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NMLS MLO Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Uniform State Content | 11% | - State licensing and regulatory requirements - Compliance and disciplinary standards - License maintenance and renewal |
| Topic 2: General Mortgage Knowledge | 20% | - Fixed-rate vs adjustable-rate mortgages - LTV, DTI, CLTV, PMI, points and fees - Conventional, FHA, VA, USDA loan characteristics - Mortgage terms, concepts and calculations |
| Topic 3: Mortgage Loan Origination Activities | 27% | - Closing and post-closing procedures - Borrower qualification and underwriting basics - Loan programs and product types - Loan application process |
| Topic 4: Federal Mortgage-Related Laws | 24% | - Fair lending and consumer protection rules - TILA, RESPA, ECOA, HMDA, FCRA - Disclosure requirements and timing - SAFE Act and federal regulatory framework |
| Topic 5: Ethics | 18% | - Fraud prevention and detection - Fair lending and anti-discrimination - Conflict of interest and disclosure obligations - Ethical practices and professional conduct |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. Which of the following property types is eligible for FHA financing?
A) Vacation home
B) Bed and breakfast
C) Manufactured home
D) Commercial real estate loan
2. A borrower works at Company XYZ and was recently approved for a cash-out refinance of her primary residence. The closing is scheduled for Friday. On Monday of closing week, the mortgage loan originator (MLO) sees on the local news that XYZ is closing and the employees have been let go. Which of the following actions, if any, should the MLO take?
A) Notify the underwriter regarding possible change of borrower's employment status
B) Tell the borrower not to say anything at closing
C) Recommend that the borrower attend homeownership counseling
D) Nothing, as the loan has already been approved
3. 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) Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf
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) [Consider the issue to be a private family matter and proceed with the next steps in the application process
4. How often is the state licensing agency permitted to review, investigate or examine any mortgage loan originator?
A) Annually
B) Upon renewal only
C) As often as necessary
D) Semiannually
5. Which of the following responses best defines a red flag?
A) Effective oversight by lenders to prevent borrower identity theft
B) Proof that specific activity shows identity theft
C) Reasonably foreseeable risk taken by borrowers to prevent identity theft
D) A pattern, practice or specific activity that indicates the possible existence of identity theft
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: D |



