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Key Facts: AR MLO Exam

75%

Passing Score

NMLS

120 Q

SAFE MLO Test Questions (115 scored)

NMLS

20 hrs

Pre-License Education

Arkansas Securities Dept

$100,000+

Company Surety Bond

Ark. Code Ann. 23-39-505

Arkansas MLO applicants pass the SAFE MLO National Test with Uniform State Test Content: 120 questions (115 scored) in 190 minutes, 75% to pass, $110. There is no separate Arkansas component; the Arkansas Securities Department licenses originators under the Fair Mortgage Lending Act through NMLS. Amendment 89 to the Arkansas Constitution caps consumer credit interest at 17 percent a year.

Sample AR MLO Practice Questions

Try these sample questions to review concepts for the AR MLO exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1Which agency regulates mortgage loan originators in Arkansas?
A.Arkansas Real Estate Commission
B.Arkansas Securities Department
C.Arkansas Department of Finance and Administration
D.Arkansas Attorney General's Office
Explanation: The Arkansas Securities Department is the state regulatory authority responsible for licensing and overseeing mortgage loan originators, mortgage brokers, and mortgage bankers in Arkansas. The department administers the Arkansas SAFE Act and the Arkansas Fair Mortgage Lending Act, ensuring compliance with state and federal mortgage lending laws.
2Arkansas primarily uses which type of foreclosure process?
A.Non-judicial foreclosure only
B.Judicial foreclosure
C.Strict foreclosure
D.Administrative foreclosure
Explanation: Arkansas is a judicial foreclosure state, meaning lenders must file a lawsuit in circuit court to foreclose on a mortgage. The court must review the case, confirm the borrower's default, and authorize the foreclosure sale. This process provides borrowers with greater procedural protections, including the right to respond and defend against the action, compared to non-judicial foreclosure states.
3How many hours of NMLS-approved pre-licensing education must an Arkansas MLO applicant complete?
A.10 hours
B.15 hours
C.20 hours
D.30 hours
Explanation: Arkansas requires MLO applicants to complete 20 hours of NMLS-approved pre-licensing education, including 3 hours of federal law, 3 hours of ethics, 2 hours of non-traditional mortgage lending, and 12 hours of electives. This aligns with the federal SAFE Act minimum.
4What is the passing score for the Arkansas state MLO exam?
A.65%
B.70%
C.75%
D.80%
Explanation: The passing score for the Arkansas state MLO exam component is 75%. Candidates must correctly answer at least 75% of the state-specific questions. Those who fail may retake the exam after a 30-day waiting period, and after three consecutive failures, a 2-year waiting period applies.
5What is the Arkansas Home Loan Protection Act's primary purpose?
A.To promote home sales
B.To protect borrowers from predatory lending practices including abusive loan terms, excessive fees, and deceptive lending
C.To regulate commercial real estate
D.To set property tax rates
Explanation: The Arkansas Home Loan Protection Act (Act 888 of 2003) was enacted to protect Arkansas borrowers from predatory lending practices. The Act establishes restrictions on high-cost home loans, prohibits certain abusive lending practices, limits fees and charges, and provides additional consumer protections beyond federal law. It works alongside federal regulations like HOEPA to combat predatory lending.
6What annual continuing education must Arkansas MLOs complete?
A.4 hours
B.8 hours
C.12 hours
D.16 hours
Explanation: Arkansas MLOs must complete 8 hours of NMLS-approved continuing education annually, including 3 hours of federal law, 2 hours of ethics, 2 hours of non-traditional mortgage lending, and 1 hour of electives. These must be completed before December 31 each year.
7Under the Arkansas Constitution, what is the maximum lawful interest rate?
A.5% per annum
B.The Federal Reserve discount rate plus 5%, but no more than 17%
C.There is no interest rate cap in Arkansas
D.10% per annum
Explanation: The Arkansas Constitution, Amendment 89 (ratified 2010), sets the maximum lawful interest rate for consumer loans at the Federal Reserve discount rate plus 5 percentage points, but not exceeding 17% per annum. This constitutional provision is one of the most restrictive usury limits in the nation and directly affects mortgage lending in Arkansas. Lenders who charge above this rate face serious legal consequences.
8What is the statutory right of redemption period in Arkansas after a judicial foreclosure sale?
A.30 days
B.6 months
C.12 months
D.No redemption period
Explanation: Arkansas provides a 12-month statutory right of redemption after a judicial foreclosure sale under Arkansas Code Section 18-49-106. During this period, the former owner can reclaim the property by paying the purchase price plus 10% interest per annum and any taxes or assessments paid by the purchaser. This lengthy redemption period provides significant protection to Arkansas borrowers.
9What background check requirements apply to Arkansas MLO applicants?
A.Only a state criminal check
B.FBI criminal background check through fingerprinting and credit report authorization via NMLS
C.A character reference letter
D.No background check is required
Explanation: Arkansas MLO applicants must undergo an FBI criminal background check through fingerprint submission via NMLS and authorize a credit report review. These checks screen for felony convictions, financial crimes, and financial responsibility issues. These requirements are mandated by both the SAFE Act and Arkansas regulations.
10Under Arkansas law, what must a lender file to initiate a judicial foreclosure?
A.A notice of default with the county recorder
B.A complaint in circuit court alleging default and seeking foreclosure
C.A trustee's notice of sale
D.A letter to the borrower
Explanation: In Arkansas's judicial foreclosure process, the lender must file a complaint in the circuit court of the county where the property is located. The complaint must allege the borrower's default, specify the amount owed, describe the property, and request the court to authorize a foreclosure sale. The borrower is served with the complaint and has the right to file an answer and raise defenses.

