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NMLS MLO Exam Syllabus Topics:

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

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

An individual who is a loan processor or underwriter must maintain a state originator license if they:

  • A. perform clerical duties for a mortgage lender as a supervised employee
  • B. are an independent contractor and collect, receive or distribute information in connection with making a credit decision.
  • C. are an employee of a loan processing or underwriting company that supports a mortgage broker/lender and only perform supervised clerical duties.
  • D. are not in communication with the consumer to obtain mortgage loan information.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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A qualified mortgage:

  • A. Results in a balloon payment.
  • B. Allows the consumer to defer repayment of principal.
  • C. Results in an increase of the principal balance.
  • D. Provides for regular periodic payments that are substantially equal.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Which of the following loan types is regulated by the Home Ownership and Equity Protection Act (HOEPA)?

  • A. USDA Rural Development
  • B. Construction
  • C. Reverse mortgage
  • D. Refinance
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Which of the following actions do mortgage companies take to prevent falsified information by a borrower or mortgage loan originator (MLO)?

  • A. Accept the documentation supplied by both the borrower and the MLO
  • B. Verify the income information by a settlement service provider
  • C. Verify information by third parties not involved in the transaction
  • D. Accept the documentation supplied by the borrower
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for Lead1Pass members. You can sign-up / login (it's free).

A mortgage loan in which a large portion of the borrowed principal is repaid at the end of the loan period is known as a:

  • A. deferred-payment mortgage.
  • B. FHA mortgage.
  • C. qualified mortgage.
  • D. balloon mortgage.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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