Mortgage Loan Originator Cheat Sheet 2026

The 30 highest-yield Mortgage Loan Originator facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What distinguishes a 'jumbo loan' from a conforming loan? → Jumbo loans exceed the conforming loan limits set by FHFA
2. Under TILA, a borrower has a right of rescission for how many business days on a refinance of their primary residence? → 3 business days
3. A property appraises for $275,000. The maximum LTV for a conventional loan is 80%. What is the maximum loan amount? → $220,000
4. What is lender-paid mortgage insurance (LPMI), and what is its tradeoff? → The lender pays PMI in exchange for a higher interest rate on the loan
5. Which of the following may the Rate-Checker accomplish for a borrower when used properly? → Shows the rates borrowers like them are being offered.
6. An MLO who accepts a gift valued over $50 from a settlement service provider in exchange for referrals may be violating: → RESPA Section 8
7. An open-end loan is which of the following? → A home equity line of credit
8. A VA loan is available to eligible veterans and active-duty service members and features which of the following unique benefits? → No down payment requirement and no private mortgage insurance
9. What is accurate about the 1975 Home Mortgage Disclosure Act? → Its purpose is to fight redlining
10. Under the SAFE Act, an MLO license can be suspended or revoked for: → Fraud, misrepresentation, or a felony conviction involving dishonesty
11. Where is the Rate-Checker Owning a Home Tool available? → CFPB Website
12. Under TILA's right of rescission, which transaction is NOT eligible for rescission? → Purchase money mortgage on primary residence
13. A $150,000 ARM starts at 4% with a 2% annual cap and a 6% lifetime cap. What is the maximum interest rate this loan can ever reach? → 10%
14. Which of the following describes the pre-licensing education requirements for MLO candidates the best? → Twenty hours to include Federal and State-specific topics
15. The following details are specific to the Loan Estimate form: → TIP
16. Under Dodd-Frank's ability-to-repay (ATR) rule, lenders must verify a borrower's ability to repay using: → Reasonably verified third-party documentation of income, assets, and debts
17. A borrower makes a $15,000 down payment on a $150,000 home. PMI is required when LTV exceeds 80%. Will this borrower need PMI? → Yes, because the LTV is 90%
18. What TILA standard distinguishes a company or commercial loan from owner-occupancy? → If the owner will occupy the house for more than 14 days
19. A 5/1 ARM mortgage means: → The rate is fixed for 5 years, then adjusts annually
20. What is the maximum escrow cushion a servicer may hold under RESPA Section 10? → Two months' escrow payment
21. Which of the following describes the document that combines the Good Faith Estimate required by RESPA and the Truth in Lending Statement mandated by TILA: → The Loan Estimate
22. Which of the following triggers a revised Loan Estimate under TRID? → Borrower requests a different loan product after initial LE
23. Except for, all of the following MLOs must possess a state license: → An MLO working for a federally insured depository institution
24. All of the following fees would be exempt from the finance charge, with the exception of: → Appraisal review fees
25. Every one of the following, with the exception of: → Department of Housing and Urban Development
26. Which of the following organizations created and maintains the NMLS online system: → FINRA
27. Which of the following other names for the Real Estate Settlement Procedures Act (RESPA) is accurate: → Regulation X
28. Which two of the following best describes each type of fraud: → Actual and constructive
29. What is wrong with the buyer providing a silent second to the seller? → The first lien holder thinks the new buyer has greater equity in the property
30. How long does it take to pay off a bridge loan? → When the second loan is taken out.