Maryland NMLS TEST PREP
Pass the Maryland NMLS test! Take unlimited Maryland NMLS practice tests, crafted by an expert mortgage instructor to meet or exceed the difficulty of the actual SAFE MLO exam.
Don't rely on the outdated material on other Maryland NMLS exam prep sites! Our online Maryland practice NMLS test questions are up to date with the latest 2023 rules and regulations. Our NMLS practice tests are simulated national exams with uniform state content that apply to your state!
Our Maryland mortgage test prep comes with over 1,000 NMLS practice exam questions with detailed answer explanations. Our MLO test prep program also comes with mortgage term & definition flashcards, a comprehensive video learning series, an additional 100 mortgage math test questions, and comes with a 100% Pass Money-Back Guarantee!
Maryland NMLS Practice Tests
OUR SAFE MLO EXAM PREP INCLUDES...
-
1,000 Practice Questions (UST)
-
Vocabulary Flashcards & Glossary
-
Expert MLO Instructor Support
-
Study Mode & Timed Exam Mode
-
User-Friendly On All Devices
-
1 Year of Unlimited Access
-
50 Additional Math Questions
-
MLO Exam Tip Videos
-
2023 Rules & Regulations

"This program thoroughly prepares you to pass the NMLS test!" - Calvin T.
"I passed the NMLS exam on the first try with a 92!" - Jenn E.
Can't find the state test you are looking for?
We have practice tests for all 50 states. Simply click on the button to see a full list of state specific NMLS practice tests.
Pass The NMLS Exam - 100% Money-Back Guarantee
Quiz-summary
0 of 25 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
Information
The SAFE Mortgage Licensing Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and for the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain a nationwide mortgage licensing system and registry for the residential mortgage industry.
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
Time has expired!
Your Score
You have reached 0 of 0 points, (0)
Score breakdown by Topic
Topic | Correct Answers |
Ethics | 0 / 10 |
Federal Mortgage-Related Laws | 0 / 10 |
General Mortgage Knowledge | 0 / 10 |
Mortgage Loan Origination Activities | 0 / 10 |
Uniform State Content | 0 / 10 |
Congratulations! You Passed!
It is suggested that you retake all tests until you consistently score in the 90's! Great work - keep going!
Sorry, But You Did Not Pass.
We suggest that you take all tests until you consistently score in the 90's.
Pass Your NMLS Exam Guaranteed
0
Answered Questions
/ 25-
Which of the following was one purpose of the HERA?
Title Five of the Housing and Economic Recovery Act establishes the SAFE Act. One of the components of SAFE is to establish the Nationwide Mortgage Licensing System and Registry (NMLSR), a national system for regulating and monitoring mortgage professionals.
Title Five of the Housing and Economic Recovery Act establishes the SAFE Act. One of the components of SAFE is to establish the Nationwide Mortgage Licensing System and Registry (NMLSR), a national system for regulating and monitoring mortgage professionals.
-
At what LTV is a mortgage servicer required to remove PMI on a “high-risk” loan, assuming the borrower’s loan is current?
The HPA requires mortgage servicers to automatically remove PMI on any loan designated as “high-risk” once the loan’s LTV reaches 77% and assuming that the borrower’s loan is current.
The HPA requires mortgage servicers to automatically remove PMI on any loan designated as “high-risk” once the loan’s LTV reaches 77% and assuming that the borrower’s loan is current.
-
Payment shock is defined as:
Payment shock concerns itself with the borrower’s current housing expense and their proposed housing expense. If an individual’s housing expense increases significantly beyond what they’re currently paying, they might ultimately experience difficulty making their payments.
Payment shock concerns itself with the borrower’s current housing expense and their proposed housing expense. If an individual’s housing expense increases significantly beyond what they’re currently paying, they might ultimately experience difficulty making their payments.
-
Which of the following factors deemed customers to be a higher credit risk according to the Statement of Subprime Lending?
The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects two or more 30-day delinquencies within the prior 12-month period, one or more 60-day delinquencies within the prior 24 months, foreclosure, repossession, or charge-off within the prior 24 months, bankruptcy within the previous five years, credit score representing a high risk of default, or a debt-to-income ratio of 50% or higher.
