NMLS FINAL EXAM QUESTIONS AND
ANSWERS ALL CORRECT 2025
LATEST UPDATE
A mortgage company advertises on a real estate agent's website by paying the required
fees. Which company is in violation of RESPA?
A. The mortgage broker only
B. The real estate agent only
C. Both are in violation
D. Neither are in violation - Answer-D. Neither are in violation
If a consumer reporting agency makes an inquiry related to a joint credit account of a
borrower and the spouse, which of the following information can be provided under the
Equal Credit Opportunity Act (ECOA)?
A. Information about the borrower only
B. Information about the spouse only
C. Information on the borrower and the spouse
D. Information cannot be provided about either person - Answer-C. Information on the
borrower and the spouse
A homeowner's equity position reaches 20% of the original value o the property. Which
of the following statements is true pertaining to the cancellation of the Private Mortgage
Insurance (PMI)?
A. The lender must automatically cancel the PMI
B. The homeowner can request cancellation of the PMI
C. The PMI gets automatically cancelled after 30 days
D. The PMI gets cancelled 20 days after the request is submitted - Answer-B. The
homeowner can request cancellation of the PMI
The purpose of the Fair Credit Reporting Ace (FCRA) is to:
A. Reduce home insurance costs
B. Ensure the accuracy of the information in the consumer reports
C. Help consumer receive lower interest rates
D. Provide consumers with many finance options to choose from - Answer-B. Ensure
the accuracy of the information in the consumer reports
,According to RESPA, which of the following relationships between a lender and a
settlement service provider does NOT require disclosures on the Good Faith Estimate?
A. Provider is an associate of the lender
B. Provider has an outstanding loan with the lender
C. The lender and the provider use the same attorney for legal services
D. The lender has repeatedly used the services of the provider in the last 12 months -
Answer-B. Provider has an outstanding loan with the lender
How does Freddie Mac benefit the consumer?
A. Consumers can take more than one mortgage
B.Freddie Mac does not ask for PMI
C. If a consumer is unable to pay the installments, they can approach Freddie Mac for
time
D. By making mortgage products available to consumers - Answer-D. By making
mortgage products available to consumers
A mortgage broker licensee charges a fee that exceeds the fee initially disclosed to the
borrower. What MUST the mortgage broker provide the borrow provide the borrower
three days prior to the signing of the closing documents?
A. A copy of the borrower's rights under the Consumer Loan Act
B. A redisclosure of the fee including a clear written explanation for the increase
C. The details of the mortgage broker's trust account including subaccounts
D. The details of the mortgage broker;s surety bond company and the amount of the
bond - Answer-B. A redisclosure of the fee including a clear written explanation for the
increase
A mortgage company displays its sign at a real estate licensee's office. Who is in
violation of RESPA?
A. Only the mortgage company is
B. Only the real estate licensee
C. Both
D. Neither - Answer-D. Neither
A mortgage broker refers clients to a title company providing them with an Affiliated
Business Disclosure. The mortgage broker owns 10% of the title company. The title
company performs services and pays the mortgage broker a commission. The title
company pays the mortgage broker annual dividends based on the amount of business
that was referred to the title company. Which of the statements is Correct?
A. Only the mortgage company is in violation of RESPA
B. Only the title company is in violation of RESPA
, C. Both are in violation of RESPA
D. Neither are in violation of RESPA - Answer-D. Neither are in violation of RESPA
Truth in lending act (TILA) requires disclosure of:
A. Number of days to process the loan
B. Credit history of the borrower
C. Key details of the property on which the loan was taken
D. Key terms of the credit transaction - Answer-D. Key terms of the credit transaction
In whose name is a loan closed that is "table-funded"
A. Loan originator
B. Independent contractor
C. Mortgage broker licensee
D. Designated mortgage lender - Answer-D. Designated mortgage lender
Under the Fair Credit Reporting Act, who is responsible for ensuring that the reporting of
consumer's credit standing and reputation protects the consumer's rights and privacy?
A. Mortgage broker
B. Consumer credit counseling agencies
C. Credit reporting agencies
D. Board of Governors of the Federal Reserve Systems - Answer-C. Credit reporting
agencies
TILA is designed to protect consumers in:
A. property offers
B. credit card transactions
C. real estate practices
D. property evaluations - Answer-B. credit card transactions
A lender provides a borrower with an intial amortization schedule for PMI as well as the
disclosure's at loan closing for a adjustable- rate mortgage. The lender MUST also
provide a written notice stating the:
A. borrower's right to refuse PMI
B. Borrower's right to cancel PMI
C. Lender's right to extend the time for monthly payments for a PMI
D. Lender's right to increase the monthly payment amount for PMI - Answer-B.
Borrower's right to cancel PMI
A mortgage broker has advertised "$1200 down" for a house in a local newspaper.
According to TILA which of the following information must be disclosed in the same
advertisement?
