NMLS COMPREHENSIVE EXAM
2026/2027 QUESTIONS AND ANSWERS.
VERIFIED
1. Under the TILA-RESPA Integrated Disclosure (TRID) rule, which of the following is
considered a ‘changed circumstance’ that allows for a revised Loan Estimate?
A. An extraordinary event beyond the control of any interested party, such as a natural
disaster.
B. The borrower’s credit score increased significantly, resulting in a lower interest rate.
C. The appraiser was unable to access the property for three days.
D. The mortgage loan originator’s internal commission structure changed.
Answer: A
Conceptual Explanation: A ‘changed circumstance’ must be an extraordinary event,
information specific to the consumer or transaction that the creditor relied upon and that
was inaccurate or changed, or new information. Internal commission changes are not valid
reasons.
,2. According to the Equal Credit Opportunity Act (ECOA), a creditor must notify an applicant
of action taken on a completed application within how many days?
A. 30 days
B. 10 days
C. 60 days
D. 90 days
Answer: A
Conceptual Explanation: Regulation B (ECOA) requires creditors to notify applicants of
action taken (approval, counteroffer, or adverse action) within 30 days of receiving a
completed application.
3. Which federal law was enacted specifically to combat ‘redlining’ and ensure lenders meet
the credit needs of their communities?
A. CRA (Community Reinvestment Act)
B. HMDA (Home Mortgage Disclosure Act)
C. FCRA (Fair Credit Reporting Act)
D. RESPA (Real Estate Settlement Procedures Act)
Answer: A
, Conceptual Explanation: The Community Reinvestment Act (CRA) is designed to
encourage commercial banks and savings associations to help meet the needs of borrowers
in all segments of their communities, including low- and moderate-income neighborhoods.
4. In a High-Cost Mortgage (Section 32) transaction, which of the following is strictly
prohibited?
A. A loan term of 30 years
B. Balloon payments, with limited exceptions for small creditors
C. Adjustable interest rates
D. Escrow accounts for taxes and insurance
Answer: B
Conceptual Explanation: Section 32 of HOEPA generally prohibits balloon payments
unless the loan is a bridge loan or the lender meets specific small creditor criteria.
5. The ‘Right of Rescission’ provided by TILA applies to which of the following?
A. A purchase money mortgage for a primary residence
B. A commercial real estate loan
C. A mortgage for a second holiday home
D. A refinance of a primary residence with a new lender
Answer: D
2026/2027 QUESTIONS AND ANSWERS.
VERIFIED
1. Under the TILA-RESPA Integrated Disclosure (TRID) rule, which of the following is
considered a ‘changed circumstance’ that allows for a revised Loan Estimate?
A. An extraordinary event beyond the control of any interested party, such as a natural
disaster.
B. The borrower’s credit score increased significantly, resulting in a lower interest rate.
C. The appraiser was unable to access the property for three days.
D. The mortgage loan originator’s internal commission structure changed.
Answer: A
Conceptual Explanation: A ‘changed circumstance’ must be an extraordinary event,
information specific to the consumer or transaction that the creditor relied upon and that
was inaccurate or changed, or new information. Internal commission changes are not valid
reasons.
,2. According to the Equal Credit Opportunity Act (ECOA), a creditor must notify an applicant
of action taken on a completed application within how many days?
A. 30 days
B. 10 days
C. 60 days
D. 90 days
Answer: A
Conceptual Explanation: Regulation B (ECOA) requires creditors to notify applicants of
action taken (approval, counteroffer, or adverse action) within 30 days of receiving a
completed application.
3. Which federal law was enacted specifically to combat ‘redlining’ and ensure lenders meet
the credit needs of their communities?
A. CRA (Community Reinvestment Act)
B. HMDA (Home Mortgage Disclosure Act)
C. FCRA (Fair Credit Reporting Act)
D. RESPA (Real Estate Settlement Procedures Act)
Answer: A
, Conceptual Explanation: The Community Reinvestment Act (CRA) is designed to
encourage commercial banks and savings associations to help meet the needs of borrowers
in all segments of their communities, including low- and moderate-income neighborhoods.
4. In a High-Cost Mortgage (Section 32) transaction, which of the following is strictly
prohibited?
A. A loan term of 30 years
B. Balloon payments, with limited exceptions for small creditors
C. Adjustable interest rates
D. Escrow accounts for taxes and insurance
Answer: B
Conceptual Explanation: Section 32 of HOEPA generally prohibits balloon payments
unless the loan is a bridge loan or the lender meets specific small creditor criteria.
5. The ‘Right of Rescission’ provided by TILA applies to which of the following?
A. A purchase money mortgage for a primary residence
B. A commercial real estate loan
C. A mortgage for a second holiday home
D. A refinance of a primary residence with a new lender
Answer: D
