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
What does the acronym SAFE Act stand for?
Answer: Secure and Fair Enforcement for Mortgage Licensing Act
The SAFE Act stands for the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which established minimum standards for licensing mortgage loan originators.
Under the SAFE Act, what is the minimum number of hours of pre-licensing education required for a mortgage loan originator?
Answer: 20 hours
The SAFE Act requires at least 20 hours of pre-licensing education, including 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage products.
Which database system is used to track and register mortgage loan originators nationwide?
Answer: NMLS
The Nationwide Multistate Licensing System (NMLS) is used to register and track mortgage loan originators across the country.
Under the SAFE Act, which of the following employees of a federally chartered bank must register with the NMLS?
Answer: Loan officers who take mortgage applications
Employees of federally chartered banks who take mortgage applications or offer or negotiate mortgage terms must register with the NMLS.
How many hours of continuing education must a licensed MLO complete annually under the SAFE Act?
Answer: 8 hours
Licensed MLOs must complete at least 8 hours of approved continuing education annually, including 3 hours of federal law, 2 hours of ethics, and 2 hours of non-traditional mortgage products.
Which federal agency oversees the NMLS for non-depository institutions?
Answer: Conference of State Bank Supervisors (CSBS)
The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) oversee the NMLS for non-depository state-licensed MLOs.