Is the NMLS Exam Hard? What to Know Before You Start Studying

The NMLS exam isn’t easy, but it can be passed with the right strategy. If you're on your way to becoming a licensed mortgage loan officer (MLO), this test is a major hurdle. Understanding how it works, why people fail, and what makes a strong study plan can help you pass on your first try.

What Is the NMLS Exam?

The SAFE Mortgage Loan Originator Test is required for Mortgage Loan Originator (MLO) licensure in most U.S. states. Administered by the Nationwide Multistate Licensing System (NMLS), it assesses your grasp of mortgage laws, ethics, and origination processes.

Exam format:

• 125 multiple-choice questions

  • 115 are scored

• 190 minutes total testing time

• Passing score: 75%

• First-time pass rate: ~54%

• Retake policy:

  • 30-day wait after the first two failed attempts

  • 180-day wait after the third attempt

Why the Exam Is Considered Hard

The SAFE MLO test has a reputation for being tough, and for good reason:

• Applied logic over memorization: Most questions are scenario-based and ask you to select the “best” answer among several plausible options.

• Volume of content: You’ll be tested on five distinct topic areas: Federal Mortgage-Related Laws, General Mortgage Knowledge, Mortgage Loan Origination Activities, Ethics, and Uniform State Content.

• Time pressure and nerves: With 125 questions, pacing is essential.

Failing three times means waiting six months to try again, so preparation matters.

How to Prep for a First-Time Pass

You don’t need a background in finance, but you do need a disciplined approach. Here's how to study smart:

1. Create a study calendar. Treat this like a part-time class —> 90–120 minutes daily.

2. Take handwritten notes. Research shows this boosts retention, especially for legal material.

3. Take 3+ full-length practice exams. Simulate timing and pressure.

4. Refine based on mock results. Study your weak points, not just what feels familiar.

By the time your test date arrives, you should be scoring 80% or more on practice exams.

Still Got Questions? Let’s Clear Them Up

What score do I need to pass the NMLS exam?
You need a score of 75% or higher to pass the SAFE Mortgage Loan Originator Test. This is based on 115 scored questions out of the 125 total on the exam.

How many times can I take the NMLS exam?
You can take the test as many times as needed, but after three failed attempts, you must wait 180 days before trying again. The first two retakes each require a 30-day waiting period.

How long should I study for the NMLS exam?
Most first-time test takers require approximately 2–3 weeks of consistent studying, dedicating 90–120 minutes per day to their preparation. It’s better to build momentum slowly than cram at the last minute.

What makes the exam so difficult?
It’s not just the material — it’s the format. Many questions ask for the “most correct” answer, which means you'll need to apply judgment, not just memorize facts. Additionally, pacing is crucial with 125 questions in 190 minutes.