Passing the NMLS MLO SAFE act test is easy if
you know what to expect. You will need to pass the state portion and a national portion of your MLO exam with a score of 75%.
We have assembled the most current information to closely replicate the actual SAFE Act exam you will be taking. Focusing on the exam is all we do, we guarantee that you will pass or you will get your money back.
But obtaining your license is not just about taking the MLO exam, and that the process is usually slightly different from state to state.
there is no such thing as a National MLO license. Each state has adopted
its own real estate laws. So you must
study for and pass your state’s MLO exam in addition to the national MLO exam. Many people get confused in thinking there is a national MLO exam means there is a national license. Just to clarify, states have a National portion of the exam, the national portion will be be accompanies by a state portion to focus on that states laws.
these reasons and others, you want to be sure that any MLO exam
preparation resources you use are specifically designed for the type of Mortgage Loan originator exam available in your state, with your state’s exam format, and the
most current state-specific real estate questions available.
below is a content outline for the MLO exam. This information can be found on the NMLS web site
(90 scored test questions; 10 unscored test questions)
I. Federal mortgage-related laws (35%)
A. RESPA B. Equal Credit Opportunity Act (Reg. B) C. Truth-in-Lending Act (Reg. Z and HOEPA) D. SAFE Act E. Other Federal laws and guidelines
1. Home Mortgage Disclosure Act (HMDA) 2. Fair Credit Reporting Act 3. Privacy protection / Do Not Call 4. FTC Red Flag Rules (Fair and Accurate Credit Transactions Act of 2003)
II. General mortgage knowledge (25%)
A. Mortgage programs 1. Conventional/conforming 2. Government (FHA, VA, USDA) 3. Conventional/nonconforming (Jumbo, Alt-A, etc.)
a. Statement on Subprime Lending
b. Guidance on Nontraditional Mortgage Product Risk B. Mortgage loan products
1. Fixed 2. Adjustable 3. Balloon 4. Other (home equity [fixed and line of credit], construction, reverse mortgage, interest-only)
C. Terms used in the operation of the mortgage market 1. Loan terms
2. Disclosure terms 3. Financial terms 4. General terms
III. Mortgage loan origination activities (25%)
A. Application information and requirements 1. Application accuracy (truthfulness) and required information (e.g., 1003)
a. Customer b. Loan originator c. Verification and documentation
2. Suitability of products and programs 3. Disclosures
b. Timing B. Qualification: processing and underwriting
1. Borrower analysis a. Assets
b. Liabilities c. Income d. Credit report e. Qualifying ratios (e.g. housing, debt-to-income, loan-to-value)
Last updated: July 26, 2010
2. Appraisals 3. Title report 4. Insurance: hazard, flood, and mortgage
C. Specific program guidelines 1. VA, FHA, USDA 2. Fannie Mae, Freddie Mac 3. Other (e.g., Mortgage insurance, HUD)
D. Closing 1. Title and title insurance 2. Closing agent 3. Explanation of Fees 4. Explanation of Documents 5. Funding
E. Financial calculations used in mortgage lending 1. Interest per diem 2. Payments (principal, interest, taxes, and insurance; mortgage insurance, if applicable) 3. Down payment 4. Loan-to-value (loan-to-value, combined loan-to-value, total loan-to-value) 5. Debt-to-income Ratios 6. Temporary and Fixed interest rate buy-down (discount points) 7. Closing costs and prepaid items 8. ARMs (eg., fully indexed rate)
IV. Ethics (15%)
A. RESPA B. Gramm-Leach-Bliley Act C. Truth-in-Lending Act D. Equal Credit Opportunity Act E. Appraisal F. Fraud detection, reporting, and prevention G. Ethical behavior
1. Consumers 2. Appraisers 3. Underwriters 4. Investors
5. Warehouse lenders 6. Real estate licensees 7. Closing agents 8. Employers
Topics to study:
Mortgage Lending Industry Overview and Products
Click on your state for information on the state portion of your MLO exam