Is The Mortgage License Test Difficult?

The NMLS SAFE Exam is a difficult test, with only 57% of test takers passing on their first attempt. The exam is designed to ensure that Mortgage Loan Originators (MLOs) have a minimum level of knowledge and competence in the mortgage industry to protect consumers. The exam is divided into two sections: the National Component and the State Component. The National Component covers federal mortgage-related laws and regulations, while the State Component covers state-specific laws and regulations. The number of questions for each section varies depending on the state you’re applying for, with most versions of the exam consisting of 125 multiple-choice questions, 115 of which are scored and 10 are unscored. The passing score for the NMLS SAFE Exam is typically 75%, and you are given 190 minutes to complete the exam.

Preparation is key

The NMLS exam is considered a difficult test, with only 57% of test-takers passing on their first attempt. The pass rate for first-time national-component test-takers between July 30, 2009, and October 30, 2021, was 69%. The difficulty of the exam often depends on the individual test-taker's level of preparation and experience in the mortgage industry. Some find the exam relatively easy, while others may struggle to pass.

To prepare for the NMLS exam, it is recommended that you take a pre-licensing course and study the exam content outline provided by the NMLS. Many test-takers also find it helpful to take practice exams and review study materials from reputable sources. It is important to focus on fully understanding the concepts rather than simply memorizing answers. The NMLS website offers a guide that can be used as the foundation for your studies. This guide is the document used by education providers to create their pre-licensing courses and by the exam creators to develop the NMLS exam.

In addition to studying the material, it is important to be well-rested before the exam and to manage your time effectively during the exam. The NMLS exam consists of multiple-choice questions that must be answered within a time limit. It is beneficial to take the test as soon as you feel ready, as the mortgage industry moves quickly and the test questions reflect that.

While the NMLS exam is challenging, it is not impossible to pass. With proper preparation and a positive mindset, you can increase your chances of success.

Understand concepts, don't memorise

The NMLS exam is a difficult test, but it is not impossible to pass. The difficulty level is subjective and depends on the individual test-taker's preparation, experience, and mindset. It is important to approach the exam with a positive mindset and a clear understanding of the concepts rather than attempting to memorise answers. Here are some key strategies to help you prepare for the exam and improve your chances of success:

Firstly, understand the concepts thoroughly. Focus on grasping the underlying principles and ideas rather than simply memorising facts or answers. This will help you adapt to different types of questions and demonstrate your comprehension of the material. The exam covers a range of topics, including federal and state-specific mortgage-related laws and regulations, so ensure you have a solid understanding of these areas.

Secondly, allocate sufficient time for preparation. The exam is comprehensive and covers a lot of ground. Don't underestimate the amount of studying required. Dedicate time to reviewing the exam content outline provided by the NMLS and consider enrolling in a pre-licensing course to strengthen your knowledge. Take advantage of practice exams and study materials from reputable sources to familiarise yourself with the question formats and identify areas that need improvement.

Additionally, maintain a consistent study schedule. Regularly review the material and identify your weaknesses to address them effectively. Don't cram or try to memorise information; instead, aim to understand the concepts deeply. Seek out different resources, such as infographics, textbooks, or online forums, to gain a well-rounded perspective on the topics. Remember that understanding the concepts is more important than merely memorising facts or answers.

Finally, approach the exam with a well-rested mind. Ensure you get a good night's sleep before the test, and manage your time effectively during the exam. The NMLS exam is timed, and you will have limited hours to answer the questions. Don't rush through the questions; read them carefully and use your common sense and understanding of the concepts to make informed choices. Stay calm and composed, and use your preparation to guide you through the exam.

Remember, while the NMLS exam is challenging, with dedicated preparation, a clear understanding of the concepts, and a positive mindset, you can increase your chances of success and obtain your mortgage license.

Test structure

The NMLS SAFE exam is a difficult test, but it is passable. The difficulty level is subjective and depends on the individual test-taker's preparation and experience in the mortgage industry. The exam is designed to ensure that Mortgage Loan Originators (MLOs) have a minimum level of knowledge and competence in the mortgage industry to protect consumers.

