Ameritrain 18 Mar , 2025

Preparing for the SAFE Mortgage Loan Originator (MLO) exam can feel overwhelming, especially when tackling the Federal Law section. At Ameritrain Mortgage Institute, we want to help you succeed by providing clear strategies for studying effectively. In this guide, we’ll break down how to study the Federal Law section so you can approach the exam with confidence.

Organizing Your Study Materials

Before diving into studying, it’s essential to organize your course materials into manageable sections. A great way to do this is by arranging your materials according to the test content outline provided by the Nationwide Multistate Licensing System & Registry (NMLS). If you’re unsure how to break down your study materials effectively, check out our video, 5 Easy Test Prep Techniques and How to Pass, for more details.

Understanding the Federal Law Section Breakdown

The Federal Law portion of the SAFE MLO exam covers three main areas:

• Federal Mortgage Laws

• Ethics

• Uniform State Content

These three areas make up 53% of the exam questions. The remaining 47% consists of General Mortgage Knowledge and MLO Activities. Since Federal Law is weighted more heavily, it’s crucial to allocate significant study time to mastering these topics.

Creating a Study Table

Before diving into memorization, create a table with five columns labeled:

1. Acronym – The abbreviation of the law.

2. Name – The full name of the law.

3. Regulation – Identifies whether the law has a corresponding regulation.

4. Agency – The governing body responsible for enforcement.

5. Key Factors – Important aspects of the law that you need to remember

This method helps you capture critical details in a structured format, making review sessions more effective.

Key Components of Federal Laws

As you begin organizing federal laws in your study table, focus on these common elements:

1. Purpose – Why the law was created and who it is designed to protect (e.g., consumers, homebuyers).

2. Disclosures – Information that must be provided to consumers before, during, or after a transaction.

3. Timing – When disclosures or notifications must be delivered (e.g., borrowers must receive loan status updates within 30 days of application submission).

4. Record Keeping – How long records must be retained (e.g., the Equal Credit Opportunity Act requires records to be kept for 25 months).

5. Penalties – Consequences for non-compliance, including fines or imprisonment (e.g., violating Section 8 of the Real Estate Settlement Procedures Act can result in a $10,000 fine, up to one year in prison, or both).

Retaining What You Learn

Once you’ve captured the details of each law in your table, the next step is retention. There’s no shortcut to memorizing exam content—it requires time and dedication. However, effective study techniques can make the process more manageable. For additional study tips, check out our blog on 7 Effective Studying Tips to Pass the National SAFE Test.

Get Started Today

By following these simple steps, you can begin studying the Federal Law section of the SAFE MLO exam with a structured approach. If you missed any part of this guide, don’t worry—check the links provided for additional resources.

For more mortgage education content, be sure to visit our website at ameritrain.com. Also, follow us on social media for the latest updates and study tips! Find us on Instagram, Facebook, and YouTube.

Subscribe to our YouTube channel at youtube.com/@ameritrain for more valuable content. Best of luck with your studies!