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NMLS MLO Exam Syllabus Topics:

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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

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


2. Which of the following is an example of a non-fluctuating income source?

A) Part-time work with irregular hours
B) Commission-based W-2 income
C) Self-employed income
D) Salaried W-2 position


3. Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?

A) Country of birth
B) Receipt of child support
C) Marital status
D) Immigration status


4. Which of the following duties requires licensure under the SAFE Act?

A) An individual who performs processing and underwriting duties at the direction of and subject to the supervision of a licensed individual
B) An individual who performs administrative or clerical tasks on behalf of a mortgage loan originator
C) A licensed and registered real estate broker performing real estate brokerage activities
D) An individual who offers or negotiates terms of a residential mortgage loan for compensation or gain


5. According to Regulation Z, which of the following is a prohibited act?

A) Including undocumented child support payments made by the borrower
B) Issuing disclosures to applicants
C) Redisclosing a Loan Estimate immediately after locking the rate
D) Advertising rates not currently available to applicants


Solutions:

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

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