NMLS FINAL STUDY SHEET 2026
COMPLETE QUESTIONS AND ANSWERS.
◍ NMLS. Answer- Started in 2004 by the Conference of State Bank
Supervisors (CSBS) and the American Assoc. of Residential Mortgage
Regulators (AARMR) They wrote model legislation reviewed by HUD
for states to follow
◍ Mortgage Loan Originator Definition. Answer- Someone who for
compensation or gain or expectation thereof: takes a residential
mortgage loan application or offers or negotiates terms of a residential
mortgage loan
◍ Independent Contractor. Answer- May not engage in residential
mortgage loan activities as a loan processor or underwriter unless state
licensed
◍ Unique Identifier. Answer- *Required by the SAFE Act for all state
licensed MLO's or federally registered MLO's employed by a depository
institution regulated by a federal banking agency or regulated by the
Farm Credit Admin.
*Required on all mktg materials, applications, required disclosures &
business cards
,◍ FINRA Financial Industry Regulatory Authority. Answer- Built and
maintains the online NMLS system
◍ RESPA (X) Real Estate Settlement Procedures Act 0f 1974. Answer-
*Enforced by HUD
*Intended to help consumers become better shoppers for settlement
services and eliminate unnecessary increases in the costs of certain
settlement services
◍ MLO License Not Required. Answer- *Purely administrative or
clerical tasks for a licensee
*Only performing real estate brokerage work
*Time share credit work
*Loan processor or underwriter who does not represent to the public that
they perform MLO work
◍ Federal Banking Agencies. Answer- The Board of Gov.'s of the Fed.
Reserve System, Comptroller of the Currency, Dir. of the Office of
Thrift Supervision, National Credit Union Administration and the FDIC.
◍ Depository Institution. Answer- Any bank or savings assoc. including
credit union
◍ Non-Traditional Mortgage Product. Answer- Any mortgage product
other than a 30 yr fixed rate
,◍ Residential Mortgage Loan. Answer- Any loan primarily for personal,
family or household use that is secured by a mortgage, deed of trust or
other equivalent consensual security interest on a dwelling or residential
real estate upon which a dwelling is constructed or is intended to be
constructed a dwelling
◍ MLO Licensing Requirements. Answer- * Submit to a background
check
*Provide personal history
*Provide authorization for a credit report
*Never had MLO license revoked
*No conviction or pled nolo contendere for a felony during past 7 yrs
preceeding date of application
*No fraud, breach of trust, or money laundering ever
*A pardon is not a conviction
◍ MLO personal financial responsibility. Answer- No:
*Current outstanding judgments
*Current outstanding tax liens
*Foreclosures in the past 3 years
*Pattern of seriously delinquent accounts in past 3 yrs
, ◍ MLO pre-licensing education. Answer- Federal Law & regulation (3
hours)
Ethics (3 hours)
Nontraditional mortgage products (2 hours)
Electives (12 hours)
◍ MLO Exam. Answer- Federal Mortgage related laws 35%
General Mortgage knowledge 25%
MLO activities 25%
Ethics 15%
Fail 3 times then must wait 6 months
◍ MLO License renewal requirements. Answer- Federal Law &
regulation (3 hours)
Ethics (2 hours)
Nontraditional mortgage products (2 hours)
Electives (1 hours)
◍ MLO Compensation Rules. Answer- Dodd-Frank Compensation
Changes:
*Compensation can't be based different cause it is a different kind of
loan
*Comp. can't be based on loan terms such as interest rate, apr or LTV
COMPLETE QUESTIONS AND ANSWERS.
◍ NMLS. Answer- Started in 2004 by the Conference of State Bank
Supervisors (CSBS) and the American Assoc. of Residential Mortgage
Regulators (AARMR) They wrote model legislation reviewed by HUD
for states to follow
◍ Mortgage Loan Originator Definition. Answer- Someone who for
compensation or gain or expectation thereof: takes a residential
mortgage loan application or offers or negotiates terms of a residential
mortgage loan
◍ Independent Contractor. Answer- May not engage in residential
mortgage loan activities as a loan processor or underwriter unless state
licensed
◍ Unique Identifier. Answer- *Required by the SAFE Act for all state
licensed MLO's or federally registered MLO's employed by a depository
institution regulated by a federal banking agency or regulated by the
Farm Credit Admin.
*Required on all mktg materials, applications, required disclosures &
business cards
,◍ FINRA Financial Industry Regulatory Authority. Answer- Built and
maintains the online NMLS system
◍ RESPA (X) Real Estate Settlement Procedures Act 0f 1974. Answer-
*Enforced by HUD
*Intended to help consumers become better shoppers for settlement
services and eliminate unnecessary increases in the costs of certain
settlement services
◍ MLO License Not Required. Answer- *Purely administrative or
clerical tasks for a licensee
*Only performing real estate brokerage work
*Time share credit work
*Loan processor or underwriter who does not represent to the public that
they perform MLO work
◍ Federal Banking Agencies. Answer- The Board of Gov.'s of the Fed.
Reserve System, Comptroller of the Currency, Dir. of the Office of
Thrift Supervision, National Credit Union Administration and the FDIC.
◍ Depository Institution. Answer- Any bank or savings assoc. including
credit union
◍ Non-Traditional Mortgage Product. Answer- Any mortgage product
other than a 30 yr fixed rate
,◍ Residential Mortgage Loan. Answer- Any loan primarily for personal,
family or household use that is secured by a mortgage, deed of trust or
other equivalent consensual security interest on a dwelling or residential
real estate upon which a dwelling is constructed or is intended to be
constructed a dwelling
◍ MLO Licensing Requirements. Answer- * Submit to a background
check
*Provide personal history
*Provide authorization for a credit report
*Never had MLO license revoked
*No conviction or pled nolo contendere for a felony during past 7 yrs
preceeding date of application
*No fraud, breach of trust, or money laundering ever
*A pardon is not a conviction
◍ MLO personal financial responsibility. Answer- No:
*Current outstanding judgments
*Current outstanding tax liens
*Foreclosures in the past 3 years
*Pattern of seriously delinquent accounts in past 3 yrs
, ◍ MLO pre-licensing education. Answer- Federal Law & regulation (3
hours)
Ethics (3 hours)
Nontraditional mortgage products (2 hours)
Electives (12 hours)
◍ MLO Exam. Answer- Federal Mortgage related laws 35%
General Mortgage knowledge 25%
MLO activities 25%
Ethics 15%
Fail 3 times then must wait 6 months
◍ MLO License renewal requirements. Answer- Federal Law &
regulation (3 hours)
Ethics (2 hours)
Nontraditional mortgage products (2 hours)
Electives (1 hours)
◍ MLO Compensation Rules. Answer- Dodd-Frank Compensation
Changes:
*Compensation can't be based different cause it is a different kind of
loan
*Comp. can't be based on loan terms such as interest rate, apr or LTV
