NMLS MLO Exam Questions : Mortgage Loan Origination (SAFE MLO) Exam

  • Exam Code: MLO
  • Exam Name: Mortgage Loan Origination (SAFE MLO) Exam
  • Updated: Nov 03, 2026
  • Q&As: 232 Questions and Answers

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NMLS MLO Exam Syllabus Topics:

SectionObjectives
Topic 1: Uniform State Content- State Lending Regulations Overview
- Licensing Requirements and Compliance
Topic 2: General Mortgage Knowledge- Underwriting Basics
- Loan Origination Process
- Mortgage Types and Products
- Loan Closing Procedures
Topic 3: Federal Mortgage-Related Laws- Fair Housing Act
- Real Estate Settlement Procedures Act (RESPA)
- Truth in Lending Act (TILA) / Regulation Z
- Equal Credit Opportunity Act (ECOA)
Topic 4: Ethics and Professional Conduct- Fraud Prevention
- Disclosure Requirements
- Consumer Protection Standards

NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:

Question #1

During the closing the borrower notices that the interest rate increased from 3.250% to 3.875%. The lender must:

  • A. postpone the closing, re-disclose and wait three business days.
  • B. tell the borrower to close the loan.
  • C. postpone the closing, re-disclose and wait three days.
  • D. close the loan, then re-disclose after the loan funds.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

For an FHA loan, which of the following payments must a borrower make to protect a lender in case of a foreclosure?

  • A. Mortgage insurance premium
  • B. Homeowners association dues
  • C. Hazard insurance premium
  • D. Down payment
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Which of the following responses best defines a red flag?

  • A. Reasonably foreseeable risk taken by borrowers to prevent identity theft
  • B. A pattern, practice or specific activity that indicates the possible existence of identity theft
  • C. Proof that specific activity shows identity theft
  • D. Effective oversight by lenders to prevent borrower identity theft
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

When a mortgage loan originator (MLO) receives information from a borrower that indicates potential employment fraud, the MLO should:

  • A. Report the information to the company's compliance officer.
  • B. Take no additional action because it is not confirmed.
  • C. Report the information to another MLO for their opinion.
  • D. Take no additional action unless the borrower admits that they submitted false employment information.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

The loan-to-value ratio for an FHA loan is calculated by dividing the loan amount by:

  • A. the purchase price of the property.
  • B. the purchase price, plus the mortgage insurance for FHA loans.
  • C. the appraised value of the property.
  • D. the lesser of the purchase price or appraised value.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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