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NMLS MLO Exam Syllabus Topics:

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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

1. Which of the following statements is true regarding a fixed-rate mortgage?

A) The rate is fixed for 10 years and then adjusts every year thereafter.
B) The rate is fixed for 15 years and is followed by a single balloon payment.
C) The rate is fixed for 5 years and is followed by a step-up for 5 years.
D) The rate is fixed for 30 years with no adjustment.


2. Which of the following factors is not required to be taken into account when determining a borrower's ability to repay a loan?

A) Current debt obligations, alimony and child support
B) Credit history
C) Monthly payment on simultaneous loans
D) Proceeds from the sale of the property securing the loan


3. Which of the following documents is a real estate conveyance?

A) Quit claim deed
B) Occupancy certificate
C) Mortgage instrument
D) Promissory note


4. Under which of the following conditions, if any, is a mortgage lender permitted to charge a fee for the preparation of a Closing Disclosure?

A) The borrower requests additional copies of the Closing Disclosure after the closing.
B) The borrower requests that the Closing Disclosure be prepared before the scheduled closing.
C) The lender is not allowed to charge a fee for the preparation of the Closing Disclosure.
D) The lender has an affiliated business arrangement with the escrow agent.


5. Which of the following actions by a mortgage loan originator is prohibited regarding credit secured by a dwelling?

A) Presenting program options that best qualify and satisfy the consumer
B) Receiving compensation from both the borrower and the lender
C) Providing a copy of the credit application to the primary borrower
D) Providing disclosures within three days of an application


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: B

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