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NMLS MLO Practice Test Questions Answers

Exam Code: MLO (Updated 230 Q&As with Explanation)
Exam Name: Mortgage Loan Origination (SAFE MLO) Exam
Last Update: 13-Oct-2025
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Questions Include:

  • Single Choice: 230 Q&A's

  • MLO Overview

    NMLS MLO Exam Overview

    Category Details
    Exam Name NMLS SAFE Mortgage Loan Originator (MLO) Exam
    Exam Code SAFE MLO Exam
    Exam Duration 2 hours
    Number of Questions 125 questions
    Question Format Multiple Choice
    Passing Score 75% or higher (typically)
    Prerequisites - Pre-licensing education requirement (20 hours)
      - Must complete a criminal background check
    Exam Topics - Federal Mortgage-related Laws
      - General Mortgage Knowledge
      - Mortgage Loan Origination Process
      - Ethics and Compliance
      - Loan Products and Programs
    Language English
    Exam Delivery Online (via Pearson VUE or NMLS system)
    Validity 1 year (after passing, the certification is valid for 1 year, but you must complete continuing education)

     

    Other NMLS Exams

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    NMLS MLO Exam Topics Breakdown

    Section Topics Covered Approximate Weight
    1. Federal Mortgage-related Laws - Real Estate Settlement Procedures Act (RESPA) 20-25%
      - Truth in Lending Act (TILA)  
      - Home Mortgage Disclosure Act (HMDA)  
      - Equal Credit Opportunity Act (ECOA)  
      - Dodd-Frank Act and other relevant federal laws  
    2. General Mortgage Knowledge - Types of mortgage loans 20-25%
      - Loan products and features  
    3. Mortgage Loan Origination Process - Pre-qualification, application, and processing of mortgage loans 20-25%
      - Underwriting and loan approval processes  
      - Closing and funding processes  
    4. Ethics and Compliance - Ethical behavior and compliance standards in mortgage origination 15-20%
      - Fraud prevention and anti-money laundering  
    5. Loan Products and Programs - Conventional, FHA, VA, and USDA loans 15-20%
      - Adjustable-rate mortgages (ARMs), fixed-rate mortgages, etc.  

     

    NMLS MLO SAFE MLO Practice Exam Questions and Answers

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    NMLS MLO Exam Dumps FAQs

    The NMLS MLO exam, also known as the Mortgage Loan Origination (SAFE MLO) Exam, is a national exam required for mortgage loan originators in the United States. It assesses knowledge of federal and state mortgage-related laws, ethics, and loan origination activities.

    There are no particular requisites for taking this exam. Only the exam candidates should have required knowledge on the content of the NMLS MLO exam syllabus. They should also develop their hand-on exposure on the all topics.

    The target audience includes individuals aspiring to become licensed mortgage loan originators (MLOs) in the U.S. This NMLS MLO exam is essential for anyone looking to work in the mortgage industry.

    The NMLS MLO exam covers federal mortgage-related laws, state-specific mortgage regulations, ethics, consumer protection, and mortgage loan origination activities.

    The NMLS MLO exam consists of 125 questions, and you have 190 minutes to complete it.

    To pass the NMLS MLO exam, you need to score at least 75%.

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    MLO Questions and Answers

    Question # 1

    Which of the following services is included in the definition of a settlement service?

    A.

    Flood insurance

    B.

    Homeowners association fees

    C.

    Title company/escrow agent services

    D.

    Sale of the mortgage loan on the secondary market

    Question # 2

    Which of the following is an acceptable reason for denying a forward mortgage under the Equal Credit Opportunity Act (ECOA)?

    A.

    Receipt of child support

    B.

    Immigration status

    C.

    Marital status

    D.

    Retirement age

    Question # 3

    What is the maximum civil penalty that is permitted to be imposed for each violation or failure to comply with the SAFE Act?

    A.

    $2,500 for each act or omission

    B.

    000 for each act or omission

    C.

    $2,500 for each act or omission; $25,000 maximum

    D.

    $25, 000 for each act or omission: $250,000 maximum

    Question # 4

    Which of the following is not a primary function for compensation undertaken by a mortgage loan originator on an FHA loan?

    A.

    Taking an application

    B.

    Offering or negotiating credit terms

    C.

    Assisting a consumer in applying for credit

    D.

    Performing real estate brokerage activities

    Question # 5

    When two borrowers are refinancing a mortgage loan, the notice of the right to rescind:

    A.

    must be given to both borrowers, but either borrower is permitted to rescind the loan.

    B.

    must be given to both borrowers, and both borrowers must agree to rescind the loan.

    C.

    is permitted to be given to either of the borrowers, and only one borrower is needed to rescind the loan.

    D.

    is permitted to be given to either of the borrowers, but both borrowers need to sign the notice to rescind the loan.

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