The NMLS exam is divided into two sections: the National Component and the State Component. The National Component covers federal mortgage-related laws and regulations, while the State Component covers state-specific laws and regulations. The number of questions for each section varies depending on the state you're applying for, with some states requiring a higher passing score. The exam consists of 125 multiple-choice questions, 115 of which are scored, and the remaining 10 are unscored. Previous versions of the exam included 100 questions and 10 practice questions. The exam must be completed within 190 minutes, but most test-takers finish in around two hours.

The exam is relatively standard, with computer-generated, multiple-choice questions. The questions are designed to blend several topics, and it is likely that you will encounter many questions that you may not know the answer to. It is important to study consistently, understand the concepts, and identify your weaknesses to improve your chances of passing.

The NMLS website provides a guide that can be used as a foundation for studying. This document is used by education providers to create their pre-licensing courses and is also used by the American Association of Residential Mortgage Regulators and the Conference of State Bank Supervisors to create the NMLS exam. It is recommended to take a pre-licensing course, study the exam content outline provided by the NMLS, and review practice exams and study materials from reputable sources.

Additionally, it is important to be well-rested before the exam and to plan to use the full three hours given to complete it.

Time management

The NMLS exam is a challenging test that covers a wide range of mortgage laws, regulations, and industry practices. It is designed to be difficult to ensure that mortgage loan officers are well-prepared for their financial responsibilities and uphold high industry standards. The pass rate for first-time takers is around 54% to 58%, while subsequent attempts have an even lower pass rate of about 46.7%.

To effectively manage your time and increase your chances of passing the NMLS exam on your first try, here are some essential time management strategies:

Consistent Study Schedule:

Commit to a dedicated study routine by setting aside a consistent block of time each day or week specifically for exam preparation. This disciplined approach will help you stay focused and make steady progress towards mastering the material.

Break Down Complex Topics:

The NMLS exam covers a broad range of complex topics. Break down these complex subjects into smaller, more manageable sections. Focus on understanding one topic at a time, gradually building your knowledge and confidence.

Set Specific Goals:

Define clear and achievable goals for each study session. For example, you could aim to thoroughly understand a specific set of regulations or complete a certain number of practice questions. This focused approach ensures that your study time is well-spent and helps you track your progress.

Utilize Various Resources:

Don't rely solely on your course materials. Explore a variety of resources, such as Consumer Financial Protection Bureau (CFPB) mortgage resources, online forums, and reputable pre-license courses. Different resources can offer unique perspectives and fill in any knowledge gaps, enhancing your understanding.

Practice Exam Techniques:

Familiarize yourself with effective test-taking strategies. Techniques such as reading each question twice, understanding the process of elimination, and skipping challenging questions to return to them later can help you maximize your time during the exam and improve your accuracy.

Manage Your Time During the Exam:

The NMLS exam consists of approximately 120 multiple-choice questions, and you will have about 190 minutes to complete it. This equates to roughly one and a half minutes per question. Be mindful of this timing during the exam. If you find yourself spending too much time on a particular question, move on and come back to it later. This ensures you have sufficient time to address all the questions to the best of your ability.

Remember, obtaining adequate sleep (7-9 hours for adults) before the exam is also crucial for optimal performance.

Exam day mindset

The NMLS exam is a difficult test, but it is certainly passable. The difficulty of the exam is subjective and depends on the individual test-taker's level of preparation and experience in the mortgage industry. Some test-takers find the exam to be relatively easy, while others may struggle to pass.

The exam is relatively standard, with 100 computer-generated multiple-choice questions to be answered within three hours. However, it blends several topics into one question, and you will likely encounter many questions that leave you clueless.

• Get a good night's rest before the exam. Although it may sound like common sense, it is important to take it seriously. Avoid staying up late the night before, and give yourself a clear and rested mindset for the exam.
• Plan to use all three hours given for the exam. Don't rush through the questions, and take your time to understand each one thoroughly.
• Don't panic if you don't understand a question or come across unfamiliar topics. Stay calm and composed, and use your best judgment to answer the question.
• Focus on understanding the concepts rather than memorizing answers. This will help you better retain the information and apply it to different scenarios.
• Stay positive and confident. Remember that the exam is challenging, but it is not impossible. Believe in your preparation and give it your best shot.
• Follow the test-taking instructions and guidelines provided by the testing center. Ensure you are familiar with the rules and regulations to avoid any issues during the exam.

Frequently asked questions