The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects two or more 30-day delinquencies within the prior 12-month period, one or more 60-day delinquencies within the prior 24 months, foreclosure, repossession, or charge-off within the prior 24 months, bankruptcy within the previous five years, credit score representing a high risk of default, or a debt-to-income ratio of 50% or higher.
-
Which of the following is not a tool to calculate an applicant’s income?
State income tax returns are never used to determine an applicant’s income. Bank statements reflecting pay deposits, pay stubs, W-2 forms, 1099 forms, and federal income tax returns are some of the documents used to substantiate an applicant’s income.
State income tax returns are never used to determine an applicant’s income. Bank statements reflecting pay deposits, pay stubs, W-2 forms, 1099 forms, and federal income tax returns are some of the documents used to substantiate an applicant’s income.
-
Placing a subordinate loan behind a conventional first mortgage to eliminate the need for PMI when the applicant has less than 20% to put down on a home purchase is known as:
Piggyback financing involves an applicant applying for a first mortgage at 80% LTV as well as a secondary loan for the difference between the 80% first mortgage and their down payment. By limiting the first mortgage to 80%, the lender would not require PMI. A common example is an 80/10/10 which involves an 80% first mortgage, a 10% second mortgage, and a 10% down payment.
Piggyback financing involves an applicant applying for a first mortgage at 80% LTV as well as a secondary loan for the difference between the 80% first mortgage and their down payment. By limiting the first mortgage to 80%, the lender would not require PMI. A common example is an 80/10/10 which involves an 80% first mortgage, a 10% second mortgage, and a 10% down payment.
-
A Realtor calls an attorney and asks him to represent her client for free. In turn, the Realtor will refer other paying clients to that attorney. The attorney agrees. Who, if anyone, has violated RESPA?
The Realtor violated RESPA the moment that she offered the attorney referrals for something of value (the waiver of the attorney’s fee). The attorney violated RESPA the moment he accepted the offer.
The Realtor violated RESPA the moment that she offered the attorney referrals for something of value (the waiver of the attorney’s fee). The attorney violated RESPA the moment he accepted the offer.
-
A mortgage originator sends a thank-you note to a Realtor for referring a client. Who, if anyone, violated RESPA?
Since nothing of value was exchanged between the referral sources, no violation occurred. The thank-you note did not constitute a thing of value because it did not possess a tangible use.
Since nothing of value was exchanged between the referral sources, no violation occurred. The thank-you note did not constitute a thing of value because it did not possess a tangible use.
-
The SAFE Act creates standard guidelines for state legislation to regulate loan originators. In order to meet the standards established under the SAFE Act, state licensing laws must include all of the following except:
The SAFE Act does not impose a specific fine for regulatory violations. Different violations carry different sanctions.
The SAFE Act does not impose a specific fine for regulatory violations. Different violations carry different sanctions.
-
The functions of participating in the NMLS, conducting background checks, and writing rules and regulations are required under the SAFE Act by:
In having oversight and supervisory authority over loan originators, a state licensing agency must participate in the NMLS, conduct background checks, and write rules and regulations.
In having oversight and supervisory authority over loan originators, a state licensing agency must participate in the NMLS, conduct background checks, and write rules and regulations.
-
A state licensing agency is conducting an examination of a company’s loan origination activities. In doing so, it may do all of the following, except:
In conducting an examination or investigation, a state licensing agency may, among other things, administer oaths and affirmations, subpoena witnesses, as well as books and records, require the production of relevant documents, and control access to any documents and records of the person under investigation. The state licensing agency is not authorized to close the business for any period of time.
In conducting an examination or investigation, a state licensing agency may, among other things, administer oaths and affirmations, subpoena witnesses, as well as books and records, require the production of relevant documents, and control access to any documents and records of the person under investigation. The state licensing agency is not authorized to close the business for any period of time.
-
A title insurance company provides a computer to a mortgage broker. The computer is used to transmit electronic documents from the mortgage broker’s office to the title insurance company. Who is in violation of RESPA?
Even though the computer may be intended for business purposes, it is still a thing of value.
Even though the computer may be intended for business purposes, it is still a thing of value.
-
Sue Johnson is a receptionist for a construction company. She receives bi-weekly pay in the amount of $1,153.85. What is her monthly qualifying income?
Multiplying her bi-weekly income of $1,153.85 by 26 results in an annual income of $30,000. Dividing $30,000 by 12 results in a monthly income of $2,500.
