United States
Hong KongBuilding a formula sheet from memory
Write one sheet with the six calculations and the key timeframes, use it while practicing, then rebuild it from blank daily. The rebuilt version is what you can reproduce on scratch material in the exam.
The exam is closed book. Nothing goes in with you, which makes a formula sheet a preparation device rather than a crutch.
What goes on it
| Item | Content |
|---|---|
| Housing ratio | Housing payment over gross monthly income |
| Total debt ratio | All obligations over gross monthly income |
| Loan-to-value | Loan over the lesser of price and value |
| Discount points | One point is one percent of the loan |
| Per-diem interest | Annual interest over the day count, times days |
| Benchmarks | 28/36 conventional, 31/43 FHA |
| TRID | The timeline and the three restart triggers |
| Tolerances | Zero and ten percent buckets |
One side of one page. If it needs two, it has too much on it.
The three stages
Write it from the source. Use it while working practice questions, so the contents get repeated in context. Then put it away and rebuild it blank.
Rebuild daily until it comes out complete. That version is the one you own.
If the center provides scratch material, spend the first minute writing it out. Four recall problems become four lookups, and it is the closest a closed-book exam gets to notes.
What not to put on it
Anything you already know cold, and anything you will not have time to use.
A sheet listing everything is a summary of the syllabus. The point is a short list of the things that are both easy to forget and quick to apply. Keep it short.
Practice on the right calculator
A plain four-function one, because that is what the exam provides. Muscle memory built on a financial calculator will not be available.
Common questions
What should be on an NMLS formula sheet?
The six calculations, the conventional and FHA ratio benchmarks, the TRID timeline with its three restart triggers, and the tolerance buckets.
Can I take a formula sheet into the exam?
No, it is closed book. But if scratch material is provided you can write it out in the first minute.
How do I use it while studying?
Write it from the source, use it during practice questions, then rebuild it from blank daily until it is complete.
How long should it be?
One side of one page. Two sides means it has too much on it.
What calculator should I practice with?
A plain four-function one, because that is what the exam provides.