How To Study For NMLS Exam And Pass It The First Time

Embarking on a career in mortgage lending is an exciting endeavor, but before you can fully dive into the industry, you must know how to study for NMLS exam and pass the exam successfully. This standardized test is critical in obtaining your mortgage loan originator license. In this article, we’ll explore effective strategies and tips on studying for the NMLS (National Mortgage Loan Originator) exam and increasing your chances of passing it on the first try.

This guide on how to study for NMLS exam and pass it the first time will show you the tricks of the trade in studying smart and passing the 125-question rigorous NMLS examination with ease. Alright everyone, today I am a very happy man and if you have been following my journey, you should know why, and that is I passed my NMLS Exam with a 90%!

After 2.5 hours of sitting in that desk chair, I hit the Exit Exam and Submit Answers button, I was shaking as I waited for that score to pop up on the screen. Once it did, I jumped out of my seat and threw a fist pump into the air, as this was a huge accomplishment for me. There was A LOT of hard work that brought me to this point, and I am going to detail it in this blog.

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Taking My Required 20-Hour Class

In case you didn’t read my earlier blogs, this is how to study for NMLS exam and pass. I took the 2-week online course given through Mortgage Educators. This is a self-paced class where you are responsible for getting all the content viewed and completed in 14 days. This is set up into 10 chapters, of which there are anywhere from 14-20 5-minute videos that you watch and follow along on PowerPoint slides in PDF form. After every 6-10 videos, there is a small quiz.

How Hard Is It To Pass The NMLS Test

Every chapter has a homework assignment consisting of going on a message board to answer a few essay questions related to the topics you just covered. So, how to study for NMLS exam and pass?

There wasn’t much stress to get this done as you only have to average 1-2 hours per day. The one downfall I can see with this class is that there is so much data to go over that they can’t possibly cover everything that you need to prepare for the test.

All in all, it was an economical class if you are self-motivated. However, if you are better in a classroom setting, this might not be the best option for you. I found myself opening the laptop every night before bed to get this done.

Studying For NMLS The Exam

The other good thing about my Mortgage Educators course is it came with over 900 study questions with UST components in quiz form that you could do as many times as possible.

These tests were broken into multiple sections:

TRID (TILA-RESPA Integrated Disclosures)
Federal Law, Ethics
General Mortgage Knowledge
Loan Origination Activities
UST

So, how to study for NMLS exam and pass? I was probably a little slow getting started after I finished my 2-week class and this might have hindered my initial studying. I finished the class about 3 days before Christmas, and with the holidays, I didn’t start studying until the first week of January.

Before taking quizzes, I created a spreadsheet listing every quiz I had access to. I was going to track my correct answers and the cumulative percentage of all the tests I was going to take and knowing that I needed a 75% or better.

There isn’t a point in taking these quizzes if you don’t have goals to meet and can track your progress. Yes, this might sound like overkill to some of you. But believe me, it is worth it as you can determine which subjects need more work than others.

How To Study For NMLS Exam And Pass It The First Time: Practice Exams Is Key To Passing Your NMLS EXAM

I didn’t do that well on the first handful of tests I took as the data was a little removed from my mind, and I was truly freaked out after finding out my scores after 100 questions were 68%. So, how to study for NMLS exam and pass? I knew that I needed to buckle down and get a daily plan in place to cover more content than I was currently covered with which is 30-40 questions per day.

After thinking about this from a strategic standpoint, I decided that it would be best to do one quiz from each section in a rotating format to cover a broad range of questions.

This would ensure that no topic would be forgotten and all the areas of the test would stay fresh in my mind. I also knew that I needed to ramp up the quantity I was covering, and I made the dedication to get through 80-120 questions on a daily basis.

The final strategy I implemented was reviewing every question I got wrong to burn into my brain what the proper answer was if I saw it in the future. After a couple of days of this strategy, my cumulative percentage had climbed to 77%, and all of a sudden I was in a “Passing” position.

This might be satisfying for some, but not for me. I still had 400+ questions in my quizzes and I was motivated to get through as much as I could. About a week ago I finally got through all the quizzes and my cumulative percentage finished at 80.8%.

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How To Study For NMLS Exam And Pass It The First Time: Practice Exams And More Practice Exams

I was beginning to feel more confident by the day. I still wanted another resource to study from. I reached out to my good friend Gustan Cho at Gustan Cho Associates Mortgage Group asked if he had any materials that would be helpful for me. He came through in a major way. He was able to get me 2 separate 100-question practice quizzes as well as a 160+ slide PowerPoint PDF “Refresher Course.”

This is how to study for NMLS exam and pass: I immediately took Exam #1 and scored an 80/100 followed by Exam #2 and scored an 81/100. These scores aligned with where I was on my study quizzes. These might be “Passing,” but it was still pretty close to that 75% needed to pass, and if I messed up on a handful of questions on test day, I would be sunk.

Over the next couple of days, this is how to study for NMLS exam and pass: I decided to go over all the quizzes I took previously that I didn’t get an 80% or better on, and I retook them to scores of 90%+. Now my confidence was building by the minute, and I finished up with retaking the 100-question exams to scores of 91% and 88% respectively. Now I got it, I am going to pass this test!

