NMLS Practice Exam with Questions
and Correct Answers 2025
What ,law ,deals ,with ,credit, ,APR ,& ,advertising ,of ,consumer ,loans? ,- ,CORRECT
,ANSWER-TILA/REGULATION ,Z
Which ,regulation ,prohibits ,kickbacks? ,- ,CORRECT ,ANSWER-RESPA
Which ,regulations ,require ,the ,lender ,to ,cancel ,PMI ,when ,the ,loan ,reaches ,78% ,LTV? ,-
,CORRECT ,ANSWER-HPA ,- ,Homeowners ,Protection ,Act
Which ,regulation ,prohibits ,fee ,splitting? ,- ,CORRECT ,ANSWER-RESPA
Regulation ,X ,is ,the ,letter ,used ,to ,describe ,which ,Law? ,- ,CORRECT ,ANSWER-RESPA
RESPA ,is ,the ,acronym ,used ,to ,describe ,which ,law? ,- ,CORRECT ,ANSWER-Real ,Estate
,Settlement ,Procedures ,Act
What ,type ,of ,mortgage ,requires ,a ,non-refundable ,funding ,fee? ,- ,CORRECT ,ANSWER-
VA ,Loan
What ,is ,the ,provision ,in ,a ,mortgage ,enabling ,a ,lender ,to ,demand ,full ,repayment ,if ,the
,borrower ,DEFAULTS ,on ,the ,loan? ,- ,CORRECT ,ANSWER-Acceleration ,Clause
What ,is ,the ,provision ,in ,a ,mortgage ,enabling ,a ,lender ,to ,demand ,full ,repayment ,if ,the
,borrower ,TRANSFERS ,the ,loan? ,- ,CORRECT ,ANSWER-Alienation ,Clause
What ,does ,CFPB ,stand ,for? ,- ,CORRECT ,ANSWER-Consumer ,Financial ,Protection
,Bureau
What ,two ,laws ,created ,the ,CFPB? ,- ,CORRECT ,ANSWER-Dodd ,Frank ,Act ,and
,Consumer ,Finance ,Protection ,Act
Which ,regulations ,is ,designed ,to ,help ,meet ,the ,Credit ,Needs ,of ,the ,Communities ,in
,which ,it ,operates? ,- ,CORRECT ,ANSWER-CRA ,- ,Community ,Reinvestment ,Act
Under ,ECOA ,rules ,and ,regulations, ,how ,many ,days ,does ,the ,borrower ,have ,to ,request
,a ,copy ,of ,an ,appraisal ,report? ,- ,CORRECT ,ANSWER-90
Under ,ECOA ,rules ,and ,regulations, ,how ,many ,days ,does ,the ,lender ,have ,to ,provide ,a
,copy ,of ,an ,appraisal ,report, ,once ,requested ,by ,the ,borrower? ,- ,CORRECT ,ANSWER-30
,If ,a ,loan ,application ,is ,APPROVED, ,Under ,ECOA ,rules ,and ,regulations, ,when ,MUST ,a
,copy ,of ,the ,appraisal ,be ,provided ,to ,the ,borrower? ,- ,CORRECT ,ANSWER-3 ,business
,days
Conforming ,Loans ,follow ,the ,guidelines ,of ,which ,regulators? ,- ,CORRECT ,ANSWER-
Fannie ,Mae ,and ,Freddie ,Mac
Which ,regulation ,requires ,the ,lenders ,to ,"BE ,EQUAL" ,when ,extending ,credit ,to
,borrowers? ,- ,CORRECT ,ANSWER-ECOA ,- ,Regulation ,B
How ,old ,must ,a ,borrower ,be ,to ,qualify ,for ,a ,Reverse ,Mortgage? ,- ,CORRECT ,ANSWER-
62 ,years ,old
Which ,regulation ,has ,the ,primary ,function ,of ,preventing ,Identity ,Theft? ,- ,CORRECT
,ANSWER-FACT ,Act
Which ,regulation ,has ,SECTION ,114 ,Rules? ,- ,CORRECT ,ANSWER-FACT ,Act
Which ,regulation ,requires ,the ,creditor ,to ,verify ,the ,VALIDITY ,of ,any ,change ,of ,address
,received? ,- ,CORRECT ,ANSWER-SECTION ,114 ,of ,the ,FACT ,Act
What ,is ,the ,payment ,method ,used ,in ,a ,reverse ,mortgage ,that ,allows ,the ,homeowners ,to
,receive ,a ,monthly ,check ,while ,living ,in ,the ,property? ,- ,CORRECT ,ANSWER-TENURE
,Method
What ,is ,the ,fraud ,scheme ,where ,a ,borrower ,uses ,someone ,else's ,name ,to ,purchase ,the
