Mock paper #1

SAFE Mortgage Loan Originator Test - National Component with Uniform State Content

A full paper drawn to the blueprint. Answers and worked explanations are at the back of this file.

Questions: 120
Time: 190minutes
Mark: 75%to pass
Paper: #1of 5

Single-user licence. You may print this file and write on it. You may not redistribute, resell or post it. © Sitonce 2026.

Before you start

Sit this the way you will sit the real one. A mock done in pieces over three evenings measures your notes, not your recall.

Questions

120

Minutes

190

Per question

95s

Started at

Set a timer for 190 minutes and do not stop it. Running over is the commonest way a prepared candidate fails, and the only place you can find that out safely is here.
Mark one answer for each question on the answer sheet.
Answer every question. 115 of these 120 are scored and you cannot tell which. A blank is a guaranteed zero and a guess is not.
Flag anything you are unsure of as you go. When you mark the paper, a question you flagged and got right is worth as much of your attention as one you got wrong - you do not yet know it, you guessed it.
When the timer runs out, turn to the Answers section at the back of this file. Mark the paper against the quick-reference key first, fill in the score table, and only then read the worked explanations.

What this paper covers

Area	Questions	Share
Mortgage Loan Origination Activities	32	27%
Federal Mortgage Related Laws	29	24%
General Mortgage Knowledge	24	20%
Ethics	22	18%
Uniform State Content	13	11%
Total	120	100%

Pass mark vs pass rate

NMLS requires a score of at least 75% on the SAFE MLO Test. The commonly-quoted figure (around 50-60%) is the first-time PASS RATE - the share of candidates who passed on their first attempt - not the mark you need.

Answer sheet - paper #1

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Paper #1

120 questions. 190 minutes.

1

Same borrower: PITI $1,800, other monthly debts $840, gross income $7,200. What is the back-end ratio?

A36.7%
B25%
C46.7%
D11.7%

2

How must a creditor designate a new account a spouse may use or is liable on?

AIn the name of the spouse who applied, with the other recorded as an authorised user of the facility
BHowever the spouses jointly instruct
CIn the name of whichever spouse's income was principally relied on in granting the credit in the first place
DTo reflect the participation of both spouses

3

May a creditor obtain two appraisals and use the one it considers more reliable?

AYes, that action is expressly permitted
BOnly where the property is unusual
CNo, unless the first appraisal contained an error the creditor identified and the appraiser declined to correct
DNo, because selecting between valuations is a way of achieving a preferred value without instructing either appraiser directly

Worked explanations

The paper carries one for every question, at the back. These are the three above.

Q1 A Ch. 3: General Mortgage Knowledge

Answer: A - 36.7%

Because The back-end ratio divides total monthly obligations by gross monthly income.

This is the measure the ability-to-repay rule points at, alongside residual income as the permitted alternative. 12 CFR 1026.43(c)(2)(vii)

Where the other options lead

B.Other debts omitted. 25% is the front-end ratio.
C.Arithmetic slip. 2,640 / 7,200 is 36.7%, not 46.7%.
D.Only other debts counted. 840 / 7,200 excludes the housing payment.

Q2 D Ch. 5: Ethics

Answer: D - To reflect the participation of both spouses

Because A creditor that furnishes credit information shall designate "[a]ny new account to reflect the participation of both spouses if the applicant's spouse is permitted to use or is contractually liable on the account (other than as a guarantor, surety, endorser, or similar party)". 12 CFR 1002.10(a)(1)

An existing account must be redesignated within 90 days of a written request from one of the spouses. 12 CFR 1002.10(a)(2)

Where the other options lead

A.Treats the spouse as an authorised user. Permitted use is one of the two triggers for joint designation, not a lesser status.
B.Makes it a matter of instruction. The designation follows the facts about use and liability.
C.Uses whose income was relied on. The test is permitted use or contractual liability.

Q3 A Ch. 4: Mortgage Loan Origination Activities

Answer: A - Yes, that action is expressly permitted

Because The permitted actions include "[o]btaining multiple valuations for the consumer's principal dwelling to select the most reliable valuation". 12 CFR 1026.42(c)(3)

Where the other options lead

B.Conditions it on the property. The permission is general.
C.Conditions it on an error. No such condition appears.
D.Reads selection as indirect coercion. The regulation resolves the question in the creditor's favour and names the action as permitted.

Worked explanations

The paper carries one for every question, at the back. These are the three above.

Q1 A Ch. 3: General Mortgage Knowledge

Answer: A - 36.7%

Because The back-end ratio divides total monthly obligations by gross monthly income.

This is the measure the ability-to-repay rule points at, alongside residual income as the permitted alternative. 12 CFR 1026.43(c)(2)(vii)

Where the other options lead

B.Other debts omitted. 25% is the front-end ratio.
C.Arithmetic slip. 2,640 / 7,200 is 36.7%, not 46.7%.
D.Only other debts counted. 840 / 7,200 excludes the housing payment.

Q2 D Ch. 5: Ethics

Answer: D - To reflect the participation of both spouses

Because A creditor that furnishes credit information shall designate "[a]ny new account to reflect the participation of both spouses if the applicant's spouse is permitted to use or is contractually liable on the account (other than as a guarantor, surety, endorser, or similar party)". 12 CFR 1002.10(a)(1)

An existing account must be redesignated within 90 days of a written request from one of the spouses. 12 CFR 1002.10(a)(2)

Where the other options lead

A.Treats the spouse as an authorised user. Permitted use is one of the two triggers for joint designation, not a lesser status.
B.Makes it a matter of instruction. The designation follows the facts about use and liability.
C.Uses whose income was relied on. The test is permitted use or contractual liability.

Q3 A Ch. 4: Mortgage Loan Origination Activities

Answer: A - Yes, that action is expressly permitted

Because The permitted actions include "[o]btaining multiple valuations for the consumer's principal dwelling to select the most reliable valuation". 12 CFR 1026.42(c)(3)

Where the other options lead

B.Conditions it on the property. The permission is general.
C.Conditions it on an error. No such condition appears.
D.Reads selection as indirect coercion. The regulation resolves the question in the creditor's favour and names the action as permitted.

The rest of this mock paper comes with the course

SAFE MLO Test: the whole syllabus taught, the questions that test it, 5 timed mocks, and all 6 PDFs to print.