ANSWERS ALL CORRECT 2025
LATEST UPDATE
A mortgage company advertises on a real estate agent's website by paying the required
fees. Which company is in violation of RESPA?
A. The mortgage broker only
B. The real estate agent only
C. Both are in violation
D. Neither are in violation - Answer-D. Neither are in violation
If a consumer reporting agency makes an inquiry related to a joint credit account of a
borrower and the spouse, which of the following information can be provided under the
Equal Credit Opportunity Act (ECOA)?
A. Information about the borrower only
B. Information about the spouse only
C. Information on the borrower and the spouse
D. Information cannot be provided about either person - Answer-C. Information on the
borrower and the spouse
A homeowner's equity position reaches 20% of the original value o the property. Which
of the following statements is true pertaining to the cancellation of the Private Mortgage
Insurance (PMI)?
A. The lender must automatically cancel the PMI
B. The homeowner can request cancellation of the PMI
C. The PMI gets automatically cancelled after 30 days
D. The PMI gets cancelled 20 days after the request is submitted - Answer-B. The
homeowner can request cancellation of the PMI
The purpose of the Fair Credit Reporting Ace (FCRA) is to:
A. Reduce home insurance costs
B. Ensure the accuracy of the information in the consumer reports
C. Help consumer receive lower interest rates
D. Provide consumers with many finance options to choose from - Answer-B. Ensure
the accuracy of the information in the consumer reports
,According to RESPA, which of the following relationships between a lender and a
settlement service provider does NOT require disclosures on the Good Faith Estimate?
A. Provider is an associate of the lender
B. Provider has an outstanding loan with the lender
C. The lender and the provider use the same attorney for legal services
D. The lender has repeatedly used the services of the provider in the last 12 months -
Answer-B. Provider has an outstanding loan with the lender
How does Freddie Mac benefit the consumer?
A. Consumers can take more than one mortgage
B.Freddie Mac does not ask for PMI
C. If a consumer is unable to pay the installments, they can approach Freddie Mac for
time
D. By making mortgage products available to consumers - Answer-D. By making
mortgage products available to consumers
A mortgage broker licensee charges a fee that exceeds the fee initially disclosed to the
borrower. What MUST the mortgage broker provide the borrow provide the borrower
three days prior to the signing of the closing documents?
A. A copy of the borrower's rights under the Consumer Loan Act
B. A redisclosure of the fee including a clear written explanation for the increase
C. The details of the mortgage broker's trust account including subaccounts
D. The details of the mortgage broker;s surety bond company and the amount of the
bond - Answer-B. A redisclosure of the fee including a clear written explanation for the
increase
A mortgage company displays its sign at a real estate licensee's office. Who is in
violation of RESPA?
A. Only the mortgage company is
B. Only the real estate licensee
C. Both
D. Neither - Answer-D. Neither
A mortgage broker refers clients to a title company providing them with an Affiliated
Business Disclosure. The mortgage broker owns 10% of the title company. The title
company performs services and pays the mortgage broker a commission. The title
company pays the mortgage broker annual dividends based on the amount of business
that was referred to the title company. Which of the statements is Correct?
A. Only the mortgage company is in violation of RESPA
B. Only the title company is in violation of RESPA
, C. Both are in violation of RESPA
D. Neither are in violation of RESPA - Answer-D. Neither are in violation of RESPA
Truth in lending act (TILA) requires disclosure of:
A. Number of days to process the loan
B. Credit history of the borrower
C. Key details of the property on which the loan was taken
D. Key terms of the credit transaction - Answer-D. Key terms of the credit transaction
In whose name is a loan closed that is "table-funded"
A. Loan originator
B. Independent contractor
C. Mortgage broker licensee
D. Designated mortgage lender - Answer-D. Designated mortgage lender
Under the Fair Credit Reporting Act, who is responsible for ensuring that the reporting of
consumer's credit standing and reputation protects the consumer's rights and privacy?
A. Mortgage broker
B. Consumer credit counseling agencies
C. Credit reporting agencies
D. Board of Governors of the Federal Reserve Systems - Answer-C. Credit reporting
agencies
TILA is designed to protect consumers in:
A. property offers
B. credit card transactions
C. real estate practices
D. property evaluations - Answer-B. credit card transactions
A lender provides a borrower with an intial amortization schedule for PMI as well as the
disclosure's at loan closing for a adjustable- rate mortgage. The lender MUST also
provide a written notice stating the:
A. borrower's right to refuse PMI
B. Borrower's right to cancel PMI
C. Lender's right to extend the time for monthly payments for a PMI
D. Lender's right to increase the monthly payment amount for PMI - Answer-B.
Borrower's right to cancel PMI
A mortgage broker has advertised "$1200 down" for a house in a local newspaper.
According to TILA which of the following information must be disclosed in the same
advertisement?
