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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

1. How many days after loan consummation does a lender have to refund an excess charge subject to the 10% aggregate tolerance?

A) 45 days
B) 60 days
C) 50 days
D) 90 days


2. According to the Truth in Lending Act (TILA), a dwelling includes which of the following?

A) An individual condominium unit
B) A six-unit apartment complex
C) A timeshare
D) An unimproved lot


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

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


4. Loan applications must include all of the following information with respect to mortgage loan originators (MLOs) except the:

A) Return fax number.
B) MLO's name.
C) Employer's NMLS unique identifier.
D) MLO's NMLS unique identifier.


5. A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home.
During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?

A) [Consider the issue to be a private family matter and proceed with the next steps in the application process
B) Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction
C) Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan
D) Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf


Solutions:

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

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