DC Property Management (PM) License Exam
– Law | Latest 2025/2026 Exam Prep &
Practice Questions
In the District of Columbia, a license to originate is necessary in which of the following
scenarios? - correct answerAn originator making a loan for a first cousin
___________ occurs when a loan agreement allows the borrower to make payments
less than the amount necessary to cover the interest that has accrued on the loan,
leaving the unpaid interest to be added to the loan balance. - correct answerNegative
amortization
When applying for a mortgage lender or broker license, a background check will be
conducted on: - correct answerThe control person
District of Columbia loan originators are required to obtain at least how many hours of
continuing education on ethics each year? - correct answerTWO
Under the Mortgage Lender and Broker Act, a loan originator's unique identifier is
required to be included on all but which of the following? - correct answerBroker's office
signs
According to the District's Mortgage Lender and Broker Act, prior to licensing, a loan
originator must show proof of experience: - correct answerThere is no experience
requirement for a loan originator
Loan originators are required to complete continuing education hours: - correct
answerNOT At least 30 days prior to license expiration
NOT By the date of license expiration
Which of the following is true regarding surety bond requirements for mortgage loan
originators? - correct answerNOT 75k
NOT Only mortgage lender and mortgage broker licensees must be covered by a surety
bond
Which of the following makes licensing decisions in the District of Columbia? - correct
answerThe Associate Commissioner of the Banking Bureau
Which of the following is not a significant event for a loan originator that requires
notification to the Commissioner? - correct answerReceipt of a speeding ticket, which
the licensee immediately pays
,A loan meets the thresholds for covered loans under the DC Home Loan Protection Act
if the points and fees payable by the borrower exceed: - correct answer5% of the loan
amount
An individual who maintains information and a unique identifier through the NMLS and
carries out loan origination activities, but is not required to maintain a loan originator
license, is known as a(n): - correct answerRegistered mortgage loan originator
How many hour(s) of continuing education specific to D.C. law are required annually? -
correct answerNOT Three
NOT 8
The minimum net worth requirement for a broker in the District of Columbia is: - correct
answerNOT $50,000
In order to qualify for licensing in the District of Columbia, mortgage brokers must
provide proof of net worth in what amount? - correct answerNOT $100,000
NOT $50,000
How is the DISB annual assessment fee calculated? - correct answerA flat fee plus
$6.60 per loan completed in the prior year
In accordance with the Mortgage Lender and Broker Act, the required retention period
for records maintained by mortgage brokers is: - correct answerA minimum of three
years
A mortgage loan originator is required to wait _______ after failing a third attempt on a
licensing exam. - correct answerA minimum of 180 days
In which of the following scenarios may a lender consider a borrower's equity in the
subject property as it pertains to covered loans? - correct answerWith regard to
refinancing when the loan includes future balloon payments?
The dual authority license allows a licensee to practice as both: - correct
answerMortgage lender and mortgage broker
Which of the following is not considered a prohibited act under the Mortgage Lender
and Broker Act? - correct answerPaying a licensing fee prior to licensure
Within how many days after the borrower submits an application must he or she be
provided with the Non-Conventional Mortgage Disclosure? - correct answerThree
business days
Open-end lines of credit are covered under which of the following Acts? - correct
answerDistrict of Columbia Home Loan Protection Act
, The maximum penalty per violation of the law by a District of Columbia licensee is: -
correct answerNOT $2,000
Which of the following is not information that must be disclosed on the mortgage loan
originator license application? - correct answerEducational history
A loan originator is required to complete ____ hours of continuing education on federal
law each year. - correct answerThree
The law governing activities of District of Columbia mortgage professionals is the: -
correct answerMortgage Lender and Broker Act
A mortgage loan originator is assigned a unique identifier by: - correct answerThe
NMLS
A mortgage broker license applicant is permitted to obtain a blanket surety bond of
$200,000 when submitting _____ applications. - correct answerNOT More than one
District of Columbia mortgage law defines a non-conventional mortgage loan as: -
correct answerAny mortgage loan other than a 30-year fixed-rate loan
When applying for a license, a mortgage lender or broker applicant must file a(n)
________ Form, and a mortgage loan originator applicant must file a(n) ________
Form. - correct answerCompany; Individual
The District of Columbia's mortgage law allows the Commissioner of the DISB to deny a
license application for any of the following reasons, except: - correct answerThe
application is filed in the month of February
All of the following must be provided prior to a loan originator's license renewal, except:
- correct answerA list of all loans originated in the previous year
Which of the following is prohibited by the HLPA? - correct answerOriginating a covered
loan featuring mortgage insurance the borrower may not be able to afford
As defined by the HLPA, a ____ loan has a term of less than one year and only requires
that payments of interest be made until the entire unpaid balance becomes due. -
correct answerBridge
Licensees are responsible for paying fees for examinations conducted by the DISB: -
correct answerAt a rate of $400 per examiner per day
All of the following individuals are exempt from the requirements of the Mortgage
Lender and Broker Act, EXCEPT: - correct answerIndependent contractor loan
