©THESTAR 2024/2025 ALL RIGHTS RESERVED.
NMLS MLO Exam Questions And Correct
Answers 100% Verified.
A type of mortgage lender which would be BOTH a retail lender AND a depository institution
would be a? - Answer✔Savings and loan association;
A higher interest rate charged on a loan in return for lower upfront closing costs would be an
example of a: - Answer✔Yield spread premium;
A partial release clause would be associated with a - Answer✔Blanket mortgage
What is the primary difference between a Graduated Payment Mortgage and a Growth Equity
Mortgage - Answer✔In a Growth Equity Mortgage, the increased payments apply to principal
reduction
What is the minimum credit score required to qualify for an FHA loan - Answer✔500 to 579
with 10% down 580 or above 3.5%
Which of the following is NOT a cap on the interest rate of an ARM: - Answer✔Payment cap
The document that makes the property collateral for the debt is the: - Answer✔Mortgage or
Trust Deed
If there is no escrow account for the homeowners insurance, and the borrower fails to renew
the policy, the servicing agent for the loan would obtain a hazard insurance policy on the
property. This policy is
called a: - Answer✔Forced place policy
When two people are applying for a mortgage, under what circumstances should you
recommend that they each fill out separate applications: - Answer✔When they are unmarried
and do not conduct their financial affairs jointly
Under Fannie Mae and Freddie Mac guidelines for appraisals, what is the maximum gross and
net adjustments, respectively, to any one comparable sale - Answer✔25% gross and 15% net
An applicant has gross earnings of $2,600 per bi-weekly paycheck. His net bi-weekly paycheck is
about $1,800. The applicant's gross monthly income would be closest to - Answer✔2,600 x 26
divided by 12 = $5,633.33,
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
A Registered Loan Originator must complete how many hours of continuing education courses
each year - Answer✔There are NO continuing education requirements for Registered Loan
Originators, only for State Licensed Loan Originators.
Which of the following individuals would NOT need to be licensed as a mortgage loan
originator? - Answer✔One who only originated mortgages on residential properties with more
than 4 units.
Under the Model State Law, a supervisory agency may rely on examination or investigation
reports made by other government officials: - Answer✔From within or without that state.
If the CFPB determines that a state is out of compliance with the SAFE Act and Regulation H,
after its initial determination of noncompliance it must allow a public comment period for at
least - Answer✔30 days
If the CFPB determines that a state supervisory agency is not in compliance with the SAFE Act
and Regulation H, what is the ultimate, highest penalty the CFPB could impose? - Answer✔The
CFPB could create its own state licensing system.
Richard was convicted of securities fraud some years ago. Several years after his release from
prison, Richard applies for a mortgage loan originator license. Under what circumstances might
he be granted a license? - Answer✔Only if Richard has received a pardon for his conviction.
Which of the following loans would be a "nontraditional loan" under the Model State Law? -
Answer✔A nontraditional loan is any loan other than a 30 year fixed rate mortgage
Which of the following laws has as one of its central purposes the desire to prohibit sellers from
requiring buyers to use a specific title insurance company? - Answer✔RESPA
RESPA prohibits sellers from requiring buyers to use a specific title insurance company
If a mortgage broker follows the "safe harbor" provisions of the Anti-Steering rules of
Regulation Z, what effect will that have? - Answer✔In any lawsuit involving a claim of steering,
the court would presume that the lender did not violate the prohibition against steering,
Which of the following choices would be considered "nonpublic personal information" under
the Gramm-Leach-Bliley Act? - Answer✔The fact that an individual has an account with a firm,
A mortgage brokerage firm has a partnership with a title insurance company and other
investors to run a title insurance agency. The mortgage brokerage firm refers all of its
customers to this agency. The mortgage brokerage firm shares in the profits based on its
referrals to the agency. This arrangement: - Answer✔The mortgage brokerage firm can only
share in the profits to the extent of its capital investment, regardless of its referrals
A tax lien must be removed from a consumer's credit report: - Answer✔7 years after it was
repaid.
