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Free NMLS Practice Questions

10 free, exam-style Pass Your MLO SAFE Exam First Try (NMLS) practice questions with answers and explanations. No signup required. Work through them below, then take the full free NMLS practice test to study every exam domain.

Question 1

Scenario: A title company pays a real estate agent $500 for each borrower referral that results in a closing. Under RESPA Section 8, this payment is:

  1. Prohibited as an illegal kickback for referrals
  2. Allowed if disclosed on the Closing Disclosure
  3. Permissible if the agent provides marketing services
  4. Acceptable under an affiliated business arrangement
Show answer & explanation

Correct answer: A - Prohibited as an illegal kickback for referrals

Question 2

Scenario: A lender refers borrowers to its wholly-owned title company. To comply with RESPA's affiliated business arrangement requirements, the lender must:

  1. Provide AfBA disclosure at referral, allow borrower shopping, not require affiliate use
  2. Only disclose the relationship solely on the Closing Disclosure form
  3. Obtain written consent from the borrower prior to the referral
  4. Ensure the affiliate charges fees at least 10% below market rates
Show answer & explanation

Correct answer: A - Provide AfBA disclosure at referral, allow borrower shopping, not require affiliate use

Question 3

A mortgage broker receives a fee of $3,000 for originating a loan but provides no actual services beyond the referral. Under RESPA, this is:

  1. Prohibited as an unearned fee
  2. Allowed if disclosed within 3 days of application
  3. Permissible if the fee is split with the lender
  4. Acceptable if the borrower agrees in writing
Show answer & explanation

Correct answer: A - Prohibited as an unearned fee

Question 4

Scenario: A borrower's escrow account analysis shows a projected shortage of $1,200 for the next year. The servicer wants to collect an additional cushion. What is the maximum total cushion the servicer can require?

  1. $200 (1/6 of annual escrow payments)
  2. $1,200 (the full shortage amount)
  3. $100 (one month's escrow payment)
  4. $300 (1/4 of annual escrow payments)
Show answer & explanation

Correct answer: A - $200 (1/6 of annual escrow payments)

Question 5

Scenario: A servicer completes the annual escrow analysis on March 15. By what date must the servicer deliver the annual escrow account statement to the borrower?

  1. April 14 (30 days after completion)
  2. March 18 (3 days after completion)
  3. May 15 (60 days after completion)
  4. March 15 (same day as completion)
Show answer & explanation

Correct answer: A - April 14 (30 days after completion)

Question 6

A lender charges a borrower $450 for an appraisal but pays the appraiser only $400, keeping $50. Under RESPA, this practice is:

  1. Prohibited unless lender performed actual services worth $50
  2. Allowed as a standard processing fee markup practice
  3. Permissible if disclosed on the Loan Estimate form
  4. Acceptable as compensation for coordinating the appraisal service
Show answer & explanation

Correct answer: A - Prohibited unless lender performed actual services worth $50

Question 7

Scenario: A borrower submits a qualified written request (QWR) to their servicer on June 1 regarding an escrow account error. By what date must the servicer respond to the borrower's request?

  1. July 1 (within 30 business days)
  2. June 6 (within 5 business days)
  3. June 21 (within 20 business days)
  4. August 1 (within 60 calendar days)
Show answer & explanation

Correct answer: A - July 1 (within 30 business days)

Question 8

Under RESPA, which of the following loan types is generally exempt from coverage?

  1. A loan secured by 26 acres for agricultural purposes
  2. A purchase money loan for a duplex
  3. A refinance of a single-family home
  4. A home equity loan secured by a primary residence
Show answer & explanation

Correct answer: A - A loan secured by 26 acres for agricultural purposes

Question 9

Scenario: A servicer receives a complete loss mitigation application on March 1 when the borrower is 90 days delinquent. The foreclosure sale is scheduled for March 20. Under RESPA's dual tracking prohibition, the servicer must:

  1. Postpone the foreclosure sale until the loss mitigation application is evaluated
  2. Proceed with the sale since it was scheduled before the application
  3. Cancel the sale only if the borrower makes a partial payment
  4. Continue with the sale but offer a modification afterward
Show answer & explanation

Correct answer: A - Postpone the foreclosure sale until the loss mitigation application is evaluated

Question 10

A settlement service provider offers a mortgage broker tickets to a sporting event worth $150 as a thank you for referrals. Under RESPA, this is:

  1. Prohibited as thing of value for referrals regardless of amount
  2. Allowed if the value is under $500 per year total
  3. Permissible if disclosed to all referred borrowers fully
  4. Acceptable as a de minimis business courtesy gift
Show answer & explanation

Correct answer: A - Prohibited as thing of value for referrals regardless of amount

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