6/10/25, 5:26 PM MLO SAFE NMLS safe test
practice questions
NMLS SAFE MLO TEST PRACTICE EXAM 2025-2026
\ACTUAL EXAM 2025-2026 \LATEST VERSION WITH
COMPLETE QUESTIONS AND ACCURATE DETAILED
ANSWERS \LATEST UPDATE WITH VIRIFIED ANSWERS
|GUARANTEED PASS|GRADED A+
A _______ disclosure is AfBA, Affiliated Business Arrangement Disclsoure
required to be
provided to the borrower
when the referring provider
has greater than 1%
ownership interest in the
business being referred.
An annual escrow analysis is RESPA governs all settlement costs including the
required by which Federal collection and disbursement of escrows.
Law?
The loan product that A fixed rate mortgage
utilizes an interest rate that
remains the same for the life
of the loan is called _.
What is the name of the Act FCRA, The Fair Credit Reporting Act
that entitles a consumer
to a free copy of their
credit
report if credit is denied
based on
information from their report?
What type of loan would A new construction loan.
commonly use an extended
rate lock?
1/59
,6/10/25, 7:24 PM MLO SAFE NMLS safe test practice questions
While banks remain the Reserve requirements have been reduced and first lien
largest source of investment home mortgages at less than 80% LTV are in the lowest
funds their increased risk category. The banks increased participation in these
participation in long term loans still leave funds available for other loans and
home mortgage lending is investments.
possible because of a change
in federal banking
regulations. What is that
change?
The adjustable component Index
use to compute the note rate
on an ARM is called the
_____________________.
According to USDA Rural 20,000 people
Development Programs a
small town can include up to
_ _____ people.
What kind of buy down A permanent buy down.
would reduce the note
rate?
The SAFE act is a key element HERA, Housing and Economic Recovery Act of 2008
of (the)
_______________________.
A Real Estate Company No laws have been violated by any party. (per RESPA,
accepted and there was no agreement to provide referrals or
distributed flyers from something of value)
a Mortgage
Company to Prospective
Clients. Which Law(s) if
any have been violated
and by who?
The FHA debt ratios are 31/43. 31% Primary Housing Expense (Front End Ratio)
_____________/__________________. and 43% Total Obligations (Back End Ratio)
The SAFE Act uses Social Security Numbers
unique identifiers
instead of__ _.
/ 2/59
,6/10/25, 7:24 PM MLO SAFE NMLS safe test practice questions
Lenders report detailed HMDA, The Home Mortgage Disclosure Act
loan information and
demographic information
because of which of the
following acts?
1. GLBA
2. HMDA
3. RESPA
4. TIlA
Three people own a One, any one of the three can rescind and cancel the refinance
primary residence as joint transaction
owners with rights of
survivorship. At the closing
of their refinance, each
was given a notice of the
right to rescind. How of the
three must exercise that
right to
cancel the funding?
Section 8 of RESPA prohibits Kickbacks for referrals.
_____________________.
A refinance of the Friday (three business day right of rescission period ends after
borrower's residence that midnight on Thursday)
closes on Monday will
fund on
_________________________.
Per RESPA the maximum Unknown, RESPA requires disclosure of origination fees
origination fee that may but does not set the maximum fee that can be
be charged on a loan is charged.
____________________.
Per the Dodd-Frank Act does a Yes
"qualified mortgage" provide
a "safe harbor"
regarding compliance with the
ability-to- repay
requirement?
/ 3/59
, 6/10/25, 7:24 PM MLO SAFE NMLS safe test practice questions
Relative to the Do-Not-Call 3 Months
registry a
company may call a consumer
for up to
_ _________ months after the
consumer makes an inquiry or
submits an application to the
company.
There are three (3) groups 3. Prohibition of Predatory Lending
of laws under the CFPB
includig 1. financial
disclosure, 2. privacy,
protection and consumer
identification and 3 _____ _.
The 3/7/3 Rule is a provision TILA, Truth in Lending Act
of the
_ ____ Act related to
required
disclosures and waiting
periods.
The illegal practice of Blockbusting
inducing owners to sell
their homes by suggesting
that the ethnic or racial
composition of the
neighborhood is changing
is called
_____________________________.
The borrower's ability to Capacity
pay a loan is referred to
as _________________.