,property, ,but ,that ,person ,WILL ,NOT ,be ,living ,at ,the ,property? ,- ,CORRECT ,ANSWER-
Straw ,Borrower
What ,government ,lender ,"insures" ,mortgages"? ,- ,CORRECT ,ANSWER-FHA
What ,government ,lender ,"guarantees" ,mortgages? ,- ,CORRECT ,ANSWER-VA ,Loans
What ,government ,lender ,loans ,money ,to ,fund ,purchases ,in ,rural ,areas? ,- ,CORRECT
,ANSWER-USDA/Dept. ,of ,Argriculture
What ,is ,the ,value ,remaining ,in ,property ,after ,all ,liens ,and ,debts ,have ,been ,paid? ,-
,CORRECT ,ANSWER-Equity
A ,borrower ,is ,refinancing ,his ,home. ,How ,much ,time ,does ,Reg ,Z ,give ,him ,to ,change ,his
,mind? ,- ,CORRECT ,ANSWER-3 ,days
Which ,Regulation ,established ,the ,3-day ,right ,of ,recession ,rule? ,- ,CORRECT ,ANSWER-
TILA/REG ,Z
Redlining ,is ,part ,of ,which ,regulation/Law? ,- ,CORRECT ,ANSWER-Fair ,Housing ,Act
Blockbusting ,is ,part ,of ,which ,regulation/Law? ,- ,CORRECT ,ANSWER-Fair ,Housing ,Act
Steering ,is ,part ,of ,which ,regulation/Law? ,- ,CORRECT ,ANSWER-Fair ,Housing ,Act
, Trying ,to ,convince ,a ,homeowner ,to ,SELL ,his ,home ,by ,implying ,that ,another
,race/ethnicity ,is ,moving ,in ,the ,neighborhood ,is ,called? ,- ,CORRECT ,ANSWER-
Blockbusting/panic ,selling
Trying ,to ,convince ,a ,homeowner ,to ,PURCHASE ,in ,a ,particular ,neighborhood ,based ,on
,his ,race, ,religion ,or ,ethnicity ,is ,called? ,- ,CORRECT ,ANSWER-STEERING
Refusing ,to ,make ,loans ,on ,a ,property ,in ,a ,certain ,neighborhood ,for ,discriminatory
,reasons ,is ,called? ,- ,CORRECT ,ANSWER-Redlining
What ,does ,HOEPA ,stand ,for? ,- ,CORRECT ,ANSWER-Home ,Ownership ,and ,Equity
,Protection ,Act
HOEPA ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
High ,Cost ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
High ,Priced ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
Section ,32 ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
Section ,35 ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
MDIA ,ACT ,is ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
Mortgage ,Disclosure ,Improvement ,Act ,is ,part ,of ,which ,larger ,regulation? ,- ,CORRECT
,ANSWER-Reg ,Z/Tila
What ,is ,another ,name ,for ,Annual ,Percentage ,Rate? ,- ,CORRECT ,ANSWER-Effective
,Rate
What ,is ,another ,name ,for ,Interest ,Rate? ,- ,CORRECT ,ANSWER-Note ,Rate ,or ,Nominal
,Rate
PITI ,divided ,by ,Gross ,Monthly ,income ,is ,referred ,to ,as ,what? ,- ,CORRECT ,ANSWER-
Housing ,Ratio ,or ,Front-End ,DTI
PITI ,+ ,monthly ,debt ,divided ,by ,Gross ,Monthly ,income ,is ,referred ,to ,as ,what? ,-
,CORRECT ,ANSWER-Total ,Obligation ,Ration ,- ,Back-end ,Ratio
How ,long ,must ,TILA ,Disclosures ,be ,kept? ,- ,CORRECT ,ANSWER-2 ,years ,for ,general
,TILA ,disclosure ,3
,3 ,years ,for ,the ,Loan ,Estimate ,
5 ,years ,for ,the ,Closing ,disclosure
What ,is ,the ,maximum ,amount ,of ,time ,that ,NEGATIVE ,info ,can ,remain ,on ,a ,credit
,report? ,- ,CORRECT ,ANSWER-7 ,years
What ,is ,the ,maximum ,amount ,of ,time ,that ,a ,bankruptcy ,can ,remain ,on ,a ,credit ,report? ,-
,CORRECT ,ANSWER-10 ,years
