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NMLS MLO Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: General Mortgage Knowledge | - Loan Origination Process - Loan Closing Procedures - Mortgage Types and Products - Underwriting Basics |
| Topic 2: Uniform State Content | - State Lending Regulations Overview - Licensing Requirements and Compliance |
| Topic 3: Ethics and Professional Conduct | - Consumer Protection Standards - Disclosure Requirements - Fraud Prevention |
| Topic 4: Federal Mortgage-Related Laws | - Fair Housing Act - Real Estate Settlement Procedures Act (RESPA) - Truth in Lending Act (TILA) / Regulation Z - Equal Credit Opportunity Act (ECOA) |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
An easement:
- A. allows a loan applicant to close on a loan even if all the stipulations have not been met.
- B. is a right to cross or otherwise use someone else's land for a specified purpose.
- C. allows a borrower to make less than the required payments without going through a full mortgage modification.
- D. is a mortgage modification.
Correct Answer: B 🗳️
Explanation: Only visible for Exam4Free members. You can sign-up / login (it's free).
A mortgage loan originator (MLO) originates a 5/1 ARM where the indexed rate is likely to be higher than the introductory rate. The Truth in Lending Act (TILA) states that an MLO must calculate a borrower's monthly Payment amount based on which of the following?
- A. Fully indexed rate of the loan
- B. The total amount of the payments
- C. An average of the varying payment amounts over the life of the loan
- D. Payment amount during the fixed introductory period
Correct Answer: A 🗳️
Explanation: Only visible for Exam4Free members. You can sign-up / login (it's free).
The characteristics of a fixed-rate mortgage include a:
- A. minimum balloon payment.
- B. fixed margin.
- C. fixed interest rate.
- D. mandatory 30-year term.
Correct Answer: C 🗳️
Explanation: Only visible for Exam4Free members. You can sign-up / login (it's free).
It is acceptable for a lender to request a co-applicant in which of the following situations?
- A. The co-applicant is gifting money to the borrower to make a down payment on a purchase-money mortgage
- B. The borrower's future income is dependent on the co-applicant.
- C. The co-applicant will be residing in the house with the borrower.
- D. The borrower will not qualify for the loan on their own.
Correct Answer: D 🗳️
Explanation: Only visible for Exam4Free members. You can sign-up / login (it's free).
Which of the following components of an ARM adjusts periodically?
- A. Index and margin only
- B. Index and interest rate only
- C. Margin, index and interest rate
- D. Margin and interest rate only
Correct Answer: B 🗳️
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