NMLS Uniform State Test (UST) Mortgage Practice Exam 2026 - Free Mortgage Practice Questions and Study Guide

Question: 1 / 400

Which of the following information is optional on a loan application?

Employment History

Income Level

Race and sex of a borrower

The information regarding the race and sex of a borrower is considered optional on a loan application. Under the federal law, specifically the Home Mortgage Disclosure Act (HMDA), lenders are required to collect this demographic information for monitoring purposes and to promote fair lending practices. However, borrowers have the right to decline to provide this information. It is not a requirement for the loan application processing, thus making it optional.

In contrast, employment history, income level, and assets owned are essential components of a loan application, as they directly influence the lender's assessment of the borrower's ability to repay the loan. This information is necessary for underwriting and determining the creditworthiness of the applicant.

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Assets owned

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