NMLS Safe Test Mortgage Licensing
Practice Exam Q's Question and
Answers Latest Updates 2026 Graded
A+
Which item is NOT included in the calculation that
determines the annual percentage rate?
a. the broker's origination fee
b. the lender's discount points
c. the mortgage insurance premium
d. the title insurance premium
The title insurance premium (D)
Under RESPA, who would be subject to fines and penalties if
a kickback is paid?
All parties paying or receiving a kickback
A conforming loan is a loan that
Follows the secondary market criteria set by Fannie Mae/Freddie
Mac
MLO Jon from ABC Mortgage is meeting with a potential
borrower. What may Jon NEVER ask about during the loan
application process?
Religion
The clause in the mortgage that makes the note due in full
upon sale or transfer of a property is call a(n)
Alienation clause AKA "due at sale clause"
The APR is required to be disclosed in a Truth in Lending
statement is the
Relationship between the total cost of borrowing and the actual
,amount borrowed
Which of the following is NOT included as a protected class
by the Equal Credit Opportunity Act?
a. martial status
b. receipt of public assistance
c. religion
d. Social security
D
The rate that is used to amortize the mortgage loan and
determining the monthly loan payments is known as the
note rate
The loan officer knows that the applicants source of income
is public assistance, so he tells the applicant not to waster
his time filling out an application and paying any fees. What
federal law has the loan officer violated?
ECOA
A subordination clause in a morgage
Puts the mortgage in first lien position over an earlier recorded
mortgage
Where do the funds for FHA loans come from?
approved lenders
An applicant for a mortgage has recurring monthly debt of
$425 and a gross monthly income of $3,850. For a
conforming loan, what is the maximum house payment-
including PITI- for which she qualifies?
$961.00
What is the loan-to-value if the loan amount is $139,500, the
appraised value is $164,117 and the sales price is $155,000?
*remember to use lower number of either appraised value or
sales price*
,90%
To comply with the Safeguard Rules of Gramm, Leach, Bliley,
a loan officer should
place all loan applications and documentation in a secure place
when not working on them
VA loans allow for a maximum LTV of what percent?
100%
Byuyer with a credit score of 703 makes an offer of $156,000
on a house that was appraised for $162,000. If the seller
accepts his offer, how much will he have to pay down on a
FHA loan?
$5,460
Private mortgage insurance (PMI) is NOT required when
the loan has been paid down to less than 78% of the property's
current value
The federal Truth in Lending Act
regulates advertising with references to mortgage interest rates
When qualifying a borrower, an installment debt down not
need to be included in the debt ration on conventional loans
when the balance of the term of repayment is less than how
many months?
10
Market value can best be defined as a property's
most probable selling price
How many business days from the day of application does
the creditor have to deliver the Loan Estimate?
3
What document does the VA use to determine the amount of
a veteran's entitlement?
COE
An applicant for a mortgage loan is a salaried employee who
is paid $1,350 every two weeks. In addition, she indicates
, that she receives $500 a month in alimony. what is the gross
monthly income you can use to qualify her?
$3,425
Which is a disclosure that RESPA requires creditors to give
to customers at the time of the mortgage loan closing?
Closing Disclosure
A Chapter 7 bankruptcy could show on a credit report for a
maximum of
10 years
How many days does a borrower have to occupy a home with
an FHA loan?
60 days
A HELOC is a type of mortgage
where the balance fluctuates as the borrower accesses funds
Which is NOT a triggering term requiring additional
disclosing in advertising?
a. "360 easy payments"
b. $3,000 down"
c. "Pay only $800/month"
d. "Terms to fit your budget"
D
Which is NOT a requirement of the Safeguards Rule of the
Gramm-Leach-Bliley Act?
a. allow consumers to add their numbers to a list that
prohibits unauthorized calls
b. ensures teh security and confidentiality of customer
records
c. protect against any anticipated threats of hazards to the
security of consumer records
d. protect against the unauthorized access or use of
Practice Exam Q's Question and
Answers Latest Updates 2026 Graded
A+
Which item is NOT included in the calculation that
determines the annual percentage rate?
a. the broker's origination fee
b. the lender's discount points
c. the mortgage insurance premium
d. the title insurance premium
The title insurance premium (D)
Under RESPA, who would be subject to fines and penalties if
a kickback is paid?
