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200+ Free ND MLO Practice Questions

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A borrower has a $400,000 loan. The lender charges a 1% origination fee and the borrower pays 2 discount points. What is the total of these fees?

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2026 Statistics

Key Facts: ND MLO Exam

75%

Passing Score

NMLS

55 Q

State Exam Questions

NMLS UST

20 hrs

Pre-License Education

ND Dept of Financial Institutions

$25,000

Surety Bond

North Dakota

The North Dakota MLO state exam covers ND-specific mortgage laws administered by the North Dakota Department of Financial Institutions. Combined with the national NMLS SAFE exam, candidates must pass both components to originate mortgages in North Dakota. ND is a judicial foreclosure state, meaning lenders must go through the court system. The state provides borrowers with a generous one-year right of redemption after the sheriff's sale. ND requires a $25,000 surety bond for MLO licensees.

Sample ND MLO Practice Questions

Try these sample questions to test your ND MLO exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1Which state agency regulates mortgage loan originators in North Dakota?
A.ND Secretary of State
B.ND Department of Financial Institutions
C.ND Real Estate Commission
D.ND Attorney General
Explanation: The North Dakota Department of Financial Institutions is the state agency responsible for regulating mortgage loan originators and enforcing state mortgage lending laws. This department oversees MLO licensing, examinations, and enforcement activities.
2How many hours of pre-license education are required for MLO licensure in North Dakota?
A.10 hours
B.15 hours
C.20 hours
D.25 hours
Explanation: North Dakota requires the standard 20 hours of NMLS-approved pre-license education, including 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage lending, following the SAFE Act minimum.
3North Dakota primarily uses which type of foreclosure process?
A.Non-judicial foreclosure only
B.Judicial foreclosure through the court system
C.Strict foreclosure
D.Administrative foreclosure
Explanation: North Dakota primarily uses judicial foreclosure, requiring the lender to file a lawsuit in court to obtain a judgment and order of sale. This process provides significant borrower protections through court oversight but typically takes longer than non-judicial foreclosure.
4What is the passing score for the North Dakota MLO state exam?
A.65%
B.70%
C.75%
D.80%
Explanation: The North Dakota MLO state exam requires a passing score of 75%, consistent with the standard NMLS threshold for state exam components.
5What is the minimum surety bond for a North Dakota MLO?
A.$10,000
B.$25,000
C.$50,000
D.$100,000
Explanation: North Dakota requires a minimum surety bond of $25,000 for MLO licensure. This bond protects consumers against losses from MLO violations of state mortgage laws.
6In North Dakota's judicial foreclosure process, who files the foreclosure lawsuit?
A.The borrower
B.The lender or its attorney
C.The county sheriff
D.The Department of Financial Institutions
Explanation: In North Dakota's judicial foreclosure process, the lender (or the lender's attorney) files a foreclosure lawsuit in the district court of the county where the property is located. The court then oversees the proceedings to ensure proper legal procedures are followed.
7What is the borrower's right of redemption after a judicial foreclosure sale in North Dakota?
A.No right of redemption
B.60 days
C.6 months from the date of the sheriff's sale
D.One year from the date of the sheriff's sale
Explanation: North Dakota provides borrowers with a one-year statutory right of redemption after a judicial foreclosure sale. During this period, the borrower can reclaim the property by paying the sale price plus interest and costs. This is one of the most generous redemption periods in the country.
8North Dakota's usury laws set the maximum interest rate for consumer loans at:
A.6% per annum
B.The greater of 5.5% above the current cost of money or 7% per annum
C.10% per annum
D.No statutory limit
Explanation: North Dakota's usury law caps interest rates at the greater of 5.5% above the current cost of money (as determined by the state) or 7% per annum. However, numerous exemptions exist for licensed lenders and certain loan types.
9What is the annual continuing education requirement for North Dakota MLOs?
A.4 hours
B.8 hours
C.12 hours
D.16 hours
Explanation: North Dakota MLOs must complete 8 hours of NMLS-approved continuing education annually: 3 hours of federal law, 2 hours of ethics, 2 hours of non-traditional mortgage lending, and 1 hour of elective content.
10What background check is required for North Dakota MLO applicants?
A.Only a state check
B.FBI criminal background check and credit report review
C.No background check
D.Only a credit check
Explanation: North Dakota MLO applicants must undergo an FBI criminal background check through fingerprinting and a credit report review as part of the NMLS licensing process.

About the ND MLO Exam

The North Dakota MLO state exam tests knowledge of North Dakota-specific mortgage laws, licensing requirements, and consumer protection regulations. This exam is taken alongside the national NMLS SAFE exam component.

Questions

55 scored questions

Time Limit

1 hour 30 minutes

Passing Score

75%

Exam Fee

$110 (North Dakota Department of Financial Institutions)

ND MLO Exam Content Outline

25%

North Dakota Licensing Requirements

State-specific education, renewal, and licensing requirements

25%

North Dakota Mortgage Law

State mortgage statutes, usury laws, and lending regulations

20%

Consumer Protection

State disclosure requirements, borrower rights, fair lending

15%

Regulatory Authority

ND Dept of Financial Institutions oversight, enforcement, and compliance

15%

Foreclosure Procedures

North Dakota judicial foreclosure process, redemption rights, and timelines

How to Pass the ND MLO Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 55 questions
  • Time limit: 1 hour 30 minutes
  • Exam fee: $110

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ND MLO Study Tips from Top Performers

1Master North Dakota's judicial foreclosure process including the filing of the lawsuit, service of summons and complaint, judgment and decree, and the sheriff's sale at the courthouse
2Study the one-year statutory right of redemption thoroughly: the borrower can remain in possession, and must pay the sale price plus interest and costs to redeem
3Know the Department of Financial Institutions' enforcement powers including license suspension, revocation, fines, and cease and desist orders
4Understand North Dakota's usury law formula: the greater of 5.5% above the cost of money or 7% per annum, with exemptions for licensed lenders
5Review the three-week publication requirement for the notice of sheriff's sale and the borrower's right to answer the complaint within 21 days

Frequently Asked Questions

What is the North Dakota MLO exam?

The North Dakota MLO exam is the state-specific component of the NMLS licensing test. It covers ND mortgage laws, licensing requirements administered by the ND Department of Financial Institutions, and state consumer protection regulations. You must pass both this state exam and the national SAFE exam to originate mortgages in North Dakota.

How many questions are on the North Dakota MLO state exam?

The North Dakota MLO state exam has 55 questions with a 1 hour 30 minute time limit. You need a score of 75% (approximately 41 correct answers) to pass. The exam is administered through NMLS at Prometric testing centers.

What North Dakota-specific topics should I study?

Focus on North Dakota's judicial foreclosure process through the court system, the one-year statutory right of redemption after the sheriff's sale, the Department of Financial Institutions' regulatory authority, ND's usury laws, the $25,000 surety bond, and the borrower's right to remain in possession during the redemption period.

What are the North Dakota MLO license requirements?

North Dakota requires 20 hours of NMLS-approved pre-license education, passing both national and state exams, an FBI background check and credit report, a $25,000 surety bond, and NMLS registration. ND follows the standard federal SAFE Act requirements.