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Real NMLS MLO practice exam questions for easy pass!

Last Updated: Sep 30, 2026

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NMLS MLO Practice Q&A's

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NMLS MLO Exam Syllabus Topics:

SectionWeightObjectives
Mortgage Loan Origination Activities27%- Closing and post-closing procedures
- Loan programs and product types
- Loan application process
- Borrower qualification and underwriting basics
Ethics18%- Fraud prevention and detection
- Ethical practices and professional conduct
- Conflict of interest and disclosure obligations
- Fair lending and anti-discrimination
Uniform State Content11%- License maintenance and renewal
- State licensing and regulatory requirements
- Compliance and disciplinary standards
Federal Mortgage-Related Laws24%- Fair lending and consumer protection rules
- SAFE Act and federal regulatory framework
- TILA, RESPA, ECOA, HMDA, FCRA
- Disclosure requirements and timing
General Mortgage Knowledge20%- Fixed-rate vs adjustable-rate mortgages
- Conventional, FHA, VA, USDA loan characteristics
- Mortgage terms, concepts and calculations
- LTV, DTI, CLTV, PMI, points and fees

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

Question #1

Which of the following acts provides a state licensing and regulatory agency to investigate and examine a mortgage company?

  • A. Home Ownership and Equity Protection Act (HOEPA)
  • B. SAFE Act
  • C. Truth in Lending Act (TILA)
  • D. Real Estate Settlement Procedures Act (RESPA)
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

A mortgage loan originator paying compensation to a real estate agent for client referrals is:

  • A. Considered an illegal kickback prohibited by the Real Estate Settlement Procedures Act (RESPA).
  • B. Prohibited unless the client is notified and consents to the payment.
  • C. Permissible if the compensation is limited to meals or other noncash gifts.
  • D. Permissible if the compensation is limited to payment for the real estate agent's related business expenses.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

A mortgage loan originator (MLO) is in the process of taking an application for a 30-year mortgage, and the borrowers are over 72 years old. Which of the following actions must the MLO take?

  • A. The MLO must inquire about the ability to repay in the event of a borrower's death.
  • B. The MLO must present them with a reverse mortqaqe.
  • C. The MLO must complete the application and proceed as normal.
  • D. The MLO must present them with a home equity line of credit (HELOC).
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

If a mortgage loan includes a prepayment penalty, it must be included on which of the following disclosures?

  • A. Closing Disclosure only
  • B. Loan Estimate only
  • C. Both the Loan Estimate and Closing Disclosure
  • D. Uniform Residential Loan Application
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

A borrower works at Company XYZ and was recently approved for a cash-out refinance of her primary residence. The closing is scheduled for Friday. On Monday of closing week, the mortgage loan originator (MLO) sees on the local news that XYZ is closing and the employees have been let go. Which of the following actions, if any, should the MLO take?

  • A. Tell the borrower not to say anything at closing
  • B. Recommend that the borrower attend homeownership counseling
  • C. Notify the underwriter regarding possible change of borrower's employment status
  • D. Nothing, as the loan has already been approved
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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