diff --git a/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.jsx b/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.jsx
index e7f279fe7..d633ba172 100644
--- a/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.jsx
+++ b/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.jsx
@@ -17,7 +17,6 @@ export const SelectTypeFooter = ({
   onCancel,
   selected,
   // redux
-  setProblemType,
   updateField,
   // injected,
   intl,
@@ -35,7 +34,7 @@ export const SelectTypeFooter = ({
         </Button>
         <Button
           aria-label={intl.formatMessage(messages.selectButtonAriaLabel)}
-          onClick={hooks.onSelect(setProblemType, selected, updateField)}
+          onClick={hooks.onSelect(selected, updateField)}
           disabled={!selected}
         >
           <FormattedMessage {...messages.selectButtonLabel} />
@@ -52,7 +51,6 @@ SelectTypeFooter.defaultProps = {
 SelectTypeFooter.propTypes = {
   onCancel: PropTypes.func.isRequired,
   selected: PropTypes.string,
-  setProblemType: PropTypes.func.isRequired,
   updateField: PropTypes.func.isRequired,
   // injected
   intl: intlShape.isRequired,
@@ -62,7 +60,6 @@ export const mapStateToProps = () => ({
 });
 
 export const mapDispatchToProps = {
-  setProblemType: actions.problem.setProblemType,
   updateField: actions.problem.updateField,
 };
 
diff --git a/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.test.jsx b/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.test.jsx
index 9d22bbf52..fb73c3911 100644
--- a/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.test.jsx
+++ b/src/editors/containers/ProblemEditor/components/SelectTypeModal/SelectTypeWrapper/SelectTypeFooter.test.jsx
@@ -16,7 +16,7 @@ describe('SelectTypeFooter', () => {
     onCancel: jest.fn().mockName('onCancel'),
     selected: null,
     // redux
-    setProblemType: jest.fn().mockName('setProblemType'),
+    updateField: jest.fn().mockName('UpdateField'),
     // inject
     intl: { formatMessage },
   };
@@ -36,7 +36,7 @@ describe('SelectTypeFooter', () => {
         .toEqual(expected);
     });
     test('select behavior is linked to modal onSelect', () => {
-      const expected = hooks.onSelect(props.setProblemType, props.selected);
+      const expected = hooks.onSelect(props.selected, props.updateField);
       expect(el.find(Button).last().props().onClick)
         .toEqual(expected);
     });
@@ -48,8 +48,8 @@ describe('SelectTypeFooter', () => {
     });
   });
   describe('mapDispatchToProps', () => {
-    test('loads setProblemType from problem.setProblemType actions', () => {
-      expect(module.mapDispatchToProps.setProblemType).toEqual(actions.problem.setProblemType);
+    test('loads updateField from problem.updateField actions', () => {
+      expect(module.mapDispatchToProps.updateField).toEqual(actions.problem.updateField);
     });
   });
 });
diff --git a/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.js b/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.js
index 1b225aee4..4adec09b5 100644
--- a/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.js
+++ b/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.js
@@ -4,6 +4,7 @@ import {
 } from '../../../../data/constants/problem';
 import { StrictDict } from '../../../../utils';
 import * as module from './hooks';
+import { getDataFromOlx } from '../../../../data/redux/thunkActions/problem';
 
 export const state = StrictDict({
   selected: (val) => useState(val),
@@ -17,12 +18,14 @@ export const selectHooks = () => {
   };
 };
 
-export const onSelect = (setProblemType, selected, updateField) => () => {
+export const onSelect = (selected, updateField) => () => {
   if (Object.values(AdvanceProblemKeys).includes(selected)) {
-    updateField({ problemType: ProblemTypeKeys.ADVANCED, rawOLX: AdvanceProblems[selected].template });
-    return;
+    updateField({ problemType: ProblemTypeKeys.ADVANCED, rawOLX: AdvanceProblems[selected] });
+  } else {
+    const newOLX = ProblemTypes[selected].template;
+    const { settings, ...newState } = getDataFromOlx({ rawOLX: newOLX, rawSettings: {} });
+    updateField({ ...newState });
   }
-  setProblemType({ selected });
 };
 
