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200+ Free NY MLO Practice Questions

Pass your New York Mortgage Loan Originator Exam exam on the first try — instant access, no signup required.

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Under the Bank Secrecy Act and FinCEN's Anti-Money Laundering (AML) rules, residential mortgage lenders and originators must:

A
B
C
D
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2026 Statistics

Key Facts: NY MLO Exam

75%

Passing Score

NMLS

55 Q

State Exam Questions

NMLS UST

11 hrs

Annual CE Required

NYDFS

$250,000

Banker Net Worth

New York

The New York MLO state exam covers NY-specific mortgage laws administered by the NY Department of Financial Services (NYDFS). Combined with the national NMLS SAFE exam, candidates must pass both components to originate mortgages in New York — the largest mortgage market in the nation. New York is a strict judicial foreclosure state with extensive borrower protections including the 90-day RPAPL 1304 pre-foreclosure notice, mandatory CPLR 3408 settlement conferences, the Predatory Lending Prevention Act, required interest on escrow accounts, and 11 hours of annual CE (exceeding the federal minimum). NYDFS is one of the most aggressive state financial regulators.

Sample NY MLO Practice Questions

Try these sample questions to test your NY 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 New York?
A.NY Banking Commission
B.NY Department of Financial Services (NYDFS)
C.NY Real Estate Board
D.NY Department of State
Explanation: The New York Department of Financial Services (NYDFS) is the state agency responsible for regulating mortgage loan originators, mortgage bankers, and mortgage brokers in New York. NYDFS was created in 2011 by merging the Banking Department and Insurance Department, and it oversees one of the largest mortgage markets in the nation.
2How many hours of NMLS-approved pre-license education are required for a New York MLO?
A.15 hours
B.20 hours
C.24 hours
D.30 hours
Explanation: New York requires the federal minimum of 20 hours of NMLS-approved pre-license education including 3 hours of federal law, 3 hours of ethics, 2 hours of non-traditional mortgage lending, and 12 hours of electives.
3What type of foreclosure does New York use?
A.Non-judicial foreclosure
B.Strict judicial foreclosure
C.Power of sale foreclosure
D.Administrative foreclosure
Explanation: New York is a strict judicial foreclosure state. All foreclosures must proceed through the court system, with the lender filing a lis pendens and complaint, obtaining a judgment of foreclosure, and conducting a referee's sale. This process provides extensive legal protections for borrowers but makes New York one of the slowest states for foreclosure completion.
4What is the minimum surety bond or net worth requirement for mortgage bankers in New York?
A.$25,000 surety bond
B.$50,000 surety bond
C.$250,000 minimum net worth or equivalent surety bond
D.$500,000 net worth
Explanation: New York requires mortgage bankers to maintain a minimum net worth of $250,000 or an equivalent surety bond. This higher requirement reflects the size and importance of the New York mortgage market and ensures companies are adequately capitalized.
5Under New York's judicial foreclosure process, what document must the lender file to begin?
A.A Notice of Default with the county clerk
B.A lis pendens and foreclosure complaint with the Supreme Court
C.A request with NYDFS
D.A Notice of Sale in a newspaper
Explanation: In New York's judicial foreclosure process, the lender must file a lis pendens (notice of pending action) and a foreclosure complaint with the New York Supreme Court in the county where the property is located. The lis pendens provides public notice, and the complaint initiates the legal proceedings.
6Which New York law is the primary statute governing mortgage lending?
A.NY Banking Law Article 12-D and 12-E
B.NY Real Property Law only
C.NY General Obligations Law only
D.NY Insurance Law
Explanation: New York Banking Law Articles 12-D (Mortgage Bankers and Mortgage Brokers) and 12-E (Mortgage Loan Originators) are the primary statutes governing mortgage lending and MLO licensing in the state. These establish licensing requirements, prohibited practices, and NYDFS's regulatory authority.
7What continuing education must New York MLOs complete annually?
A.4 hours
B.8 hours
C.11 hours (8 NMLS required plus 3 NY-specific hours)
D.16 hours
Explanation: New York MLOs must complete 11 hours of continuing education annually: the 8 hours required by the SAFE Act (3 federal law, 2 ethics, 2 non-traditional lending, 1 elective) plus 3 additional New York-specific hours covering state laws and regulations. This exceeds the federal minimum.
8What is the right of redemption period after a judicial foreclosure sale in New York?
A.No right of redemption exists after the sale
B.The borrower has no statutory right of redemption after the judicial sale is completed and confirmed
C.6 months
D.One year
Explanation: New York does not provide a statutory right of redemption after a judicial foreclosure sale has been completed and the referee's deed is delivered. The borrower's equity of redemption is extinguished at the time of the sale. However, the borrower can exercise the equity of redemption up until the sale by paying the full amount owed.
9What is New York's position on usury limits for residential mortgage loans?
A.Strict 6% cap
B.8% maximum
C.16% criminal usury threshold; civil usury limit does not apply to first-lien residential mortgages by licensed lenders
D.No limits whatsoever
Explanation: New York has a complex usury framework. The criminal usury threshold is 25% (Penal Law Section 190.40), and the civil usury limit under Banking Law Section 14-a is 16% for most loans. However, first-lien residential mortgages by licensed lenders are generally exempt from the civil usury limit, with market forces and federal regulations governing rates.
10What is the New York Predatory Lending Prevention Act (PLPA) designed to protect against?
A.Property tax increases
B.Abusive lending practices in subprime and high-cost home loans
C.Insurance fraud
D.Title disputes
Explanation: New York's Predatory Lending Prevention Act (Banking Law Section 6-l) protects borrowers against abusive lending practices in subprime and high-cost home loans. It establishes triggers for high-cost loans, prohibits specific predatory practices, requires mandatory pre-loan counseling for high-cost loans, and provides enhanced borrower remedies.