Multiplying her bi-weekly income of $1,153.85 by 26 results in an annual income of $30,000. Dividing $30,000 by 12 results in a monthly income of $2,500.
-
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost two points. What is the dollar amount of the broker fee?
If the broker fee costs two points, that cost represents 2% of the loan amount. Multiplying the loan amount of $245,600 by 2% results in a broker fee cost of $4,912.
If the broker fee costs two points, that cost represents 2% of the loan amount. Multiplying the loan amount of $245,600 by 2% results in a broker fee cost of $4,912.
-
Caps on ARMs:
Caps on ARMs limit the amount an interest rate or payment can adjust during any one adjustment period or even over the lifetime of the loan.
Caps on ARMs limit the amount an interest rate or payment can adjust during any one adjustment period or even over the lifetime of the loan.
-
All of the following are true of FHA fixed-rate loans except:
An FHA borrower is required to pay annual MIP through monthly payments for a minimum of eleven years or the life-of-loan based on the loan’s original LTV.
An FHA borrower is required to pay annual MIP through monthly payments for a minimum of eleven years or the life-of-loan based on the loan’s original LTV.
-
An application fee is not included in the APR as long as:
As long as all applicants are charged the application fee regardless of whether or not they close on a loan, a lender does not have to include its application fee in the APR.
As long as all applicants are charged the application fee regardless of whether or not they close on a loan, a lender does not have to include its application fee in the APR.
-
The Homeowner’s Protection Act is applicable to all but which of the following:
The HPA applies to residential mortgages used for primary residences and applicable to lenders, loan servicers, and PMI insurers.
The HPA applies to residential mortgages used for primary residences and applicable to lenders, loan servicers, and PMI insurers.
-
Which of the following statements violates ECOA?
ECOA prohibits discouraging anyone from applying for a mortgage. Refusing to take an application from someone under legal age is permitted. Asking an applicant about their race, national origin, and sex is required under HMDA and therefore allowable under ECOA and establishing an across-the-board policy whereby a lender refuses to lend to anyone at or below a certain credit score threshold is also permitted. Discouraging someone from applying due to the quality of their credit and not their score based on an across-the-board policy, however, is a violation of ECOA.
ECOA prohibits discouraging anyone from applying for a mortgage. Refusing to take an application from someone under legal age is permitted. Asking an applicant about their race, national origin, and sex is required under HMDA and therefore allowable under ECOA and establishing an across-the-board policy whereby a lender refuses to lend to anyone at or below a certain credit score threshold is also permitted. Discouraging someone from applying due to the quality of their credit and not their score based on an across-the-board policy, however, is a violation of ECOA.
-
Under the Truth-in-Lending Act, a “general” business day is:
A general business day is any of the week, aside from Sunday and federal holidays, on which the entity conducting business is fully operational. As components to the business must be operational on Saturday, for example, in order for Saturday to be counted as a business day under this definition.
A general business day is any of the week, aside from Sunday and federal holidays, on which the entity conducting business is fully operational. As components to the business must be operational on Saturday, for example, in order for Saturday to be counted as a business day under this definition.
-
What is the Model State Law?
The Model State Law is a document created by the CSBS and the AARMR to guide states in implementing the legislation required by the SAFE Act. The SAFE Act encourages the CSBS and AARMR to establish the NMLS which would satisfy the SAFE Act mandates. Model State Law is not considered a form, model, or book, and it applies to states rather than banks or mortgage companies.
The Model State Law is a document created by the CSBS and the AARMR to guide states in implementing the legislation required by the SAFE Act. The SAFE Act encourages the CSBS and AARMR to establish the NMLS which would satisfy the SAFE Act mandates. Model State Law is not considered a form, model, or book, and it applies to states rather than banks or mortgage companies.
-
Who is exempt from a mortgage loan originator business license?
Exempt from the act that requires a mortgage loan originator business license are: registered mortgage loan originators when acting for an entity described in the MSL, any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual, or who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence, or a licensed attorney negotiating for a client as an ancillary matter. First-time mortgage loan originators working for a non-depository institution certainly have to license as do attorneys receiving compensation for negotiating loan terms.
Exempt from the act that requires a mortgage loan originator business license are: registered mortgage loan originators when acting for an entity described in the MSL, any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual, or who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence, or a licensed attorney negotiating for a client as an ancillary matter. First-time mortgage loan originators working for a non-depository institution certainly have to license as do attorneys receiving compensation for negotiating loan terms.
