Cheat sheet
NMLS SAFE MLO Cheat Sheet
Federal Mortgage Laws
- 24% of exam
- RESPA TILA ECOA HMDA TRID Federal Timelines
Uniform State Content
- 11% of exam
- SAFE Act NMLS ID Licensing CE Temporary Authority
Mortgage Knowledge
- 20% of exam
- Products Government Loans Underwriting Ratios Calculations
Origination Activities
- 27% of exam
- Application Processing Disclosure Picker Closing Rate Locks
Ethics
- 18% of exam
- Fraud Fair Lending UDAAP Advertising Kickbacks
Quick Facts
- Exam SAFE MLO
- Items 120 total; 115 scored
- Time 190 min
- Pass 75%
- Fee $110
- PE 20 hours
- Delivery Prometric
- Retake 30/30/180 days
Domain Weights FE
- 24 Federal, 11 State, 20 Mortgage
- 27 Origination 18 Ethics 100 total
TILA vs RESPA FE
TILA
- Credit cost
- APR
- Rescission
RESPA
- Settlement costs
- Kickbacks
- Escrow
- Credit terms vs settlement
Federal Laws FE
- RESPA Settlement cost protection
- TILA Credit cost disclosure
- ECOA Credit discrimination ban
- Fair Housing Housing discrimination ban
- FCRA Credit report rules
- HMDA Mortgage data reporting
- GLBA Financial privacy
- BSA/AML Suspicious activity reporting
ECOA vs Fair Housing FE
ECOA
- All credit
- 9 classes
- Adverse action
Fair Housing
- Housing transactions
- 7 classes
- HUD enforcement
- Credit vs housing
Federal Timelines FE
- Loan Estimate 3 business days
- Closing Disclosure 3 days before closing
- Rescission 3 business days
- Adverse action 30 days
- QWR ack 5 business days
- QWR response 30 business days
- Escrow cushion 2 months max
- FCRA dispute 30 days
Agencies FE
- CFPB Consumer finance rules
- HUD Housing enforcement
- NMLS Licensing registry
- State regulator License discipline
- Fannie Mae Conventional GSE
- Freddie Mac Conventional GSE
- FHA HUD insurance
- USDA Rural housing
MLO Education ST
- 3 Fed, 3 Ethics, 2 Nontraditional
- 12 electives 20 PE total 8 CE yearly
Licensing ST
- Pre-license 20 hours
- Federal law 3 PE hours
- Ethics 3 PE hours
- Nontraditional 2 PE hours
- Continuing ed 8 hours yearly
- NMLS ID Required identifier
- Sponsorship Company control
- Temporary authority 120 days max
LTV vs DTI MO
LTV
- Collateral risk
- Loan/value
- PMI driver
DTI
- Repayment risk
- Debts/income
- ATR factor
- Property vs borrower
Product Picker MO
- Stable payment → Fixed-rate
- Initial low rate → ARM
- Veteran buyer → VA
- Low credit/down → FHA
- Rural eligible → USDA
- Senior equity → HECM
- Large loan → Jumbo
- Equity draw → HELOC
Products MO
- Fixed-rate Stable payment
- ARM Index plus margin
- Balloon Large final payment
- Interest-only Payment shock risk
- HELOC Revolving equity line
- HECM Reverse mortgage
- FHA Government insured
- VA Veteran benefit
QM vs Non-QM MO
QM
- ATR safe harbor
- No risky features
- Fee caps
Non-QM
- No safe harbor
- Flexible docs
- Higher risk
- Protected vs flexible
Underwriting MO
- ATR Repay ability verified
- QM Safe-harbor mortgage
- DTI Debts over income
- LTV Loan over value
- CLTV All liens/value
- AUS Automated underwriting
- Appraisal Independent value opinion
- Title Ownership/lien evidence
Calculations MO
- P&I Principal plus interest
- PITI Housing payment
- Escrow Taxes plus insurance
- Discount point 1% loan amount
- APR Finance-cost rate
- DTI Monthly debts/income
- LTV Loan/value
- Buydown Temporary rate reduction
TRID Clock OR
- LE early; CD before closing
- LE: 3 days CD: 3 days Reset: APR/product/penalty
LE vs CD OR
LE
- Early estimate
- 3 days after
- Shopping tool
CD
- Final terms
- 3 days before
- Closing tool
- Estimate vs final
Disclosure Picker OR
- Application received → Loan Estimate ( 3 days )
- Closing scheduled → Closing Disclosure ( 3 days prior )
- Refi principal home → Rescission notice ( TILA )
- Affiliate referral → AfBA disclosure ( RESPA )
- Credit denial → Adverse notice ( ECOA )
- Servicing transfer → Transfer notice ( RESPA )
- Credit used → FCRA notice ( Report source )
- Rate locked → Lock agreement ( Pricing )
Origination Docs OR
- 1003 Uniform loan application
- Income Ability support
- Assets Funds verified
- Credit report History and debts
- Intent proceed Fees allowed
- Rate lock Pricing promise
- Title report Lien review
- Insurance Collateral protection
TRID Tolerances OR
- Zero tolerance Lender-controlled fees
- 10% bucket Selected third parties
- No tolerance Borrower-selected fees
- Changed circumstance Valid LE reset
- APR increase New wait trigger
- Product change New CD wait
- Prepay penalty New CD wait
- Good faith Estimate standard
Fraud Flags ET
- Identity, income, occupancy, assets
- Verify docs Escalate SAR Avoid pressure
Kickback vs Compensation ET
Kickback
- Referral value
- Unearned fee
- RESPA violation
Compensation
- Actual service
- Reasonable payment
- Documented work
- Referral vs service
Compliance Picker ET
- Referral payment → RESPA check
- Protected class → Fair lending
- Credit pull → Permissible purpose
- Suspicious funds → SAR escalation
- Consumer data → GLBA safeguards
- Ad trigger term → TILA disclosures
Fraud + Ethics ET
- UDAAP Unfair/deceptive/abusive
- Steering Pushing unsuitable loan
- Redlining Area-based denial
- Straw buyer False purchaser
- Occupancy fraud False residence intent
- Appraisal pressure Independence violation
- Kickback Referral thing-of-value
- Bait-switch Misleading terms
Common Traps
Total items changed
- 120 total current ≠ 115 scored
Estimate vs final
- LE estimates ≠ CD finalizes
Login vs license
- NMLS registers ≠ State licenses
APR vs note rate
- APR includes fees ≠ Note excludes fees
Referral vs work
- Kickbacks prohibited ≠ Services payable
Rescission scope
- Refi principal home ≠ Not purchase loan
Last Minute
- 1. Official test: 120 total
- 2. Pass = 75% scored
- 3. Origination highest: 27%
- 4. RESPA bans referral fees
- 5. TILA = APR/rescission
- 6. ECOA = adverse action
- 7. LE early; CD final
- 8. LTV property; DTI borrower
- 9. 20 PE; 8 CE
- 10. NMLS ID on ads
NMLS SAFE MLO
- Practice Questions 100 questions Study Guide 36 topics Cheat Sheet 80 facts Flashcards 50 cards Videos 6 videos Blogs 6 blogs Free CE Podcast