Free NMLS MLO Practice Exam Questions and Answers 2026

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Total 122 Questions | Updated On: Apr 01, 2026

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Question 1

A licensed mortgage loan originator (MLO) sharing his commission with another licensed MLO at his company for actual services performed on a loan is considered which of the following terms?

A : Tip sharing

B : Fee splitting

C : Single fee method

D : Double fee method

Answer: B

Question 2

Which of the following factors is considered when determining the interest rate for a subprime mortgage?

A : The term of the loan

B : The property location

C : The sales price of the property

D : The credit score of the applicants]

Answer: D

Question 3

A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home. During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?

A : Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction

B : [Consider the issue to be a private family matter and proceed with the next steps in the application process

C : Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan

D : Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf

Answer: A

Question 4

An easement:

A : is a mortgage modification.

B : is a right to cross or otherwise use someone else-s land for a specified purpose.

C : allows a loan applicant to close on a loan even if all the stipulations have not been met.

D : allows a borrower to make less than the required payments without going through a full mortgage modification.

Answer: B

Question 5

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

A : Oral confirmation from the borrower

B : An updated statement showing a zero balance

C : A letter from the borrower explaining that they paid it off

D : No additional information required

Answer: B

Page: 1 / 25

Total 122 Questions | Updated On: Apr 01, 2026

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