About the NY MLO Exam

The New York MLO state exam tests knowledge of NY-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 (NY Department of Financial Services (NYDFS))

NY MLO Exam Content Outline

25%

New York Licensing Requirements

State-specific education (11 hrs CE), renewal, and licensing requirements

25%

New York Mortgage Law

Banking Law 12-D/12-E, PLPA, mortgage tax, and lending regulations

20%

Consumer Protection

RPAPL 1304, PLPA, GBL 349, disclosure requirements, fair lending

15%

Regulatory Authority

NYDFS oversight, enforcement, consent orders, and compliance

15%

Foreclosure Procedures

Judicial foreclosure, CPLR 3408 conferences, referee's sale, redemption

How to Pass the NY 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

NY MLO Study Tips from Top Performers

1Master New York's judicial foreclosure process including RPAPL 1304's 90-day pre-foreclosure notice (one of the longest in the nation), RPAPL 1303 summons requirements, and CPLR 3408 mandatory settlement conferences — these are heavily tested and unique to NY
2Study the Predatory Lending Prevention Act thoroughly: high-cost loan triggers, prohibited practices, mandatory pre-loan counseling requirements, and enhanced borrower remedies
3Know that NY requires 11 hours of CE annually (8 NMLS + 3 NY-specific) — this exceeds the federal minimum and is a common exam question
4Understand NYDFS's broad enforcement powers including consent orders, substantial civil penalties, and its reputation as one of the most aggressive state regulators
5Review NY's unique provisions: required interest on escrow accounts (Banking Law 14-b), the 2% late fee cap after 15 days, the mortgage recording tax, and GBL 349's treble damages provision for deceptive practices

Frequently Asked Questions

What is the New York MLO exam?

The New York MLO exam is the state-specific component of the NMLS licensing test. It covers NY mortgage laws, licensing requirements administered by NYDFS, and state consumer protection regulations. You must pass both this state exam and the national SAFE exam to originate mortgages in New York.

How many questions are on the New York MLO state exam?

The New York 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 New York-specific topics should I study?

Focus on RPAPL 1304's 90-day pre-foreclosure notice, CPLR 3408 mandatory settlement conferences, the Predatory Lending Prevention Act (PLPA) for high-cost loans, NY's 11-hour CE requirement (3 extra NY-specific hours), NYDFS's regulatory authority, the mortgage recording tax, required interest on escrow accounts, NY's 2% late fee cap after 15 days, and the attorney-closing requirement.

What are the New York MLO license requirements?

New York requires 20 hours of NMLS-approved pre-license education, passing both the national and state NMLS exams, a criminal background check and credit report, and registration through NMLS. NY requires 11 hours of annual CE (3 more than the federal minimum). Mortgage bankers need $250,000 net worth and mortgage brokers need a $50,000 surety bond.