NMLS MLO Actual Free Exam Questions & Community Discussion

Exam Code/Number: MLO
Exam Name/Title: Mortgage Loan Origination (SAFE MLO) Exam
Certification Provider: NMLS
Corresponding Certification: SAFE MLO

Exam Questions: 232
Updated On: Jun 01, 2026

Question #28

Which of the following fees is a finance charge?

A. Title insurance

B. Discount points

C. Pest inspection fees

D. Appraisal fees

Discussion 0

Correct Answer: B Vote an answer

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Question #29

Which of the following activities is considered a settlement service as defined by the Real Estate Settlement Procedures Act (RESPA)?

A. Origination of a timeshare loan

B. Origination of a chattel-secured loan

C. Origination of a federally related mortgage loan

D. Origination of an interim unsecured loan

Discussion 0

Correct Answer: C Vote an answer

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Question #30

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 complete the application and proceed as normal.

B. The MLO must present them with a home equity line of credit (HELOC).

C. The MLO must present them with a reverse mortqaqe.

D. The MLO must inquire about the ability to repay in the event of a borrower's death.

Discussion 0

Correct Answer: A Vote an answer

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Question #31

Which of the following services is included in the definition of a settlement service?

A. Homeowners association fees

B. Sale of the mortgage loan on the secondary market

C. Title company/escrow agent services

D. Flood insurance

Discussion 0

Correct Answer: C Vote an answer

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Question #32

A veteran borrower obtains a VA loan to purchase a property for $200,000 and opts to finance the entire purchase price plus the VA funding fee of 2.15%. The initial payment for principal and interest will be calculated based on a loan amount of:

A. $204,300 plus lender's attorney fees

B. $204,300

C. $200,000

D. $200,000 plus lender's attorney fees

Discussion 0

Correct Answer: B Vote an answer

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Question #33

Which of the following items is a liquid asset?

A. Antique jewelry

B. An automobile owned free and clear

C. Net worth of a business

D. Publicly traded stocks

Discussion 0

Correct Answer: D Vote an answer

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Question #34

A lender is permitted to accept the employment information provided by the borrower on the initial loan application without asking for a letter of explanation in which of the following circumstances?

A. The borrower lacks a history in an industry that requires specific skills.

B. The borrower has been employed by the same company for three years.

C. The residence is more than 120 miles from the work location on a refinance.

D. A recent college graduate holds a high-level position in the organization.

Discussion 0

Correct Answer: B Vote an answer

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Question #35

In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?

A. Any person who has an ownership interest in the property

B. Only the borrower who makes the most income

C. Only the borrower with the majority interest in the transaction

D. Only the person who will actually occupy the property

Discussion 0

Correct Answer: A Vote an answer

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Question #36

Which of the following responses best defines a red flag?

A. Proof that specific activity shows identity theft

B. Reasonably foreseeable risk taken by borrowers to prevent identity theft

C. Effective oversight by lenders to prevent borrower identity theft

D. A pattern, practice or specific activity that indicates the possible existence of identity theft

Discussion 0

Correct Answer: D Vote an answer

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