2|Page
NMLS MLO Exam Questions And Correct
Answers 100% Verified.
A type of mortgage lender which would be BOTH a retail lender AND a depository institution
would be a? - Answer✔Savings and loan association;
A higher interest rate charged on a loan in return for lower upfront closing costs would be an
example of a: - Answer✔Yield spread premium;
A partial release clause would be associated with a - Answer✔Blanket mortgage
What is the primary difference between a Graduated Payment Mortgage and a Growth Equity
Mortgage - Answer✔In a Growth Equity Mortgage, the increased payments apply to principal
reduction
What is the minimum credit score required to qualify for an FHA loan - Answer✔500 to 579
with 10% down 580 or above 3.5%
Which of the following is NOT a cap on the interest rate of an ARM: - Answer✔Payment cap
The document that makes the property collateral for the debt is the: - Answer✔Mortgage or
Trust Deed
If there is no escrow account for the homeowners insurance, and the borrower fails to renew
the policy, the servicing agent for the loan would obtain a hazard insurance policy on the
property. This policy is
called a: - Answer✔Forced place policy
When two people are applying for a mortgage, under what circumstances should you
recommend that they each fill out separate applications: - Answer✔When they are unmarried
and do not conduct their financial affairs jointly
Under Fannie Mae and Freddie Mac guidelines for appraisals, what is the maximum gross and
net adjustments, respectively, to any one comparable sale - Answer✔25% gross and 15% net
An applicant has gross earnings of $2,600 per bi-weekly paycheck. His net bi-weekly paycheck is
about $1,800. The applicant's gross monthly income would be closest to - Answer✔2,600 x 26
divided by 12 = $5,633.33,
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
A Registered Loan Originator must complete how many hours of continuing education courses
each year - Answer✔There are NO continuing education requirements for Registered Loan
Originators, only for State Licensed Loan Originators.
Which of the following individuals would NOT need to be licensed as a mortgage loan
originator? - Answer✔One who only originated mortgages on residential properties with more
than 4 units.
Under the Model State Law, a supervisory agency may rely on examination or investigation
reports made by other government officials: - Answer✔From within or without that state.
If the CFPB determines that a state is out of compliance with the SAFE Act and Regulation H,
after its initial determination of noncompliance it must allow a public comment period for at
least - Answer✔30 days
If the CFPB determines that a state supervisory agency is not in compliance with the SAFE Act
and Regulation H, what is the ultimate, highest penalty the CFPB could impose? - Answer✔The
CFPB could create its own state licensing system.
Richard was convicted of securities fraud some years ago. Several years after his release from
prison, Richard applies for a mortgage loan originator license. Under what circumstances might
he be granted a license? - Answer✔Only if Richard has received a pardon for his conviction.
Which of the following loans would be a "nontraditional loan" under the Model State Law? -
Answer✔A nontraditional loan is any loan other than a 30 year fixed rate mortgage
Which of the following laws has as one of its central purposes the desire to prohibit sellers from
requiring buyers to use a specific title insurance company? - Answer✔RESPA
RESPA prohibits sellers from requiring buyers to use a specific title insurance company
If a mortgage broker follows the "safe harbor" provisions of the Anti-Steering rules of
Regulation Z, what effect will that have? - Answer✔In any lawsuit involving a claim of steering,
the court would presume that the lender did not violate the prohibition against steering,
Which of the following choices would be considered "nonpublic personal information" under
the Gramm-Leach-Bliley Act? - Answer✔The fact that an individual has an account with a firm,
A mortgage brokerage firm has a partnership with a title insurance company and other
investors to run a title insurance agency. The mortgage brokerage firm refers all of its
customers to this agency. The mortgage brokerage firm shares in the profits based on its
referrals to the agency. This arrangement: - Answer✔The mortgage brokerage firm can only
share in the profits to the extent of its capital investment, regardless of its referrals
A tax lien must be removed from a consumer's credit report: - Answer✔7 years after it was
repaid.
2|Page
