How hard is the NMLS SAFE test? What to know

Want to help people get home loans? If you work for a mortgage company, you'll need to pass the NMLS SAFE test first. It's a big test, and failing it costs you time and money. But it's very doable with a plan. And some people don't need to take it at all.

What is the SAFE test?

It's the national test for mortgage loan officers. NMLS runs the system that loan officers sign up through. SAFE is the name of the law behind the test.

Here are the basics:

• 120 questions
• 190 minutes to finish
• 75% to pass
• About $110 each time you take it. That price comes from an older NMLS list, so check it when you sign up.

So, how hard is the SAFE test?

It's hard enough that you should take it seriously. You need to get 3 out of every 4 questions right.

The good news is that you have more than a minute and a half for each question. That's time to read each one with care. So the study you do before the test is what counts.

What happens if you fail

Failing is not the end. But it slows you down.

• After you fail, you must wait 30 days to try again.
• After a third fail, you must wait 180 days. That's about six months.
• You pay the fee again every time.

You have to take a course first

Before the test, you need a 20-hour course. It must be approved by NMLS. Look up the school on the NMLS site before you pay.

The course costs about $330 to $460 at one school we checked. Some states add more hours. Texas, for example, adds 3 hours on state law.

One more thing to know. If you don't get your license within 3 years, your course credit runs out. So don't take the course years before you plan to use it.

Some loan officers skip the test

Here's a fact many people miss. Loan officers at banks and credit unions don't have to take the course or the SAFE test under federal law. They register with NMLS and pass a background check. Their employer trains them.

So if a bank or credit union near you is hiring, apply there first. You may be able to start without paying for the course and test. If you move to a mortgage company later, you'd get licensed then.

Check this before you pay for anything

Every loan officer goes through a background check. Mortgage company loan officers also get a credit check. Some past problems can stop you:

• Any felony in the past 7 years.
• Any felony ever that involved fraud, lying, breaking someone's trust or hiding money.
• In some states, money problems like unpaid court judgments, tax liens or debts in collections. Texas doesn't count medical judgments or late student loans.

If any of these fit you, check your state's rules before you spend money on a course.

After you pass

Passing the test is not the last step. A licensed company has to sponsor you. Until then, your license is not active, and you can't take loan applications.

Then you renew your license every year, usually between November 1 and December 31. You also take 8 hours of classes each year. Do these hours yourself. In 2022, regulators in 44 states settled with more than 400 loan officers who said they took classes they didn't really take.

Is the job worth the test?

It can be. The U.S. Bureau of Labor Statistics says the median pay for loan officers is $76,690 a year. But the lowest-paid 10% earn about $39,430 or less. Many jobs pay a base salary plus commission, and slow markets mean less money.

The full steps, costs and both routes are in our mortgage loan officer guide. If you like money and numbers, also look at bookkeeping. Or take the career quiz to see what fits.

Where these facts come from

We checked these sources when we wrote this post. Rules and fees change, so check them before you pay for anything.

• NMLS Resource Center (opens in a new tab)
• Federal rule on who can be licensed (12 CFR 1008.105) (opens in a new tab)
• Texas: mortgage origination FAQs (opens in a new tab)
• Conference of State Bank Supervisors: education settlement (opens in a new tab)
• U.S. Bureau of Labor Statistics: loan officers (opens in a new tab)