MLO SAFE NMLS Safe Test Questions and Answers |Fall
2025/2026 Update | 100% Correct
Question 1
Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing
that does not benefit the borrower and other prohibited acts is called __________________________.
Correct Answer
Predatory Lending.
Question 2
RESPA-Real Estate Settlement Procedures Act
Correct Answer
The Federal Statute that deals with the settlement of residential mortgage loans.
Question 3
RESPA's section 9 Prohibits
Correct Answer
Home sellers from requiring home buyers to purchase title insurance from a particular company providing title services.
Page 1 of 96
,Question 4
The Dodd-Frank Act modifies ECOA to require a creditor to furnish a copy of an appraisal developed in connection with a
first mortgage_____________________ and absolutely not later than ________ business days prior to closing.
Correct Answer
upon completion and 3 business days
Question 5
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate)
Correct Answer
Per the Dodd Frank Act, a single disclosure form combines these 2 statements.
Question 6
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees may not exceed ________% of the total loan
amount.
Correct Answer
3% (three percent)
Question 7
Per a provision of the Dodd-Frank Act mortgage lenders are to determine that a borrower has a reasonable ability to repay
a loan. Does this provision apply to all loans or just owner occupied loans?
Correct Answer
All loans, whether owner occupied or not.
Page 2 of 96
,Question 8
A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan.
Correct Answer
2 (two) years
Question 9
Per the Dodd-Frank Act an abusive act would include which of the following:
1. One that materially interferes with the consumers ability to understand the product or service.
2. One that take unreasonable advantage of a consumers' lack of understanding.
3. One that takes unreasonable advantage of the consumer's reasonable reliance on the MLO.
Correct Answer
All three would be considered abusive acts.
Question 10
Per the Dodd-Frank Act if an MLO receives compensation directly from a consumer, up to how much additional
compensation may be received from a lender in the same transaction?
Correct Answer
$0.00, dual compensation is not allowed. Compensation must be borrower paid or lender paid.
Page 3 of 96
, Question 11
What kinds of reasons are necessary for a lender to take adverse action with regard to a borrower?
Correct Answer
Specific reasons.
Question 12
Adverse action means ______________________.
Correct Answer
A denial or revocation of credit. Also, a change in the terms of an existing credit arrangement or a refusal to grant credit
in substantially the amount or terms requested.
Question 13
Per Regulation B, Lenders should retain certain records for _____________ months.
Correct Answer
25 Months
Question 14
Because of the impact of the Dodd-Frank Act on a second mortgage, an APR that exceeds the ________ by more than _____%
is the trigger that defines a high cost loan.
Correct Answer
APOR ( Average Prime Offer Rate), 8.5%
Page 4 of 96
2025/2026 Update | 100% Correct
Question 1
Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing
that does not benefit the borrower and other prohibited acts is called __________________________.
Correct Answer
Predatory Lending.
Question 2
RESPA-Real Estate Settlement Procedures Act
Correct Answer
The Federal Statute that deals with the settlement of residential mortgage loans.
Question 3
RESPA's section 9 Prohibits
Correct Answer
Home sellers from requiring home buyers to purchase title insurance from a particular company providing title services.
Page 1 of 96
,Question 4
The Dodd-Frank Act modifies ECOA to require a creditor to furnish a copy of an appraisal developed in connection with a
first mortgage_____________________ and absolutely not later than ________ business days prior to closing.
Correct Answer
upon completion and 3 business days
Question 5
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate)
Correct Answer
Per the Dodd Frank Act, a single disclosure form combines these 2 statements.
Question 6
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees may not exceed ________% of the total loan
amount.
Correct Answer
3% (three percent)
Question 7
Per a provision of the Dodd-Frank Act mortgage lenders are to determine that a borrower has a reasonable ability to repay
a loan. Does this provision apply to all loans or just owner occupied loans?
Correct Answer
All loans, whether owner occupied or not.
Page 2 of 96
,Question 8
A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan.
Correct Answer
2 (two) years
Question 9
Per the Dodd-Frank Act an abusive act would include which of the following:
1. One that materially interferes with the consumers ability to understand the product or service.
2. One that take unreasonable advantage of a consumers' lack of understanding.
3. One that takes unreasonable advantage of the consumer's reasonable reliance on the MLO.
Correct Answer
All three would be considered abusive acts.
Question 10
Per the Dodd-Frank Act if an MLO receives compensation directly from a consumer, up to how much additional
compensation may be received from a lender in the same transaction?
Correct Answer
$0.00, dual compensation is not allowed. Compensation must be borrower paid or lender paid.
Page 3 of 96
, Question 11
What kinds of reasons are necessary for a lender to take adverse action with regard to a borrower?
Correct Answer
Specific reasons.
Question 12
Adverse action means ______________________.
Correct Answer
A denial or revocation of credit. Also, a change in the terms of an existing credit arrangement or a refusal to grant credit
in substantially the amount or terms requested.
Question 13
Per Regulation B, Lenders should retain certain records for _____________ months.
Correct Answer
25 Months
Question 14
Because of the impact of the Dodd-Frank Act on a second mortgage, an APR that exceeds the ________ by more than _____%
is the trigger that defines a high cost loan.
Correct Answer
APOR ( Average Prime Offer Rate), 8.5%
Page 4 of 96
