NMLS SAFE MORTGAGE LICENSING STUDY
GUIDE 2026 FEDERAL LENDING LAWS AND
COMPLIANCE PRINCIPLES REVIEW
◉ When must the Loan Estimate be delivered?
Answer: Within 3 business days of application.
◉ When must the Closing Disclosure be delivered?
Answer: At least 3 business days before closing.
◉ What does RESPA Section 8 prohibit?
Answer: Kickbacks and unearned fees. No referral fees between
settlement providers.
◉ What does RESPA Section 9 prohibit?
Answer: A seller cannot require the buyer to use a specific title
company.
◉ What is the maximum escrow cushion a servicer may require
under RESPA?
Answer: No greater than 2 months.
,◉ What loans does RESPA generally apply to?
Answer: Federally related mortgage loans, which includes most
residential loans.
◉ What does TILA require lenders to disclose?
Answer: APR, finance charges, total payments, and payment
schedule.
◉ What is the Right of Rescission?
Answer: A borrower has 3 business days to cancel a refinance of a
primary residence. It does not apply to purchases.
◉ What are the HOEPA APR triggers listed on the sheet?
Answer: More than 6.5% above APOR for a first lien and more than
8.5% above APOR for a subordinate lien.
◉ What does the ATR rule require?
Answer: The lender must verify the borrower's ability to repay.
◉ What is a Qualified Mortgage (QM) on the sheet?
Answer: A mortgage with DTI at or below 43% and no excessive
upfront points and fees over 3%.
, ◉ What did TRID combine?
Answer: The Loan Estimate and Closing Disclosure under RESPA and
TILA.
◉ What does ECOA prohibit discrimination based on?
Answer: Race, color, religion, national origin, sex, marital status, age,
and public assistance.
◉ What family-planning questions are prohibited under ECOA?
Answer: Questions about plans for children or birth control.
◉ How long does a lender have to send an adverse action notice
under ECOA?
Answer: Within 30 days of a completed application.
◉ When can a spousal signature be required?
Answer: Only when both spouses are on the loan.
◉ What is the purpose of HMDA?
Answer: To collect and report data that can identify discriminatory
lending patterns, redlining, and fair lending issues.
GUIDE 2026 FEDERAL LENDING LAWS AND
COMPLIANCE PRINCIPLES REVIEW
◉ When must the Loan Estimate be delivered?
Answer: Within 3 business days of application.
◉ When must the Closing Disclosure be delivered?
Answer: At least 3 business days before closing.
◉ What does RESPA Section 8 prohibit?
Answer: Kickbacks and unearned fees. No referral fees between
settlement providers.
◉ What does RESPA Section 9 prohibit?
Answer: A seller cannot require the buyer to use a specific title
company.
◉ What is the maximum escrow cushion a servicer may require
under RESPA?
Answer: No greater than 2 months.
,◉ What loans does RESPA generally apply to?
Answer: Federally related mortgage loans, which includes most
residential loans.
◉ What does TILA require lenders to disclose?
Answer: APR, finance charges, total payments, and payment
schedule.
◉ What is the Right of Rescission?
Answer: A borrower has 3 business days to cancel a refinance of a
primary residence. It does not apply to purchases.
◉ What are the HOEPA APR triggers listed on the sheet?
Answer: More than 6.5% above APOR for a first lien and more than
8.5% above APOR for a subordinate lien.
◉ What does the ATR rule require?
Answer: The lender must verify the borrower's ability to repay.
◉ What is a Qualified Mortgage (QM) on the sheet?
Answer: A mortgage with DTI at or below 43% and no excessive
upfront points and fees over 3%.
, ◉ What did TRID combine?
Answer: The Loan Estimate and Closing Disclosure under RESPA and
TILA.
◉ What does ECOA prohibit discrimination based on?
Answer: Race, color, religion, national origin, sex, marital status, age,
and public assistance.
◉ What family-planning questions are prohibited under ECOA?
Answer: Questions about plans for children or birth control.
◉ How long does a lender have to send an adverse action notice
under ECOA?
Answer: Within 30 days of a completed application.
◉ When can a spousal signature be required?
Answer: Only when both spouses are on the loan.
◉ What is the purpose of HMDA?
Answer: To collect and report data that can identify discriminatory
lending patterns, redlining, and fair lending issues.
