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NMLS MLO Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Uniform State Content | - Licensing Requirements and Compliance - State Lending Regulations Overview |
| Topic 2: Federal Mortgage-Related Laws | - Equal Credit Opportunity Act (ECOA) - Real Estate Settlement Procedures Act (RESPA) - Fair Housing Act - Truth in Lending Act (TILA) / Regulation Z |
| Topic 3: Ethics and Professional Conduct | - Disclosure Requirements - Fraud Prevention - Consumer Protection Standards |
| Topic 4: General Mortgage Knowledge | - Mortgage Types and Products - Loan Origination Process - Underwriting Basics - Loan Closing Procedures |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. Which of the following statements describes an advantage of a purchase money second mortgage?
A) The borrower avoids paying into the escrow account.
B) The borrower pays two mortgage payments.
C) The borrower's loan closes faster than a regular mortgage.
D) The borrower avoids paying private mortgage insurance
2. A title insurance policy ensures that:
A) A condominium is warrantable.
B) The borrower can repay the loan.
C) The title commitment is accurate.
D) The borrower owns the property.
3. According to Fannie Mae, a loan with a purchase transaction loan amount of $160,000, sales price of
$180,000, and an appraised value of $200,000 has a loan-to-value ratio of what percentage?
A) 89%
B) 90%
C) 88%
D) 80%
4. Which of the following items may lenders use to verify a borrower's income for his ability to repay a mortgage?
A) A copy of a check register
B) An electronic paystub
C) The income stated on the loan application
D) The borrower's attestation that he expects a raise within 30 days
5. Which of the following does a higher-priced mortgage require if the seller acquired the home 90 days or fewer prior to the date of the purchase contract and the sales price exceeds the seller's acquisition price by more than
10%?
A) Two written appraisals only
B) One written appraisal only and one automated valuation model
C) Two written appraisals and one automated valuation model
D) One written appraisal and one broker price opinion
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: A |


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