NMLS Practice Test
Questions and Answers
Updated 2026
1)BSellerBcanBSellBpropertyBatBaBpremium/profitBwithBFannieBMaeBfinancingBafter?B
30Bdays
•60Bdays
•90BdaysB-BAnswer•90Bdays
2)BABCOFIBindexBisBdefinedBas?
CostBofBfundsBindex
•CostBofBfinancialBindex
•CostBofBfundingBinsuranceB-BAnswercostBofBfundBindex
3)BSubordinateBfinancingBrelatesBto
•sellerBfinancing.
•secondBmortgages.
•financingBinBtheBsecondaryBmortgageBmarket.
•subprimeBloans.B-BAnswersecondBmortgage
4)BExplainBwhatBInvestorsBwithBnon-recourseBloansBmean?
•BorrowerBdoesBnotBhaveBanyBrecourseBonBdefault
•BorrowerBdoesn'tBoccupyBtheBproperty
•BorrowerBhasB20%BequityB-BAnswerBorrowerBdoesBnotBhaveBanyBrecourseBonBdefault
, 5)BWhichBofBtheBfollowingBisBtrueBofBtheBCOFI?
ItBstandsBforBtheBCostBofBFutureBInterest.
•ItBisBtheBpreferredBindexBifBinterestBratesBareBexpectedBtoBfall.
•ItBisBonlyBusedBinBtheB11thBFederalBHomeBLoanBBankBDistrict.
•ItBisBtheBslow-movingBCostBofBFundsBIndex.B-
BAnswerItBisBtheBslowBmovingBcostBofBfundsBindex
6)BWhoBisBinBchargeBofBdiscriminationBcomplaints?
•FederalBhousingBauthority
•Lender
•ECOA
•LoanBOfficerB-BAnswerFederalBhousingBauthority
7)BTheBadvantageBofBaBhomeBequityBloanBoverBrefinancingBis
•lowerBinterestBrate.
•lessBlikelihoodBofBdefault.
•taxBdeductibility.
•theBabilityBtoBpayBoffBpartBofBtheBtotalBdebtBseparately.B-
BAnswertheBabilityBtoBpayBoffBpartBofBtheBtotalBdebtBseparately
9)BWhenBaBtelemarketerBcallsBaBpersonBonBtheBdoBnotBcallBlistBinBviolationBofBtheBdo
BnotBcallBregulations,BheBisBsubjectBtoBaBfineBof
$5,000.
•$7,500.
Questions and Answers
Updated 2026
1)BSellerBcanBSellBpropertyBatBaBpremium/profitBwithBFannieBMaeBfinancingBafter?B
30Bdays
•60Bdays
•90BdaysB-BAnswer•90Bdays
2)BABCOFIBindexBisBdefinedBas?
CostBofBfundsBindex
•CostBofBfinancialBindex
•CostBofBfundingBinsuranceB-BAnswercostBofBfundBindex
3)BSubordinateBfinancingBrelatesBto
•sellerBfinancing.
•secondBmortgages.
•financingBinBtheBsecondaryBmortgageBmarket.
•subprimeBloans.B-BAnswersecondBmortgage
4)BExplainBwhatBInvestorsBwithBnon-recourseBloansBmean?
•BorrowerBdoesBnotBhaveBanyBrecourseBonBdefault
•BorrowerBdoesn'tBoccupyBtheBproperty
•BorrowerBhasB20%BequityB-BAnswerBorrowerBdoesBnotBhaveBanyBrecourseBonBdefault
, 5)BWhichBofBtheBfollowingBisBtrueBofBtheBCOFI?
ItBstandsBforBtheBCostBofBFutureBInterest.
•ItBisBtheBpreferredBindexBifBinterestBratesBareBexpectedBtoBfall.
•ItBisBonlyBusedBinBtheB11thBFederalBHomeBLoanBBankBDistrict.
•ItBisBtheBslow-movingBCostBofBFundsBIndex.B-
BAnswerItBisBtheBslowBmovingBcostBofBfundsBindex
6)BWhoBisBinBchargeBofBdiscriminationBcomplaints?
•FederalBhousingBauthority
•Lender
•ECOA
•LoanBOfficerB-BAnswerFederalBhousingBauthority
7)BTheBadvantageBofBaBhomeBequityBloanBoverBrefinancingBis
•lowerBinterestBrate.
•lessBlikelihoodBofBdefault.
•taxBdeductibility.
•theBabilityBtoBpayBoffBpartBofBtheBtotalBdebtBseparately.B-
BAnswertheBabilityBtoBpayBoffBpartBofBtheBtotalBdebtBseparately
9)BWhenBaBtelemarketerBcallsBaBpersonBonBtheBdoBnotBcallBlistBinBviolationBofBtheBdo
BnotBcallBregulations,BheBisBsubjectBtoBaBfineBof
$5,000.
•$7,500.