Mortgage Loan Originator Study Guide 2026
Everything you need to pass the Mortgage Loan Originator exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 Mortgage Loan Originator Exam Format at a Glance
📚 Mortgage Loan Originator Topics to Study (45)
✍️ Sample Mortgage Loan Originator Questions & Answers
1. In contrast to earlier disclosure forms, the new Loan Estimate form handles which of the following differently:
This is to make the borrower's understanding of the closing costs more clear. A first-time buyer can better grasp what they must have on hand for the closing thanks to this.
2. Which of the following is considered a 'trigger term' under TILA that requires full disclosure of other credit terms in an advertisement?
Under TILA, advertising a specific down payment amount is a trigger term that requires disclosure of the APR, loan term, total of payments, and other specific credit terms.
3. Which of the following measures addressed redlining and was approved by Congress in 1977:
The Community Reinvestment Act (CRA) was enacted by Congress in 1977 specifically to combat redlining. Redlining is a discriminatory practice where financial institutions deny services, such as mortgage loans, to residents of specific geographic areas, often based on the racial or economic characteristics of those neighborhoods. The CRA encourages banks to meet the credit needs of all segments of their communities, including low- and moderate-income areas.
4. According to TILA, revealing which of the following will typically inform customers of the true cost of borrowing money:
The Annual Percentage Rate (APR) is the standardized measure under TILA that represents the true annual cost of borrowing money. It includes not only the nominal interest rate but also other fees and charges associated with the loan, converted into a single annual percentage. This comprehensive figure allows consumers to easily compare the total cost of different credit offers.
5. A borrower asks an MLO about a 5/1 ARM. Which statement best describes how this product works?
A 5/1 ARM has a fixed interest rate for the first 5 years and then adjusts once per year based on a specified index plus a margin, subject to periodic and lifetime caps.
6. A property appraises for $280,000 and the borrower makes a $42,000 down payment. What is the loan-to-value (LTV) ratio?
LTV = ($280,000 - $42,000) / $280,000 = $238,000 / $280,000 = 85%.