Mortgage Loan Origination

Here you have the best NMLS MLO practice exam questions

You have 120 total questions across 24 pages (5 per page)
These questions were last updated on February 14, 2026
This site is not affiliated with or endorsed by NMLS.

Question 1 of 120

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

Bank deposits that are not supported by income or other disclosures

Disclosure of gift funds

Parental loans disclosed but not yet received

Borrower's receipt of a large bonus from an employer

Question 2 of 120

When a mortgage loan originator notices multiple Social Security number discrepancies within the same loan file, it is considered a red flag of:

fair lending.

mortgage fraud.

a forgetful borrower.

pricing discrepancies.

Question 3 of 120

Which of the following property value approaches does an appraiser use on a rental property?

Cost approach

Income approach

Annual approach

Sales comparison approach

Question 4 of 120

How many continuing education hours must mortgage loan originators complete every year to renew their license?

3 hours

8 hours

16 hours

20 hours

Question 5 of 120

Which of the following activities is an example of redlining in mortgage lending?

Ensuring that all creditworthy borrowers are afforded equal treatment when applying for a mortgage loan

The mortgage loan originator convincing the underwriter to move their loan file to the front of the line or "redline" it

The act of the mortgage lender putting a "red line" under the borrower's name in a file to indicate they are a substandard applicant

The systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices

About the NMLS MLO Certification Exam

About the Exam

The NMLS MLO (Mortgage Loan Origination) validates your knowledge and skills. Passing demonstrates proficiency and can boost your career prospects in the field.

How to Prepare

Work through all 120 practice questions across 24 pages. Focus on understanding the reasoning behind each answer rather than memorizing responses to be ready for any variation on the real exam.

Why Practice Exams?

Practice exams help you familiarize yourself with the question format, manage your time, and reduce anxiety on the test day. Our MLO questions are regularly updated to reflect the latest exam objectives.