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NMLS MLO Exam Syllabus Topics:

SectionWeightObjectives
Ethics18%- Ethical practices and professional conduct
- Fraud prevention and detection
- Conflict of interest and disclosure obligations
- Fair lending and anti-discrimination
Mortgage Loan Origination Activities27%- Loan application process
- Closing and post-closing procedures
- Loan programs and product types
- Borrower qualification and underwriting basics
Uniform State Content11%- License maintenance and renewal
- State licensing and regulatory requirements
- Compliance and disciplinary standards
General Mortgage Knowledge20%- Mortgage terms, concepts and calculations
- Conventional, FHA, VA, USDA loan characteristics
- Fixed-rate vs adjustable-rate mortgages
- LTV, DTI, CLTV, PMI, points and fees
Federal Mortgage-Related Laws24%- Disclosure requirements and timing
- SAFE Act and federal regulatory framework
- Fair lending and consumer protection rules
- TILA, RESPA, ECOA, HMDA, FCRA

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

Question 1

Which of the following fees must remain the same unless a valid changed circumstance occurs?

A. Fees paid to an affiliate of the lender
B. Homeowner's insurance
C. Owner's title insurance premium
D. Total per diem interest


Question 2

A mortgage loan originator (MLO) submits a refinance application for a primary residence. However, if the MLO later discovers that the property is no longer occupied by the borrower, which of the following actions, if any, should the MLO take?

A. Notify the MLO's employer and/or the mortgage lender of the discovery
B. Take no action as the property was occupied at the time of application
C. Allow the application to be underwritten before raising any concerns
D. Allow the mortgage loan processor and/or underwriter to discover this through their due diligence processes


Question 3

Which of the following is an example of a loan expense that is permitted to change without any tolerance restrictions?

A. An escrow fee that is paid by the borrower and the borrower did not shop for the fee
B. A lender's tax service fee that is paid by the borrower
C. A lender's processing fee that is paid by the borrower
D. Property taxes paid by the borrower


Question 4

Which of the following activities is a function of the Consumer Financial Protection Bureau (CFPB)?

A. Regulating mortgage lenders on their mortgage origination practices and procedures
B. Regulating the federal funds rate at which money is lent to banks
C. Regulating the number of mortgage loan originators in the mortgage industry
D. Deciding what quantity of mortgage-backed securities are purchased by the government


Question 5

A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:

A. never been licensed or registered as an MLO in any governmental jurisdiction.
B. taken and failed the SAFE MLO National Test three times within the last year.
C. been convicted of a felony within the past seven years.
D. had an MLO license suspended in any governmental jurisdiction.


Solutions:

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

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