and Correct Answers 2025
What ,law ,deals ,with ,credit, ,APR ,& ,advertising ,of ,consumer ,loans? ,- ,CORRECT
,ANSWER-TILA/REGULATION ,Z
Which ,regulation ,prohibits ,kickbacks? ,- ,CORRECT ,ANSWER-RESPA
Which ,regulations ,require ,the ,lender ,to ,cancel ,PMI ,when ,the ,loan ,reaches ,78% ,LTV? ,-
,CORRECT ,ANSWER-HPA ,- ,Homeowners ,Protection ,Act
Which ,regulation ,prohibits ,fee ,splitting? ,- ,CORRECT ,ANSWER-RESPA
Regulation ,X ,is ,the ,letter ,used ,to ,describe ,which ,Law? ,- ,CORRECT ,ANSWER-RESPA
RESPA ,is ,the ,acronym ,used ,to ,describe ,which ,law? ,- ,CORRECT ,ANSWER-Real ,Estate
,Settlement ,Procedures ,Act
What ,type ,of ,mortgage ,requires ,a ,non-refundable ,funding ,fee? ,- ,CORRECT ,ANSWER-
VA ,Loan
What ,is ,the ,provision ,in ,a ,mortgage ,enabling ,a ,lender ,to ,demand ,full ,repayment ,if ,the
,borrower ,DEFAULTS ,on ,the ,loan? ,- ,CORRECT ,ANSWER-Acceleration ,Clause
What ,is ,the ,provision ,in ,a ,mortgage ,enabling ,a ,lender ,to ,demand ,full ,repayment ,if ,the
,borrower ,TRANSFERS ,the ,loan? ,- ,CORRECT ,ANSWER-Alienation ,Clause
What ,does ,CFPB ,stand ,for? ,- ,CORRECT ,ANSWER-Consumer ,Financial ,Protection
,Bureau
What ,two ,laws ,created ,the ,CFPB? ,- ,CORRECT ,ANSWER-Dodd ,Frank ,Act ,and
,Consumer ,Finance ,Protection ,Act
Which ,regulations ,is ,designed ,to ,help ,meet ,the ,Credit ,Needs ,of ,the ,Communities ,in
,which ,it ,operates? ,- ,CORRECT ,ANSWER-CRA ,- ,Community ,Reinvestment ,Act
Under ,ECOA ,rules ,and ,regulations, ,how ,many ,days ,does ,the ,borrower ,have ,to ,request
,a ,copy ,of ,an ,appraisal ,report? ,- ,CORRECT ,ANSWER-90
Under ,ECOA ,rules ,and ,regulations, ,how ,many ,days ,does ,the ,lender ,have ,to ,provide ,a
,copy ,of ,an ,appraisal ,report, ,once ,requested ,by ,the ,borrower? ,- ,CORRECT ,ANSWER-30
,If ,a ,loan ,application ,is ,APPROVED, ,Under ,ECOA ,rules ,and ,regulations, ,when ,MUST ,a
,copy ,of ,the ,appraisal ,be ,provided ,to ,the ,borrower? ,- ,CORRECT ,ANSWER-3 ,business
,days
Conforming ,Loans ,follow ,the ,guidelines ,of ,which ,regulators? ,- ,CORRECT ,ANSWER-
Fannie ,Mae ,and ,Freddie ,Mac
Which ,regulation ,requires ,the ,lenders ,to ,"BE ,EQUAL" ,when ,extending ,credit ,to
,borrowers? ,- ,CORRECT ,ANSWER-ECOA ,- ,Regulation ,B
How ,old ,must ,a ,borrower ,be ,to ,qualify ,for ,a ,Reverse ,Mortgage? ,- ,CORRECT ,ANSWER-
62 ,years ,old
Which ,regulation ,has ,the ,primary ,function ,of ,preventing ,Identity ,Theft? ,- ,CORRECT
,ANSWER-FACT ,Act
Which ,regulation ,has ,SECTION ,114 ,Rules? ,- ,CORRECT ,ANSWER-FACT ,Act
Which ,regulation ,requires ,the ,creditor ,to ,verify ,the ,VALIDITY ,of ,any ,change ,of ,address
,received? ,- ,CORRECT ,ANSWER-SECTION ,114 ,of ,the ,FACT ,Act
What ,is ,the ,payment ,method ,used ,in ,a ,reverse ,mortgage ,that ,allows ,the ,homeowners ,to
,receive ,a ,monthly ,check ,while ,living ,in ,the ,property? ,- ,CORRECT ,ANSWER-TENURE
,Method
What ,is ,the ,fraud ,scheme ,where ,a ,borrower ,uses ,someone ,else's ,name ,to ,purchase ,the