 export const useArrowNav = (selected, setSelected) => {
diff --git a/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.test.js b/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.test.js
index 9cb24caf5..206205487 100644
--- a/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.test.js
+++ b/src/editors/containers/ProblemEditor/components/SelectTypeModal/hooks.test.js
@@ -2,7 +2,8 @@
 import React from 'react';
 import { MockUseState } from '../../../../../testUtils';
 import * as module from './hooks';
-import { AdvanceProblems, ProblemTypeKeys } from '../../../../data/constants/problem';
+import { AdvanceProblems, ProblemTypeKeys, ProblemTypes } from '../../../../data/constants/problem';
+import { OLXParser } from '../../data/OLXParser';
 
 jest.mock('react', () => ({
   ...jest.requireActual('react'),
@@ -11,10 +12,9 @@ jest.mock('react', () => ({
 }));
 
 const state = new MockUseState(module);
-const mockSetProblemType = jest.fn().mockName('setProblemType');
 const mockUpdateField = jest.fn().mockName('updateField');
-const mockSelected = 'vAl';
-const mockAdvancedSelected = 'blankadvanced';
+const mockSelected = 'multiplechoiceresponse';
+const mockAdvancedSelected = 'circuitschematic';
 const mockSetSelected = jest.fn().mockName('setSelected');
 
 let hook;
@@ -45,15 +45,20 @@ describe('SelectTypeModal hooks', () => {
 
   describe('onSelect', () => {
     test('updateField is called with selected templated if selected is an Advanced Problem', () => {
-      module.onSelect(mockSetProblemType, mockAdvancedSelected, mockUpdateField)();
+      module.onSelect(mockAdvancedSelected, mockUpdateField)();
       expect(mockUpdateField).toHaveBeenCalledWith({
         problemType: ProblemTypeKeys.ADVANCED,
-        rawOLX: AdvanceProblems[mockAdvancedSelected].template,
+        rawOLX: AdvanceProblems[mockAdvancedSelected],
       });
     });
-    test('setProblemType is called with selected', () => {
-      module.onSelect(mockSetProblemType, mockSelected, mockUpdateField)();
-      expect(mockSetProblemType).toHaveBeenCalledWith({ selected: mockSelected });
+    test('updateField is called with selected on visual propblems', () => {
+      module.onSelect(mockSelected, mockUpdateField)();
+      const testOlXParser = new OLXParser(ProblemTypes[mockSelected].template);
+      const { settings, ...testState } = testOlXParser.getParsedOLXData();
+      expect(mockUpdateField).toHaveBeenCalledWith({
+        ...testState,
+        rawOLX: ProblemTypes[mockSelected].template,
+      });
     });
   });
 
