Financing on the NJ Real Estate Exam: Loans, Lending Laws and What to Know
The short answer: Financing is 10% of the national content outline on the NJ salesperson exam. PSI splits it into three parts: basic loan concepts (points, LTV, PMI, PITI, underwriting, promissory notes), types of loans (conventional, FHA, VA, USDA, ARMs, balloon, reverse, home equity and more), and federal lending laws: RESPA, Truth in Lending (Regulation Z), TRID and the Equal Credit Opportunity Act (PSI candidate bulletin). The laws are the part most people under-study, so this guide spends the most time there.
Each rule below comes from the federal regulation text published by the Consumer Financial Protection Bureau (CFPB). For the exam's overall format, see our NJ real estate exam (PSI) guide.
What financing topics does PSI list?
| Outline section | Topics PSI lists |
|---|---|
| A. Basic concepts and terminology | Loan financing (points, LTV, PMI, interest, PITI); general underwriting (debt ratios, credit scoring and history); standard mortgage/deed of trust clauses; essential elements of a promissory note |
| B. Types of loans | Conventional; amortized, partially amortized (balloon) and interest-only; ARMs; government loans (FHA insured, VA guaranteed, USDA/Rural Development); owner financing (installment or land contract); reverse mortgages; home equity loans and lines of credit; construction, rehab and bridge loans |
| C. Financing and lending | RESPA, including kickbacks; Truth-in-Lending (Regulation Z), including advertising; TRID requirements and time frames; Equal Credit Opportunity Act; the lending process from application to closing; risky loan features such as prepayment penalties and balloon payments |
Source: PSI candidate bulletin, Section IV (Sales 10%).
The math side (points, LTV, PITI) is also tested under Real Estate Calculations. Our guide to real estate math on the NJ PSI exam has the formulas, including the classic trap: one discount point is 1% of the loan amount, not the price.
What are the TRID deadlines?
TRID (TILA-RESPA Integrated Disclosures) uses two forms, the Loan Estimate and the Closing Disclosure. Know these time frames:
| Disclosure | Deadline | Rule |
|---|---|---|
| Loan Estimate | Delivered or mailed no later than the third business day after the creditor receives the application | 12 CFR 1026.19(e)(1)(iii) |
| Loan Estimate | Also no later than the seventh business day before consummation | 12 CFR 1026.19(e)(1)(iii) |
| Closing Disclosure | Consumer must receive it no later than three business days before consummation | 12 CFR 1026.19(f)(1)(ii) |
Two details that show up in questions:
- What counts as an "application." It's six pieces of information: name, income, Social Security number (for the credit report), property address, estimated property value and the loan amount sought. Once a creditor has those, the Loan Estimate clock starts (official interpretation to 1026.19(e)(1)(iii)).
- Mailed means "received" later. If the Closing Disclosure isn't delivered in person, the consumer is considered to have received it three business days after it's mailed or delivered (1026.19(f)(1)(iii)). For this rule, "business day" means every day except Sundays and federal legal holidays, so Saturdays count.
What does RESPA say about kickbacks?
RESPA Section 8, implemented in Regulation X, bans referral fees in transactions with a federally related mortgage loan. No one may give or accept "any fee, kickback or other thing of value" under an agreement to refer settlement service business (12 CFR 1024.14(b)). It also bans splitting a settlement charge with someone who didn't actually perform services (1024.14(c)). A "thing of value" is defined broadly. It includes money, discounts, commissions and "services of all types at special or free rates" (1024.14(d)).
The exception a new agent needs to know: payments under cooperative brokerage and referral arrangements between real estate agents and real estate brokers are permitted. That exception covers only fee splits within real estate brokerage, not arrangements with mortgage brokers (12 CFR 1024.14(g)). So on a federally related mortgage loan, a lender can't pay you for sending buyers its way.
What are "triggering terms" in mortgage advertising?
Under Regulation Z, an ad that states certain credit terms must also disclose more information (12 CFR 1026.24(d)).
Triggering terms: the down payment amount or percentage, the number of payments or repayment period, the amount of any payment, or the amount of any finance charge.
