NMLS MLO Licensing Test 2026 Actual with Questions & Answers (Latest 2026 / 2027 Update) 100% Guarantee Pass (Verified Answers)

NMLS MLO LICENSING TEST
Questions and Answers

1.Income of self-employed applicants: a self-employed applicant must
show that he or she has maintained an income for two years in order to
qualify for a mortgage loan.
-Tax returns for the past two years
-A year-to-date profit and loss statement
-Balance sheets for the past two years
-A self-employed income analysis


2.Informational Disclosures to Educate the Consumer: -Your Home Loan
Toolk- it: A Step-by-Step Guide: RESPA
Consumer Handbook on Adjustable-Rate -Mortgages (CHARM) Booklet:
required by TILA within three business days of application for all ARMs
-When Your Home Is on the Line: What You Should Know about Home
Equity Lines of Credit: this booklet is required by TILA
-List of homeownership counseling organizations: RESPA


3.Disclosures to Inform the Consumer about the Costs of a Loan (Pre-
Clos- ing): Loan Estimate,
Closing Disclosure,
Affiliate Business Arrangement,
Re-disclosure of APR (3d prior to closing)


,4.Disclosures to Inform the Consumer about the Costs of a Loan (Post-
Clos- ing): Initial Escrow Account Statement,
Annual Escrow statement,
Escrow Closing notice,
Initial Rate change disclosure


5.Disclosures to Advise Consumer of Risky Lending Terms or Agreements: -
Balloon Payment Notice,
Notice regarding insurance premiums,
Notice that completion of loan application and receipt of disclosure does
not obligate borrower to complete transaction


6.Disclosures to Alert Consumers of Their Rights: Notice of Right to
Receive Appraisal Report (3d),
Notice Regarding Monitoring Programs
(ECOA), Notice of Right to Rescind (TILA),
Notice of Right to Cancel PMI (HPA),
Notice of Right to Receive Credit Score and to Dispute Its Accuracy,
Notice of Right to Financial Privacy and Right to Opt Out of the Sharing of
Personal Information (GLB)


7.Disclosures to Alert Consumers about the Status of a Loan Application:
No- tice of

Adverse


,action Action
taken
Incomplete
application (all 30d)


8.Disclosures Relating to Loan Servicing: Mortgage Servicing Disclosure
State- ment (RESPA, 3d),
Servicing Transfer Statement (RESPA, 15d)


9.Income calculation for hourly pay...: {base rate} x {hours} = {weekly
income}
{OT rate} x {OT hours} = {OT weekly income}
{weekly base} + {OT income} = {weekly income}
{weekly income} × {weeks worked} = {annual income}
{annual income} ÷ 12 = {monthly income}


10.Income calculation for bi-weekly salary: {bi-weekly salary} x 26 =
{annual income} {annual income} ÷ 12 = {monthly income}

There is a difference between bi-weekly payments of salary and semi-
monthly payments. While a bi-weekly payroll has 26 pay periods, one
that is semi-monthly has 24 pay periods.



11.Income calculation for semi-monthly: There is a difference between bi-
weekly payments of salary and semi-monthly payments. While a bi-


, weekly payroll has 26 pay periods, one that is semi-monthly has 24 pay
periods.

{bi-weekly salary} x 24 = {annual income} {annual income} ÷ 12 =
{monthly income}



12.Income calculation for annual salary: {annual income} ÷ 12 =
{monthly in- come}


13.Income calculation for self-employed: {year one income} + {year two
income}
= {income base}
{income base} ÷ 24 = {monthly income}


14.A loan applicant applies for a mortgage to purchase a home which the
seller has agreed to sell for $350,000. The purchase price is $5,000 less
than the home's appraised value of $355,000. The loan applicant has
savings of
$70,000 to use for a down payment.

Find the LTV and Loan amount: {Purchase Price} - {Down Payment} =
{Mortgage Amount}
{$350,000} - {$70,000} = {$280,000}

{Amount of Mortgage} ÷ {Purchase Price} = {LTV} {$280,000} ÷
{$350,000} = {80%}