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Key Facts: NY MLO Exam

75%

Passing Score

NMLS

120 Q

SAFE MLO Test Questions

NMLS

11 hrs

Annual CE Required

NYDFS

190 min

Test Time

NMLS

New York MLO applicants pass the SAFE MLO Test (120 questions, 115 scored, 190 minutes, 75% to pass, $110) after 20 hours of NMLS-approved pre-licensing education that includes 3 hours of New York law. NYDFS licenses originators through NMLS, requires an MLO surety bond after approval, and requires 11 hours of continuing education each year, including 3 hours of New York law.

Sample NY MLO Practice Questions

Try these sample questions to review concepts for the NY MLO exam. 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

New York mortgage loan originator applicants take the SAFE MLO Test, the national test with uniform state content that every state uses; there is no separate New York exam. The test has 120 questions (115 scored) in 190 minutes and requires 75%. New York adds 20 hours of pre-licensing education with 3 hours of New York law, and licenses through NYDFS via NMLS.

Exam sponsor: NY Department of Financial Services (NYDFS). 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

Reported exam pass rate: 53%. NMLS first-time pass rate for the SAFE MLO Test as of December 31, 2024 This describes exam candidates, not OpenExamPrep users or results from using our resources. 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 HOEPA and MLO compensation, TRID, and other federal laws such as HMDA, FCRA/FACTA, BSA/AML, GLBA, the Homeowners Protection Act and Dodd-Frank

11%

Uniform State Content

SAFE Act and CSBS/AARMR model state law, state regulators and NMLS, license qualifications, education and renewal, compliance and prohibited acts

20%

General Mortgage Knowledge

Qualified and non-qualified mortgages, conventional and government programs (FHA, VA, USDA), loan products, and industry terms

27%

Mortgage Loan Origination Activities

Application process and disclosures, tolerances, Loan Estimate and Closing Disclosure timing, underwriting, appraisals, title, insurance, closing and financial calculations

18%

Ethics

Prohibited acts, fair lending, fraud detection, advertising, predatory lending and steering, and ethical conduct in origination

Preparing for the NY 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
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NY MLO: Suggested Study Strategy

1Weight your study by the SAFE MLO outline: origination activities 27%, federal laws 24%, general mortgage knowledge 20%, ethics 18%, uniform state content 11%
2Know the TRID timing rules: Loan Estimate by the third business day after application and Closing Disclosure at least three business days before consummation
3Study the SAFE Act and model state law: who must be licensed, NMLS unique identifiers, pre-licensing education, renewal and continuing education
4Review New York law in your 3-hour New York pre-licensing course; New York requires 11 hours of continuing education each year, including 3 hours of New York law
5Practice the financial calculations in the origination section: periodic interest, monthly payments, down payments and ARM adjustments

Frequently Asked Questions

What is the New York MLO exam?

New York does not give its own MLO exam. Applicants take the SAFE MLO Test, a national test with uniform state content, through NMLS, and New York law is covered in the 3 required hours of New York pre-licensing education.

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

The SAFE MLO Test has 120 multiple-choice questions, 115 scored and 5 unscored, with 190 minutes to answer them. You need a score of 75% to pass, and the test fee is $110.

What New York-specific topics should I study?

The SAFE MLO Test has no New York-only section; its Uniform State Content (11%) covers the SAFE Act and model state rules. New York law is taught in the 3 hours of New York pre-licensing education and the 3 hours of New York law in each year's 11-hour continuing education requirement.

What are the New York MLO license requirements?

New York requires 20 hours of NMLS-approved pre-licensing education including 3 hours of New York law, a passing SAFE MLO Test result, a fingerprint background check, an application through NMLS, and an MLO surety bond after approval. Licensed originators complete 11 hours of continuing education each year, including 3 hours of New York law.