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NMLS MLO Exam Overview:
| Certification Vendor: | NMLS (Nationwide Multistate Licensing System) |
| Exam Name: | SAFE Mortgage Loan Originator National Exam with Uniform State Content |
| Exam Number: | SAFE-MLO |
| Certificate Validity Period: | 2 years |
| Available Languages: | English |
| Passing Score: | 75% |
| Real Exam Qty: | 120 (115 scored, 5 unscored) |
| Exam Duration: | 190 minutes |
| Exam Format: | Multiple choice, Computer-based |
| Exam Price: | $110 USD |
| Recommended Training: | NMLS Approved Education Providers |
| Exam Registration: | NMLS Testing Portal |
| Sample Questions: | NMLS MLO Sample Questions |
| Exam Way: | In-person at Prometric test centers or online proctored |
| Pre Condition: | Complete 20 hours of NMLS-approved pre-licensing education; background check and fingerprinting required |
| Official Syllabus URL: | https://mortgage.nationwidelicensingsystem.org/safe-act-testing |
NMLS MLO Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Ethics | 18% | - Fair lending and anti-discrimination - Ethical practices and professional conduct - Conflict of interest and disclosure obligations - Fraud prevention and detection |
| Topic 2: Federal Mortgage-Related Laws | 24% | - TILA, RESPA, ECOA, HMDA, FCRA - SAFE Act and federal regulatory framework - Disclosure requirements and timing - Fair lending and consumer protection rules |
| Topic 3: Mortgage Loan Origination Activities | 27% | - Closing and post-closing procedures - Borrower qualification and underwriting basics - Loan programs and product types - Loan application process |
| Topic 4: General Mortgage Knowledge | 20% | - LTV, DTI, CLTV, PMI, points and fees - Conventional, FHA, VA, USDA loan characteristics - Fixed-rate vs adjustable-rate mortgages - Mortgage terms, concepts and calculations |
| Topic 5: Uniform State Content | 11% | - License maintenance and renewal - Compliance and disciplinary standards - State licensing and regulatory requirements |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. A mortgage loan originator (MLO) submits a refinance application for a primary residence. However, if the MLO later discovers that the property is no longer occupied by the borrower, which of the following actions, if any, should the MLO take?
A) Allow the application to be underwritten before raising any concerns
B) Notify the MLO's employer and/or the mortgage lender of the discovery
C) Allow the mortgage loan processor and/or underwriter to discover this through their due diligence processes
D) Take no action as the property was occupied at the time of application
2. The debt-to-income analysis should assess a borrower's total monthly housing related payments as a percentage of the:
A) taxable income.
B) gross monthly income.
C) net monthly income
D) loan amount.
3. The Truth in Lending Act (TILA) covers which of the following loans?
A) Agricultural credit
B) Business or commercial credit
C) Home equity loans
D) An extension of credit to other than a natural person
4. The purpose of the Patriot Act is to deter and punish:
A) Terrorist acts
B) Appraisal fraud
C) Lending to foreign nationals
D) Mortgage broker fraud
5. If an applicant provides a waiver for the requirement to receive their appraisal three business days prior to a loan's consummation and the transaction ends up not closing at all, a creditor must still provide a copy of the appraisal no later than how many days after the creditor determines consummation will not occur?
A) 10 days
B) 45 days
C) 30 days
D) 60 days
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: C |
By Riva
