©THESTAR 2024/2025 ALL RIGHTS RESERVED.
MLO NMLS Exam Questions And Correct
Answers 100% Verified.
What law deals with credit, APR & advertising of consumer loans? - Answer✔TILA/REGULATION
Z
Which regulation
prohibits kickbacks? - Answer✔RESPA - Reg X
Which regulation
requires the lender to
cancel PMI when the loan reaches 78% LTV? - Answer✔HPA- Homeowners Protection Act
Which regulation prohibits fee splitting? - Answer✔RESPA
"X" is the letter used to describe which Regulation? - Answer✔RESPA
RESPA is the acronym used to describe which Law? - Answer✔Real Estate Settlement
Procedures Act
What type of mortgage requires a non- refundable funding fee? - Answer✔VA Loan
What is the provision in a mortgage enabling a lender to demand full repayment if the
borrower DEFAULTS on the loan? - Answer✔Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full repayment if the
borrower TRANSFERS the loan? - Answer✔Alienation Clause
What does CFPB Stand for? - Answer✔Consumer Financial Protection Bureau
What two laws created the CFPB? - Answer✔Dodd Frank Act and Consumer Finance Protection
Act
Which regulation is designed to help meet the Credit Needs of the Communities in which it
operates? - 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 if the application was denied? - Answer✔90 Days
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Under ECOA rules and regulations, if an application for credit is denied, and if requested by the
borrower - how many days does the lender have to provide a copy of an appraisal report? -
Answer✔30 Days
If a loan application is APPROVED, under ECOA rules and regulations, when MUST a copy of the
appraisal be provided to the borrower? - Answer✔3 business days prior to the loan closing
Conforming Loans follow the guidelines of which regulators? - Answer✔Fannie Mae and
Freddie Mac
Which regulation requires the lenders to
"BE EQUAL" when extending credit to borrowers? - Answer✔ECOA - Regulation B
How old must a borrower be to qualify for a Reverse Mortgage? - Answer✔62 years old
Which regulation has the primary function ofpreventing Identity Theft? - Answer✔FACT Act
Which regulation has SECTION 114 Rules? - Answer✔FACT Act
Which regulation requires the creditor to verify the VALIDITY of any change of address
received? - 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? - Answer✔TENURE Method
What is the fraud scheme where a borrower uses someone else'sname to purchase the
property, but that person WILL NOT be living at the property? - Answer✔Straw Borrower
What type of lender "insures" mortgages? - Answer✔FHA approved lenders
What type of lender "guarantees" mortgages? - Answer✔VA approved lenders and USDA
approved lenders
What is the entity that loans money to fund purchases in rural areas? - Answer✔USDA/Dept. of
Agriculture
What is the value remaining in property after all liens and debts have been paid? -
Answer✔Equity
A borrower is refinancing his home. How much time does Reg Z give him to change his mind
(rescind)? - Answer✔3 days
Which Regulation established the 3-day right of rescission rule? - Answer✔TILA/REG Z
Redlining is part of which regulation/Law? - Answer✔Fair Housing Act
Blockbusting is part of which regulation/Law? - Answer✔Fair Housing Act
Steering is part of which regulation/Law? - Answer✔Fair Housing Act
2|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is
moving in the neighborhood is called? - Answer✔Blockbusting/panic selling
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race,
religion or ethnicity is called? - Answer✔Steering
Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is
called? - Answer✔Redlining
What does HOEPA stand for? - Answer✔Home Ownership and Equity Protection Act
HOEPA Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
High Cost Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
High Priced Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
Section 32 Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
Section 35 Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
MDIA ACT is part of which larger regulation? - Answer✔Regulation Z/TILA
Mortgage Disclosure Improvement Act is part of which larger regulation? - Answer✔Regulation
Z/TILA
What is another name for Annual Percentage Rate? - Answer✔Effective Rate
What is another name for Interest Rate? - Answer✔Nominal Rate or Note Rate
PITI divided by Gross Monthly income is referred to as what? - Answer✔Housing Ratio or Front-
End DTI
PITI + monthly debt divided by Gross Monthly income is referred to as what? - Answer✔Total
Obligation Ratio - Back-end Ratio
How long must TILA Disclosures be kept? - Answer✔2 years
(exceptions - LE is kept for 3 years and CD is kept for 5 years)
What is the maximum amount of time that NEGATIVE info can remain on a credit report? -
Answer✔7 years
What is the maximum amount of time that abankruptcy can remain on a credit report? -
Answer✔10 years
Which law/regulation states that a Bankruptcy can only remain on your credit for a MAX of 10
years? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which law/regulation states that negative information can only remain on your credit for a
MAX of 7 years? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
3|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Which law allows a consumer who has had her credit card used by an identity thief to place a
credit freeze on her credit report? - Answer✔FACT Act
Which law requires creditors to TRUNCATE debit and credit card info on receipts? -
Answer✔FACT Act
Which regulation requires that loan officers must take measures to secure and dispose of (burn
and/or shred) a borrower's sensitive credit information? - Answer✔FACT Act
Which regulation states that if a borrower is denied credit, he can receive a FREE copy of his
credit report? - Answer✔FCRA - Fair Credit Reporting Act
REG V
Which regulation states that if a borrower is unemployed, he can receive a FREE copy of his
credit report? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which regulation states that if a borrower is on SSI or Disability, he can receive a FREE copy of
his credit report? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which regulation states that if a borrower has been the victim of fraud, he can receive a FREE
copy of his credit report? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which regulation states that a
borrower can receive a FREE copy of his credit report once a year (no reason or requirement
necessary)? - Answer✔FACT Act
During the loan process, if you ask a borrower if he is single...which law are you violating? -
Answer✔ECOA - Regulation B
Which regulation states that the only correct way to ask about aborrower's martial status is: are
you married, unmarried or separated? - Answer✔ECOA - Regulation B
Who is responsible for providing the closing disclosure to the borrower? - Answer✔The
Creditor/Lender
Who is responsible for providing the closingdisclosure to the Seller? - Answer✔Settlement
Agent/Title Agent
Which regulation requires the borrower to receive the Loan Estimate? - Answer✔TILA - REG Z
Which regulation requires the borrower to receive the Closing Disclosure? - Answer✔TILA - REG
Z
Which regulation requires the borrower to receive the Loan Estimate within 3 business days? -
Answer✔RESPA - Regulation X
Which regulation requires the borrower to receive the Closing Disclosure within 3 business
days? - Answer✔RESPA - Regulation X
4|Page
MLO NMLS Exam Questions And Correct
Answers 100% Verified.
What law deals with credit, APR & advertising of consumer loans? - Answer✔TILA/REGULATION
Z
Which regulation
prohibits kickbacks? - Answer✔RESPA - Reg X
Which regulation
requires the lender to
cancel PMI when the loan reaches 78% LTV? - Answer✔HPA- Homeowners Protection Act
Which regulation prohibits fee splitting? - Answer✔RESPA
"X" is the letter used to describe which Regulation? - Answer✔RESPA
RESPA is the acronym used to describe which Law? - Answer✔Real Estate Settlement
Procedures Act
What type of mortgage requires a non- refundable funding fee? - Answer✔VA Loan
What is the provision in a mortgage enabling a lender to demand full repayment if the
borrower DEFAULTS on the loan? - Answer✔Acceleration Clause
What is the provision in a mortgage enabling a lender to demand full repayment if the
borrower TRANSFERS the loan? - Answer✔Alienation Clause
What does CFPB Stand for? - Answer✔Consumer Financial Protection Bureau
What two laws created the CFPB? - Answer✔Dodd Frank Act and Consumer Finance Protection
Act
Which regulation is designed to help meet the Credit Needs of the Communities in which it
operates? - 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 if the application was denied? - Answer✔90 Days
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Under ECOA rules and regulations, if an application for credit is denied, and if requested by the
borrower - how many days does the lender have to provide a copy of an appraisal report? -
Answer✔30 Days
If a loan application is APPROVED, under ECOA rules and regulations, when MUST a copy of the
appraisal be provided to the borrower? - Answer✔3 business days prior to the loan closing
Conforming Loans follow the guidelines of which regulators? - Answer✔Fannie Mae and
Freddie Mac
Which regulation requires the lenders to
"BE EQUAL" when extending credit to borrowers? - Answer✔ECOA - Regulation B
How old must a borrower be to qualify for a Reverse Mortgage? - Answer✔62 years old
Which regulation has the primary function ofpreventing Identity Theft? - Answer✔FACT Act
Which regulation has SECTION 114 Rules? - Answer✔FACT Act
Which regulation requires the creditor to verify the VALIDITY of any change of address
received? - 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? - Answer✔TENURE Method
What is the fraud scheme where a borrower uses someone else'sname to purchase the
property, but that person WILL NOT be living at the property? - Answer✔Straw Borrower
