NMLS Test Preparation

All licensed mortgage lenders needed to apply for new mortgage licenses through the Nationwide Mortgage Licensing System (NMLS) if they did not possess an active license within the NMLS by December 31, 2010. This regulation was established to bring uniform minimum standards and guidelines to those who are involved with loan origination process. Having a better understanding of what is involved in this process and who it benefits is important in the preparation for testing.

Preparing to take any test requires being in the right state of mind. It also requires being prepared for the test and understanding the material. A good test preparation should be designed to see what you know and help you identify your comprehension of the material. You should find a test prep that covers the laws, rules, and regulations that go with mortgage licensing for supervised lending and mortgage brokering. Furthermore, it should have information relevant to the national component exam.

Finding test prep with good practice test exams is crucial to success on the national examination. To achieve this takes two parts. The first is a large question pool to allow for limitless combinations of questions. Remember the test is 100 multiple choice questions and you want to be able to simulate the experience before taking it. The second part of good test prep is the quality of questions. Are there multiple right answers but one is better? Are there single and double negative questions that use the words not or except.

One of the best ways to study for the test is to review the volumes of material systematically. You should look for material that has been organized in small sections. Understanding small blocks of information have proven to be more effective. Like building blocks, you are easily able to build on top of a strong foundation. One additional thing to look for when taking a test preparation course is the ability of the practice tests to tell you what you answered incorrectly and where to find the correct answer and reasoning as to why that is the correct choice.

Remember, find a course that allows for plenty of practice tests. A few weeks prior to taking the test you should create a habit of taking a couple practice exams a day. This will allow you to gain the confidence necessary to succeed through the repetition of taking exams and reviewing your results. Planning ahead also allows you to identify areas of weakness and study those areas. Being prepared and organized in the process with lead to success.

Prior to the test, the individual will need to have completed enrollment through the NMLS website for the desired testing location and paid the fees. You can begin the process by completing the registration process at the NMLS online website. An email will arrive notifying the registrant that the process has begun. While a test preparation course can give you an edge in passing the exam, there are educational requirements that must be met as well as additional requirements to completing the NMLS process. Each state that loan officers want to do business in will require its own state specific component exam. Some states do have an additional educational requirement beyond that which is required of the national level. These educational requirements can include pre licensing education (known as PE) and continuing education (known as CE).

In the event that you do not pass the exam, you have to wait 30 days to retake the exam. The exam cost $92 each time you take it. These tests have published passing and fail rates that are significantly higher than one would think. You need to get a 75 to pass the national and state exams. Great test preparation is recommended not only for the national component, but for each state component test as well.

Finding the right test preparation gives you the tools you need to be successful. With preparation that includes study guides, practice tests, and responses to incorrect test answers you can put yourself in a position to succeed. Getting the test behind you allows you to focus on what is really important, building your business and assisting your costumers.

Check out 1st Free University’s NMLS test preparation the new leader in testing success.

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