How To Study For NMLS Exam And Pass It The First Time: Test Day

The night before the test I made sure I got plenty of rest, 9.5 hours to be exact. I woke up, got dressed, and headed downstairs to have my coffee. I skimmed over some incorrect answers from the practice exams and I was off to the Prometric testing facility. Upon arrival, I checked in, locked up everything into a supplied locker, and waited for my cubicle to be ready.

After a 15 minute wait, I was called back where I was wanted. Had my picture taken, was signed in and brought to my computer. The cubicle had noise-canceling headphones to wear, 1 laminated scratchpad, 2 markers, a calculator. After the instructions on the computer, my 190 minutes began. Now if I can offer 1 bit of advice for the questions that show up on the exam, read them carefully. The verbiage is very ambiguous.

If you skim over it, you will not get what they are looking for:

“All of the following are exempt EXCEPT” or “Which of the following are NOT true regarding…”
Over the course of the first 2 hours, I made it through all 125 questions

But I had marked 47 of those questions to revisit and make sure I made the best guess possible.

Making An Educated Guess On Questions

I will be honest, some questions I really did make educated guesses on as it was a topic not covered by the class or practice tests. If you are going to make a guess, you can easily determine 2 answers that don’t make much sense or are so outlandish it’d be silly. This leaves you with 2 answers, from here, go with your gut and don’t second guess yourself.

After I was through everything 1 last time, I had about 37 minutes left and I hit the Exit Exam to submit my answers. This is when I was truly surprised that I had scored 90%, my hard work had PAID OFF.

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Advice On How To Study For NMLS Exam

In conclusion, it may seem like some of my study habits were overkill:

If you plan on passing this test the first time through you need to drill yourself on these topics over and over again

One bit of advice I would like to share on how to study for NMLS exam and pass is to make sure you know your federal regulations and all the details that support them. This includes:

TILA
RESPA
ECOA
HMDA
HOEPA
FACTA
FCRA
Disclosures
35% of the test covers these topics

Successfully passing the NMLS exam on your first attempt requires thorough preparation, strategic study techniques, and discipline. By understanding the exam content, utilizing official study materials, creating a structured study plan, practicing with mock exams, engaging in peer discussions, and staying updated on regulatory changes, you can increase your chances of earning your mortgage loan originator license and embark on a rewarding career in the mortgage industry.

Remember, preparation is the key to success. With dedication, you can confidently approach the NMLS exam and pass it with flying colors.

Good luck!

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About The Author

Michael Gracz is the National Sales Manager of Gustan Cho Associates Mortgage Group. Mike is also a contributing writer and editor for Gustan Cho Associates. Michael Gracz is a veteran seasoned practicing loan officer. Gustan Cho Associates is extremely grateful to Mike Gracz for writing this article on how to study for NMLS Exam And Pass It For The First Time.

Mike is one of those professionals who is a jack of all trades and master of them all. One of Mike’s most important passions in life is helping others. Michael saw that there are so many hard-working folks who have had financial issues at one time or another and had a rather difficult time qualifying for a mortgage loan.

Many people Mike knows went to banks and other lenders to be told that they did not qualify for a home loan due to their mortgage lender overlays. Michael was intrigued by how I specialized in helping mortgage borrowers and how I did not have any lender overlays on FHA and Conventional mortgage loan programs that he decided to commit himself to get his NMLS mortgage license.

We are blessed and extremely proud to have such a talented professional to be a senior writer for Gustan Cho Associates and a fellow licensed mortgage loan originator. We look forward to the blogs that Mike will be writing in the coming days and weeks. Stay Tuned!!!!

If you have any about how to study for NMLS exam and pass or you need to qualify for loans with a lender with no overlays, please contact us at Gustan Cho Associates at 800-900-8569. Text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

FAQ on How To Study For The NMLS Exam And Pass It The First Time

1. What is the NMLS exam, and why is it important? The NMLS exam, or National Mortgage Loan Originator exam, is a standardized test crucial for obtaining a mortgage loan originator license. Passing this exam is a prerequisite for entering the mortgage lending industry.
2. How long does it take to prepare for the NMLS exam? The preparation time varies, we suggest a 2-week online course with 1-2 hours of study per day. However, individual study habits and prior knowledge may influence the preparation duration.
3. What are some effective study strategies for the NMLS exam? Some of the effective study strategies are self-paced online courses with quizzes, essay questions, and homework assignments. Additionally, creating a study plan, taking practice exams, and reviewing incorrect answers are emphasized as effective strategies.
4. Is it difficult to pass the NMLS test? The difficulty of the NMLS exam may vary for individuals. The online course is economical for self-motivated individuals but may not cover every aspect needed for the test.
5. How should I approach practice exams for the NMLS exam? We advise taking quizzes from different sections in a rotating format to cover a broad range of questions. We also suggest setting goals, tracking progress, and reviewing incorrect answers to improve performance.
6. What subjects should I focus on to pass the NMLS exam? It is important you focus on federal regulations, including topics like TILA, RESPA, ECOA, HMDA, HOEPA, FACTA, FCRA, and Disclosures, as they constitute 35% of the exam.
7. What should I keep in mind on the day of the NMLS exam? Get plenty of rest the night before, carefully read questions during the exam, and make educated guesses when necessary. It is important to know the federal regulations.
8. Can I pass the NMLS exam on the first attempt? Yes, with thorough preparation, strategic study techniques, and discipline, individuals can increase their chances of passing the NMLS exam on the first attempt.