NMLS

NMLS Quiz QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Who of the following would be an appropriate person to discuss the borrowers credit with to determine whether they qualify for the proposed loan or not? Underwriter The borrower is entitled to the disclosure of the costs of a mortgage loan through the Loan Estimate: Within 3 business days of the loan application What is not likely to happen of the lender/investor finds fraud? A 1% interest increase...

NMLS Practice questions Federal Mortgage Related Laws-Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Annual escrow analysis is used to do what? Prevent escrow overages. Disclosure requirement of RESPA would apply to which loan? duplex and rehabilitate it into a single family dwelling. Finance charges always include which of the following? Penalties for paying or accepting an illegal referral fee are: one year of prison. A loan to purchase a ...

NMLS Practice Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Liza is purchasing a new home. The purchase price of the home is $200,000. She has put down $2,000 in earnest money. If she is receiving FHA financing, how much more will she need for her down payment? $18,000 $4,000 $7,000 $5,000 $5,000 - FHA requires 3.5% down payment

NMLS Practice 2 Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. real estate settlement procedures act (RESPA) a lender offers a borrower a discounted interest rate in exchange for using their affiliated appraisal company. this practice violates which law? the possibility of rate and payment changes about a variable-rate mortgage? TILA under TILA, what must lenders disclose a loan originator fails to deliver a loan estimate within three business day...

NMLS MLO Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. What must a borrower do to avoid having late payments reported to a credit bureau? within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? 3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? scores Max prepayment penalty on residential mortgages in the first year of the loan What must condo...

NMLS MLO Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. What must a borrower do to avoid having late payments reported to a credit bureau? Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? 3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? Credit scores Max prepayment penalty on residential mortgages in the first year of the loan What must co...

NMLS Laws and Regulations QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. CFPB Consumer Financial Protection Bureau What does the CFPB do? FTC Regulates RESPA, TILA, ECOA, and HMDA Federal Trade Commission What does the FTC do? RESPA Monitors Red Flag Rules Real Estate Settlement Procedures Act What does RESPA do? homes manufactured on lot. •Protects homeowners of Single, 1-4 family dwellings, condos, & •Educates borrowers cos...

NMLS Laws and Regulations QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. CFPB Consumer Financial Protection Bureau What does the CFPB do? FTC Regulates RESPA, TILA, ECOA, and HMDA Federal Trade Commission What does the FTC do? RESPA Monitors Red Flag Rules Real Estate Settlement Procedures Act What does RESPA do? homes manufactured on lot. •Protects homeowners of Single, 1-4 family dwellings, condos, & •Educates borrowers cos...

NMLS Final Exam Review #1 QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. A discount point is BEST described as a charge the borrower pays to: decrease the interest rate on the mortgage loan. A lender to A buyer has made an earnest money payment of $5000. The buyer pays an additional $2000 in option money to be credited at closing on a property with the sale price of $160,000. If the required down payment is 20%, how much additional money will the buyer need to provi...

NMLS final exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer? A.The creditor B.The loan processor C.The consumer D. The CFPB A. the creditor Which law restricts the sharing of information given when a consumer applies for a mortgage loan? A. Fair Credit Reporting Act B. FTC Disposal Rules C. Gramm-Leach-Bliley Act D. Consumer Regulatory Protection Act C. Gram...

NMLS final exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Under TILA guidelines, all of the following disclosures are provided for an adjustable-rate loan except: a. The index used to determine rate adjustments b. Statement that the interest rate will be offered for the duration of the loan c. Possibility of changes in the payment amount over time d.Frequency of changes in the annual percentage rate will be offered for the duration of the loan Statement tha...

NMLS final exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Who is responsible for ensuring that the Closing Disclosure is delivered to the consumer? A.The creditor B.The loan processor C.The consumer D. The CFPB A. the creditor Which law restricts the sharing of information given when a consumer applies for a mortgage loan? A. Fair Credit Reporting Act B. FTC Disposal Rules C. Gramm-Leach-Bliley Act D. Consumer Regulatory Protection Act C. Gram...

NMLS Federal Mortgage Related Laws QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Real Estate Settlement Procedures Act of 1974 is a consumer protection statue Real Estate Settlement Procedures Act (RESPA) RESPA -uses mandatory disclosure requirements to ensure that consumers obtain information on closing costs. -protect consumers from excessive settlement costs and unearned fees Consumer Financial Protection Bureau CFPB or Bureau is a federal regulator...

NMLS EXAM #2 QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. 1. The document which combines the Truth in Lending Statement required by TILA and the Good Faith Estimate required by RESPA is which of the following: A. The Home Loan Toolkit. B. The Loan Estimate. C. The Mortgage Servicing Disclosure Statement. D. The Closing Disclosure. The correct answer is B. This is a statement of fact.

NMLS Exam Study Guide: RESPA QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Real Estate Settlement Procedures Act (RESPA) for loans on residential properties of 1-4 units. Nothing of Value This act provides consumer protection __________ can be given in exchange for the referral of business with the exception of real estate brokerage firms that are allowed to exchange referrals between themselves. Thing of Value A __________ may include gift cards, spo...

NMLS EXAM REVIEW QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. What is a Mortgage? Is an agreement between a borrower and a lender in which the borrower conveys an interest in a property to the lender as security for a loan. Mortgage Bankers They are financial intermediaries that serve parties on opposite ends of the mortgage lending transaction by moving capital or money. Originating Developing marking plans, Educating clients about loan programs, Taki...

NMLS EXAM QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. reimbursement time to the borrower what does the loan estimate consist of ? close, servicing, refi, signature where are pre payment penalties shown Oversight of GFE FHFA what is not calculated during VA funding fee what law is HUD responsible for? 5 C's of underwriting 60 days TIP,Rate lock, comparison to 5 years, cash to Loan estimate and closing disclosure Discount po...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. 3 Most RESPA disclosures must be sent within ___ days from application Initial Escrow Statement What document is typically delivered at settlement, yet a lender has 45 days from settlement to deliver it? X RESPA is also known as Regulation ___ 1. Loan Terms 2. Projected Payments 3. Costs at Closing 15 List the 3 main sections on page 1 of the Loan Estimate The Notice of Transfer...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. Which law was enacted to eliminate the use of certain 3rd party settlement providers as a condition of getting a loan? RESPA The main purpose of the FCRA is to create reasonable procedures to ensure the confidentiality and accuracy of consumer credit information The Loan ID # IS: the creditor's identification number Which is not a trigger used to define a high cost loan under the HOEPA p...

NMLS Exam QUESTIONS AND 100% CORRECT ANSWERS UPDATED FOR 2025/2026. the dodd-frank appraisal independence provisions prohibit lenders from which of the following activities? coercing, bribing, or intimidating an appraiser for appraisal firms to influence value which does not include a refusal to extend additional credit under existing credit arrangement where the applicant is either delinquent or in default where additional credit would exceed a previously established credit...