MLO SAFE NMLS safe test practice (Latest
2026/ 2027 Update) questions and
answers 100% Correct [Grade A]
When inquiring about the marital status, what are the only three acceptable
categories? - Correct answer Married, unmarried or separated
If an individual place a phone number on a Do-Not-Call list, how frequently does their
entry have to be renewed to stay active? - Correct answer Never, per the Do-Not-Call
Improvement Act of 2007 which amended the original Telemarketing Sales Rule
According to FACTA, any person who regularly extends, renews or continues credit is
a ______________________. - Correct answer Creditor
A _________________ is someone who allows his/her name and personal details to be
used to obtain a mortgage loan for a property he/she has no intention of inhabiting. -
Correct answer Straw Buyer
,The Red Flag Rules were created by the FTC pursuant to FACTA. They are primarily
concerned with ______________________. - Correct answer Identity Theft
The Federal Fair Housing Act of 1968 prohibits discrimination in residential credit but
____________________ is not protected. - Correct answer Age
The HMDA enacted by Congress in 1975 is also known as Regulation ______________. -
Correct answer C, The Home Mortgage Disclosure Act, Regulation C
The HMDA deals with institutions with over $________________ in assets. - Correct
answer $10,000,000; Ten Million Dollars
A __________________ disclosure is required to be provided to the borrower when the
referring provider has greater than 1% ownership interest in the business being
referred. - Correct answer AfBA, Affiliated Business Arrangement Disclsoure
,An annual escrow analysis is required by which Federal Law? - Correct answer
RESPA governs all settlement costs including the collection and disbursement of
escrows.
The loan product that utilizes an interest rate that remains the same for the life of the
loan is called ___________________. - Correct answer A fixed rate mortgage
What is the name of the Act that entitles a consumer to a free copy of their credit
report if credit is denied based on information from their report? - Correct answer
FCRA, The Fair Credit Reporting Act
What type of loan would commonly use an extended rate lock? - Correct answer A new
construction loan.
While banks remain the largest source of investment funds their increased
participation in long term home mortgage lending is possible because of a change in
federal banking regulations. What is that change? - Correct answer Reserve
requirements have been reduced and first lien home mortgages at less than 80% LTV
, are in the lowest risk category. The banks increased participation in these loans still
leave funds available for other loans and investments.
The adjustable component use to compute the note rate on an ARM is called the
_____________________. - Correct answer Index
According to USDA Rural Development Programs a small town can include up to
________________ people. - Correct answer 20,000 people
What kind of buy down would reduce the note rate? - Correct answer A permanent buy
down.
The SAFE act is a key element of (the) _______________________. - Correct answer HERA,
Housing and Economic Recovery Act of 2008
A Real Estate Company accepted and distributed flyers from a Mortgage Company to
Prospective Clients. Which Law(s) if any have been violated and by who? - Correct
2026/ 2027 Update) questions and
answers 100% Correct [Grade A]
When inquiring about the marital status, what are the only three acceptable
categories? - Correct answer Married, unmarried or separated
If an individual place a phone number on a Do-Not-Call list, how frequently does their
entry have to be renewed to stay active? - Correct answer Never, per the Do-Not-Call
Improvement Act of 2007 which amended the original Telemarketing Sales Rule
According to FACTA, any person who regularly extends, renews or continues credit is
a ______________________. - Correct answer Creditor
A _________________ is someone who allows his/her name and personal details to be
used to obtain a mortgage loan for a property he/she has no intention of inhabiting. -
Correct answer Straw Buyer
,The Red Flag Rules were created by the FTC pursuant to FACTA. They are primarily
concerned with ______________________. - Correct answer Identity Theft
The Federal Fair Housing Act of 1968 prohibits discrimination in residential credit but
____________________ is not protected. - Correct answer Age
The HMDA enacted by Congress in 1975 is also known as Regulation ______________. -
Correct answer C, The Home Mortgage Disclosure Act, Regulation C
The HMDA deals with institutions with over $________________ in assets. - Correct
answer $10,000,000; Ten Million Dollars
A __________________ disclosure is required to be provided to the borrower when the
referring provider has greater than 1% ownership interest in the business being
referred. - Correct answer AfBA, Affiliated Business Arrangement Disclsoure
,An annual escrow analysis is required by which Federal Law? - Correct answer
RESPA governs all settlement costs including the collection and disbursement of
escrows.
The loan product that utilizes an interest rate that remains the same for the life of the
loan is called ___________________. - Correct answer A fixed rate mortgage
What is the name of the Act that entitles a consumer to a free copy of their credit
report if credit is denied based on information from their report? - Correct answer
FCRA, The Fair Credit Reporting Act
What type of loan would commonly use an extended rate lock? - Correct answer A new
construction loan.
While banks remain the largest source of investment funds their increased
participation in long term home mortgage lending is possible because of a change in
federal banking regulations. What is that change? - Correct answer Reserve
requirements have been reduced and first lien home mortgages at less than 80% LTV
, are in the lowest risk category. The banks increased participation in these loans still
leave funds available for other loans and investments.
The adjustable component use to compute the note rate on an ARM is called the
_____________________. - Correct answer Index
According to USDA Rural Development Programs a small town can include up to
________________ people. - Correct answer 20,000 people
What kind of buy down would reduce the note rate? - Correct answer A permanent buy
down.
The SAFE act is a key element of (the) _______________________. - Correct answer HERA,
Housing and Economic Recovery Act of 2008
A Real Estate Company accepted and distributed flyers from a Mortgage Company to
Prospective Clients. Which Law(s) if any have been violated and by who? - Correct
