California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
"Federal banking agencies" include:
Answers
A. The Director of the Office of Thrift Supervision, the Board of
Governors of the Federal Reserve System, and FDIC
B. Fannie Mae and Freddie Mac
C. The Comptroller of the Currency and the National Credit Union
Administration
D. A and C -
correct answer ✅D.
A borrower approaches a lender to refinance their existing negative
amortization loan, which was originated by that
same lender. Which of the following statements is incorrect?
A. The lender must make due regard for the borrower's ability to
repay the new loan.
,California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
B. The new loan cannot be a stated income pay option arm.
C. The lender can collect a prepayment penalty, as long as it does
not exceed 1.75% of the principal balance.
D. If their existing mortgage is a reverse mortgage, it is not
considered a negative amortization loan. -
correct answer ✅C.
A borrower cannot be required to pay interest on the principal
balance of a loan secured by a mortgage on real
property more than how many days prior the date that loan
proceeds are disbursed from escrow?
Answers
A. One (1) day
B. Three (3) days
,California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
C. Five (5) days
D. Seven (7) days -
correct answer ✅A.
A borrower's file requires a VOD, however currently, the borrower
has no money but is expecting an inheritance check.
What can the MLO do?
Answers
A. The MLO may request the VOD takes place after the funds are
deposited
B. Request the borrower to take out a pay day advance loan, put it
in his account, and repay it once the verification is done
C. The MLO may loan the borrower money and take it back after
the VOD is complete -
correct answer ✅A.
, California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
A foreclosure consultant may not charge a fee in which exceeds ___
percent per annum of a loan which the consultant makes to the
owner.
Answers
A. 10%
B. 20%
C. 3%
D. 5% -
correct answer ✅A.
A late charge may be imposed for late payment of an installment
due on a mortgage loan or deed of trust but cannot exceed greater
than $5 or ___ percent of the installment due.
Answers
A. One (1) percent
Exam Questions + Verified Answers
100% correct, Update 2026
"Federal banking agencies" include:
Answers
A. The Director of the Office of Thrift Supervision, the Board of
Governors of the Federal Reserve System, and FDIC
B. Fannie Mae and Freddie Mac
C. The Comptroller of the Currency and the National Credit Union
Administration
D. A and C -
correct answer ✅D.
A borrower approaches a lender to refinance their existing negative
amortization loan, which was originated by that
same lender. Which of the following statements is incorrect?
A. The lender must make due regard for the borrower's ability to
repay the new loan.
,California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
B. The new loan cannot be a stated income pay option arm.
C. The lender can collect a prepayment penalty, as long as it does
not exceed 1.75% of the principal balance.
D. If their existing mortgage is a reverse mortgage, it is not
considered a negative amortization loan. -
correct answer ✅C.
A borrower cannot be required to pay interest on the principal
balance of a loan secured by a mortgage on real
property more than how many days prior the date that loan
proceeds are disbursed from escrow?
Answers
A. One (1) day
B. Three (3) days
,California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
C. Five (5) days
D. Seven (7) days -
correct answer ✅A.
A borrower's file requires a VOD, however currently, the borrower
has no money but is expecting an inheritance check.
What can the MLO do?
Answers
A. The MLO may request the VOD takes place after the funds are
deposited
B. Request the borrower to take out a pay day advance loan, put it
in his account, and repay it once the verification is done
C. The MLO may loan the borrower money and take it back after
the VOD is complete -
correct answer ✅A.
, California State NMLS Practice Test
Exam Questions + Verified Answers
100% correct, Update 2026
A foreclosure consultant may not charge a fee in which exceeds ___
percent per annum of a loan which the consultant makes to the
owner.
Answers
A. 10%
B. 20%
C. 3%
D. 5% -
correct answer ✅A.
A late charge may be imposed for late payment of an installment
due on a mortgage loan or deed of trust but cannot exceed greater
than $5 or ___ percent of the installment due.
Answers
A. One (1) percent
