NMLS Cheat Sheet 2026

The 30 highest-yield NMLS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under USC, what must an MLO do if they are terminated for cause by their employer? → The employer must report the termination and reasons to NMLS within 30 days
2. After passing the SAFE MLO Test, how long is the test result valid if the applicant has not obtained a license? → 3 years
3. Under the SAFE Act, a mortgage company must report to NMLS when a licensed MLO is terminated for cause within how many days? → 30 days
4. The SAFE MLO Test includes a national component and, for most states, a state-specific component. What is the minimum passing score for the national component? → 75%
5. How does NMLS assist regulators with recordkeeping? → By providing tools for data analysis and trend monitoring
6. Which federal law makes it a crime to use interstate wire communications in a scheme to defraud mortgage lenders? → The Wire Fraud Statute (18 U.S.C. § 1343)
7. A borrower's gross monthly income is $7,000 and total monthly debt payments are $2,800. What is the debt-to-income (DTI) ratio? → 40%
8. An MLO working for a state-licensed mortgage company who originates loans in a state where they are not licensed is violating which federal law? → SAFE Act
9. What does the term 'layered risk' mean in mortgage underwriting? → Several risk factors present simultaneously that compound overall loan risk
10. What happens if an MLO does not complete their annual continuing education on time? → Their license becomes inactive.
11. Under USC, what is the minimum surety bond amount typically required for a mortgage loan originator company license? → Amounts vary by state based on loan volume
12. What is the significance of the 'three-day right of rescission' in mortgage lending? → The borrower has 3 days to cancel a refinance of their primary residence
13. What is the primary purpose of the Automated Underwriting System (AUS) in mortgage lending? → To provide a risk assessment recommendation based on borrower data
14. What is the primary purpose of NMLS as a centralized repository? → To maintain records of licensing, testing, and compliance for MLOs and companies
15. An MLO allowed their license to lapse for two years but previously held a valid license for six consecutive years. Must they retake the SAFE test? → No, because the lapse is under five years
16. Which of the following loan types is exempt from RESPA requirements? → Temporary construction loan not secured by a completed dwelling
17. What is the minimum passing score on the SAFE MLO Test – National Component with Uniform State Content? → 75%
18. A state regulator notices an MLO completed 8 CE hours in December but all from the same provider and course series. Can the regulator deny renewal? → Yes, if the courses do not cover all four required topic areas
19. A mortgage loan originator who wants to move from one state-licensed company to another must: → Submit a new sponsorship request through NMLS
20. Under Regulation C (HMDA), which of the following is NOT a required data point on the Loan Application Register? → Applicant's Social Security Number
21. Which of the following actions would constitute 'acting as an MLO without a license' under the SAFE Act? → Completing a loan application on behalf of a borrower for compensation without a license
22. Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of the action taken on their completed application within how many days? → 30 days
23. Under the Ability-to-Repay (ATR) rule, which of the following is NOT one of the eight factors a lender must consider? → Borrower's investment portfolio performance
24. What does 'seasoning' refer to in the context of mortgage lending? → The length of time an asset or credit event has been in place
25. Which NMLS filing requires a branch manager or control person to submit personal background, employment history, and financial information? → MU2
26. What is the minimum pre-licensing education (PE) requirement for an MLO? → 20 hours
27. Which topic is specifically mandated in the SAFE Act's 8-hour annual continuing education requirement? → 1 hour of non-traditional mortgage products
28. Which loan component is included in PITI but NOT in the principal and interest payment? → Hazard insurance escrow
29. A 30-year fixed mortgage for $250,000 at 7% has a monthly P&I payment of approximately $1,663. After the first payment, roughly how much goes to principal? → $123
30. Which of the following triggers a Suspicious Activity Report (SAR) filing requirement for a mortgage company? → A transaction involving $5,000 or more that involves known or suspected money laundering