NMLS SAFE MLO Test Overview
The SAFE Mortgage Loan Originator (MLO) Test is required in all 50 states, DC, and U.S. territories to become a licensed Mortgage Loan Originator. Administered through the Nationwide Multistate Licensing System (NMLS), this exam tests knowledge of federal mortgage laws, state regulations, and ethical lending practices.
Exam Format
| Component | Details |
|---|---|
| Total Questions | 125 multiple-choice |
| Scored Questions | 115 |
| Unscored (Pretest) | 10 (randomly distributed) |
| Time Limit | 190 minutes (3 hours 10 minutes) |
| Passing Score | 75% (86 out of 115) |
| Exam Fee | $110 |
| Testing | Prometric testing centers |
| Results | Pass/Fail immediately |
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Exam Content Breakdown
The SAFE MLO Test covers five major content areas:
| Content Area | Weight | Questions |
|---|---|---|
| Mortgage Loan Origination Activities | 27% | ~31 |
| Federal Mortgage Related Laws | 24% | ~28 |
| General Mortgage Knowledge | 20% | ~23 |
| Ethics | 18% | ~21 |
| Uniform State Content (UST) | 11% | ~13 |
Federal Mortgage Laws (24%)
This is the second-largest content area. Key laws include:
RESPA (Real Estate Settlement Procedures Act)
- Requires Good Faith Estimate within 3 business days
- Prohibits kickbacks and unearned fees (Section 8)
- Mandates escrow account disclosures
- Affiliated Business Arrangement (AfBA) disclosure rules
TILA (Truth in Lending Act)
- Right to rescind within 3 business days
- APR disclosure requirements
- Advertising regulations ("trigger terms")
- Reg Z implementation
TRID (TILA-RESPA Integrated Disclosure)
- Loan Estimate within 3 business days of application
- Closing Disclosure 3 days before closing
- "Know Before You Owe" initiative
ECOA (Equal Credit Opportunity Act)
- Prohibits discrimination on 9 protected bases
- Adverse action notice requirements
- 30-day decision timeline
Fair Housing Act
- Protected classes
- Prohibited practices (steering, blockbusting, redlining)
- Exemptions and exceptions
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Mortgage Loan Origination Activities (27%)
The largest content area covers the entire mortgage process:
Application Process
- 6 pieces of information triggering "application"
- URLA (Uniform Residential Loan Application)
- Required disclosures at application
Processing & Documentation
- Income verification (W-2, tax returns, bank statements)
- Asset documentation
- Employment verification
Underwriting Basics
- Debt-to-income ratios (front-end/back-end)
- Loan-to-value calculations
- Credit score requirements
Closing Procedures
- Closing Disclosure review
- Funding and disbursement
- Right of rescission rules
General Mortgage Knowledge (20%)
Loan Products
- Conventional vs. government loans
- Fixed-rate vs. adjustable-rate mortgages (ARMs)
- Jumbo loans and conforming limits
Government Loan Programs
- FHA loans (3.5% down, MIP requirements)
- VA loans (no down payment, funding fee)
- USDA Rural Development loans
Underwriting Guidelines
- Fannie Mae/Freddie Mac guidelines
- FHA/VA qualification requirements
- Manual vs. automated underwriting (DU/LP)
Ethics (18%)
Financial Responsibility
- Surety bond requirements
- Personal financial fitness
- Net worth requirements by state
Fair Lending Practices
- Predatory lending red flags
- Steering and discrimination
- Bait-and-switch tactics
Fraud Prevention
- Red flags for mortgage fraud
- Identity theft prevention
- SAR (Suspicious Activity Report) filing
Uniform State Content (11%)
The UST component is integrated into the national exam:
State Regulatory Authority
- State licensing agency structure
- Enforcement powers
- Administrative procedures
Licensing Requirements
- Pre-licensing education (20 hours)
- Background check and fingerprinting
- Surety bond requirements
Continuing Education
- 8 hours annually required
- NMLS-approved providers
- State-specific requirements
Prerequisites Before Testing
-
20 hours NMLS-approved pre-licensing education:
- 3 hours Federal law and regulations
- 3 hours Ethics (fraud, consumer protection, fair lending)
- 2 hours Nontraditional mortgage lending
- 12 hours Electives
-
Create NMLS account at mortgage.nationwidelicensingsystem.org
-
Submit state license application
-
Schedule exam through Prometric
Study Timeline
| Week | Focus | Hours |
|---|---|---|
| Week 1-2 | Federal Laws (RESPA, TILA, TRID) | 15-20 |
| Week 3 | Origination Activities | 10-15 |
| Week 4 | General Mortgage Knowledge | 10-15 |
| Week 5 | Ethics + UST | 10-15 |
| Week 6 | Practice exams + Review | 15-20 |
Total: 60-85 hours recommended
Tips for Success
- Focus on Federal Laws - 24% of the exam, most technical content
- Know RESPA Section 8 - Heavily tested kickback/fee rules
- Memorize key timeframes - 3-day rescission, LE within 3 days, CD 3 days before closing
- Practice calculations - APR, DTI ratios, LTV
- Understand "why" - NMLS tests practical application, not just memorization
Retake Policy
- First 3 attempts: Wait 30 days between attempts
- After 3 failures: Wait 180 days (6 months)
- No limit on total attempts
- Same $110 fee for each attempt
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