-
Each of the following are key differences found in the FHA loan program when compared to the conforming, conventional loan program except:
In the FHA loan program, qualification is not credit-score driven and as little as 12 months of clean credit history may qualify a borrower. FHA down payment requirements are as low as 3.5%. FHA’s maximum loan amount is set for each county in the U.S. The MIP must be paid for a minimum of 11 years on loans having an initial LTV less than 90% . Both FHA and conventional loan programs require mortgage insurance under certain conditions.
In the FHA loan program, qualification is not credit-score driven and as little as 12 months of clean credit history may qualify a borrower. FHA down payment requirements are as low as 3.5%. FHA’s maximum loan amount is set for each county in the U.S. The MIP must be paid for a minimum of 11 years on loans having an initial LTV less than 90% . Both FHA and conventional loan programs require mortgage insurance under certain conditions.
-
MLO Emily refers her borrower to a hazard insurance agent. Emily’s husband works for the insurance company represented by the agent. As there is no ownership interest between any of these entities, Emily finds no reason to issue the borrower an ABAD. Which of the following statements is not correct?
Any time an affiliate or associate relationship exists between two entities, a borrower referred between those entities must be issued an Affiliated Business Arrangement Disclosure (ABAD) by the referring individual. Even though there was no ownership interest between the mortgage company and the insurance agency, Emily’s husband working for the insurance agency created an associate relationship for which Emily, not the insurance company, was required to issue an ABAD.
Any time an affiliate or associate relationship exists between two entities, a borrower referred between those entities must be issued an Affiliated Business Arrangement Disclosure (ABAD) by the referring individual. Even though there was no ownership interest between the mortgage company and the insurance agency, Emily’s husband working for the insurance agency created an associate relationship for which Emily, not the insurance company, was required to issue an ABAD.
-
A lender will always require that the borrower obtain title insurance because:
Lenders require an extensive examination of public records and often a current survey before they issue a loan. Therefore, lenders consider a lender’s or mortgagee’s title policy the ideal evidence and protection of title because insurance companies thoroughly examine public records before issuing a policy. A lender’s title policy is issued for the amount of the loan.
Lenders require an extensive examination of public records and often a current survey before they issue a loan. Therefore, lenders consider a lender’s or mortgagee’s title policy the ideal evidence and protection of title because insurance companies thoroughly examine public records before issuing a policy. A lender’s title policy is issued for the amount of the loan.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25

1,000 NMLS Practice Test Questions
8 Mortgage Tests & NMLS Exam Vocabulary Flashcards

50 Additional MLO Math Practice Questions
All Mortgage Math Topics Will Be Covered

User Friendly Dashboard On All Devices
Take Exams in Practice Mode, or Live Exam Mode!

Facebook Support Group
Q&A With Expert Mortgage Teacher
Pass The Maryland NMLS Exam
Pass the MLO exam guaranteed! Our mortgage test prep has helped thousands of test-takers pass their mortgage loan originator test, and comes with a 100% Pass Money-Back Guarantee!
Our MLO test prep comes with 1,000 SAFE exam questions up to date with the latest 2023 rules and regulations, 100 additional mortgage math questions, NMLS vocabulary flashcards, NMLS test prep videos, and reliable support from an expert MLO instructor.
Mortgage Test Topics: Federal Mortgage-Related Laws, General Mortgage Knowledge, Mortgage Loan Origination Activities, Ethics, and Uniform State Content - Pass The Maryland NMLS Exam! OR Pass The Maryland Real Estate Exam!
Study For The NMLS Test On-The-Go!

Log-In To Start Studying For Your NMLS Test
Watch Our SAFE MLO Exam Study Tip Videos
What Does it Take to Pass the NMLS Exam?
Oct 08, 2021
NMLS Test Prep – 1,000 NMLS Practice Test Questions
Sep 28, 2018
How To Become A Loan Officer
Sep 27, 2018
SAFE MLO Exam Prep LLC is not affiliated with Nationwide Multistate Licensing System & Registry (NMLS) and none of our material is based on NMLS content.
Copyright © 2023 SAFE MLO Exam Prep LLC. All Rights Reserved. By using this website, you agree to the Terms of Service.