processors
– Law | Latest 2025/2026 Exam Prep &
Practice Questions
In the District of Columbia, a license to originate is necessary in which of the following
scenarios? - correct answerAn originator making a loan for a first cousin
___________ occurs when a loan agreement allows the borrower to make payments
less than the amount necessary to cover the interest that has accrued on the loan,
leaving the unpaid interest to be added to the loan balance. - correct answerNegative
amortization
When applying for a mortgage lender or broker license, a background check will be
conducted on: - correct answerThe control person
District of Columbia loan originators are required to obtain at least how many hours of
continuing education on ethics each year? - correct answerTWO
Under the Mortgage Lender and Broker Act, a loan originator's unique identifier is
required to be included on all but which of the following? - correct answerBroker's office
signs
According to the District's Mortgage Lender and Broker Act, prior to licensing, a loan
originator must show proof of experience: - correct answerThere is no experience
requirement for a loan originator
Loan originators are required to complete continuing education hours: - correct
answerNOT At least 30 days prior to license expiration
NOT By the date of license expiration
Which of the following is true regarding surety bond requirements for mortgage loan
originators? - correct answerNOT 75k
NOT Only mortgage lender and mortgage broker licensees must be covered by a surety
bond
Which of the following makes licensing decisions in the District of Columbia? - correct
answerThe Associate Commissioner of the Banking Bureau
Which of the following is not a significant event for a loan originator that requires
notification to the Commissioner? - correct answerReceipt of a speeding ticket, which
the licensee immediately pays
,A loan meets the thresholds for covered loans under the DC Home Loan Protection Act
if the points and fees payable by the borrower exceed: - correct answer5% of the loan
amount
An individual who maintains information and a unique identifier through the NMLS and
carries out loan origination activities, but is not required to maintain a loan originator
license, is known as a(n): - correct answerRegistered mortgage loan originator
How many hour(s) of continuing education specific to D.C. law are required annually? -
correct answerNOT Three
NOT 8
The minimum net worth requirement for a broker in the District of Columbia is: - correct
answerNOT $50,000
In order to qualify for licensing in the District of Columbia, mortgage brokers must
provide proof of net worth in what amount? - correct answerNOT $100,000
NOT $50,000
How is the DISB annual assessment fee calculated? - correct answerA flat fee plus
$6.60 per loan completed in the prior year
In accordance with the Mortgage Lender and Broker Act, the required retention period
for records maintained by mortgage brokers is: - correct answerA minimum of three
years
A mortgage loan originator is required to wait _______ after failing a third attempt on a
licensing exam. - correct answerA minimum of 180 days
In which of the following scenarios may a lender consider a borrower's equity in the
subject property as it pertains to covered loans? - correct answerWith regard to
refinancing when the loan includes future balloon payments?
The dual authority license allows a licensee to practice as both: - correct
answerMortgage lender and mortgage broker
Which of the following is not considered a prohibited act under the Mortgage Lender
and Broker Act? - correct answerPaying a licensing fee prior to licensure
Within how many days after the borrower submits an application must he or she be
provided with the Non-Conventional Mortgage Disclosure? - correct answerThree
business days
Open-end lines of credit are covered under which of the following Acts? - correct
answerDistrict of Columbia Home Loan Protection Act
, The maximum penalty per violation of the law by a District of Columbia licensee is: -
correct answerNOT $2,000
Which of the following is not information that must be disclosed on the mortgage loan
originator license application? - correct answerEducational history
A loan originator is required to complete ____ hours of continuing education on federal
law each year. - correct answerThree
The law governing activities of District of Columbia mortgage professionals is the: -
correct answerMortgage Lender and Broker Act
A mortgage loan originator is assigned a unique identifier by: - correct answerThe
NMLS
A mortgage broker license applicant is permitted to obtain a blanket surety bond of
$200,000 when submitting _____ applications. - correct answerNOT More than one
District of Columbia mortgage law defines a non-conventional mortgage loan as: -
correct answerAny mortgage loan other than a 30-year fixed-rate loan
When applying for a license, a mortgage lender or broker applicant must file a(n)
________ Form, and a mortgage loan originator applicant must file a(n) ________
Form. - correct answerCompany; Individual
The District of Columbia's mortgage law allows the Commissioner of the DISB to deny a
license application for any of the following reasons, except: - correct answerThe
application is filed in the month of February
All of the following must be provided prior to a loan originator's license renewal, except:
- correct answerA list of all loans originated in the previous year
Which of the following is prohibited by the HLPA? - correct answerOriginating a covered
loan featuring mortgage insurance the borrower may not be able to afford
As defined by the HLPA, a ____ loan has a term of less than one year and only requires
that payments of interest be made until the entire unpaid balance becomes due. -
correct answerBridge
Licensees are responsible for paying fees for examinations conducted by the DISB: -
correct answerAt a rate of $400 per examiner per day
All of the following individuals are exempt from the requirements of the Mortgage
Lender and Broker Act, EXCEPT: - correct answerIndependent contractor loan
processors
