Exam (elaborations)
NMLS SAFE EXAM FINAL PRACTICE ACTUAL EXAM / QUESTIONS & COMPLETE ANSWERS 2025.
NMLS SAFE EXAM FINAL PRACTICE ACTUAL EXAM / QUESTIONS & COMPLETE ANSWERS 2025.
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NMLS SAFE EXAM FINAL1. Which regulation requires lenders to provide a Loan Estimate (LE) within three
business days of receiving a loan application?
A. RESPA
B. TILA
C. ECOA
D. TRID
Answer: D. TRID
(TRID combines TILA and RESPA disclosures into the LE and CD requirements.)
,2. According to the SAFE Act, who must be licensed as a mortgage loan originator
(MLO)?
A. Underwriters
B. Processors working independently
C. Registered bank employees
D. Real estate agents
Answer: B. Processors working independently
(Independent contractors must be licensed under the SAFE Act.)
3. What is the maximum DTI ratio for a Qualified Mortgage (QM)?
A. 36%
B. 41%
C. 43%
D. 45%
Answer: C. 43%
(Under the Ability-to-Repay rule, QM loans generally must not exceed 43% DTI.)
4. Which law prohibits discrimination based on race, color, religion, sex, or national
origin in housing-related transactions?
A. ECOA
B. Fair Housing Act
C. HMDA
D. FCRA
Answer: B. Fair Housing Act
(This act focuses on discrimination in housing sales and rentals.)
, 5. What does RESPA prohibit through Section 8?
A. Adjustable-rate mortgages
B. High-interest rates
C. Kickbacks and unearned fees
D. Redlining
Answer: C. Kickbacks and unearned fees
(RESPA Section 8 aims to stop referral fees and illegal fee-splitting.)
6. Which form discloses the total cost of a mortgage loan including APR, finance
charges, and amount financed?
A. Closing Disclosure
B. Loan Estimate
C. Truth-in-Lending Disclosure
D. Servicing Disclosure
Answer: A. Closing Disclosure
(It provides final loan terms and closing costs, including APR.)
7. When must the Closing Disclosure (CD) be provided to the borrower?
A. At loan application
B. 7 business days before closing
C. 3 business days before closing
D. On the day of closing
Answer: C. 3 business days before closing
(CD must be delivered at least 3 business days prior to consummation.)
8. What is the purpose of the Home Mortgage Disclosure Act (HMDA)?
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