Free MLO Practice Test Questions 2026

What is the loan amount on the purchase price of $249,955.00 if the borrower is putting 18% down?

A. $204,693.10

B. $204,936.10

C. $204,963.10

D. $204,966.10

Which of the following loan types is covered by the Real Estate Settlement Procedures Act (RESPA)?

A. Auto loan

B. Student loan

C. Residential real estate loan

D. Commercial real estate loan

On an annual basis, a licensed state mortgage loan originator must complete three hours of continuing education on federal law and regulations, two hours on nontraditional mortgage products, and two hours on:

A. Ethics

B. Government loan programs

C. How to complete the loan application

D. The operations of the secondary market

A borrower may rescind their mortgage loan until midnight of the third:

A. Calendar day or delivery of all material disclosures, whichever occurs first.

B. Calendar day following consummation or delivery of all material disclosures, whichever occurs last.

C. Business day following consummation or delivery of all material disclosures, whichever occurs last.

D. Business day following consummation or delivery of all material disclosures, whichever occurs first.

Which of the following must be included in advertisements displayed by mortgage loan originators (MLOs) on their social media pages for mortgage services including payment amounts?

A. The APR

B. The MLO's personal website

C. The MLO's business address

D. The number of days that the rate is available

The TILA-RESPA Integrated Disclosure rule (TRID) applies to most closed-end consumer credit transactions secured by real property, which includes:

A. reverse mortgages.B home equity lines of credit (HELOCs;

B. refinance of a condominium property.

C. loans secured by a mobile home on a leased lot.

A person paying or receiving a portion of a fee that has not been earned in connection with the settlement statement is which of the following practices?

A. Actual fees

B. Splitting fees

C. Average fees

D. Third-party fees

A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer's mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower's bank records. Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?

A. The buyer's agent

B. All parties involved in the transaction

C. His loan processor

D. The report Is not permitted to be discussed with any parties involved in the transaction.

Which of the following items is a liquid asset?

A. Antique jewelry

B. Publicly traded stocks

C. Net worth of a business

D. An automobile owned free and clear

Which of the following does a higher-priced mortgage require if the seller acquired the home 90 days or fewer prior to the date of the purchase contract and the sales price exceeds the seller's acquisition price by more than 10%?

A. One written appraisal and one broker price opinion

B. One written appraisal only and one automated valuation model

C. Two written appraisals only

D. Two written appraisals and one automated valuation model

Within how many days must a creditor notify an applicant of action taken on a completed mortgage loan application?

A. 15 days

B. 30 days

C. 45 days

D. 60 days

A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:

A. been convicted of a felony within the past seven years.

B. had an MLO license suspended in any governmental jurisdiction.

C. taken and failed the SAFE MLO National Test three times within the last year.

D. never been licensed or registered as an MLO in any governmental jurisdiction.