NMLS MLO Exam Questions with Complete Solutions (Latest 2025) What must a borrower do to avoid having late payments reported to a credit bureau? - Correct Answers ✅Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? - Correct Answers ✅3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? - Correct Answers ✅Credit scores Max prepayment penalty on residential mortgages in the first year of the loan - Correct Answers ✅3% What must condominium associations do with respect to property insurance? - Correct Answers ✅Keep a "blanket" policy that protects the entire structure If a lender is planning on referring a borrower to a title company that the lender has ownership in, when must the AFBA must be provided to the borrower? - Correct Answers ✅Before the referral to the title company is made Website to obtain copy of your credit report that the credit bureaus are required to provide once per year at no charge - Correct Answers ✅annualcreditreport.com 1 / 4
NMLS MLO Exam Questions with Complete Solutions (Latest 2025) 2/3/6 caps - Correct Answers ✅ARM initial adjustment max is 2%, subsequent adjustment period max is 3%, and lifetime cap of 6% What does FHLB stand for and what do they provide? - Correct Answers ✅Federal Home Loan Bank, and they provide advances to financial institutions for residential mortgage loans According to the Dodd-Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - Correct Answers ✅5% On a purchase transaction, what document contains the purchase price for a property? - Correct Answers ✅Sales Contract After a loan has been closed and funded, the creditor notices a tolerance violation with a fee between the LE and CD. How long does the creditor have to reimburse the borrower for the overcharge before being considered in violation of the TRID rule? - Correct Answers ✅60 days after closing According to the Dodd-Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - Correct Answers ✅5% 2 / 4
NMLS MLO Exam Questions with Complete Solutions (Latest 2025) Overt Discrimination - Correct Answers ✅Refusing service to anyone of a certain race, ethnicity, etc.Under ECOA can you ask how many children a borrower has?
- Correct Answers ✅No
What document specifies that a property is being used as security in the event of nonpayment of a debt? - Correct Answers ✅Mortgage On the LE, which piece of data tells applicants how much they will be paying in interest over the life of the loan as a percentage of the loan? - Correct Answers ✅TIP (Total Interest Percentage) COFI comes from what region in the country? - Correct Answers ✅The 11th Federal Home Loan Bank (Arizona, California, and Nevada) What disclosure is required to be provided to the applicant within 3 days of application under reg x? - Correct Answers ✅Mortgage Loan Servicing Disclosure
Verification of cash used in a closing is documented by: -
Correct Answers ✅last 2-3 months bank statements 3 / 4
NMLS MLO Exam Questions with Complete Solutions (Latest 2025)
The finance charge is the total cost of: - Correct Answers
✅the loan in dollars, including points and mortgage insurance What IRS forms would you requrest from a borrower who is 40% shareholder in a C-Corporation? - Correct Answers ✅Form 1120 Impersonating someone else in an attempt to obtain their
personal financial information is called: - Correct Answers
✅Pretexting What type of funding occurs when a lender obtains funds from a line of credit at a commercial bank? - Correct Answers ✅Warehouse funding Late fee for FHA and VA loans - Correct Answers ✅4% Ginnie Mae _____ loans - Correct Answers ✅Guarantees
A mortgage on personal property is: - Correct Answers
✅Chattel mortgage
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