Mortgage Loan Origination

Here you have the best NMLS MLO practice exam questions

You have 120 total questions to study from
Each page has 5 questions, making a total of 24 pages
You can navigate through the pages using the buttons at the bottom
This questions were last updated on December 30, 2025
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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

Correct Answer: A

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.

Correct Answer: B

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

Correct Answer: B

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

Correct Answer: B

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

Correct Answer: D