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NMLS MLO Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Uniform State Content | 11% | - State Regulatory Content
|
| Topic 2: General Mortgage Knowledge | 20% | - Mortgage Fundamentals
|
| Topic 3: Mortgage Loan Origination Activities | 27% | - Loan Origination Process
|
| Topic 4: Federal Mortgage-Related Laws | 24% | - Federal Mortgage Laws
|
| Topic 5: Ethics | 18% | - Ethical Practices
|
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
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. Advertising rates not currently available to applicants
- D. Redisclosing a Loan Estimate immediately after locking the rate
Correct Answer: C 🗳️
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The Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA) require lenders to:
- A. adopt a credit score evaluation method utilizing the middle of three repository scores and the lowest of all borrowers' scores.
- B. implement a written program to detect warning signs of identity theft.
- C. adopt best practices for property evaluations as stipulated in the Home Valuation Code of Conduct.
- D. implement an internal watch system to prevent the misrepresentation of occupancy status
Correct Answer: B 🗳️
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A borrower who knowingly makes false statements on a federally related mortgage loan to obtain property may be:
- A. fined up to JB10,000 or imprisoned for 6 months.
- B. fined up to $1 million and imprisoned for 30 years.
- C. fined up to the total purchase price of their home.
- D. imprisoned for 10 to 16 months
Correct Answer: B 🗳️
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On an FHA-insured loan, the FHA insurance protects the lender in the event that:
- A. There is a prior lien against the property.
- B. The borrower is unable to pay the loan.
- C. The property suffers damage causing the value to fall below the appraised value.
- D. The lender is not able to find an investor to purchase the loan.
Correct Answer: B 🗳️
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Which of the following information requests from a mortgage loan originator is permissible under Regulation B of the Equal Credit Opportunity Act (ECOA)?
- A. Inquiries about an applicant's child support income without informing an applicant of the non- disclosure option
- B. Information on the permanent residency or immigration status of an applicant
- C. Inquiries about an applicant's intentions concerning the bearing and rearing of children
- D. Information on an applicant's former spouse who pays no alimony or child support to the applicant
Correct Answer: B 🗳️
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