Loan Officer Exam Cheat Sheet 2026

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

1. Under Regulation B (ECOA), a lender must notify an applicant of a credit decision within how many days of receiving a completed application? → 30 days
2. Which organization establishes the Uniform Standards of Professional Appraisal Practice (USPAP) that govern federally related transactions? → The Appraisal Foundation
3. What is 'predatory lending' in the mortgage context? → Imposing unfair or abusive loan terms on borrowers, often targeting vulnerable populations
4. What does 'disparate impact' mean in fair lending law? → A neutral lending policy that disproportionately affects members of a protected class
5. In the context of the 'Four C's of Underwriting,' which 'C' is most concerned with the borrower's savings, down payment funds, and reserves? → Capital
6. Under the Fair Housing Act, which of the following is NOT a protected class? → Occupation
7. Under the SAFE Act, what is the minimum number of hours of pre-licensing education required for a mortgage loan originator? → 20 hours
8. A suspicious activity report (SAR) has to be submitted within ____ calendar days of the incident that warranted it. → 30
9. What aspect can be taken into account while assessing a loan application? → immigration status
10. What does the abbreviation 'URAR' stand for in mortgage lending? → Uniform Residential Appraisal Report
11. What does the Real Estate Settlement Procedures Act (RESPA) prohibit lenders from accepting in connection with a mortgage transaction? → Kickbacks or referral fees from settlement service providers
12. Under HMDA, which data point must lenders collect and report regarding loan applicants? → The applicant's race, ethnicity, and sex
13. Under the SAFE Act, how long must an MLO wait before retaking the licensing exam after failing it three consecutive times? → 6 months
14. Under the Dodd-Frank Act, what is the Qualified Mortgage (QM) rule primarily designed to protect against? → Lenders originating loans without verifying a borrower's ability to repay
15. Under the Home Ownership and Equity Protection Act (HOEPA), what type of loans does it primarily regulate? → High-cost mortgages with high rates or fees
16. A loan officer is taking an application for a mortgage. Under what circumstances is it permissible to ask about the applicant's marital status? → If the loan will be secured by the property being purchased.
17. When an appraiser makes a positive adjustment to a comparable sale, it means the comparable is: → Inferior to the subject property in that feature, so value is added to the comparable
18. A loan originator who is employed by a state-licensed mortgage company must: → Obtain a state MLO license through the NMLS
19. Which database system is used to track and register mortgage loan originators nationwide? → NMLS
20. How long must a copy of any advertising materials utilized by a mortgage loan originator be kept on file? → 24 month
21. If a mortgage lender denies a loan application, what must the adverse action notice include under ECOA? → The specific reasons for the denial or notice of the right to request the reasons
22. Which federal law requires lenders to provide mortgage applicants with a free copy of any written appraisal developed for a first-lien dwelling loan? → ECOA
23. Except for, all of the following must be protected by HOEPA? → reverse mortgages
24. Which loans fall outside the Real Estate Settlement Procedures Act's (RESPA) exemptions? → a loan to finance a commercial warehouse
25. What type of depreciation is 'external obsolescence' in real estate appraisal? → A loss in value caused by negative factors located outside the property
26. When is a notice of adverse action required? → when a counteroffer is extended, but the offer is rejected
27. Which of the following scenarios would classify a first-lien mortgage as a Higher-Priced Mortgage Loan (HPML)? → The APR is 1.5% or more above the Average Prime Offer Rate (APOR).
28. When must a lender deliver a copy of the appraisal to the borrower? → 3 days before a loan closes
29. Which of the three appraisal approaches estimates value by calculating land value plus the cost to replace improvements minus accrued depreciation? → Cost approach
30. Under the SAFE Act, which of the following criminal convictions would permanently bar someone from obtaining an MLO license? → A felony involving fraud, dishonesty, or breach of trust at any time