Mock paper #2

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: #2of 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 #2

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Paper #2

120 questions. 190 minutes.

1

Must a company's agents and brokers be brought within its anti-money laundering programme?

AYes - integrating agents and brokers is an express component of the required policies and procedures
BOnly where the agent or broker originates more than a stated proportion of the company's volume
CNo, because agents and brokers are separately regulated and maintain their own programmes
DOnly where the agent or broker is an employee rather than an independent contractor

2

A creditor takes adverse action on an incomplete application. What is the timetable?

A30 days, unless notice is instead given under the incompleteness procedure in 1002.9(c)
BNo notice is required, because an incomplete application was never capable of approval
C3 business days, matching the deadline for acting on an application under the disclosure rules
D90 days, because the applicant must first be given an opportunity to complete the file

3

May a supervisory authority take testimony under oath?

AOnly in a formal hearing
BYes, but only where the licensee consents in writing to being examined under oath about their affairs
CNo, because sworn testimony may only be taken by a court or by an administrative law judge appointed for the purpose
DYes, it must be able to administer oaths and take and preserve testimony

Worked explanations

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

Q1 A Ch. 1: Federal Mortgage Related Laws

Answer: A - Yes - integrating agents and brokers is an express component of the required policies and procedures

Because The policies, procedures and internal controls must include provisions for "integrating the company's agents and brokers into its anti-money laundering program". 31 CFR 1029.210(b)(1)

The compliance officer must also ensure monitoring of "compliance by the company's agents and brokers with their obligations under the program". 31 CFR 1029.210(b)(2)(i)

Where the other options lead

B.A volume threshold invented. No threshold appears.
C.Integration denied. It is expressly required.
D.Employment status made the test. The rule names agents and brokers without distinguishing.

Q2 A Ch. 1: Federal Mortgage Related Laws

Answer: A - 30 days, unless notice is instead given under the incompleteness procedure in 1002.9(c)

Because Notification is required within "30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph (c) of this section". 12 CFR 1002.9(a)(1)(ii)

Paragraph (c) is the alternative route: a notice of incompleteness that tells the applicant what is missing and gives a reasonable period to supply it. 12 CFR 1002.9(c)

Where the other options lead

B.Notice denied. Adverse action on an incomplete application still requires notification.
C.Disclosure timing imported. Three business days is a Regulation Z deadline.
D.Counteroffer period imported. Ninety days applies to a lapsed counteroffer.

Q3 D Ch. 2: Uniform State Content

Answer: D - Yes, it must be able to administer oaths and take and preserve testimony

Because The authority must be able "[t]o administer oaths and affirmations and examine and take and preserve testimony under oath as to any matter in respect to the affairs of any such loan originator". 12 CFR 1008.111(b)(3)

Where the other options lead

A.Restricts it to hearings. The power runs to investigations as well.
B.Requires consent. The summons power operates without it.
C.Reserves oaths to judicial bodies. The regulation requires the authority to have this power.

Worked explanations

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

Q1 A Ch. 1: Federal Mortgage Related Laws

Answer: A - Yes - integrating agents and brokers is an express component of the required policies and procedures

Because The policies, procedures and internal controls must include provisions for "integrating the company's agents and brokers into its anti-money laundering program". 31 CFR 1029.210(b)(1)

The compliance officer must also ensure monitoring of "compliance by the company's agents and brokers with their obligations under the program". 31 CFR 1029.210(b)(2)(i)

Where the other options lead

B.A volume threshold invented. No threshold appears.
C.Integration denied. It is expressly required.
D.Employment status made the test. The rule names agents and brokers without distinguishing.

Q2 A Ch. 1: Federal Mortgage Related Laws

Answer: A - 30 days, unless notice is instead given under the incompleteness procedure in 1002.9(c)

Because Notification is required within "30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph (c) of this section". 12 CFR 1002.9(a)(1)(ii)

Paragraph (c) is the alternative route: a notice of incompleteness that tells the applicant what is missing and gives a reasonable period to supply it. 12 CFR 1002.9(c)

Where the other options lead

B.Notice denied. Adverse action on an incomplete application still requires notification.
C.Disclosure timing imported. Three business days is a Regulation Z deadline.
D.Counteroffer period imported. Ninety days applies to a lapsed counteroffer.

Q3 D Ch. 2: Uniform State Content

Answer: D - Yes, it must be able to administer oaths and take and preserve testimony

Because The authority must be able "[t]o administer oaths and affirmations and examine and take and preserve testimony under oath as to any matter in respect to the affairs of any such loan originator". 12 CFR 1008.111(b)(3)

Where the other options lead

A.Restricts it to hearings. The power runs to investigations as well.
B.Requires consent. The summons power operates without it.
C.Reserves oaths to judicial bodies. The regulation requires the authority to have this power.

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.