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NMLS MLO Exam Syllabus Topics:

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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

1. Which of the following is considered a prohibition under the Real Estate Settlement Procedures Act (RESPA)?

A) Hosting an educational seminar at no cost to the participants
B) Donating an item of value to a silent auction hosted by a charity
C) Sponsoring a little league team where the company name is on the uniforms
D) Renting office space at lower rates based on the whole or in the amount of business referred


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


3. A mortgage company is permitted to verify which of the following information?

A) Religion
B) Childbearing intentions
C) Employment status
D) Sex


4. Which of the following practices is a prudent and reasonable cybersecurity precaution regarding laptop computers?

A) A laptop should be shared by no more than five people.
B) A laptop should automatically shut down and require a new login if not used for a period of time.
C) Passwords should only be shared with a direct supervisor.
D) A laptop should never be taken out of the office.


5. If a borrower only receives commission pay for 18 months, which of the following actions should a mortgage loan originator (MLO) take?

A) Take the application because positive factors may offset the short income history
B) Tell the borrower to come back in 6 months when they will have 24 months of commission pay
C) Take the application but tell the borrower that they will need a cosigner
D) Tell the borrower they need a steady income and not one that fluctuates


Solutions:

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

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