NMLS Uniform State Content Practice Test Questions

1) How can institutions ensure data security and privacy?

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

3) Which records should be maintained by lending institutions?

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

5) What is the purpose of NMLS registration?

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

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

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

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

10) Who needs to register on the NMLS?

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

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

13) What background checks are conducted during NMLS registration?

14) How can institutions ensure accuracy of borrower information?

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

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

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

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

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

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

21) Why is maintaining accurate records important?

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

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

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

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

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

27) How often must lenders complete CE courses?

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

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

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

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

32) How are licensing fees paid?

33) What role does technology play in recordkeeping?

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

35) How can lenders track their completed CE credits?

36) Are there exemptions or waivers for CE requirements?

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

38) How can lenders stay current with regulation changes?

39) Can lenders choose their CE topics?

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

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

42) What is the licensing process after NMLS registration?

43) What steps aid effective electronic record management?

44) Which items are typically required for NMLS registration?

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

46) How do you start the NMLS registration process?

47) 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?

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

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

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

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

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

53) How often should records be updated?

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

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

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

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

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

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