continue after they've finished school)
Question 7
What type of property does a right of recission apply to?
A. A second home
B. A nonowner-occupied duplex
C. A principal residence
D. A nonowner-occupied condominium
ANSWER
C. A Principal Residence
Question 8
All of the following are an example of a finance charge EXCEPT
A. Interest
B. Points
C. A Loan Processing Fee
D. Title Insurance
3
@THE STUDY VAULT
, ANSWER
D. Title Insurance
Question 9
To avoid steering a customer to a loan product that may give higher compensation to a
mortgage loan originator, an MLO must provide multiple loan options for a borrower to
review. These loan options must include all of the following EXCEPT
A. The loan with the lowest interest rate
B. The loan with the lowest amount of origination or discount points
C. The loan with the shortest term
D. The loan with the lowest interest rate that does not have a prepayment penalty, interest-
only payments, a negative amortization, or a balloon payment in the first 7 years of the loan
ANSWER
C. The loan with the shortest term
Question 10
All of the following are required to be covered by HOEPA EXCEPT
A. Refinances
B. Reverse mortgages
C. Closed-end Home Equity Loans
D. Purchase Money Mortgages
ANSWER
B. Reverse Mortgages
Question 11
4
@THE STUDY VAULT
