Free NMLS MLO Exam Questions

Question 1

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

A : The term of the loan

B : The property location

C : The sales price of the property

D : The credit score of the applicants]

Answer: D

Question 2

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

A : Oral confirmation from the borrower

B : An updated statement showing a zero balance

C : A letter from the borrower explaining that they paid it off

D : No additional information required

Answer: B

Question 3

Which of the following statements describes the purpose of the TILA-RESPA Integrated Disclosure (TRID)?

A : It provides a three-day cooling-off period for all loans

B : It allows borrowers five days to review the final amount needed for settlement.

C : It ensures that the terms and fees that are quoted at the time of application do not change.

D : It aids borrowers in understanding the loan transaction process by utilizing readily understandable language

Answer: D

Question 4

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

A : Oral confirmation from the borrower

B : An updated statement showing a zero balance

C : A letter from the borrower explaining that they paid it off

D : No additional information required

Answer: B

Question 5

Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?

A : Bank deposits that are not supported by income or other disclosures

B : Disclosure of gift funds

C : Parental loans disclosed but not yet received

D : Borrower's receipt of a large bonus from an employer

Answer: A