About the AR MLO Exam

Arkansas mortgage loan originator applicants take the SAFE MLO National Test with Uniform State Test Content, the single NMLS test used for state MLO licenses; there is no separate Arkansas test component. The Arkansas Securities Department licenses originators through NMLS.

Exam sponsor: NMLS (SAFE MLO Test); license issued by the Arkansas Securities Department. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

120 questions

Time Limit

190 minutes

Passing Score

75%

Exam / Certification Fees

$110

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

24%

Federal Mortgage Related Laws

RESPA (Regulation X), ECOA (Regulation B), TILA (Regulation Z) including TRID, higher-priced loans and loan originator compensation, plus other federal laws such as HMDA, FCRA, GLBA and the BSA

11%

Uniform State Content

SAFE Act and the model state law: state regulator authority, who must be licensed, license qualifications and maintenance, NMLS, prohibited conduct and advertising

20%

General Mortgage Knowledge

Conventional, government and other loan products, and mortgage terms

27%

Mortgage Loan Origination Activities

Loan inquiry and application, qualification and underwriting, closing, financial calculations

18%

Ethics

Ethical issues, fraud detection, consumer protection, fair lending and UDAAP

Preparing for the AR MLO Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 120 questions
  • Time limit: 190 minutes
  • Exam / certification fees: $110 Official sources

Using Our Practice Resources

  • Work through all 200 available questions
  • Review every answer and explanation
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AR MLO: Suggested Study Strategy

1Master the Arkansas Fair Mortgage Lending Act — it is the primary statute governing mortgage origination in Arkansas and is heavily tested
2Understand Arkansas's judicial foreclosure process, which requires court proceedings and includes a 12-month statutory redemption period for borrowers
3Know Arkansas's constitutional usury provisions under Amendment 89, which cap interest rates — this is unique among states and frequently tested
4Review Arkansas's consumer protection requirements including required disclosures, the Deceptive Trade Practices Act, and borrower rights
5Study the Arkansas Securities Department's enforcement powers including license revocation, civil penalties, and investigative authority

Frequently Asked Questions

What is the Arkansas MLO exam?

Arkansas MLO applicants take the SAFE MLO National Test with Uniform State Test Content through NMLS. It covers federal mortgage laws, uniform state content, general mortgage knowledge, origination activities and ethics; there is no separate Arkansas state component.

How many questions are on the Arkansas MLO state exam?

The SAFE MLO National Test with Uniform State Test Content has 120 questions (115 scored and 5 unscored pre-test items) and a 190-minute time limit. You need a score of 75% or better to pass, and the fee is $110.

What Arkansas-specific topics should I study?

Focus on the Arkansas Fair Mortgage Lending Act, Arkansas's constitutional interest limits (Amendment 89), the Arkansas Securities Department's enforcement authority, and the surety bond of at least $100,000 that mortgage brokers, bankers and servicers must post.

What are the Arkansas MLO license requirements?

Arkansas requires 20 hours of NMLS-approved pre-license education, a score of 75% or better on the SAFE MLO National Test with Uniform State Test Content, a criminal background check and credit report, and registration through NMLS. Licenses must be renewed annually by December 31.