diff --git a/src/editors/data/constants/olxTemplates/circuitschematic.js b/src/editors/data/constants/advancedOlxTemplates/circuitschematic.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/circuitschematic.js
rename to src/editors/data/constants/advancedOlxTemplates/circuitschematic.js
diff --git a/src/editors/data/constants/olxTemplates/customgrader.js b/src/editors/data/constants/advancedOlxTemplates/customgrader.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/customgrader.js
rename to src/editors/data/constants/advancedOlxTemplates/customgrader.js
diff --git a/src/editors/data/constants/olxTemplates/drag_and_drop.js b/src/editors/data/constants/advancedOlxTemplates/drag_and_drop.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/drag_and_drop.js
rename to src/editors/data/constants/advancedOlxTemplates/drag_and_drop.js
diff --git a/src/editors/data/constants/olxTemplates/formularesponse.js b/src/editors/data/constants/advancedOlxTemplates/formularesponse.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/formularesponse.js
rename to src/editors/data/constants/advancedOlxTemplates/formularesponse.js
diff --git a/src/editors/data/constants/olxTemplates/imageresponse.js b/src/editors/data/constants/advancedOlxTemplates/imageresponse.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/imageresponse.js
rename to src/editors/data/constants/advancedOlxTemplates/imageresponse.js
diff --git a/src/editors/data/constants/advancedOlxTemplates/index.js b/src/editors/data/constants/advancedOlxTemplates/index.js
new file mode 100644
index 000000000..8e693b5c7
--- /dev/null
+++ b/src/editors/data/constants/advancedOlxTemplates/index.js
@@ -0,0 +1,12 @@
+import { StrictDict } from '../../../utils';
+import circuitSchematic from './circuitschematic';
+import customGrader from './customgrader';
+import dragAndDrop from './drag_and_drop';
+import formulaResponse from './formularesponse';
+import imageResponse from './imageresponse';
+import jsInputResponse from './jsinput_response';
+import problemWithHint from './problem_with_hint';
+
+export default StrictDict({
+  circuitSchematic, customGrader, dragAndDrop, formulaResponse, imageResponse, jsInputResponse, problemWithHint,
+});
diff --git a/src/editors/data/constants/olxTemplates/jsinput_response.js b/src/editors/data/constants/advancedOlxTemplates/jsinput_response.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/jsinput_response.js
rename to src/editors/data/constants/advancedOlxTemplates/jsinput_response.js
diff --git a/src/editors/data/constants/olxTemplates/problem_with_hint.js b/src/editors/data/constants/advancedOlxTemplates/problem_with_hint.js
similarity index 100%
rename from src/editors/data/constants/olxTemplates/problem_with_hint.js
rename to src/editors/data/constants/advancedOlxTemplates/problem_with_hint.js
diff --git a/src/editors/data/constants/basicOlxTemplates/dropdown.js b/src/editors/data/constants/basicOlxTemplates/dropdown.js
new file mode 100644
index 000000000..78988c185
--- /dev/null
+++ b/src/editors/data/constants/basicOlxTemplates/dropdown.js
@@ -0,0 +1,15 @@
+/* eslint-disable */
+export const dropdown = `<problem>
+<optionresponse>
+  <p>You can use this template as a guide to the simple editor markdown and OLX markup to use for dropdown problems. Edit this component to replace this template with your own assessment.</p>
+<label>Add the question text, or prompt, here. This text is required.</label>
+<description>You can add an optional tip or note related to the prompt like this. </description>
+<optioninput>
+    <option correct="False">an incorrect answer</option>
+    <option correct="True">the correct answer</option>
+    <option correct="False">an incorrect answer</option>
+  </optioninput>
+</optionresponse>
+</problem>`
+
+export default dropdown;
\ No newline at end of file
diff --git a/src/editors/data/constants/basicOlxTemplates/index.js b/src/editors/data/constants/basicOlxTemplates/index.js
new file mode 100644
index 000000000..977d3b7a5
--- /dev/null
+++ b/src/editors/data/constants/basicOlxTemplates/index.js
@@ -0,0 +1,10 @@
+import { StrictDict } from '../../../utils';
+import dropdown from './dropdown';
+import multiSelect from './multiSelect';
+import numeric from './numeric';
+import singleSelect from './singleSelect';
+import textInput from './textInput';
+
+export default StrictDict({
+  dropdown, multiSelect, numeric, singleSelect, textInput,
+});
diff --git a/src/editors/data/constants/basicOlxTemplates/multiSelect.js b/src/editors/data/constants/basicOlxTemplates/multiSelect.js
new file mode 100644
index 000000000..bb29f5f47
--- /dev/null
+++ b/src/editors/data/constants/basicOlxTemplates/multiSelect.js
@@ -0,0 +1,15 @@
+/* eslint-disable */
+ const multiSelect= `<problem>
+<choiceresponse>
+  <p>You can use this template as a guide to the simple editor markdown and OLX markup to use for checkboxes problems. Edit this component to replace this template with your own assessment.</p>
+<label>Add the question text, or prompt, here. This text is required.</label>
+<description>You can add an optional tip or note related to the prompt like this. </description>
+<checkboxgroup>
+    <choice correct="true">a correct answer</choice>
+    <choice correct="false">an incorrect answer</choice>
+    <choice correct="false">an incorrect answer</choice>
+    <choice correct="true">a correct answer</choice>
+  </checkboxgroup>
+</choiceresponse>
+</problem>`
+export default multiSelect;
\ No newline at end of file
diff --git a/src/editors/data/constants/basicOlxTemplates/numeric.js b/src/editors/data/constants/basicOlxTemplates/numeric.js
new file mode 100644
index 000000000..946b66812
--- /dev/null
+++ b/src/editors/data/constants/basicOlxTemplates/numeric.js
@@ -0,0 +1,12 @@
+/* eslint-disable */
+export const numeric = `<problem>
+<numericalresponse answer="100">
+  <p>You can use this template as a guide to the simple editor markdown and OLX markup to use for numerical input problems. Edit this component to replace this template with your own assessment.</p>
+<label>Add the question text, or prompt, here. This text is required.</label>
+<description>You can add an optional tip or note related to the prompt like this. </description>
+<responseparam type="tolerance" default="5"/>
+  <formulaequationinput/>
+</numericalresponse>
+</problem>`
+
+export default numeric;
\ No newline at end of file
diff --git a/src/editors/data/constants/basicOlxTemplates/singleSelect.js b/src/editors/data/constants/basicOlxTemplates/singleSelect.js
new file mode 100644
index 000000000..012f8879c
--- /dev/null
+++ b/src/editors/data/constants/basicOlxTemplates/singleSelect.js
@@ -0,0 +1,14 @@
+/* eslint-disable */
+export const singleSelect = `<problem>
+<multiplechoiceresponse>
+    <p>You can use this template as a guide to the simple editor markdown and OLX markup to use for multiple choice problems. Edit this component to replace this template with your own assessment.</p>
+    <label>Add the question text, or prompt, here. This text is required.</label>
+    <description>You can add an optional tip or note related to the prompt like this.</description>
+    <choicegroup>
+        <choice correct="false">an incorrect answer</choice>
+        <choice correct="true">the correct answer</choice>
+        <choice correct="false">an incorrect answer</choice>
+    </choicegroup>
+</multiplechoiceresponse>
+</problem>`
+export default singleSelect;
\ No newline at end of file
diff --git a/src/editors/data/constants/basicOlxTemplates/textInput.js b/src/editors/data/constants/basicOlxTemplates/textInput.js
new file mode 100644
index 000000000..4a13b9c76
--- /dev/null
+++ b/src/editors/data/constants/basicOlxTemplates/textInput.js
@@ -0,0 +1,11 @@
+/* eslint-disable */
+const textInput =`<problem>
+<stringresponse answer="the correct answer" type="ci">
+  <p>You can use this template as a guide to the simple editor markdown and OLX markup to use for text input problems. Edit this component to replace this template with your own assessment.</p>
+<label>Add the question text, or prompt, here. This text is required.</label>
+<description>You can add an optional tip or note related to the prompt like this. </description>
+<additional_answer answer="optional acceptable variant of the correct answer"/>
+  <textline size="20"/>
+</stringresponse>
+</problem>`
+export default textInput;
\ No newline at end of file
diff --git a/src/editors/data/constants/problem.js b/src/editors/data/constants/problem.js
index cc491a9d8..000b4607c 100644
--- a/src/editors/data/constants/problem.js
+++ b/src/editors/data/constants/problem.js
@@ -4,13 +4,8 @@ import multiSelect from '../images/multiSelect.png';
 import dropdown from '../images/dropdown.png';
 import numericalInput from '../images/numericalInput.png';
 import textInput from '../images/textInput.png';
-import { circuitSchematic } from './olxTemplates/circuitschematic';
-import { customGrader } from './olxTemplates/customgrader';
-import { dragAndDrop } from './olxTemplates/drag_and_drop';
-import { formulaResponse } from './olxTemplates/formularesponse';
-import { imageResponse } from './olxTemplates/imageresponse';
-import { jsInputResponse } from './olxTemplates/jsinput_response';
-import { problemWithHint } from './olxTemplates/problem_with_hint';
+import advancedOlxTemplates from './advancedOlxTemplates';
+import basicOlxTemplates from './basicOlxTemplates';
 