What the ad must then include: the down payment, the terms of repayment (including any balloon payment) and the annual percentage rate, using that term, along with a note if the rate can increase.
The official interpretation gives examples. "30-year mortgage" is a payment-period trigger. "80 percent financing available" counts too, because it implies a 20% down payment. Rates in ads have to be stated as an APR (1026.24(c)). NJ has its own ad rule as well: ads that give down payment or monthly payment amounts must include "to a qualified buyer" (N.J.A.C. 11:5-6.1(f)).
What does the Equal Credit Opportunity Act prohibit?
Under Regulation B, a creditor can't discriminate against an applicant on a prohibited basis in any aspect of a credit transaction (12 CFR 1002.4(a)). The prohibited bases are race, color, religion, national origin, sex, marital status, age (if the applicant can enter a binding contract), receiving income from a public assistance program, and having in good faith exercised rights under the Consumer Credit Protection Act (12 CFR 1002.2(z)).
On the exam, watch for marital status, age and public assistance. They're on the ECOA list but not on the federal Fair Housing Act's list, which HUD gives as race, color, national origin, religion, sex, familial status and disability (HUD). Questions use that difference to test whether you can keep the two federal laws straight.
How does PMI cancellation work?
The CFPB explains that you can ask your servicer to cancel private mortgage insurance on the date your principal balance is scheduled to fall to 80% of the home's original value. In general, the servicer must automatically end PMI when the balance is scheduled to reach 78%, as long as you're current on payments (CFPB).
How should you study financing?
- Learn the vocabulary first. Amortized vs. balloon vs. interest-only, FHA insured vs. VA guaranteed. The outline's own wording is a good memory hook.
- Make a deadline card with the TRID times, the 80%/78% PMI numbers and the Reg Z trigger list.
- Connect financing to contracts. Mortgage contingencies and closing timelines show up in contracts questions on the NJ exam, and conflict-of-interest disclosures tie into agency questions.
- Test yourself under time pressure with practice exams, then go back to the rule behind every question you miss.
If you haven't started pre-licensing yet, Business Elementary's 75-hour course page is a place to begin.
Sources
- PSI, New Jersey Candidate Information Bulletin (updated 2/1/2026), Section IV Financing: https://test-takers.psiexams.com/api/content/bulletin/1667
- CFPB, Regulation Z 12 CFR 1026.19 (TRID timing): https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
- CFPB, Regulation Z 12 CFR 1026.24 (advertising): https://www.consumerfinance.gov/rules-policy/regulations/1026/24/
- CFPB, Regulation X 12 CFR 1024.14 (kickbacks): https://www.consumerfinance.gov/rules-policy/regulations/1024/14/
- CFPB, Regulation B 12 CFR 1002.2 and 1002.4: https://www.consumerfinance.gov/rules-policy/regulations/1002/2/ , https://www.consumerfinance.gov/rules-policy/regulations/1002/4/
- CFPB, When can I remove PMI from my loan?: https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/
- HUD, Fair Housing Act overview: https://www.hud.gov/helping-americans/fair-housing-act-overview
- N.J.A.C. 11:5-6.1 (via Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-1
Last reviewed: October 28, 2026
Frequently Asked Questions
How much of the NJ real estate exam is financing?
Financing is 10% of the national outline for salespersons (9% for brokers) (PSI candidate bulletin).
When must a borrower receive the Closing Disclosure?
No later than three business days before consummation (12 CFR 1026.19(f)(1)(ii)).
When is the Loan Estimate due?
Delivered or mailed no later than the third business day after the creditor receives the application, and no later than the seventh business day before consummation (12 CFR 1026.19(e)(1)(iii)).
Can a real estate agent accept a referral fee from a lender?
Not for referring settlement service business on a federally related mortgage loan. RESPA's exception covers only cooperative brokerage and referral arrangements between real estate agents and brokers (12 CFR 1024.14).
Is "30-year mortgage" in an ad a triggering term?
Yes. It states the repayment period, so the ad must also give the down payment, repayment terms and APR (12 CFR 1026.24(d)).