FLORIDA MORTGAGE BROKER EXAM
PRACTICE QUESTIONS WITH CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF
1. Which law requires a lender to provide a borrower with a Good
Faith Estimate of settlement costs?
A. Truth in Lending Act
B. Real Estate Settlement Procedures Act (RESPA)
C. Fair Housing Act
D. Equal Credit Opportunity Act
RESPA mandates disclosure of settlement costs to help borrowers
understand all charges before closing.
2. What is the main purpose of the Truth in Lending Act (TILA)?
A. To regulate real estate brokers
B. To promote informed use of consumer credit by requiring
disclosure of terms
C. To prevent mortgage fraud
D. To regulate property appraisals
TILA ensures borrowers know the cost of credit, including interest
rates and fees.
3. Which of the following is considered a nontraditional mortgage?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (ARM)
C. Interest-only mortgage
, D. VA mortgage
Nontraditional mortgages include interest-only and negative
amortization loans, which differ from standard fixed-rate loans.
4. The Florida Mortgage Brokerage & Lending Act is regulated by:
A. Department of Financial Services
B. Department of Revenue
C. Florida Office of Financial Regulation (OFR)
D. Federal Reserve
The OFR oversees licensing, compliance, and enforcement for
mortgage brokers in Florida.
5. What does “loan-to-value ratio” (LTV) measure?
A. Borrower’s income
B. The loan amount relative to the property’s value
C. Monthly mortgage payment
D. Closing costs
LTV indicates the risk level for lenders; higher LTV usually means
higher risk.
6. Which is true about mortgage brokers?
A. They lend money directly to borrowers
B. They arrange loans between borrowers and lenders
C. They only perform property appraisals
D. They set interest rates independently
Mortgage brokers facilitate loans but do not fund them
themselves.
7. Which law prohibits discrimination in lending based on race,
color, religion, sex, or national origin?
A. Fair Credit Reporting Act
B. Equal Credit Opportunity Act (ECOA)
C. Truth in Lending Act
, D. RESPA
ECOA ensures lenders cannot discriminate in any aspect of credit.
8. A borrower applying for a mortgage must provide:
A. A property appraisal only
B. Income, assets, employment history, and debts
C. Only a credit score
D. Just proof of citizenship
Lenders need financial information to evaluate creditworthiness
and risk.
9. What is a “prepayment penalty”?
A. Fee for missing a payment
B. Fee for paying off a loan early
C. Late payment interest
D. Insurance charge
Some loans include penalties to protect the lender’s expected
interest income.
10. Which type of mortgage rate changes periodically based on
an index?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (ARM)
C. Balloon mortgage
D. Reverse mortgage
ARMs adjust interest based on market indices, leading to variable
monthly payments.
11. The SAFE Act requires mortgage professionals to:
A. Hold a real estate license
B. Be registered or licensed and meet federal standards
C. Complete annual property appraisals
D. Only work with government loans
PRACTICE QUESTIONS WITH CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF
1. Which law requires a lender to provide a borrower with a Good
Faith Estimate of settlement costs?
A. Truth in Lending Act
B. Real Estate Settlement Procedures Act (RESPA)
C. Fair Housing Act
D. Equal Credit Opportunity Act
RESPA mandates disclosure of settlement costs to help borrowers
understand all charges before closing.
2. What is the main purpose of the Truth in Lending Act (TILA)?
A. To regulate real estate brokers
B. To promote informed use of consumer credit by requiring
disclosure of terms
C. To prevent mortgage fraud
D. To regulate property appraisals
TILA ensures borrowers know the cost of credit, including interest
rates and fees.
3. Which of the following is considered a nontraditional mortgage?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (ARM)
C. Interest-only mortgage
, D. VA mortgage
Nontraditional mortgages include interest-only and negative
amortization loans, which differ from standard fixed-rate loans.
4. The Florida Mortgage Brokerage & Lending Act is regulated by:
A. Department of Financial Services
B. Department of Revenue
C. Florida Office of Financial Regulation (OFR)
D. Federal Reserve
The OFR oversees licensing, compliance, and enforcement for
mortgage brokers in Florida.
5. What does “loan-to-value ratio” (LTV) measure?
A. Borrower’s income
B. The loan amount relative to the property’s value
C. Monthly mortgage payment
D. Closing costs
LTV indicates the risk level for lenders; higher LTV usually means
higher risk.
6. Which is true about mortgage brokers?
A. They lend money directly to borrowers
B. They arrange loans between borrowers and lenders
C. They only perform property appraisals
D. They set interest rates independently
Mortgage brokers facilitate loans but do not fund them
themselves.
7. Which law prohibits discrimination in lending based on race,
color, religion, sex, or national origin?
A. Fair Credit Reporting Act
B. Equal Credit Opportunity Act (ECOA)
C. Truth in Lending Act
, D. RESPA
ECOA ensures lenders cannot discriminate in any aspect of credit.
8. A borrower applying for a mortgage must provide:
A. A property appraisal only
B. Income, assets, employment history, and debts
C. Only a credit score
D. Just proof of citizenship
Lenders need financial information to evaluate creditworthiness
and risk.
9. What is a “prepayment penalty”?
A. Fee for missing a payment
B. Fee for paying off a loan early
C. Late payment interest
D. Insurance charge
Some loans include penalties to protect the lender’s expected
interest income.
10. Which type of mortgage rate changes periodically based on
an index?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (ARM)
C. Balloon mortgage
D. Reverse mortgage
ARMs adjust interest based on market indices, leading to variable
monthly payments.
11. The SAFE Act requires mortgage professionals to:
A. Hold a real estate license
B. Be registered or licensed and meet federal standards
C. Complete annual property appraisals
D. Only work with government loans