 export const ProblemTypeKeys = StrictDict({
   SINGLESELECT: 'multiplechoiceresponse',
@@ -29,6 +24,8 @@ export const ProblemTypes = StrictDict({
     helpLink: 'https://edx.readthedocs.io/projects/edx-partner-course-staff/en/latest/exercises_tools/multiple_choice.html',
     prev: ProblemTypeKeys.TEXTINPUT,
     next: ProblemTypeKeys.MULTISELECT,
+    template: basicOlxTemplates.singleSelect,
+
   },
   [ProblemTypeKeys.MULTISELECT]: {
     title: 'Multi Select Problem',
@@ -37,6 +34,7 @@ export const ProblemTypes = StrictDict({
     helpLink: 'https://edx.readthedocs.io/projects/edx-partner-course-staff/en/latest/exercises_tools/checkbox.html',
     next: ProblemTypeKeys.DROPDOWN,
     prev: ProblemTypeKeys.SINGLESELECT,
+    template: basicOlxTemplates.multiSelect,
   },
   [ProblemTypeKeys.DROPDOWN]: {
     title: 'Dropdown Problem',
@@ -45,6 +43,7 @@ export const ProblemTypes = StrictDict({
     helpLink: 'https://edx.readthedocs.io/projects/edx-partner-course-staff/en/latest/exercises_tools/dropdown.html',
     next: ProblemTypeKeys.NUMERIC,
     prev: ProblemTypeKeys.MULTISELECT,
+    template: basicOlxTemplates.dropdown,
   },
   [ProblemTypeKeys.NUMERIC]: {
     title: 'Numeric Response Problem',
@@ -53,6 +52,7 @@ export const ProblemTypes = StrictDict({
     helpLink: 'https://edx.readthedocs.io/projects/edx-partner-course-staff/en/latest/exercises_tools/numerical_input.html',
     next: ProblemTypeKeys.TEXTINPUT,
     prev: ProblemTypeKeys.DROPDOWN,
+    template: basicOlxTemplates.numeric,
   },
   [ProblemTypeKeys.TEXTINPUT]: {
     title: 'Text Input Problem',
@@ -61,6 +61,7 @@ export const ProblemTypes = StrictDict({
     helpLink: 'https://edx.readthedocs.io/projects/edx-partner-course-staff/en/latest/exercises_tools/text_input.html',
     prev: ProblemTypeKeys.NUMERIC,
     next: ProblemTypeKeys.SINGLESELECT,
+    template: basicOlxTemplates.textInput,
   },
   [ProblemTypeKeys.ADVANCED]: {
     title: 'Advanced Problem',
@@ -90,37 +91,37 @@ export const AdvanceProblems = StrictDict({
   [AdvanceProblemKeys.CIRCUITSCHEMATIC]: {
     title: 'Circuit schematic builder',
     status: 'Not supported',
-    template: circuitSchematic,
+    template: advancedOlxTemplates.circuitSchematic,
   },
   [AdvanceProblemKeys.JSINPUT]: {
     title: 'Custom JavaScript display and grading',
     status: '',
-    template: jsInputResponse,
+    template: advancedOlxTemplates.jsInputResponse,
   },
   [AdvanceProblemKeys.CUSTOMGRADER]: {
     title: 'Custom Python-evaluated input',
     status: 'Provisional',
-    template: customGrader,
+    template: advancedOlxTemplates.customGrader,
   },
   [AdvanceProblemKeys.DRAGANDDROP]: {
     title: 'Drag and drop (deprecated version)',
     status: 'Not supported',
-    template: dragAndDrop,
+    template: advancedOlxTemplates.dragAndDrop,
   },
   [AdvanceProblemKeys.IMAGE]: {
     title: 'Image mapped input',
     status: 'Not supported',
-    template: imageResponse,
+    template: advancedOlxTemplates.imageResponse,
   },
   [AdvanceProblemKeys.FORMULA]: {
     title: 'Math expression input',
     status: '',
-    template: formulaResponse,
+    template: advancedOlxTemplates.formulaResponse,
   },
   [AdvanceProblemKeys.PROBLEMWITHHINT]: {
     title: 'Problem with adaptive hint',
     status: 'Not supported',
-    template: problemWithHint,
+    template: advancedOlxTemplates.problemWithHint,
   },
 });
 
diff --git a/src/editors/data/redux/problem/reducers.js b/src/editors/data/redux/problem/reducers.js
index 41c6c3061..ee7acf74e 100644
--- a/src/editors/data/redux/problem/reducers.js
+++ b/src/editors/data/redux/problem/reducers.js
@@ -144,10 +144,6 @@ const problem = createSlice({
       ...state,
       problemType: null,
     }),
-    setProblemType: (state, { payload: { selected } }) => ({
-      ...state,
-      problemType: selected,
-    }),
   },
 });
 
diff --git a/src/editors/data/services/cms/mockApi.js b/src/editors/data/services/cms/mockApi.js
index 94be91054..ac17d7ff5 100644
--- a/src/editors/data/services/cms/mockApi.js
+++ b/src/editors/data/services/cms/mockApi.js
@@ -9,7 +9,8 @@ export const fetchBlockById = ({ blockId, studioEndpointUrl }) => {
   let data = {};
   if (blockId === 'html-block-id') {
     data = {
-      data: '<p>Test prompt content</p>',
+      data: `<problem>
+      </problem>`,
       display_name: 'My Text Prompt',
       metadata: {
         display_name: 'Welcome!',