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NMLS MLO Exam Syllabus Topics:

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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

Question #1

A veteran borrower obtains a VA loan to purchase a property for $200,000 and opts to finance the entire purchase price plus the VA funding fee of 2.15%. The initial payment for principal and interest will be calculated based on a loan amount of:

  • A. $204,300
  • B. $200,000 plus lender's attorney fees
  • C. $200,000
  • D. $204,300 plus lender's attorney fees
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

The ability to originate loans under temporary authority applies to which of the following?

  • A. Previously licensed real estate brokers
  • B. An MLO who is still waiting for their credit check to be completed
  • C. Previously registered mortgage loan originators (MLOs)
  • D. An MLO who has scheduled their test but not completed it
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

Which of the following property value approaches does an appraiser use on a rental property?

  • A. Cost approachB Income approach
  • B. Annual approach
  • C. Sales comparison approach
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Correct Answer: B  🗳️

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Question #4

Which of the following types of income are considered as qualifying when applying for a mortgage loan?

  • A. Reimbursed expenses
  • B. Federal tax refund
  • C. Family gifts
  • D. Net rental income
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

Which of the following responses describes the main purpose of the secondary market?

  • A. To fund second mortgage loans
  • B. To service second mortgage loans
  • C. To fund additional loans
  • D. To fund a second home loan
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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