The Fair Housing Act of Familial Status
1968 protects against
discrimination based on race,
color, religion, sex, national
origin, disability and
__________________________.
Which law requires that all The SAFE Act, The Secure and Fair Enforcement for the
mortgage loan originators mortgage licensing act of 2008.
pass a national licensing
/ 4/59
practice questions
NMLS SAFE MLO TEST PRACTICE EXAM 2025-2026
\ACTUAL EXAM 2025-2026 \LATEST VERSION WITH
COMPLETE QUESTIONS AND ACCURATE DETAILED
ANSWERS \LATEST UPDATE WITH VIRIFIED ANSWERS
|GUARANTEED PASS|GRADED A+
A _______ disclosure is AfBA, Affiliated Business Arrangement Disclsoure
required to be
provided to the borrower
when the referring provider
has greater than 1%
ownership interest in the
business being referred.
An annual escrow analysis is RESPA governs all settlement costs including the
required by which Federal collection and disbursement of escrows.
Law?
The loan product that A fixed rate mortgage
utilizes an interest rate that
remains the same for the life
of the loan is called _.
What is the name of the Act FCRA, The Fair Credit Reporting Act
that entitles a consumer
to a free copy of their
credit
report if credit is denied
based on
information from their report?
What type of loan would A new construction loan.
commonly use an extended
rate lock?
1/59
,6/10/25, 7:24 PM MLO SAFE NMLS safe test practice questions
While banks remain the Reserve requirements have been reduced and first lien
largest source of investment home mortgages at less than 80% LTV are in the lowest
funds their increased risk category. The banks increased participation in these
participation in long term loans still leave funds available for other loans and
home mortgage lending is investments.
possible because of a change
in federal banking
regulations. What is that
change?
The adjustable component Index
use to compute the note rate
on an ARM is called the
_____________________.
According to USDA Rural 20,000 people
Development Programs a
small town can include up to
_ _____ people.
What kind of buy down A permanent buy down.
would reduce the note
rate?
The SAFE act is a key element HERA, Housing and Economic Recovery Act of 2008
of (the)
_______________________.
A Real Estate Company No laws have been violated by any party. (per RESPA,
accepted and there was no agreement to provide referrals or
distributed flyers from something of value)
a Mortgage
Company to Prospective
Clients. Which Law(s) if
any have been violated
and by who?
The FHA debt ratios are 31/43. 31% Primary Housing Expense (Front End Ratio)
_____________/__________________. and 43% Total Obligations (Back End Ratio)
The SAFE Act uses Social Security Numbers
unique identifiers
instead of__ _.
/ 2/59
,6/10/25, 7:24 PM MLO SAFE NMLS safe test practice questions
Lenders report detailed HMDA, The Home Mortgage Disclosure Act
loan information and
demographic information
because of which of the
following acts?
1. GLBA
2. HMDA
3. RESPA
4. TIlA
Three people own a One, any one of the three can rescind and cancel the refinance
primary residence as joint transaction
owners with rights of
survivorship. At the closing
of their refinance, each
was given a notice of the
right to rescind. How of the
three must exercise that
right to
cancel the funding?
Section 8 of RESPA prohibits Kickbacks for referrals.
_____________________.
A refinance of the Friday (three business day right of rescission period ends after
borrower's residence that midnight on Thursday)
closes on Monday will
fund on
_________________________.
Per RESPA the maximum Unknown, RESPA requires disclosure of origination fees
origination fee that may but does not set the maximum fee that can be
be charged on a loan is charged.
____________________.
Per the Dodd-Frank Act does a Yes
"qualified mortgage" provide
a "safe harbor"
regarding compliance with the
ability-to- repay
requirement?
/ 3/59
, 6/10/25, 7:24 PM MLO SAFE NMLS safe test practice questions
Relative to the Do-Not-Call 3 Months
registry a
company may call a consumer
for up to
_ _________ months after the
consumer makes an inquiry or
submits an application to the
company.
There are three (3) groups 3. Prohibition of Predatory Lending
of laws under the CFPB
includig 1. financial
disclosure, 2. privacy,
protection and consumer
identification and 3 _____ _.
The 3/7/3 Rule is a provision TILA, Truth in Lending Act
of the
_ ____ Act related to
required
disclosures and waiting
periods.
The illegal practice of Blockbusting
inducing owners to sell
their homes by suggesting
that the ethnic or racial
composition of the
neighborhood is changing
is called
_____________________________.
The borrower's ability to Capacity
pay a loan is referred to
as _________________.
The Fair Housing Act of Familial Status
1968 protects against
discrimination based on race,
color, religion, sex, national
origin, disability and
__________________________.
Which law requires that all The SAFE Act, The Secure and Fair Enforcement for the
mortgage loan originators mortgage licensing act of 2008.
pass a national licensing
/ 4/59