What type of lender "insures" mortgages? - Answer✔FHA approved lenders
What type of lender "guarantees" mortgages? - Answer✔VA approved lenders and USDA
approved lenders
What is the entity that loans money to fund purchases in rural areas? - Answer✔USDA/Dept. of
Agriculture
What is the value remaining in property after all liens and debts have been paid? -
Answer✔Equity
A borrower is refinancing his home. How much time does Reg Z give him to change his mind
(rescind)? - Answer✔3 days
Which Regulation established the 3-day right of rescission rule? - Answer✔TILA/REG Z
Redlining is part of which regulation/Law? - Answer✔Fair Housing Act
Blockbusting is part of which regulation/Law? - Answer✔Fair Housing Act
Steering is part of which regulation/Law? - Answer✔Fair Housing Act
2|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is
moving in the neighborhood is called? - Answer✔Blockbusting/panic selling
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race,
religion or ethnicity is called? - Answer✔Steering
Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is
called? - Answer✔Redlining
What does HOEPA stand for? - Answer✔Home Ownership and Equity Protection Act
HOEPA Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
High Cost Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
High Priced Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
Section 32 Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
Section 35 Loans are part of which larger regulation? - Answer✔Regulation Z/TILA
MDIA ACT is part of which larger regulation? - Answer✔Regulation Z/TILA
Mortgage Disclosure Improvement Act is part of which larger regulation? - Answer✔Regulation
Z/TILA
What is another name for Annual Percentage Rate? - Answer✔Effective Rate
What is another name for Interest Rate? - Answer✔Nominal Rate or Note Rate
PITI divided by Gross Monthly income is referred to as what? - Answer✔Housing Ratio or Front-
End DTI
PITI + monthly debt divided by Gross Monthly income is referred to as what? - Answer✔Total
Obligation Ratio - Back-end Ratio
How long must TILA Disclosures be kept? - Answer✔2 years
(exceptions - LE is kept for 3 years and CD is kept for 5 years)
What is the maximum amount of time that NEGATIVE info can remain on a credit report? -
Answer✔7 years
What is the maximum amount of time that abankruptcy can remain on a credit report? -
Answer✔10 years
Which law/regulation states that a Bankruptcy can only remain on your credit for a MAX of 10
years? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which law/regulation states that negative information can only remain on your credit for a
MAX of 7 years? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
3|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Which law allows a consumer who has had her credit card used by an identity thief to place a
credit freeze on her credit report? - Answer✔FACT Act
Which law requires creditors to TRUNCATE debit and credit card info on receipts? -
Answer✔FACT Act
Which regulation requires that loan officers must take measures to secure and dispose of (burn
and/or shred) a borrower's sensitive credit information? - Answer✔FACT Act
Which regulation states that if a borrower is denied credit, he can receive a FREE copy of his
credit report? - Answer✔FCRA - Fair Credit Reporting Act
REG V
Which regulation states that if a borrower is unemployed, he can receive a FREE copy of his
credit report? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which regulation states that if a borrower is on SSI or Disability, he can receive a FREE copy of
his credit report? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which regulation states that if a borrower has been the victim of fraud, he can receive a FREE
copy of his credit report? - Answer✔FCRA - Fair Credit Reporting Act - Reg V
Which regulation states that a
borrower can receive a FREE copy of his credit report once a year (no reason or requirement
necessary)? - Answer✔FACT Act
During the loan process, if you ask a borrower if he is single...which law are you violating? -
Answer✔ECOA - Regulation B
Which regulation states that the only correct way to ask about aborrower's martial status is: are
you married, unmarried or separated? - Answer✔ECOA - Regulation B
Who is responsible for providing the closing disclosure to the borrower? - Answer✔The
Creditor/Lender
Who is responsible for providing the closingdisclosure to the Seller? - Answer✔Settlement
Agent/Title Agent
Which regulation requires the borrower to receive the Loan Estimate? - Answer✔TILA - REG Z
Which regulation requires the borrower to receive the Closing Disclosure? - Answer✔TILA - REG
Z
Which regulation requires the borrower to receive the Loan Estimate within 3 business days? -
Answer✔RESPA - Regulation X
Which regulation requires the borrower to receive the Closing Disclosure within 3 business
days? - Answer✔RESPA - Regulation X
4|Page
