NMLS License Exam Latest Actual

NMLS License Exam / | Latest Actual Exam Questions with Detailed Correct Answers | Updated & Verified​ Nationwide Mortgage Licensing System (NMLS) SAFE MLO Exam | Federal Mortgage Law, General Mortgage Knowledge, Loan Origination Activities, Ethics, and Uniform State Content | Expert-Verified Q&A | 100% Certification-Ready

Introduction​ This updated / NMLS License Exam resource includes 120 actual exam questions with detailed and verified correct answers. It covers all key domains tested by the SAFE MLO exam, including federal lending laws (e.g., TILA, RESPA, ECOA), ethical lending practices, mortgage origination, loan processing, and compliance with consumer protection regulations. Each answer is supported with a clear rationale, ensuring deep understanding and full readiness for both the exam and professional application.Answer Format​ All correct answers are highlighted in bold and green, accompanied by concise rationales to reinforce understanding and ensure mastery of NMLS-tested concepts.NMLS SAFE MLO License Exam / | Actual Exam Questions with Verified Correct Answers | 100% Pass-Ready

NMLS SAFE MLO Exam Questions (1–120)

• Taking advantage of ill-informed consumers through excessively high

fees, misrepresented loan terms, or frequent refinancing that does not benefit the borrower is called what?​

a) Predatory lending​

b) Subprime lending​

c) Non-qualified lending​

d) Discriminatory lending​

a) Predatory lending​

Rationale: Predatory lending involves exploiting borrowers with unfair practices like high fees or misrepresented terms, per NMLS and CFPB guidelines.

• What does RESPA’s Section 9 prohibit?​

a) Requiring excessive escrow deposits​

b) Home sellers requiring buyers to use a specific title insurance company​

c) Charging origination fees​ 1 / 3

d) Providing loan estimates​

b) Home sellers requiring buyers to use a specific title insurance company​

Rationale: RESPA Section 9 prohibits sellers from mandating specific title insurance providers to protect consumer choice, per Regulation X.

• Per the Dodd-Frank Act, a creditor must furnish a copy of an appraisal no

later than how many business days before closing?​

• 1 business day​
• 3 business days​
• 5 business days​
• 7 business days​
• 3 business days​

Rationale: The Dodd-Frank Act requires appraisal copies be provided upon completion and no later than 3 business days before closing, per ECOA amendments.

• What does the Dodd-Frank Act combine into a single disclosure form?​

a) GFE and HUD-1​

b) TIL and GFE​

c) TIL and HUD-1​

d) GFE and APR​

b) TIL and GFE​

Rationale: The Dodd-Frank Act integrates the Truth in Lending (TIL) disclosure and Good Faith Estimate (GFE) into the TILA-RESPA Integrated Disclosure (TRID), per CFPB rules.

• For a qualified mortgage under the Dodd-Frank Act, total points and fees

may not exceed what percentage of the loan amount?​

• 2%​
• 3%​
• 4%​
• 5%​
• 3%​

Rationale: A qualified mortgage limits total points and fees to 3% of the loan amount for loans of $100,000 or more, per Dodd-Frank Act provisions.

• Does the Dodd-Frank Act’s ability-to-repay provision apply to all loans or

only owner-occupied loans?​

a) Owner-occupied loans only​

b) Non-owner-occupied loans only​

c) All loans​

d) Investment properties only​

c) All loans​

Rationale: The ability-to-repay provision applies to all consumer credit transactions secured by a dwelling, per Dodd-Frank Act and Regulation Z.

• Under HOEPA, prepayment penalties are allowed for how many years?​
• 1 year​ 2 / 3

• 2 years​
• 3 years​
• 5 years​
• 2 years​

Rationale: HOEPA allows prepayment penalties for the first 2 years of a high-cost mortgage, per Regulation Z.

• Which of the following is considered an abusive act under the

Dodd-Frank Act?​

a) Providing clear loan terms​

b) Materially interfering with a consumer’s understanding of a product​

c) Offering competitive interest rates​

d) Disclosing all fees upfront​

b) Materially interfering with a consumer’s understanding of a product​

Rationale: Abusive acts include actions that obscure a consumer’s understanding of loan terms, per Dodd-Frank Act and CFPB guidelines.

• If an MLO receives compensation directly from a consumer, how much

additional compensation can they receive from a lender in the same transaction?​

a) Up to 1% of the loan amount​

b) Up to 2% of the loan amount​

• $0.00​

d) Up to $1,000​

• $0.00​

Rationale: Dual compensation is prohibited; MLOs can be paid by either the consumer or lender, not both, per Dodd-Frank Act and Regulation Z.

• What is required for a lender to take adverse action against a borrower?​

a) General reasons​

b) Specific reasons​

c) No reasons required​

d) Borrower consent​

b) Specific reasons​

Rationale: Lenders must provide specific reasons for adverse actions like credit denial, per ECOA and Regulation B.

• What is the definition of adverse action under Regulation B?​

a) Approval of credit with conditions​

b) Denial or revocation of credit​

c) Offering a lower interest rate​

d) Extending credit terms​

b) Denial or revocation of credit​

Rationale: Adverse action under Regulation B includes denial or revocation of credit or unfavorable changes to credit terms, per ECOA.

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