NMLS SAFE ACT MLO EXAM -FEDERAL LAW
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|LATEST 2026/2027 UPDATE|GRADED A+
Question 1
If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you
in regards to a loan, when does right to contact them expire?
A. 1 month
B. 2 months
C. 3 months
D. 4 months
ANSWER
C. 3 months
An established business relationship with a company also will be created if you make an
inquiry to the company, or submit an application to it. This kind of established business
relationship exists for three months after the inquiry or application. During this time, the
company can call you.
Question 2
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below would be
considered a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
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,D. $200,000 loan with fees of $16,500
ANSWER
D. $200,000 loan with fees of $16,500
Question 3
What does it mean that HUD Homes are initially offered on a "priority basis"?
A. People who are buying the home as their primary residence are given 1st priority to make
an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to make
an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage quick
sale.
D. HUD will give priority financing to initial buyers of HUD Homes.
ANSWER
A. People who are buying the home as their primary residence are given 1st priority to
make an offer.
HUD is the Department of Housing and Urban Development: the United States federal
department that administers federal programs dealing with better housing and urban
renewal; created in 1965
Question 4
The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
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,C. closing costs.
D. loan servicing practices.
ANSWER
B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and key
provisions. RESPA requires disclosure of closing costs and loan servicing practices. ECOA
requires disclosure of the appraisal.
Question 5
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
D. Within 1 business days after settlement
ANSWER
B. Within 30 calendar days after settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the
amount by which the tolerance was exceeded, at settlement or within 30 calendar days
after settlement.
Question 6
Which Regulation corresponds to The Real Estate Settlement Procedures Act (RESPA) ?
A. regulation Y
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@THE STUDY VAULT
, B. regulation V
C. regulation Z
D. regulation X
ANSWER
D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One,
passed by the Federal Reserve Board, concerns credit extended to people who purchase
United States Treasury securities. The other, also known as the Real Estate Settlement
Procedures Act (RESPA) is concerned with the process of completing real estate sales.
People who participate in such sales are monitored by the Department of Housing and
Urban Development to determine whether or not they are adhering to legislation such as
Regulation X.
Question 7
Which is a disclosure that RESPA requires creditors to give to customers at the time of the
mortgage loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE
ANSWER
B. HUD-1
The HUD-1 Settlement Statement is a standard form in use in the United States of America
which is used to itemize services and fees charged to the borrower by the lender or broker.
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@THE STUDY VAULT
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|LATEST 2026/2027 UPDATE|GRADED A+
Question 1
If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you
in regards to a loan, when does right to contact them expire?
A. 1 month
B. 2 months
C. 3 months
D. 4 months
ANSWER
C. 3 months
An established business relationship with a company also will be created if you make an
inquiry to the company, or submit an application to it. This kind of established business
relationship exists for three months after the inquiry or application. During this time, the
company can call you.
Question 2
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below would be
considered a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
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@THE STUDY VAULT
,D. $200,000 loan with fees of $16,500
ANSWER
D. $200,000 loan with fees of $16,500
Question 3
What does it mean that HUD Homes are initially offered on a "priority basis"?
A. People who are buying the home as their primary residence are given 1st priority to make
an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to make
an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage quick
sale.
D. HUD will give priority financing to initial buyers of HUD Homes.
ANSWER
A. People who are buying the home as their primary residence are given 1st priority to
make an offer.
HUD is the Department of Housing and Urban Development: the United States federal
department that administers federal programs dealing with better housing and urban
renewal; created in 1965
Question 4
The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
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@THE STUDY VAULT
,C. closing costs.
D. loan servicing practices.
ANSWER
B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and key
provisions. RESPA requires disclosure of closing costs and loan servicing practices. ECOA
requires disclosure of the appraisal.
Question 5
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
D. Within 1 business days after settlement
ANSWER
B. Within 30 calendar days after settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the
amount by which the tolerance was exceeded, at settlement or within 30 calendar days
after settlement.
Question 6
Which Regulation corresponds to The Real Estate Settlement Procedures Act (RESPA) ?
A. regulation Y
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@THE STUDY VAULT
, B. regulation V
C. regulation Z
D. regulation X
ANSWER
D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One,
passed by the Federal Reserve Board, concerns credit extended to people who purchase
United States Treasury securities. The other, also known as the Real Estate Settlement
Procedures Act (RESPA) is concerned with the process of completing real estate sales.
People who participate in such sales are monitored by the Department of Housing and
Urban Development to determine whether or not they are adhering to legislation such as
Regulation X.
Question 7
Which is a disclosure that RESPA requires creditors to give to customers at the time of the
mortgage loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE
ANSWER
B. HUD-1
The HUD-1 Settlement Statement is a standard form in use in the United States of America
which is used to itemize services and fees charged to the borrower by the lender or broker.
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@THE STUDY VAULT
