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NMLS MLO Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: General Mortgage Knowledge20%- Fixed-rate vs adjustable-rate mortgages
- LTV, DTI, CLTV, PMI, points and fees
- Mortgage terms, concepts and calculations
- Conventional, FHA, VA, USDA loan characteristics
Topic 2: Mortgage Loan Origination Activities27%- Loan programs and product types
- Borrower qualification and underwriting basics
- Closing and post-closing procedures
- Loan application process
Topic 3: Uniform State Content11%- License maintenance and renewal
- Compliance and disciplinary standards
- State licensing and regulatory requirements
Topic 4: Ethics18%- Fair lending and anti-discrimination
- Fraud prevention and detection
- Conflict of interest and disclosure obligations
- Ethical practices and professional conduct
Topic 5: Federal Mortgage-Related Laws24%- SAFE Act and federal regulatory framework
- TILA, RESPA, ECOA, HMDA, FCRA
- Fair lending and consumer protection rules
- Disclosure requirements and timing

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

Question 1

Which of the following responses describes the main purpose of the secondary market?

A. To fund a second home loan
B. To service second mortgage loans
C. To fund second mortgage loans
D. To fund additional loans


Question 2

Which of the following responses describes the primary reason to conduct a title search?

A. To determine whether a buyer can purchase the collateral property
B. To determine the amount of homeowner's insurance required
C. To identify any preexisting liens against the collateral property
D. To confirm the identity of the applicant


Question 3

A mortgage loan originator who informs a prospective borrower that a certain loan interest rate can only be guaranteed if an application is submitted within the next 30 minutes is committing:

A. Coercion
B. Exaggeration
C. Redlining
D. Discrimination


Question 4

When a mortgage loan originator notices multiple Social Security number discrepancies within the same loan file, it is considered a red flag of:

A. mortgage fraud.
B. a forgetful borrower.
C. pricing discrepancies.
D. fair lending.


Question 5

A 7.25% interest-only loan has an initial balance of $239,500.00. The annual homeowner's insurance premium is $551.00, and the annual property taxes are $1,773.00. What is the total monthly payment, including the escrow?

A. $1,640.65
B. $1,584.65
C. $1,446.98
D. $1,701.29


Solutions:

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

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