Mock paper #5

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: #5of 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 #5

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Paper #5

120 questions. 190 minutes.

1

Which NMLS information is expressly outside the confidentiality provision?

AThe originator's licence status and the states in which the licence is currently held and in good standing
BEmployment history and publicly adjudicated disciplinary and enforcement actions
CNothing is outside it
DThe originator's credit report and criminal background check, both of which the applicant authorised the system to obtain

2

What is a conversion option on an adjustable-rate mortgage?

AA right to refinance the loan with the same lender at whatever fixed rate is then available in the market
BA right to switch between index sources if the original index ceases to be published during the term
CA contractual right to convert to a fixed rate on stated terms during a stated window
DA right to convert to interest-only payments

3

For a smaller creditor, what is the second condition instead of the reporting line?

AThe valuation is reviewed by a second appraiser who has no connection with the creditor or the transaction
BThe creditor obtains the valuation through an appraisal management company rather than ordering it directly
CThe creditor documents that the value is reasonable
DAnyone who orders, performs or reviews the valuation abstains from the credit decision

Worked explanations

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

Q1 B Ch. 5: Ethics

Answer: B - Employment history and publicly adjudicated disciplinary and enforcement actions

Because "This section shall not apply with respect to the information or material relating to the employment history of, and any publicly adjudicated disciplinary and enforcement action against, any loan originator that is included in the Nationwide Mortgage Licensing System and Registry for access by the public." 12 CFR 1008.3(d)

Where the other options lead

A.Names a plausible public field. Licence status is made available through the consumer access system, but the carve-out in (d) names employment history and publicly adjudicated actions.
C.Misses the carve-out. Paragraph (d) creates one.
D.Names the most sensitive records. Those are precisely the records the confidentiality provision protects.

Q2 C Ch. 3: General Mortgage Knowledge

Answer: C - A contractual right to convert to a fixed rate on stated terms during a stated window

Because The programme disclosure must describe any option to convert to a fixed-rate transaction and the terms on which it may be exercised. 12 CFR 1026.19(b)

Where the other options lead

A.Describes a refinance. Conversion changes the existing loan rather than replacing it.
B.Describes index replacement. That is a fallback provision, not a conversion option.
D.Describes a payment feature. Conversion concerns the rate type.

Q3 D Ch. 4: Mortgage Loan Origination Activities

Answer: D - Anyone who orders, performs or reviews the valuation abstains from the credit decision

Because The creditor must require "that any employee, officer or director of the creditor who orders, performs, or reviews a valuation for a covered transaction abstain from participating in any decision to approve, not approve, or set the terms of that transaction". 12 CFR 1026.42(d)(3)(ii)

The first condition, common to both sizes, is that compensation is not based on the value arrived at. 12 CFR 1026.42(d)(3)(i)

Where the other options lead

A.Invents a second appraiser. No review appraisal requirement appears in (d)(3).
B.Requires an appraisal management company. Small creditors may order directly, subject to the abstention rule.
C.Substitutes documentation. Documenting reasonable diligence belongs to paragraph (e), where a violation is known.

Worked explanations

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

Q1 B Ch. 5: Ethics

Answer: B - Employment history and publicly adjudicated disciplinary and enforcement actions

Because "This section shall not apply with respect to the information or material relating to the employment history of, and any publicly adjudicated disciplinary and enforcement action against, any loan originator that is included in the Nationwide Mortgage Licensing System and Registry for access by the public." 12 CFR 1008.3(d)

Where the other options lead

A.Names a plausible public field. Licence status is made available through the consumer access system, but the carve-out in (d) names employment history and publicly adjudicated actions.
C.Misses the carve-out. Paragraph (d) creates one.
D.Names the most sensitive records. Those are precisely the records the confidentiality provision protects.

Q2 C Ch. 3: General Mortgage Knowledge

Answer: C - A contractual right to convert to a fixed rate on stated terms during a stated window

Because The programme disclosure must describe any option to convert to a fixed-rate transaction and the terms on which it may be exercised. 12 CFR 1026.19(b)

Where the other options lead

A.Describes a refinance. Conversion changes the existing loan rather than replacing it.
B.Describes index replacement. That is a fallback provision, not a conversion option.
D.Describes a payment feature. Conversion concerns the rate type.

Q3 D Ch. 4: Mortgage Loan Origination Activities

Answer: D - Anyone who orders, performs or reviews the valuation abstains from the credit decision

Because The creditor must require "that any employee, officer or director of the creditor who orders, performs, or reviews a valuation for a covered transaction abstain from participating in any decision to approve, not approve, or set the terms of that transaction". 12 CFR 1026.42(d)(3)(ii)

The first condition, common to both sizes, is that compensation is not based on the value arrived at. 12 CFR 1026.42(d)(3)(i)

Where the other options lead

A.Invents a second appraiser. No review appraisal requirement appears in (d)(3).
B.Requires an appraisal management company. Small creditors may order directly, subject to the abstention rule.
C.Substitutes documentation. Documenting reasonable diligence belongs to paragraph (e), where a violation is known.

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.