🧩 NMLS HARD PRACTICE QUESTIONS
(NEWEST 2025)
I have break them into sections for easier reading.
📘 A. TILA, RESPA & TRID – Disclosure & Law (Q1–Q20)
Q1. Under RESPA, what is the maximum penalty for a
person who knowingly gives or accepts a kickback?
A) $5,000 fine only
B) Up to $10,000 fine and 1 year in prison
C) $100,000 fine and 10 years
D) Civil penalty only
✅ Answer: B) Up to $10,000 fine and 1 year in prison
per violation.
Q2. According to TRID, a creditor must deliver or place
in the mail the Closing Disclosure at least:
A) 7 business days before consummation
B) 3 business days before consummation
,C) 3 calendar days before application
D) At application
✅ Answer: B) 3 business days before consummation.
Q3. Which of the following is not covered by RESPA?
A) A 30-year fixed mortgage
B) A reverse mortgage
C) An FHA loan
D) A conventional purchase loan
✅ Answer: B) Reverse mortgages are exempt from
TRID/RESPA Section C disclosures.
Q4. TILA requires a Loan Estimate to be provided within
A) 1 business day after application
B) 3 business days after application
C) 3 calendar days before closing
D) Immediately at closing
✅ Answer: B) 3 business days after application.
Q5. Under RESPA, which fee may be collected before th
borrower receives the Loan Estimate?
A) Credit report fee
,B) Underwriting fee
C) Processing fee
D) Appraisal fee
✅ Answer: A) Only actual credit report fee.
Q6. Which law prohibits charging a borrower for
preparing required disclosures?
A) ECOA
B) RESPA
C) HOEPA
D) SAFE Act
✅ Answer: B) RESPA (Section 8).
Q7. If a borrower asks for a copy of the appraisal, under
ECOA it must be delivered:
A) Within 30 days after closing
B) At least 3 days before closing
C) Within 3 business days of completion or 30 days of
denial
D) Only if the loan is approved
, ✅ Answer: C) Within 3 business days after it's
completed or within 30 days after denial.
Q8. The Loan Estimate expires if the borrower does not
indicate intent to proceed within:
A) 3 business days
B) 7 business days
C) 10 business days
D) 30 calendar days
✅ Answer: C) 10 business days.
Q9. TRID applies to which of the following?
A) HELOCs
B) Reverse mortgages
C) Construction loans for personal use
D) Loans secured by 25 acres or more
✅ Answer: C) Construction loans for personal use.
Q10. Which cost is subject to a 0% tolerance between L
and CD?
A) Transfer taxes
(NEWEST 2025)
I have break them into sections for easier reading.
📘 A. TILA, RESPA & TRID – Disclosure & Law (Q1–Q20)
Q1. Under RESPA, what is the maximum penalty for a
person who knowingly gives or accepts a kickback?
A) $5,000 fine only
B) Up to $10,000 fine and 1 year in prison
C) $100,000 fine and 10 years
D) Civil penalty only
✅ Answer: B) Up to $10,000 fine and 1 year in prison
per violation.
Q2. According to TRID, a creditor must deliver or place
in the mail the Closing Disclosure at least:
A) 7 business days before consummation
B) 3 business days before consummation
,C) 3 calendar days before application
D) At application
✅ Answer: B) 3 business days before consummation.
Q3. Which of the following is not covered by RESPA?
A) A 30-year fixed mortgage
B) A reverse mortgage
C) An FHA loan
D) A conventional purchase loan
✅ Answer: B) Reverse mortgages are exempt from
TRID/RESPA Section C disclosures.
Q4. TILA requires a Loan Estimate to be provided within
A) 1 business day after application
B) 3 business days after application
C) 3 calendar days before closing
D) Immediately at closing
✅ Answer: B) 3 business days after application.
Q5. Under RESPA, which fee may be collected before th
borrower receives the Loan Estimate?
A) Credit report fee
,B) Underwriting fee
C) Processing fee
D) Appraisal fee
✅ Answer: A) Only actual credit report fee.
Q6. Which law prohibits charging a borrower for
preparing required disclosures?
A) ECOA
B) RESPA
C) HOEPA
D) SAFE Act
✅ Answer: B) RESPA (Section 8).
Q7. If a borrower asks for a copy of the appraisal, under
ECOA it must be delivered:
A) Within 30 days after closing
B) At least 3 days before closing
C) Within 3 business days of completion or 30 days of
denial
D) Only if the loan is approved
, ✅ Answer: C) Within 3 business days after it's
completed or within 30 days after denial.
Q8. The Loan Estimate expires if the borrower does not
indicate intent to proceed within:
A) 3 business days
B) 7 business days
C) 10 business days
D) 30 calendar days
✅ Answer: C) 10 business days.
Q9. TRID applies to which of the following?
A) HELOCs
B) Reverse mortgages
C) Construction loans for personal use
D) Loans secured by 25 acres or more
✅ Answer: C) Construction loans for personal use.
Q10. Which cost is subject to a 0% tolerance between L
and CD?
A) Transfer taxes
