NMLS Uniform State Content Practice Test Questions

1) In which situations might a state require a post-closing cooling-off period that lets borrowers rescind a signed agreement?

2) The NMLS license is national, but does it automatically allow a lender to originate loans in any state?

3) Can lenders choose their CE topics?

4) Can you transfer an NMLS license from one state to another?

5) Do some states impose their own limits on late-payment fees, grace periods, or default procedures?

6) How can institutions ensure data security and privacy?

7) Do you need to renew an NMLS registration, and how often?

8) Which activity is NOT part of a records audit?

9) How can lenders stay current with regulation changes?

10) What is the licensing process after NMLS registration?

11) Which is NOT a best practice for organizing records?

12) If a licensed MLO moves to another state, must they retake the National NMLS exam?

13) Do you need pre-licensing education to register on NMLS?

14) Dodd-Frank tightened mortgage oversight after 2008. Which statement best describes state variation under Dodd-Frank?

15) Mortgage activity is guided by multiple federal statutes. Which collection below represents the core national laws that every state must honor?

16) How often should records be updated?

17) The Residential Mortgage Regulatory Taskforce (RMRT) publishes an annual guidebook. How can lenders who relocate benefit from these guidebooks?

18) What happens after you’re licensed through NMLS?

19) All practicing lenders in the USA require an NMLS license, but how can licensing vary from state to state?

20) States have the power to adjust certain mortgage-licensing details. Which policy element may a state legitimately change?

21) What is one key difference between individual and company NMLS registration?

22) Under national laws, mortgage lenders require an NMLS license to work as professionals in their industry. But is the license operated on a national or federal level?

23) How might a state’s disclosure rules depart from the federal baseline?

24) How long does the registration and licensing process take?

25) How do you start the NMLS registration process?

26) Who needs to register on the NMLS?

27) Where can you find resources and support for NMLS registration?

28) Why is maintaining accurate records important?

29) How can institutions ensure accuracy of borrower information?

30) How can borrowers educate themselves on state-specific prepayment-penalty rules?

31) How might the Truth in Lending Act (TILA) differ from one state to another?

32) Which statement is NOT an industry standard for record retention?

33) Are resources available to help lenders meet CE requirements?

34) A federally required mortgage disclosure must describe key costs and terms. Which item below does NOT belong in that disclosure?

35) Which task is NOT part of securing a new-state endorsement?

36) Which items are typically required for NMLS registration?

37) Can a single mortgage loan originator maintain licenses in all 50 states?

38) What steps aid effective electronic record management?

39) The Equal Credit Opportunity Act (ECOA) bars discrimination. 
How might one state expand or modify ECOA compliance?

40) Which option is NOT a consequence of inaccurate records?

41) Can CE credits from one state transfer to another?

42) States can add provisions to the Fair Housing Act (FHA). Which of the following illustrates a state-level enhancement?

43) Which topics are NOT included in typical CE programs for lenders?

44) The SAFE Act sets national licensing baselines. Which area is commonly different from state to state?

45) What is the purpose of NMLS registration?

46) Which option is NOT a reason continuing education matters?

47) What role does technology play in recordkeeping?

48) What happens if a lender fails to complete required CE?

49) Are there state-specific documents that borrowers must sign or acknowledge during the mortgage process?

50) Are there exemptions or waivers for CE requirements?

51) How can lenders track their completed CE credits?

52) Why must lenders keep their own education-credit records?

53) Which records should be maintained by lending institutions?

54) What background checks are conducted during NMLS registration?

55) Must mortgage-education providers be NMLS-approved to appear on the NMLS course list?

56) How are licensing fees paid?

57) How often must lenders complete CE courses?

58) Which element is NOT included in every federally mandated disclosure package?

59) RESPA aims to curb kickbacks and escrow abuse. Which list shows ways a state can vary RESPA enforcement?