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. Under the Fair Housing Act, which of the following is a protected class? → Familial status
4. A property appraises for $275,000. The maximum LTV for a conventional loan is 80%. What is the maximum loan amount? → $220,000
5. 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
6. Which type of income is typically considered the most stable and easiest to verify for mortgage qualification purposes? → W-2 salaried income
7. What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)? → To provide public data to identify potential discriminatory lending patterns
8. Which of the following may the Rate-Checker accomplish for a borrower when used properly? → Shows the rates borrowers like them are being offered.
9. An MLO who accepts a gift valued over $50 from a settlement service provider in exchange for referrals may be violating: → RESPA Section 8
10. An open-end loan is which of the following? → A home equity line of credit
11. 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
12. What does the term 'points' refer to in mortgage lending? → Prepaid interest paid at closing to reduce the interest rate
13. What is accurate about the 1975 Home Mortgage Disclosure Act? → Its purpose is to fight redlining
14. Which federal agency is primarily responsible for enforcing the SAFE Act's MLO licensing requirements at the federal level? → Consumer Financial Protection Bureau (CFPB)
15. A borrower's gross monthly income is $6,000 and total monthly debt payments are $2,100. What is their debt-to-income (DTI) ratio? → 35%
16. Under the SAFE Act, an MLO license can be suspended or revoked for: → Fraud, misrepresentation, or a felony conviction involving dishonesty
17. Where is the Rate-Checker Owning a Home Tool available? → CFPB Website
18. What minimum credit score does the FHA typically require for a borrower to qualify for a 3.5% down payment? → 580
19. Under Regulation Z (Truth in Lending Act), the Annual Percentage Rate (APR) differs from the interest rate because it includes: → Certain fees and costs in addition to the interest rate
20. Which type of income is LEAST likely to be considered stable and recurring for qualifying purposes on a conventional loan? → Lottery winnings received as a lump sum
21. What document provides a final itemized list of all closing costs and is delivered to the borrower at least three business days before closing? → Closing Disclosure
22. Under TILA's right of rescission, which transaction is NOT eligible for rescission? → Purchase money mortgage on primary residence
23. A borrower receives a Loan Estimate on Monday. By when must they receive the Closing Disclosure before closing? → Three business days before consummation
24. 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%
25. Which of the following describes the pre-licensing education requirements for MLO candidates the best? → Twenty hours to include Federal and State-specific topics
26. The following details are specific to the Loan Estimate form: → TIP
27. The SAFE Act requires state-licensed MLOs to complete how many hours of continuing education annually to maintain their license? → 8 hours
28. Which of the following is NOT a permissible basis for denying a mortgage application under ECOA? → Applicant's national origin
29. 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
30. 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%