The advantages of taking an MLO practice test

If you want to become a mortgage loan officer (MLO), you must earn a national license, as well as state-specific licenses, where applicable. The national licensing comes in the form of the Nationwide Multistate Licensing System and Registry (NMLS) test.  

And what is the best way to prepare for the NMLS test? It is by taking an NMLS practice test, which is also known as an MLO practice test.

Taking any kind of MLO practice test can help you familiarize yourself with the questions you will ultimately see on the NMLS exam. It will also tell you what you need to study to become a better test-taker.

Here is everything you need to know about the MLO practice test, how to prepare for the real thing, and what you can expect.

What is an MLO practice test?

Your success on the NMLS exam will depend on how many hours you prepare and whether you prepare the right way. The best approach ultimately is to check in throughout to gauge whether your hard work is paying off. And one of the best ways to ensure this is by taking MLO practice tests. This is a great way to evaluate your progress.

An MLO practice test is especially effective because it can give you a clear idea of exactly where you need to improve. Each time you take a free MLO practice test, you can pay close attention to these groups of questions:

• What questions did you get wrong?
• What questions did you have to guess on (even if you guessed right)?
• What questions did you find difficult or slow to work through?

Asking yourself these questions after taking an MLO practice test can indicate to you where your weaknesses are and where you can devote more time studying.

Then, ask yourself why each of these questions was a problem for you. Was it because you did not understand the material? Was it an issue with vocabulary? You may find that repetitions of these types of questions will help you build test-taking speed and confidence.

What is on an MLO practice test?

Below, we will provide links to plenty of free online MLO practice tests that you can take to prepare for your NMLS exam. To give you an idea of what is on each of these MLO practice tests, here is a sample from Affinity Real Estate & Mortgage Services MLO Training Academy:

1.  The Real Estate Settlement Procedures Act (RESPA) is also known as

     A. Regulation B.

     B. Regulation C.

     C. Regulation X.

     D. Regulation Z.

2.The sales price of a home is $100,000 on a 90% LTV 30-year fixed mortgage. Fannie Mae/Freddie Mac requires 25% coverage, giving us a rate of 0.62%. What is the loan amount?

     A.$25,000

     B.$62,000

     C.$90,000

     D. Not enough information is provided.

3.Under the SAFE Act, a state has all of the following authorities EXCEPT:

     A.to deny, suspend, or revoke licenses.

     B.to issue cease and desist orders.

     C.to waive the requirement for fingerprints for an initial license application.

     D.to write rules and regulations.

MLO practice test: Which strategies you should take

The following is a checklist of strategies for when you start taking an MLO practice test:

• Start with no time constraint: Remove limitations when you take your first MLO practice test. This means no time constraints, and with your notes and MLO study guide at hand. Take your time. Focus on applying any strategies you picked up.
• Next: Time yourself: During your second MLO practice test, you should time yourself. Set a time. Practice pacing yourself so that you finish in time. However, you should still take the second test as an open book test.
• Recreate test day: The next MLO practice tests you take, take them like it was the actual MLO test day. Set your timer, put away your materials. Sit at a desk or table in a quiet room and imagine yourself in the testing center, where you answer questions as accurately (and quickly) as you can.
• Practice makes perfect: While perfection may be tough, you can keep taking MLO practice tests on a regular basis. Your mind will be trained for both the timing and stress on test day. You will also be in a better position to recall the material you have learned.

MLO practice test: Other benefits

There are numerous benefits of taking an MLO practice test. One is that MLO practice tests provide a section explaining the answer choices. Reading ahead to the explanation to gain an understanding of the concept may be tempting. But explanations usually only cover parts of the broader context of the question. It is critical to go back and investigate all the concepts related to the question. That way, you can ensure you have a thorough understanding.

It is important to keep in mind that an MLO practice test is simply practice. The questions and answers on practice tests will not be particularly useful to you on the actual NMLS exam. Why? Because they are unlikely to duplicate the same questions. It is therefore critical that you study the concepts (rather than the specific questions) to fully comprehend them.  

Taking MLO practice tests will help you pass your NMLS exam—and start you on an exciting career path.

Where can you find the MLO practice test online?

There are numerous websites that offer free MLO practice tests online. Here is a list of some of the websites offering the free MLO tests:

• Test-Guide
• Mometrix Test Preparation
• Safe MLO Exam
• NMLS Practice Tests
• CompuCram
• Quizlet
• MLO Training Academy

What percentage of people pass the MLO test?

To become an MLO, you must take and pass the SAFE MLO test. If you fail the test, however, you should not feel so down—it is surprisingly common. Just 57% of test takers pass on their first attempt.

MLO test: Why is it so difficult?

There are three reasons why the MLO test is so difficult:

• MLO test developers designed it to be challenging, to ensure compliance with the SAFE Act
• Many test takers fail to fully understand—or apply—the key concepts needed to pass
• MLO test takers do not always take enough time to study for the exam

With the proper preparation, however, you should be able to overcome these challenges.

What happens if you fail the MLO exam 3 times?

If you fail the MLO test on your third attempt, you have to wait at least 180 days (six months) before you can retake it.

After the 180 days have elapsed, a new retake cycle begins. At the beginning of this retake cycle, you only have to wait 30 days after your fourth and fifth attempts.

As per the cycle, if you fail the MLO test on your sixth attempt, you have to wait 180 days again until you start a new test-taking cycle. This cycle can be repeated as many times as is necessary to pass.

MLO practice test: Closing thoughts

MLOs are essential to the mortgage industry, helping families and business owners along their way to purchasing the property that will make their dreams come true. While there are stresses to taking the MLO test, there are ways to prepare that should make the process run smoothly, helping you to start this exciting new part of your career.

The best way to prepare? Take an MLO practice test. Over and over and... Remember: you can’t overprepare.

If you're truly interested in becoming an MLO, take the time to look at the mortgage professionals we highlight in our Best of Mortgage section. Here you will find the top performing mortgage professionals, including MLOs, across the USA.

Have any experience taking an MLO practice test? How did you prepare? Did you pass the MLO exam on your first attempt? Let us know in the comment section below.