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NMLS MLO Exam Syllabus Topics:

SectionWeightObjectives
General Mortgage Knowledge20%- Mortgage Fundamentals
  • 1. Mortgage Terminology
  • 2. Qualified and Non-Qualified Mortgages
  • 3. Interest Rates and Calculations
  • 4. Underwriting Basics
  • 5. Loan Types
Ethics18%- Ethical Practices
  • 1. Professional Conduct
  • 2. Fraud Prevention
  • 3. Consumer Protection
  • 4. Fair Lending
Mortgage Loan Origination Activities27%- Loan Origination Process
  • 1. Closing Procedures
  • 2. Borrower Qualification
  • 3. Application Process
  • 4. Processing and Underwriting
  • 5. Financial Calculations
Uniform State Content11%- State Regulatory Content
  • 1. State Mortgage Regulations
  • 2. Licensing Requirements
  • 3. Compliance Standards
  • 4. SAFE Act
Federal Mortgage-Related Laws24%- Federal Mortgage Laws
  • 1. Truth in Lending Act (TILA)
  • 2. Fair Credit Reporting Act (FCRA)
  • 3. Real Estate Settlement Procedures Act (RESPA)
  • 4. Equal Credit Opportunity Act (ECOA)
  • 5. Privacy and Consumer Protection

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

Which of the following service providers is a mortgage loan originator permitted to require a borrower to use in obtaining a mortgage?

  • A. A home inspection company
  • B. A title company
  • C. An appraiser
  • D. A homeowners insurance provider
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for ActualTestsIT members. You can sign-up / login (it's free).

An individual who is a loan processor or underwriter must maintain a state originator license if they:

  • A. perform clerical duties for a mortgage lender as a supervised employee
  • B. are an independent contractor and collect, receive or distribute information in connection with making a credit decision.
  • C. are an employee of a loan processing or underwriting company that supports a mortgage broker/lender and only perform supervised clerical duties.
  • D. are not in communication with the consumer to obtain mortgage loan information.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for ActualTestsIT members. You can sign-up / login (it's free).

The SAFE Act requires a mortgage loan originator (MLO) to:

  • A. Register with the Conference of State Bank Supervisors (CSBS).
  • B. Maintain a valid unique identifier issued by the AARMR.
  • C. Retake the SAFE MLO National Test after failing to maintain a valid license for a period of four years.
  • D. Obtain and annually maintain a license.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Which of the following acts provides a state licensing and regulatory agency to investigate and examine a mortgage company?

  • A. SAFE Act
  • B. Home Ownership and Equity Protection Act (HOEPA)
  • C. Real Estate Settlement Procedures Act (RESPA)
  • D. Truth in Lending Act (TILA)
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for ActualTestsIT members. You can sign-up / login (it's free).

Which of the following actions do mortgage companies take to prevent falsified information by a borrower or mortgage loan originator (MLO)?

  • A. Verify information by third parties not involved in the transaction
  • B. Verify the income information by a settlement service provider
  • C. Accept the documentation supplied by both the borrower and the MLO
  • D. Accept the documentation supplied by the borrower
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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