Page 1 of 88
SAFE MLO PRACTICE EXAM NEWEST 2026
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {225 Q & A} ALREADY GRADED A+ |
BRAND NEW! | 100% GUARANTEED PASS | +
RATIONALES
A borrower has the following minimum payments due monthly:
Mortgage PITI - $1100, Auto loan with 12 payments remaining -
$350, Auto lease with 3 payments remaining - $250, Electric bill
- $110, Gas bill - $80, Student loan with 92 payments remaining -
$60, Visa credit card - $50. Given this set of data, what amount of
monthly debt would the underwriter use to calculate the
borrower's total debt ratio?
A. $1810
B. $2000
C. $1560
D. $900 - ✔✔✔ Correct Answer > A
Which of the following loans is characterized by a short maturity
period (usually six to nine months), interest-only payments on
the outstanding balance and multiple draws?
A. Reverse mortgage
,Page 2 of 88
B. Graduated payment mortgage
C. Home-equity loan
D. Construction loan - ✔✔✔ Correct Answer > D
Under the Equal Credit Opportunity Act, which of the following is
not a protected class/prohibited characteristic?
A. Race
B. National Origin
C. Religion
D. Handicap - ✔✔✔ Correct Answer > D
Who is ultimately responsible for ensuring that the appraisal
used by a lender for underwriting a loan is accurate?
A. The lender
B. The borrower
C. The appraiser
D. The borrower's real estate agent - ✔✔✔ Correct Answer > A
Of the terms listed, which is the best description of a 2-1 loan?
A. A buydown loan
B. An ARM loan
C. A growing equity mortgage
,Page 3 of 88
D. A reverse mortgage - ✔✔✔ Correct Answer > A
According to which regulation can an escrow account have a
cushion in an amount equal to 1/6th of the yearly taxes and
property insurance cost?
A. Regulation Z
B. Regulation X
C. Regulation C
D. Regulation B - ✔✔✔ Correct Answer > B
A reverse mortgage is a type of mortgage where:
A. The payments are more frequent and reduce the principal
balance at a faster rate.
B. Payments are amortized over 30 years, but the full principal
balance is due at the end of a much shorter period.
C. The lender may make periodic payments to the borrower.
D. The amortization begins at a fixed rate and converts to an
adjustable rate mortgage. - ✔✔✔ Correct Answer > C
A real estate agent and mortgage loan originator can create a
joint advertisement if:
A. The real estate professional pays the full cost of the ad
, Page 4 of 88
B. Each professional pays an amount proportionate to their
space/exposure in the ad
C. The mortgage professional pays the full cost of the ad
D. There is a written agreement as to how the cost will be split
between them - ✔✔✔ Correct Answer > B
What is accomplished through a permanent buydown?
A. The seller agrees to accept less money for the property.
B. The lender agrees to reduce the interest rate on the loan.
C. The borrower agrees to pay more in interest in exchange for
lower fees.
D. The seller agrees to pay borrower closing costs. - ✔✔✔ Correct
Answer > B
Under Regulation X, how often are lenders required to send
borrowers with escrow accounts a summary statement of the
account balance and transactions?
A. At closing and every 6 months
B. Only at closing out in month
C. At closing and every
D. At closing and every year - ✔✔✔ Correct Answer > D
SAFE MLO PRACTICE EXAM NEWEST 2026
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {225 Q & A} ALREADY GRADED A+ |
BRAND NEW! | 100% GUARANTEED PASS | +
RATIONALES
A borrower has the following minimum payments due monthly:
Mortgage PITI - $1100, Auto loan with 12 payments remaining -
$350, Auto lease with 3 payments remaining - $250, Electric bill
- $110, Gas bill - $80, Student loan with 92 payments remaining -
$60, Visa credit card - $50. Given this set of data, what amount of
monthly debt would the underwriter use to calculate the
borrower's total debt ratio?
A. $1810
B. $2000
C. $1560
D. $900 - ✔✔✔ Correct Answer > A
Which of the following loans is characterized by a short maturity
period (usually six to nine months), interest-only payments on
the outstanding balance and multiple draws?
A. Reverse mortgage
,Page 2 of 88
B. Graduated payment mortgage
C. Home-equity loan
D. Construction loan - ✔✔✔ Correct Answer > D
Under the Equal Credit Opportunity Act, which of the following is
not a protected class/prohibited characteristic?
A. Race
B. National Origin
C. Religion
D. Handicap - ✔✔✔ Correct Answer > D
Who is ultimately responsible for ensuring that the appraisal
used by a lender for underwriting a loan is accurate?
A. The lender
B. The borrower
C. The appraiser
D. The borrower's real estate agent - ✔✔✔ Correct Answer > A
Of the terms listed, which is the best description of a 2-1 loan?
A. A buydown loan
B. An ARM loan
C. A growing equity mortgage
,Page 3 of 88
D. A reverse mortgage - ✔✔✔ Correct Answer > A
According to which regulation can an escrow account have a
cushion in an amount equal to 1/6th of the yearly taxes and
property insurance cost?
A. Regulation Z
B. Regulation X
C. Regulation C
D. Regulation B - ✔✔✔ Correct Answer > B
A reverse mortgage is a type of mortgage where:
A. The payments are more frequent and reduce the principal
balance at a faster rate.
B. Payments are amortized over 30 years, but the full principal
balance is due at the end of a much shorter period.
C. The lender may make periodic payments to the borrower.
D. The amortization begins at a fixed rate and converts to an
adjustable rate mortgage. - ✔✔✔ Correct Answer > C
A real estate agent and mortgage loan originator can create a
joint advertisement if:
A. The real estate professional pays the full cost of the ad
, Page 4 of 88
B. Each professional pays an amount proportionate to their
space/exposure in the ad
C. The mortgage professional pays the full cost of the ad
D. There is a written agreement as to how the cost will be split
between them - ✔✔✔ Correct Answer > B
What is accomplished through a permanent buydown?
A. The seller agrees to accept less money for the property.
B. The lender agrees to reduce the interest rate on the loan.
C. The borrower agrees to pay more in interest in exchange for
lower fees.
D. The seller agrees to pay borrower closing costs. - ✔✔✔ Correct
Answer > B
Under Regulation X, how often are lenders required to send
borrowers with escrow accounts a summary statement of the
account balance and transactions?
A. At closing and every 6 months
B. Only at closing out in month
C. At closing and every
D. At closing and every year - ✔✔✔ Correct Answer > D