,property, ,but ,that ,person ,WILL ,NOT ,be ,living ,at ,the ,property? ,- ,CORRECT ,ANSWER-
Straw ,Borrower
What ,government ,lender ,"insures" ,mortgages"? ,- ,CORRECT ,ANSWER-FHA
What ,government ,lender ,"guarantees" ,mortgages? ,- ,CORRECT ,ANSWER-VA ,Loans
What ,government ,lender ,loans ,money ,to ,fund ,purchases ,in ,rural ,areas? ,- ,CORRECT
,ANSWER-USDA/Dept. ,of ,Argriculture
What ,is ,the ,value ,remaining ,in ,property ,after ,all ,liens ,and ,debts ,have ,been ,paid? ,-
,CORRECT ,ANSWER-Equity
A ,borrower ,is ,refinancing ,his ,home. ,How ,much ,time ,does ,Reg ,Z ,give ,him ,to ,change ,his
,mind? ,- ,CORRECT ,ANSWER-3 ,days
Which ,Regulation ,established ,the ,3-day ,right ,of ,recession ,rule? ,- ,CORRECT ,ANSWER-
TILA/REG ,Z
Redlining ,is ,part ,of ,which ,regulation/Law? ,- ,CORRECT ,ANSWER-Fair ,Housing ,Act
Blockbusting ,is ,part ,of ,which ,regulation/Law? ,- ,CORRECT ,ANSWER-Fair ,Housing ,Act
Steering ,is ,part ,of ,which ,regulation/Law? ,- ,CORRECT ,ANSWER-Fair ,Housing ,Act
, Trying ,to ,convince ,a ,homeowner ,to ,SELL ,his ,home ,by ,implying ,that ,another
,race/ethnicity ,is ,moving ,in ,the ,neighborhood ,is ,called? ,- ,CORRECT ,ANSWER-
Blockbusting/panic ,selling
Trying ,to ,convince ,a ,homeowner ,to ,PURCHASE ,in ,a ,particular ,neighborhood ,based ,on
,his ,race, ,religion ,or ,ethnicity ,is ,called? ,- ,CORRECT ,ANSWER-STEERING
Refusing ,to ,make ,loans ,on ,a ,property ,in ,a ,certain ,neighborhood ,for ,discriminatory
,reasons ,is ,called? ,- ,CORRECT ,ANSWER-Redlining
What ,does ,HOEPA ,stand ,for? ,- ,CORRECT ,ANSWER-Home ,Ownership ,and ,Equity
,Protection ,Act
HOEPA ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
High ,Cost ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
High ,Priced ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
Section ,32 ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
Section ,35 ,Loans ,are ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
MDIA ,ACT ,is ,part ,of ,which ,larger ,regulation? ,- ,CORRECT ,ANSWER-Reg ,Z/Tila
Mortgage ,Disclosure ,Improvement ,Act ,is ,part ,of ,which ,larger ,regulation? ,- ,CORRECT
,ANSWER-Reg ,Z/Tila
What ,is ,another ,name ,for ,Annual ,Percentage ,Rate? ,- ,CORRECT ,ANSWER-Effective
,Rate
What ,is ,another ,name ,for ,Interest ,Rate? ,- ,CORRECT ,ANSWER-Note ,Rate ,or ,Nominal
,Rate
PITI ,divided ,by ,Gross ,Monthly ,income ,is ,referred ,to ,as ,what? ,- ,CORRECT ,ANSWER-
Housing ,Ratio ,or ,Front-End ,DTI
PITI ,+ ,monthly ,debt ,divided ,by ,Gross ,Monthly ,income ,is ,referred ,to ,as ,what? ,-
,CORRECT ,ANSWER-Total ,Obligation ,Ration ,- ,Back-end ,Ratio
How ,long ,must ,TILA ,Disclosures ,be ,kept? ,- ,CORRECT ,ANSWER-2 ,years ,for ,general
,TILA ,disclosure ,3
,3 ,years ,for ,the ,Loan ,Estimate ,
5 ,years ,for ,the ,Closing ,disclosure
What ,is ,the ,maximum ,amount ,of ,time ,that ,NEGATIVE ,info ,can ,remain ,on ,a ,credit
,report? ,- ,CORRECT ,ANSWER-7 ,years
What ,is ,the ,maximum ,amount ,of ,time ,that ,a ,bankruptcy ,can ,remain ,on ,a ,credit ,report? ,-
,CORRECT ,ANSWER-10 ,years
