SAFE Test For Mortgage Loan Originators

Are you considering a career as a California mortgage loan originator? If so, you’ll need to pass the SAFE Test. The SAFE Test is an industry standard test developed by the Nationwide Mortgage Licensing System (NMLS) to evaluate your knowledge of federal and state mortgage loan origination activities.

Passing the NMLS exam is an important step in the process of becoming a California mortgage loan originator. And while it can be challenging, there are many resources available to help you prepare.

In this article, we’ll provide an overview of the SAFE Test and give you tips for passing it. We’ll also discuss a few of the most helpful resources available to help you study for and pass the test.

The SAFE Test: Some Basics

Under the SAFE Mortgaging Licensing Act, all state-licensed mortgage loan originators must pass the SAFE Test in order to be approved for licensure. This is in addition to other requirements such as completing pre-licensure education courses, submitting fingerprints and background checks, and taking annual continuing education courses.

The SAFE Test is a comprehensive exam that assesses your knowledge of mortgage loan origination activities. It used to consist of two parts: the National Component and the State Component.

Since January 1, 2016, California mortgage loan originators (MLOs) seeking licensure have been required to take the UST SAFE MLO Test. The California Department of Business Oversight (CA-DBO) and the California Bureau of Real Estate (CA-BRE) have adopted the National Component with Uniform State Content, which means that MLOs will no longer have to take a separate, state-specific test and will instead take a uniform state test.

The UST SAFE MLO Test has 120 questions with 115 of these scored and 5 pretest (unscored) questions. The exam is administered via computer and takes 225 minutes to complete.

Below, we discuss the topics covered in the five content areas of the SAFE Test.

Content Areas of the SAFE Test

The SAFE Test covers five content areas: Federal Mortgage Related Laws, Uniform State Content, General Mortgage Knowledge, Mortgage Loan Origination Activities, and Ethics. Here’s a breakdown of the topics covered in each content area.

Federal Mortgage-Related Laws – 24%

This content area covers topics related to federal laws such as the Equal Credit Opportunity Act, the Truth in Lending Act, the Real Estate Settlement Procedures Act, and other related laws.

Uniform State Content – 11%

This content area covers topics related to state-specific laws and regulations.

General Mortgage Knowledge – 20%

This content area covers general knowledge of the mortgage loan origination process, including mortgage product types, underwriting and closing processes, escrow requirements, and other related topics.

Mortgage Loan Origination Activities – 27%

This content area covers topics related to the activities of originating mortgage loans, including loan application processes, processing and approving loan applications, and disclosure requirements.

Ethics – 18%

This content area covers topics related to ethical practices, including fair lending laws, conflict of interest laws, and disclosure laws.

Tips for Preparing for and Passing the SAFE Test

Preparation is key when it comes to passing the SAFE Test. Here are a few tips to help you get ready:

Familiarize yourself with the exam’s format

Becoming familiar with the structure and format of the exam is an important first step in preparing for the SAFE Test. You can learn more about the exam, including its structure and format, on the NMLS website.

Create a study plan

Creating a comprehensive and organized study plan is essential for passing the SAFE Test. Start by familiarizing yourself with the topics covered on the exam and develop a timeline for studying each one. Set aside a certain amount of time each day to focus on studying, and make sure to review the material regularly.

Make use of study resources

There are plenty of helpful resources available to help you prepare for the SAFE Test. The NMLS offers an Exam Toolkit, which includes study materials such as sample questions and a study guide. You can also find practice tests online to help you assess your knowledge and identify areas that need further review.

Schedule your exam

Once you’ve studied and feel ready to take the exam, it’s time to schedule your test. You can register for the exam online via the NMLS website. Appointments are scheduled on a first-come, first-served basis and are available within test enrollment window. It is important to note that the sooner you schedule your test appointment, the greater the likelihood of finding a preferred testing date and location.

The UST SAFE MLO Test

Since January 1, 2016, California mortgage loan originators (MLOs) seeking licensure have been required to take the UST SAFE MLO Test. The California Department of Business Oversight (CA-DBO) and the California Bureau of Real Estate (CA-BRE) have adopted the National Component with Uniform State Content, which means that MLOs will no longer have to take a separate, state-specific test.

Chamberlin Real Estate School: We’re Here to Help

At Chamberlin Real Estate School, we know that passing the SAFE Test can be a challenging process. It is important to follow all the steps needed prior to taking the exam.

Here are the steps you need to take prior to the test:

  • Complete 20-HR Pre-License education courses through an approved provider. Call us at 408-378-4400 for a recommendation to an accredited school
  • Study and pass the State NMLS Exam with a passing score.
  • As part of the mortgage broker renewal process, MLO’s are required to complete 8 hours of continuing education each year to keep their license active.

Quick information:

Schedule Your Exam

For complete information about NMLS testing requirements and to schedule your exam, visit the Testing page of the NMLS Resource Center.

Fee Schedule

The entire cost for the SAFE MLO Test is $110, payable either by a single person taking the test or the company that enrolls its mortgage loan originators.

Passing Score

Not less than 75%. Unscored questions appearing on the exam do not affect the candidate’s score or the pass/fail result.

Frequently Asked Questions (FAQs)

For answers to frequently asked questions about the SAFE MLO Test, please visit the NMLS Resource Center.