2025-2026 NMLS STUDY GUIDE |\ |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
Which of the following is NOT a TILA or RESPA mandated
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
disclosure?
Select one: |\
A. Closing Disclosure
|\ |\
B. Loan Estimate
|\ |\
C. Mortgage Servicing Disclosure
|\ |\ |\
D. An Adverse Action Statement
|\ |\ |\ |\
D. An Adverse Action Statement
|\ |\ |\ |\
Which of the following does not affect a Veterans Funding fee?
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Select one: |\
A. Loan Amount
|\ |\
B. Prior Service (Active/ Reserve)
|\ |\ |\ |\
C. Marital Status
|\ |\
D. Prior Use of Entitlement
|\ |\ |\ |\
C. Marital Status
|\ |\
FACTA requires that if a lender uses credit scores in making or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
arranging loans that it must provide certain information. Which of
|\ |\ |\ |\ |\ |\ |\ |\ |\
the following is not required?
|\ |\ |\ |\ |\
Select one: |\
A. The range of possible credit scores under the model used
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
B. If any factors adversely affected the consumer's score, up to 4
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
key factors that adversely affected the score (including inquiries)
|\ |\ |\ |\ |\ |\ |\ |\ |\
C. Suggestions on how to improve credit scores
|\ |\ |\ |\ |\ |\ |\
D. The date the credit score was created
|\ |\ |\ |\ |\ |\ |\
C. Suggestions on how to improve credit scores
|\ |\ |\ |\ |\ |\ |\
Under TILA, a consumer lawsuit must begin within ___ year(s) of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the actual violation?
|\ |\
,Select one: |\
A. 1 |\
B. 2 |\
C. 3 |\
D. 5 |\
A. 1 |\
The Federal National Mortgage Association is which of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
following?
Select one: |\
A. FEMA
|\
B. FHLMC
|\
C. GSE
|\
D. Freddie Mac
|\ |\
C. GSE
|\
Which of the following best describes the Home Mortgage
|\ |\ |\ |\ |\ |\ |\ |\ |\
Disclosure Act? |\
Select one: |\
A. HMDA is a disclosure law that relies upon public scrutiny for its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
effectiveness
|\
B. For HMDA to be effective it relies on strict quotas for MSAs
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
C. For HMDA to be effective, lenders must provide excess
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
services to underserved communities
|\ |\ |\
D. For HMDA to be effective, it must provide that certain
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
disclosures go out to customers within three (3) days of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
application
A. HMDA is a disclosure law that relies upon public scrutiny for its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
effectiveness
|\
Which type of property or transaction is not covered or protected
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
under RESPA?
|\ |\
Select one: |\
A. Condominium
|\
,B. An owner-occupied duplex
|\ |\ |\
C. 6-unit apartment complex
|\ |\ |\
D. Home equity line of credit on residence
|\ |\ |\ |\ |\ |\ |\
C. 6-unit apartment complex
|\ |\ |\
Which of the following would restrict the CRA from supplying
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
prescreened consumer report information on a potential |\ |\ |\ |\ |\ |\ |\
borrower?
Select one: |\
A. Working for a licensed broker and not a licensed lender
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
B. Attempting to order the report to just determine if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
borrower is credit worthy |\ |\ |\
C. The borrower had elected to opt out from being included on
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
prescreened lists |\
D. The borrower had already allowed another mortgage loan
|\ |\ |\ |\ |\ |\ |\ |\ |\
originator to order the report |\ |\ |\ |\
C. The borrower had elected to opt out from being included on
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
prescreened lists |\
How often is a financial institution required to report data
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
regarding its applications, origination, and purchases of home
|\ |\ |\ |\ |\ |\ |\ |\
purchase loans, home improvement loans and refinancing?
