Mortgage Loan Originator (NMLS) Exam
Newest 2026-2027 Updated 100
Questions From Actual Exams Complete
Questions And Correct Detailed
Answers (Expert Verified Exam)
|Already Graded A+||Brand New!!
1. A borrower applies for a loan to purchase a primary residence. Which law
requires disclosure of loan terms and costs?
A. RESPA
B. TILA
C. ECOA
D. HMDA
B. TILA
explanation: Truth in Lending Act requires disclosure of
credit terms, APR, and total loan cost.
2. Which document provides a summary of loan terms within 3 business days
of application?
A. HUD-1
B. Closing Disclosure
C. Loan Estimate
D. Promissory Note
C. Loan Estimate
explanation: The Loan Estimate outlines projected loan
costs and must be provided early in the process.
,3. What is the maximum timeframe to provide the Closing Disclosure before
consummation?
A. 1 day
B. 2 days
C. 3 days
D. 5 days
C. 3 days
explanation: Borrowers must receive the Closing Disclosure
at least 3 business days before closing.
4. A borrower is denied credit. What must the lender provide?
A. Loan Estimate
B. Adverse Action Notice
C. Appraisal
D. Credit Report
B. Adverse Action Notice
explanation: ECOA requires lenders to explain denial
decisions.
5. Which act prohibits discrimination in lending?
A. RESPA
B. ECOA
C. TILA
D. GLBA
B. ECOA
explanation: Equal Credit Opportunity Act prevents
discrimination in credit decisions.
6. What is PMI required for?
A. Loans above $1 million
B. Loans below 80% LTV
C. Loans above 80% LTV
, D. FHA loans only
C. Loans above 80% LTV
explanation: Private Mortgage Insurance protects lenders
when LTV exceeds 80%.
7. Which loan type is insured by the government?
A. Conventional
B. Jumbo
C. FHA
D. Portfolio
C. FHA
explanation: FHA loans are backed by the federal
government.
8. What is APR?
A. Annual property rate
B. Annual percentage rate
C. Adjusted payment ratio
D. Applied principal rate
B. Annual percentage rate
explanation: APR reflects total cost of borrowing annually.
9. Which document finalizes settlement costs?
A. Loan Estimate
B. HUD-1 or Closing Disclosure
C. Note
D. Appraisal
B. HUD-1 or Closing Disclosure
explanation: These documents detail final loan costs.
10.What is a fixed-rate mortgage?
A. Rate changes monthly
B. Rate stays constant
, C. Rate tied to index
D. Rate negotiable yearly
B. Rate stays constant
explanation: Fixed-rate loans maintain the same interest
rate throughout.
11.A borrower has high DTI. What risk does this pose?
A. Low equity
B. High default risk
C. Low credit score
D. Low interest rate
B. High default risk
explanation: High debt-to-income ratios increase likelihood
of missed payments.
12.Which ratio compares debt to income?
A. LTV
B. DTI
C. CLTV
D. APR
B. DTI
explanation: Debt-to-income measures repayment ability.
13.What is LTV?
A. Loan to value
B. Loan to variable
C. Liability to value
D. Loan transfer value
A. Loan to value
explanation: LTV compares loan amount to property value.
14.Which law governs settlement procedures?
A. RESPA
Newest 2026-2027 Updated 100
Questions From Actual Exams Complete
Questions And Correct Detailed
Answers (Expert Verified Exam)
|Already Graded A+||Brand New!!
1. A borrower applies for a loan to purchase a primary residence. Which law
requires disclosure of loan terms and costs?
A. RESPA
B. TILA
C. ECOA
D. HMDA
B. TILA
explanation: Truth in Lending Act requires disclosure of
credit terms, APR, and total loan cost.
2. Which document provides a summary of loan terms within 3 business days
of application?
A. HUD-1
B. Closing Disclosure
C. Loan Estimate
D. Promissory Note
C. Loan Estimate
explanation: The Loan Estimate outlines projected loan
costs and must be provided early in the process.
,3. What is the maximum timeframe to provide the Closing Disclosure before
consummation?
A. 1 day
B. 2 days
C. 3 days
D. 5 days
C. 3 days
explanation: Borrowers must receive the Closing Disclosure
at least 3 business days before closing.
4. A borrower is denied credit. What must the lender provide?
A. Loan Estimate
B. Adverse Action Notice
C. Appraisal
D. Credit Report
B. Adverse Action Notice
explanation: ECOA requires lenders to explain denial
decisions.
5. Which act prohibits discrimination in lending?
A. RESPA
B. ECOA
C. TILA
D. GLBA
B. ECOA
explanation: Equal Credit Opportunity Act prevents
discrimination in credit decisions.
6. What is PMI required for?
A. Loans above $1 million
B. Loans below 80% LTV
C. Loans above 80% LTV
, D. FHA loans only
C. Loans above 80% LTV
explanation: Private Mortgage Insurance protects lenders
when LTV exceeds 80%.
7. Which loan type is insured by the government?
A. Conventional
B. Jumbo
C. FHA
D. Portfolio
C. FHA
explanation: FHA loans are backed by the federal
government.
8. What is APR?
A. Annual property rate
B. Annual percentage rate
C. Adjusted payment ratio
D. Applied principal rate
B. Annual percentage rate
explanation: APR reflects total cost of borrowing annually.
9. Which document finalizes settlement costs?
A. Loan Estimate
B. HUD-1 or Closing Disclosure
C. Note
D. Appraisal
B. HUD-1 or Closing Disclosure
explanation: These documents detail final loan costs.
10.What is a fixed-rate mortgage?
A. Rate changes monthly
B. Rate stays constant
, C. Rate tied to index
D. Rate negotiable yearly
B. Rate stays constant
explanation: Fixed-rate loans maintain the same interest
rate throughout.
11.A borrower has high DTI. What risk does this pose?
A. Low equity
B. High default risk
C. Low credit score
D. Low interest rate
B. High default risk
explanation: High debt-to-income ratios increase likelihood
of missed payments.
12.Which ratio compares debt to income?
A. LTV
B. DTI
C. CLTV
D. APR
B. DTI
explanation: Debt-to-income measures repayment ability.
13.What is LTV?
A. Loan to value
B. Loan to variable
C. Liability to value
D. Loan transfer value
A. Loan to value
explanation: LTV compares loan amount to property value.
14.Which law governs settlement procedures?
A. RESPA
