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NMLS MLO Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Federal Mortgage-Related Laws | - Fair Housing Act - Equal Credit Opportunity Act (ECOA) - Real Estate Settlement Procedures Act (RESPA) - Truth in Lending Act (TILA) / Regulation Z |
| Ethics and Professional Conduct | - Consumer Protection Standards - Disclosure Requirements - Fraud Prevention |
| Uniform State Content | - State Lending Regulations Overview - Licensing Requirements and Compliance |
| General Mortgage Knowledge | - Loan Origination Process - Underwriting Basics - Loan Closing Procedures - Mortgage Types and Products |
NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. A couple purchasing a house does not have enough money in reserve to meet the underwriting guidelines for their loan. They are required to bring $10,000 to closing, and they will be $3,000 short unless they can find additional cash. The mortgage loan originator may assist the borrowers by taking which of the following actions?
A) Editing the underwriter's copy of the purchase and sales agreement on the property to show a $3,000 contribution from the seller
B) Asking the borrowers if they have any previously undisclosed additional cash assets that can be documented
C) Suggesting that the borrowers temporarily borrow money from a relative to deposit into their bank account until the loan closes
D) Having the real estate agent deposit $3,000 into the borrowers' bank account to generate a deposit record and then withdrawing the money immediately
2. Illegal fee splitting occurs when:
A) wages are split by two employees.
B) fees are split between lender and broker.
C) three companies split a fee but one did no work.
D) two service providers split a fee.
3. When a mortgage loan originator notices multiple Social Security number discrepancies within the same loan file, it is considered a red flag of:
A) a forgetful borrower.
B) mortgage fraud.
C) pricing discrepancies.
D) fair lending.
4. Which of the following documents is required to be issued to a customer when a mortgage loan originator is also a real estate broker on the same transaction?
A) Appraisal disclosure
B) Affiliated business arrangement disclosure
C) Loan application
D) Special information booklet
5. Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?
A) Parental loans disclosed but not yet received
B) Borrower's receipt of a large bonus from an employer
C) Disclosure of gift funds
D) Bank deposits that are not supported by income or other disclosures
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |




