NMLS Mortgage License Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

Question 1

An MLO shows Michael Davis only the loan programs that pay the MLO the highest commission, without mentioning lower-cost options they qualify for. This is:

Permitted if the borrower signs a waiver Acceptable salesmanship Prohibited steering Required by the SAFE Act

Question 2

Sofia Garcia wants to know: "A creditor open Monday through Friday receives a completed application on Monday, June 2. The Loan Estimate must be delivered or placed in the mail no later than:"

Tuesday, June 3 Wednesday, June 4 Friday, June 6 Thursday, June 5

Question 3

Priya Patel wants to know: "A lender offers a 2-1 buydown funded by the seller. In the first year, the borrower's rate is:"

2 percentage points above the note rate Fixed for the life of the loan 2 percentage points below the note rate 1 percentage point below the note rate

Question 4

During a loan consultation, Aisha Johnson asks: "Under the Bank Secrecy Act, a Currency Transaction Report (CTR) must be filed for currency transactions exceeding:"

$3,000 $25,000 $5,000 $10,000

Question 5

A title company offers an MLO free office space in its building in exchange for the MLO directing all closings there. This arrangement is:

Permitted because office space is not cash A prohibited thing of value for referrals under RESPA Section 8 Allowed if the MLO discloses it to borrowers Acceptable for amounts under market rent thresholds

Question 6

During a loan consultation, David Kim asks: "At closing, the actual lender origination charge is $1,200 while the Loan Estimate disclosed $1,000, with no valid changed circumstance. The creditor must:"

Absorb the difference only if the borrower complains Disclose the increase on the next annual statement Cure the $200 overage by refunding it to the borrower, since the charge is in the zero-tolerance bucket Increase the loan amount by $200

Question 7

David Kim wants to know: "A lender offers a 5-year balloon mortgage to a borrower who will clearly be unable to refinance at maturity. Under ATR/QM rules, this loan:"

Is always permitted for portfolio lenders Violates ATR unless it fits a narrow exception, because balloon payments are generally prohibited on QM loans and ATR requires considering the balloon payment Is exempt from ATR as a temporary loan Qualifies as QM automatically

Question 8

A lender charges all borrowers with Spanish surnames a $495 'processing fee' that other borrowers are not charged. Even if applied consistently within that group, this practice is:

A UDAAP issue but not discrimination Disparate treatment - intentional discrimination based on national origin Acceptable if disclosed on the Loan Estimate Permitted risk-based pricing

Question 9

Michael Davis's loan file shows: a new employer with an unverifiable phone number, a $25,000 cash deposit with no source, and an appraisal 40% above comparable sales. As the MLO, the BEST response is to:

Ask the borrower to find a different lender Increase the down payment to reduce risk Close quickly since the AUS approved the file Stop and investigate each red flag, verify or document legitimate explanations, and escalate suspected fraud to compliance

Question 10

Priya Patel wants to know: "Under TRID, prepaid interest (per-diem interest) collected at closing falls into which tolerance bucket?"

Zero tolerance 10% cumulative tolerance Unlimited tolerance 5% tolerance

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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