State Regulatory Registry LLC a CSBS company NMLS Testing & Education SAFE Mortgage Loan Originator Testing Information April 2010

State Regulatory Registry LLCa CSBS company

NMLS Testing & Education

SAFE Mortgage Loan Originator Testing Information

April 2010


Nationwide Mortgage Licensing System

Test Preparation



• Individuals are not required to take pre-licensure or continuing education courses prior to taking the test; however, it is strongly recommended.

• While completing education and using the Content Outlines and associated Reference Lists will assist MLO’s to better prepare to take the test, these alone do not guarantee an individual will pass the test.

Consider the Following:



• Completing pre-licensure or continuing education and preparing to take the test are not one in the same.

• MLO’s, particularly those new to the industry, are likely going to need to spend additional time studying for the test.

Consider the Following:



Tools to Prepare for the Test



Content Outlines:

• provide the basic structure or blue print for a test component

• are used to guide test question writing

• Can be used as a tool to help candidates prepare for the test

• are found on the NMLS Resource CenterProfessional Requirements> Testing> Test Content Outlines



Review Test Content Outlines

• Each test component has its own outline– National Component – Unique State Specific Components

• Outlines map out: • specific test content

and• question distribution (weightings)



Here’s what they look like…

Component Name

Weighting



Here’s what they look like…



Know the Reference Lists

• Most content outlines are followed by a Content Reference List.• The Reference List cites many of the resources used in constructing

the SAFE MLO Test.• Candidates should use this list to aid in test preparation.• Course materials also make use of the Reference List.



Taking the Test



Test Time-- National

National Component• 2.5 hours test time (150 minutes)• 15 minutes allotted for tutorial (before test)• 15 minutes allotted for optional survey (after test)• Total seat time = 3 hours• 100 questions in 150 min. = 1.5 min. per question



Test Time– State Components

State Test Components• 1.5 hours test time (90 minutes)• 15 minutes allotted for tutorial (before test)• 15 minutes allotted for survey (after test)• Total seat time = 2 hours• Approx. 60 questions in 90 min. = 1.5 min. per question

*State test lengths vary from 55 to 65 total questions



When Entering the Test Center

• Arrive 30 minutes prior to your test appointment

• Bring a current, government-issued ID with candidate’s photo and signature

• Expect to be photographed; palm print may also be taken

• Basic calculator (not financial calculator) and scratch paper are provided



When Entering the Test Center

• Candidate may not take anything into testing room (may be asked to show empty pockets)

• All belongings such as notes, cell phones, watches, wallets must be placed in a locker

• All candidates must read and agree to the NMLS Rules of Conduct prior to taking the test



Be Aware of NMLS Rules of Conduct

• Stress the confidentiality of all of the test questions and test materials, as they are the copyrighted, proprietary property of NMLS.

• Any attempt to modify, publish, transmit, or create derivative works of the test materials, in whole or in part, is a direct violation of copyright laws, the Agreement and the Rules of Conduct and will subject you to federal and/or state sanctions.



Test questions are:

• written by mortgage subject matter experts

• reviewed, edited, and approved by expert committees consisting of both regulators and industry professionals

• created from content outline categories and subcategories

• supported by reference materials (laws, regs, etc.) (see Content Outlines)



Test Questions Debunked

All questions are 4-option multiple choice. For example:

If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicant’s monthly income?

(A) $2,163.20

(B) $2,343.47

(C) $2,379.52

(D) $2,487.68




• No trick questions are used

– The incorrect answers may seem plausible but are incorrect

– All questions have one and only one correct answer

• No “All of the Above” or “None of the Above” options

• No short answer, fill-in-the-blank or true/false questions

• Take time to read questions carefully and read all of the answer options!




“You” is not used. Proper names are not used.

For example: What does a loan originator use to determine the estimated value of a property based on an analytical comparison of similar property sales?

(A) An appraisal

(B) A market survey

(C) An area survey

(D) A cost-benefit analysis

Not:

What does John Doe use to determine the estimated value of a property based on an analytical comparison of similar property sales?

What should you use to determine the estimated value of a property based on an analytical comparison of similar property sales?



Un-Scored (Pretest) Questions

• There are ten pre-test questions that appear in the National Component and each State Specific Component that are being pilot tested for future use.

• These pre-test questions are being “tried out” to determine if they meet appropriate standards of quality to be used as scored questions on future SAFE MLO tests. If a test question does not meet established testing standards, it will not appear as a scored question on a test.



Un-Scored Questions:

• are pre-determined and do not affect a candidate’s score in any way

• are not marked in any visible way to the test-taker (candidates can’t distinguish between a scored or an un-scored question)

• are scattered randomly throughout the test, so all questions should be answered to the best of your ability


Reschedule / Retake Policy



If you need to Reschedule a Test

• Must contact Pearson VUE or Prometric directly to reschedule

• Must be rescheduled no later than 12 p.m. local time two business days prior to appointment

Appointment scheduled for: Cancelled /Rescheduled by 12:00 p.m. local

Sunday, Monday Thursday of the preceding week

Tuesday Friday of the preceding week

Wednesday Monday of the same week

Thursday Tuesday of the same week

Friday Wednesday of the same week

Saturday Thursday of the same week

*If a holiday occurs during the normal cancellation/reschedule period, this schedule adjusts to define "timely cancellation" as one day earlier than stated above.



Retake Policy

• Must wait 30 days between each test taking attempt • May create an enrollment and schedule an appointment

right away but can’t take the test prior to the end of prescribed wait time

• After every fourth failed attempt, a 180 day wait time is instituted

After passing a test component, you are not be allowed to retake that particular test component.

Documents

State Regulatory Registry LLC a CSBS company NMLS Testing & Education SAFE Mortgage Loan Originator Testing Information April 2010