All parties paying or receiving a kickback
A conforming loan is a loan that
Follows the secondary market criteria set by Fannie Mae/Freddie
Mac
MLO Jon from ABC Mortgage is meeting with a potential
borrower. What may Jon NEVER ask about during the loan
application process?
Religion
The clause in the mortgage that makes the note due in full
upon sale or transfer of a property is call a(n)
Alienation clause AKA "due at sale clause"
The APR is required to be disclosed in a Truth in Lending
statement is the
Relationship between the total cost of borrowing and the actual
,amount borrowed
Which of the following is NOT included as a protected class
by the Equal Credit Opportunity Act?
a. martial status
b. receipt of public assistance
c. religion
d. Social security
D
The rate that is used to amortize the mortgage loan and
determining the monthly loan payments is known as the
note rate
The loan officer knows that the applicants source of income
is public assistance, so he tells the applicant not to waster
his time filling out an application and paying any fees. What
federal law has the loan officer violated?
ECOA
A subordination clause in a morgage
Puts the mortgage in first lien position over an earlier recorded
mortgage
Where do the funds for FHA loans come from?
approved lenders
An applicant for a mortgage has recurring monthly debt of
$425 and a gross monthly income of $3,850. For a
conforming loan, what is the maximum house payment-
including PITI- for which she qualifies?
$961.00
What is the loan-to-value if the loan amount is $139,500, the
appraised value is $164,117 and the sales price is $155,000?
*remember to use lower number of either appraised value or
sales price*
,90%
To comply with the Safeguard Rules of Gramm, Leach, Bliley,
a loan officer should
place all loan applications and documentation in a secure place
when not working on them
VA loans allow for a maximum LTV of what percent?
100%
Byuyer with a credit score of 703 makes an offer of $156,000
on a house that was appraised for $162,000. If the seller
accepts his offer, how much will he have to pay down on a
FHA loan?
$5,460
Private mortgage insurance (PMI) is NOT required when
the loan has been paid down to less than 78% of the property's
current value
The federal Truth in Lending Act
regulates advertising with references to mortgage interest rates
When qualifying a borrower, an installment debt down not
need to be included in the debt ration on conventional loans
when the balance of the term of repayment is less than how
many months?
10
Market value can best be defined as a property's
most probable selling price
How many business days from the day of application does
the creditor have to deliver the Loan Estimate?
3
What document does the VA use to determine the amount of
a veteran's entitlement?
COE
An applicant for a mortgage loan is a salaried employee who
is paid $1,350 every two weeks. In addition, she indicates
, that she receives $500 a month in alimony. what is the gross
monthly income you can use to qualify her?
$3,425
Which is a disclosure that RESPA requires creditors to give
to customers at the time of the mortgage loan closing?
Closing Disclosure
A Chapter 7 bankruptcy could show on a credit report for a
maximum of
10 years
How many days does a borrower have to occupy a home with
an FHA loan?
60 days
A HELOC is a type of mortgage
where the balance fluctuates as the borrower accesses funds
Which is NOT a triggering term requiring additional
disclosing in advertising?
a. "360 easy payments"
b. $3,000 down"
c. "Pay only $800/month"
d. "Terms to fit your budget"
D
Which is NOT a requirement of the Safeguards Rule of the
Gramm-Leach-Bliley Act?
a. allow consumers to add their numbers to a list that
prohibits unauthorized calls
b. ensures teh security and confidentiality of customer
records
c. protect against any anticipated threats of hazards to the
security of consumer records
d. protect against the unauthorized access or use of