|\ |\ |\ |\ |\ |\
Select one: |\
A. Every sixty (60) days
|\ |\ |\ |\
B. Every six (6) months
|\ |\ |\ |\
C. Every twenty-four (24) months
|\ |\ |\ |\
D. Every twelve (12) months or annually
|\ |\ |\ |\ |\ |\
D. Every twelve (12) months or annually
|\ |\ |\ |\ |\ |\
Under the Dodd-Frank Act appraisal independence rules, is a
|\ |\ |\ |\ |\ |\ |\ |\ |\
there a restriction for a lender attempting to break into a new
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
market from paying an appraisal company 50% more than the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
customary charge to get good service? |\ |\ |\ |\ |\
Select one: |\
A. Yes, the law dictates that fees be customary and reasonable
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, for the geographic market
|\ |\ |\
B. No, the appraisal companies can negotiate openly for the fees
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
they collect |\
C. Yes, the new law establishes appraisal fee rates geographically
|\ |\ |\ |\ |\ |\ |\ |\ |\
across the country
|\ |\ |\
D. No, the Dodd-Frank Act allows this for the first year in a new
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
market to improve the housing market |\ |\ |\ |\ |\
A. Yes, the law dictates that fees be customary and reasonable
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
for the geographic market
|\ |\ |\
Assume you have a customer who has a fixed income and does
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
not show any prospect of additional earnings in the next few
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
years. Which of the following would be an appropriate product for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
this customer?
|\ |\
Select one: |\
A. A 2/1 Buydown Loan
|\ |\ |\ |\
B. A 5/1 ARM Loan
|\ |\ |\ |\
C. A payment option loan
|\ |\ |\ |\
D. A 30-year fixed rate loan
|\ |\ |\ |\ |\
D. A 30-year fixed rate loan
|\ |\ |\ |\ |\
How many APRs are there for a loan?
|\ |\ |\ |\ |\ |\ |\
Select one: |\
A. Two (2) APRs
|\ |\ |\
B. One (1) APR
|\ |\ |\
C. Three (3) APRs
|\ |\ |\
D. It depends on the risk of the loan
|\ |\ |\ |\ |\ |\ |\ |\
B. One (1) APR
|\ |\ |\
What type of loan requires reporting under the Home Mortgage
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Disclosure Act? |\
Select one: |\
A. HELOC's
|\
B. Loans purchased for the purpose of servicing those loans
|\ |\ |\ |\ |\ |\ |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
Which of the following is NOT a TILA or RESPA mandated
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
disclosure?
Select one: |\
A. Closing Disclosure
|\ |\
B. Loan Estimate
|\ |\
C. Mortgage Servicing Disclosure
|\ |\ |\
D. An Adverse Action Statement
|\ |\ |\ |\
D. An Adverse Action Statement
|\ |\ |\ |\
Which of the following does not affect a Veterans Funding fee?
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Select one: |\
A. Loan Amount
|\ |\
B. Prior Service (Active/ Reserve)
|\ |\ |\ |\
C. Marital Status
|\ |\
D. Prior Use of Entitlement
|\ |\ |\ |\
C. Marital Status
|\ |\
FACTA requires that if a lender uses credit scores in making or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
arranging loans that it must provide certain information. Which of
|\ |\ |\ |\ |\ |\ |\ |\ |\
the following is not required?
|\ |\ |\ |\ |\
Select one: |\
A. The range of possible credit scores under the model used
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
B. If any factors adversely affected the consumer's score, up to 4
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
key factors that adversely affected the score (including inquiries)
|\ |\ |\ |\ |\ |\ |\ |\ |\
C. Suggestions on how to improve credit scores
|\ |\ |\ |\ |\ |\ |\
D. The date the credit score was created
|\ |\ |\ |\ |\ |\ |\
C. Suggestions on how to improve credit scores
|\ |\ |\ |\ |\ |\ |\
Under TILA, a consumer lawsuit must begin within ___ year(s) of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the actual violation?
|\ |\
,Select one: |\
A. 1 |\
B. 2 |\
C. 3 |\
D. 5 |\
A. 1 |\
The Federal National Mortgage Association is which of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
following?
