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NMLS MLO Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Federal Mortgage-Related Laws | - Fair Housing Act - Truth in Lending Act (TILA) / Regulation Z - Equal Credit Opportunity Act (ECOA) - Real Estate Settlement Procedures Act (RESPA) |
| Topic 2: General Mortgage Knowledge | - Loan Origination Process - Underwriting Basics - Mortgage Types and Products - Loan Closing Procedures |
| Topic 3: Uniform State Content | - State Lending Regulations Overview - Licensing Requirements and Compliance |
| Topic 4: Ethics and Professional Conduct | - Fraud Prevention - Disclosure Requirements - Consumer Protection Standards |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. Which of the following is considered a prohibition under the Real Estate Settlement Procedures Act (RESPA)?
A) Hosting an educational seminar at no cost to the participants
B) Donating an item of value to a silent auction hosted by a charity
C) Sponsoring a little league team where the company name is on the uniforms
D) Renting office space at lower rates based on the whole or in the amount of business referred
2. A borrower obtains a 2-1 buydown mortgage loan with a 30-year term and a 6% note rate. The borrower's payments will be calculated based upon which of the following?
A) 4% interest in year 1, 5% interest in year 2 and 6% interest in years 3 through 30
B) 4% interest in year 1 and 6% interest in years 2 through 30
C) 4% interest in years 1 and 2 and 6% interest in years 3 through 30
D) 5% interest in years 1 and 2 and 6% interest in years 3 through 30
3. What is the maximum APR that will qualify as a Safe Harbor qualified mortgage?
A) An APR less than the APOR + 1.0%
B) An APR less than the APOR + 1.5%
C) An APR less than the APOR + 2.5%
D) An APR equal to or less than the average prime offer rate (APOR)
4. The practice of denying a creditworthy applicant a loan for housing because of the location of the property is sometimes referred to as:
A) appraising.
B) redlining.
C) steering.
D) low balling.
5. In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?
A) Only the person who will actually occupy the property
B) Only the borrower who makes the most income
C) Only the borrower with the majority interest in the transaction
D) Any person who has an ownership interest in the property
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |






