Loan Officer State Licensing and SAFE Act Flashcards
6 cards from real Loan Officer Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Loan Officer State Licensing and SAFE Act flashcards as text
Under the SAFE Act, which of the following is considered an exempt individual who does NOT need an MLO license?
Answer: An individual who sells a home using seller financing for one property per year
The SAFE Act exempts individuals who provide seller financing for no more than three properties per year under certain conditions, as they are not considered professional MLOs.
What action must an MLO take if their license lapses due to failure to complete continuing education?
Answer: Complete the outstanding continuing education and apply for reinstatement
An MLO with a lapsed license due to missed continuing education must complete the required CE hours and apply for reinstatement with their state regulator.
Which of the following best describes the 'loan originator' definition under the SAFE Act?
Answer: Any individual who takes a residential mortgage loan application or offers/negotiates loan terms for compensation
Under the SAFE Act, a loan originator is anyone who takes a mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain.
What is the minimum passing score on the SAFE MLO National Test with Uniform State Content?
Answer: 75%
Candidates must score at least 75% to pass the SAFE MLO National Test with Uniform State Content.
Under the SAFE Act, how long must an MLO wait before retaking the licensing exam after failing it three consecutive times?
Answer: 6 months
After failing the SAFE MLO test three consecutive times, a candidate must wait at least 6 months before attempting the test again.
Which provision of the SAFE Act requires states to participate in a nationwide database of licensed and registered MLOs?
Answer: The Registry Requirement
The Registry Requirement of the SAFE Act mandates that all states participate in the NMLS to maintain a searchable database of all licensed and registered MLOs.