Select one: |\
A. FEMA
|\
B. FHLMC
|\
C. GSE
|\
D. Freddie Mac
|\ |\
C. GSE
|\
Which of the following best describes the Home Mortgage
|\ |\ |\ |\ |\ |\ |\ |\ |\
Disclosure Act? |\
Select one: |\
A. HMDA is a disclosure law that relies upon public scrutiny for its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
effectiveness
|\
B. For HMDA to be effective it relies on strict quotas for MSAs
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
C. For HMDA to be effective, lenders must provide excess
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
services to underserved communities
|\ |\ |\
D. For HMDA to be effective, it must provide that certain
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
disclosures go out to customers within three (3) days of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
application
A. HMDA is a disclosure law that relies upon public scrutiny for its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
effectiveness
|\
Which type of property or transaction is not covered or protected
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
under RESPA?
|\ |\
Select one: |\
A. Condominium
|\
,B. An owner-occupied duplex
|\ |\ |\
C. 6-unit apartment complex
|\ |\ |\
D. Home equity line of credit on residence
|\ |\ |\ |\ |\ |\ |\
C. 6-unit apartment complex
|\ |\ |\
Which of the following would restrict the CRA from supplying
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
prescreened consumer report information on a potential |\ |\ |\ |\ |\ |\ |\
borrower?
Select one: |\
A. Working for a licensed broker and not a licensed lender
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
B. Attempting to order the report to just determine if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
borrower is credit worthy |\ |\ |\
C. The borrower had elected to opt out from being included on
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
prescreened lists |\
D. The borrower had already allowed another mortgage loan
|\ |\ |\ |\ |\ |\ |\ |\ |\
originator to order the report |\ |\ |\ |\
C. The borrower had elected to opt out from being included on
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
prescreened lists |\
How often is a financial institution required to report data
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
regarding its applications, origination, and purchases of home
|\ |\ |\ |\ |\ |\ |\ |\
purchase loans, home improvement loans and refinancing?
|\ |\ |\ |\ |\ |\
Select one: |\
A. Every sixty (60) days
|\ |\ |\ |\
B. Every six (6) months
|\ |\ |\ |\
C. Every twenty-four (24) months
|\ |\ |\ |\
D. Every twelve (12) months or annually
|\ |\ |\ |\ |\ |\
D. Every twelve (12) months or annually
|\ |\ |\ |\ |\ |\
Under the Dodd-Frank Act appraisal independence rules, is a
|\ |\ |\ |\ |\ |\ |\ |\ |\
there a restriction for a lender attempting to break into a new
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
market from paying an appraisal company 50% more than the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
customary charge to get good service? |\ |\ |\ |\ |\
Select one: |\
A. Yes, the law dictates that fees be customary and reasonable
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, for the geographic market
|\ |\ |\
B. No, the appraisal companies can negotiate openly for the fees
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
they collect |\
C. Yes, the new law establishes appraisal fee rates geographically
|\ |\ |\ |\ |\ |\ |\ |\ |\
across the country
|\ |\ |\
D. No, the Dodd-Frank Act allows this for the first year in a new
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
market to improve the housing market |\ |\ |\ |\ |\
A. Yes, the law dictates that fees be customary and reasonable
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
for the geographic market
|\ |\ |\
Assume you have a customer who has a fixed income and does
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
not show any prospect of additional earnings in the next few
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
years. Which of the following would be an appropriate product for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
this customer?
|\ |\
Select one: |\
A. A 2/1 Buydown Loan
|\ |\ |\ |\
B. A 5/1 ARM Loan
|\ |\ |\ |\
C. A payment option loan
|\ |\ |\ |\
D. A 30-year fixed rate loan
|\ |\ |\ |\ |\
D. A 30-year fixed rate loan
|\ |\ |\ |\ |\
How many APRs are there for a loan?
|\ |\ |\ |\ |\ |\ |\
Select one: |\
A. Two (2) APRs
|\ |\ |\
B. One (1) APR
|\ |\ |\
C. Three (3) APRs
|\ |\ |\
D. It depends on the risk of the loan
|\ |\ |\ |\ |\ |\ |\ |\
B. One (1) APR
|\ |\ |\
What type of loan requires reporting under the Home Mortgage
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Disclosure Act? |\
Select one: |\
A. HELOC's
|\
B. Loans purchased for the purpose of servicing those loans
|\ |\ |\ |\ |\ |\ |\ |\ |\
