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NMLS MLO Exam Syllabus Topics:

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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

1. 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


2. The SAFE Act prohibits individuals from engaging in the business of a residential mortgage loan originator without first obtaining a:

A) high school diploma.
B) compliance plan.
C) originator counseling certificate.
D) unique identifier


3. When a mortgage loan originator (MLO) receives information from a borrower that indicates potential employment fraud, the MLO should:

A) Report the information to the company's compliance officer.
B) Take no additional action unless the borrower admits that they submitted false employment information.
C) Report the information to another MLO for their opinion.
D) Take no additional action because it is not confirmed.


4. Redlining in mortgage lending refers to which of the following practices?

A) Denying services to residents in states that a company is not licensed in
B) Denying services to residents of a certain area based on race or ethnicity
C) Highlighting areas of concern on an appraisal report
D) Highlighting areas of concern on a mortgage application


5. A lender will require private mortgage insurance for first lien loans with loan-to-value over what percentage?

A) 80%
B) 70%
C) 75%
D) 78%


Solutions:

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

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