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 #37

Which of the following actions should a mortgage loan originator (MLO) take if a real estate broker offers the MLO $500 to obtain a purchase-money mortgage for the real estate broker's client?

A. Decline the money

B. Receive the $500 fee and include it on the Closinq Disclosure

C. Accept the money after obtaining the requested loan for the client

D. Apply the $500 towards the downpayment

Discussion 0

Correct Answer: A Vote an answer

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Question #38

The debt-to-income analysis should assess a borrower's total monthly housing related payments as a percentage of the:

A. gross monthly income.

B. net monthly income

C. taxable income.

D. loan amount.

Discussion 0

Correct Answer: A Vote an answer

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Question #39

Upon becoming employed by a state-licensed mortgage company, an individual who works for a depository institution as a mortgage loan originator (MLO) shall not be deemed to have temporary authority to act as an MLO in an application state if which of the following events has occurred?

A. The individual has been a witness in a trial at which the defendant was convicted of felony fraud.

B. The individual had an application for an MLO license denied or an MLO license revoked or suspended in any Governmental jurisdiction.

C. The individual has submitted an application to be a state-licensed MLO in the application state and was registered in the NMLS as an MLO by the prior employer.

D. The individual has been subject to a court order for payment of child support.

Discussion 0

Correct Answer: B Vote an answer

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Question #40

If a borrower believes that there is incorrect information on their credit report, which of the following actions should they take?

A. Make a written notification to the credit bureau to report the error

B. Call the credit bureau to report the error

C. Ask the company that is reporting the error to the credit bureau to fix the error

D. Ask the lender to fix the error

Discussion 0

Correct Answer: A Vote an answer

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Question #41

What is the maximum civil penalty that is permitted to be imposed for each violation or failure to comply with the SAFE Act?

A. $25, 000 for each act or omission: $250,000 maximum

B. $2,500 for each act or omission; $25,000 maximum

C. $2,500 for each act or omission

D. 000 for each act or omission

Discussion 0

Correct Answer: C Vote an answer

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Question #42

Which of the following actions by a mortgage loan originator is prohibited regarding credit secured by a dwelling?

A. Providing a copy of the credit application to the primary borrower

B. Receiving compensation from both the borrower and the lender

C. Presenting program options that best qualify and satisfy the consumer

D. Providing disclosures within three days of an application

Discussion 0

Correct Answer: B Vote an answer

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Question #43

Which of the following applicant characteristics is legally permitted to be considered in evaluating credit risk?

A. Whether the applicant's age makes them ineligible for credit-related insurance

B. Whether the applicant has a phone number listing in their name

C. Whether the alimony payments the applicant relies on for income are likely to continue and to be consistently made

D. Whether the applicant seems likely to have children

Discussion 0

Correct Answer: C Vote an answer

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Question #44

Which of the following factors is considered when determining the interest rate for a subprime mortgage?

A. The sales price of the property

B. The credit score of the applicants]

C. The property location

D. The term of the loan

Discussion 0

Correct Answer: B Vote an answer

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Question #45

According to the Truth in Lending Act (TILA), the term "finance charge" includes which of the following charges?

A. Seller's points offered to reduce the borrower's closing costs

B. A standard credit application fee charged to all loan applicants

C. Daily or per diem interest paid by borrower

D. Document preparation fees for items such as mortgages and deeds

Discussion 0

Correct Answer: C Vote an answer

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