MLO SAFE NMLS Safe Test Practice
Questions 2025/2026 Exam All Answers
and Illustrations Given
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
__________________________. - 🧠 ANSWER ✔✔Predatory Lending.
RESPA-Real Estate Settlement Procedures Act - 🧠 ANSWER ✔✔The
Federal Statute that deals with the settlement of residential mortgage
loans.
RESPA's section 9 Prohibits - 🧠 ANSWER ✔✔Home sellers from requiring
home buyers to purchase title insurance from a particular company
providing title services.
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,________ business days prior to closing. - 🧠 ANSWER ✔✔upon completion
and 3 business days
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate) - 🧠
ANSWER ✔✔Per the Dodd Frank Act, a single disclosure form combines
these 2 statements.
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees
may not exceed ________% of the total loan amount. - 🧠 ANSWER ✔✔3%
(three percent)
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? - 🧠 ANSWER ✔✔All loans,
whether owner occupied or not.
A loan subject to HOEPA allows prepayment penalties for the first ______
years of the loan. - 🧠 ANSWER ✔✔2 (two) years
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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,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. - 🧠 ANSWER ✔✔All three would be considered
abusive acts.
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? - 🧠 ANSWER ✔✔$0.00, dual
compensation is not allowed. Compensation must be borrower paid or
lender paid.
What kinds of reasons are necessary for a lender to take adverse action
with regard to a borrower? - 🧠 ANSWER ✔✔Specific reasons.
Adverse action means ______________________. - 🧠 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.
Per Regulation B, Lenders should retain certain records for
_____________ months. - 🧠 ANSWER ✔✔25 Months
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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. - 🧠 ANSWER ✔✔APOR ( Average Prime Offer
Rate), 8.5%
Regulation C is known as ________________________. - 🧠 ANSWER
✔✔HMDA, The Home Mortgage Disclosure Act.
What is the purpose of HMDA? - 🧠 ANSWER ✔✔The HMDA determines
whether financial institutions are serving the housing needs of their
communities. It also identifies patterns of discriminatory lending.
Under what circumstances can a lender with an Affiliated Business
Arrangement require a borrower to use a specific third party service
provider? - 🧠 ANSWER ✔✔If there are no kickback or referral fees and the
service provider is an attorney, credit reporting agency or appraiser the
lender can require that the borrower uses the provider
If a transfer of servicing occurs, the _______________ must provide a
servicing transfer statement not less than ________ days before the
transfer occurs. - 🧠 ANSWER ✔✔Servicer, 15 (fifteen) days.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions 2025/2026 Exam All Answers
and Illustrations Given
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
__________________________. - 🧠 ANSWER ✔✔Predatory Lending.
RESPA-Real Estate Settlement Procedures Act - 🧠 ANSWER ✔✔The
Federal Statute that deals with the settlement of residential mortgage
loans.
RESPA's section 9 Prohibits - 🧠 ANSWER ✔✔Home sellers from requiring
home buyers to purchase title insurance from a particular company
providing title services.
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,________ business days prior to closing. - 🧠 ANSWER ✔✔upon completion
and 3 business days
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate) - 🧠
ANSWER ✔✔Per the Dodd Frank Act, a single disclosure form combines
these 2 statements.
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees
may not exceed ________% of the total loan amount. - 🧠 ANSWER ✔✔3%
(three percent)
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? - 🧠 ANSWER ✔✔All loans,
whether owner occupied or not.
A loan subject to HOEPA allows prepayment penalties for the first ______
years of the loan. - 🧠 ANSWER ✔✔2 (two) years
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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,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. - 🧠 ANSWER ✔✔All three would be considered
abusive acts.
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? - 🧠 ANSWER ✔✔$0.00, dual
compensation is not allowed. Compensation must be borrower paid or
lender paid.
What kinds of reasons are necessary for a lender to take adverse action
with regard to a borrower? - 🧠 ANSWER ✔✔Specific reasons.
Adverse action means ______________________. - 🧠 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.
Per Regulation B, Lenders should retain certain records for
_____________ months. - 🧠 ANSWER ✔✔25 Months
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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. - 🧠 ANSWER ✔✔APOR ( Average Prime Offer
Rate), 8.5%
Regulation C is known as ________________________. - 🧠 ANSWER
✔✔HMDA, The Home Mortgage Disclosure Act.
What is the purpose of HMDA? - 🧠 ANSWER ✔✔The HMDA determines
whether financial institutions are serving the housing needs of their
communities. It also identifies patterns of discriminatory lending.
Under what circumstances can a lender with an Affiliated Business
Arrangement require a borrower to use a specific third party service
provider? - 🧠 ANSWER ✔✔If there are no kickback or referral fees and the
service provider is an attorney, credit reporting agency or appraiser the
lender can require that the borrower uses the provider
If a transfer of servicing occurs, the _______________ must provide a
servicing transfer statement not less than ________ days before the
transfer occurs. - 🧠 ANSWER ✔✔Servicer, 15 (fifteen) days.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
