©THESTAR 2025 ALL RIGHTS RESERVED
Time Frames & Memorizing NMLS Exam
Questions and Answers 100% Pass
If formerly licensed MLO Rod failed to maintain a valid license for a period of ___ years, he is
required to retake and pass the qualified SAFE MLO pre-licensing exam to obtain an MLO
license. - ANS 5 Years
When using the sales comparison approach, an appraiser has a responsibility to use a minimum
of _____ comparables to ensure the appraisal provides an accurate value based on sufficient
data. - ANS Three Comparable
As set forth by Regulation Z, after borrower Sam signs owner-occupied loan documents for a
home equity refinance loan, he has a ____-business-day right of rescission. - ANS Three
Business Day
In the "About Your Finances" section of the URLA, the borrower is to identify if she has
conveyed title to any property in lieu of foreclosure in the past ___ years. - ANS 7 Years
The minimum amount of flood insurance required for first mortgages is the lowest of ___% of
the replacement cost of the insurable value of the improvements, the maximum insurance
available from the NFIP, or the unpaid principal balance of the mortgage loan. - ANS 100%
John Jones applies for a mortgage loan with Flying Mortgage for the purchase of his first home.
On her initial application submitted to Flying Mortgage, John forgot to include her Social
Security number. Flying Mortgage must send John a Notice of Incomplete Application within
___ days after receiving her application. - ANS 30 Days
, ©THESTAR 2025 ALL RIGHTS RESERVED
Joan has an adjustable-rate mortgage (ARM). It has an initial interest rate of 7% adjusted
annually with a 2/5 interest rate cap. If interest rates go up, what is the highest interest rate
Joan could pay in the second year? - ANS 9%
A borrower is purchasing a new home and would like to close the mortgage loan financing the
purchase as fast as possible. According to the applicable rules and guidelines under Regulation
Z, if the borrower closes his loan on Monday, January 8th, when can the loan fund? -
ANS January 8th (Purchase can fund same day)
The VA limits the amount it will guarantee in the event of default to ___ of the purchase price
or the established reasonable value, whichever is less. - ANS 25%
What disclosure is specifically required within three business days of a complete application for
an adjustable-rate mortgage loan? - ANS Charm Booklet
A typical reverse mortgage becomes due when the last surviving borrower dies, sells the home,
or ceases to live in the home for ____ consecutive months. - ANS 12 Months
One of the qualifying standards for a conventional conforming mortgage is that the borrower's
total debt obligations DO NOT EXCEED what percentage of stable monthly income? -
ANS 36%
Borrower Sue can decrease the monthly payment amount on a fixed-rate mortgage loan by
making a _____ down payment when she closing on her loan. - ANS 20%
The standard FHA-insured loan program is the - ANS Section 203(b)
What is the minimum age required to qualify for a reverse mortgage? - ANS 62
Time Frames & Memorizing NMLS Exam
Questions and Answers 100% Pass
If formerly licensed MLO Rod failed to maintain a valid license for a period of ___ years, he is
required to retake and pass the qualified SAFE MLO pre-licensing exam to obtain an MLO
license. - ANS 5 Years
When using the sales comparison approach, an appraiser has a responsibility to use a minimum
of _____ comparables to ensure the appraisal provides an accurate value based on sufficient
data. - ANS Three Comparable
As set forth by Regulation Z, after borrower Sam signs owner-occupied loan documents for a
home equity refinance loan, he has a ____-business-day right of rescission. - ANS Three
Business Day
In the "About Your Finances" section of the URLA, the borrower is to identify if she has
conveyed title to any property in lieu of foreclosure in the past ___ years. - ANS 7 Years
The minimum amount of flood insurance required for first mortgages is the lowest of ___% of
the replacement cost of the insurable value of the improvements, the maximum insurance
available from the NFIP, or the unpaid principal balance of the mortgage loan. - ANS 100%
John Jones applies for a mortgage loan with Flying Mortgage for the purchase of his first home.
On her initial application submitted to Flying Mortgage, John forgot to include her Social
Security number. Flying Mortgage must send John a Notice of Incomplete Application within
___ days after receiving her application. - ANS 30 Days
, ©THESTAR 2025 ALL RIGHTS RESERVED
Joan has an adjustable-rate mortgage (ARM). It has an initial interest rate of 7% adjusted
annually with a 2/5 interest rate cap. If interest rates go up, what is the highest interest rate
Joan could pay in the second year? - ANS 9%
A borrower is purchasing a new home and would like to close the mortgage loan financing the
purchase as fast as possible. According to the applicable rules and guidelines under Regulation
Z, if the borrower closes his loan on Monday, January 8th, when can the loan fund? -
ANS January 8th (Purchase can fund same day)
The VA limits the amount it will guarantee in the event of default to ___ of the purchase price
or the established reasonable value, whichever is less. - ANS 25%
What disclosure is specifically required within three business days of a complete application for
an adjustable-rate mortgage loan? - ANS Charm Booklet
A typical reverse mortgage becomes due when the last surviving borrower dies, sells the home,
or ceases to live in the home for ____ consecutive months. - ANS 12 Months
One of the qualifying standards for a conventional conforming mortgage is that the borrower's
total debt obligations DO NOT EXCEED what percentage of stable monthly income? -
ANS 36%
Borrower Sue can decrease the monthly payment amount on a fixed-rate mortgage loan by
making a _____ down payment when she closing on her loan. - ANS 20%
The standard FHA-insured loan program is the - ANS Section 203(b)
What is the minimum age required to qualify for a reverse mortgage? - ANS 62
