Mortgage Mortgage SAFE Act and MLO Licensing Questions and Answers 3

Question 1

What is the minimum passing score required on the SAFE MLO National Test Component?

Accepted Answer

75%

Answer

70%

Answer

80%

Answer

85%

Question 2

Under the SAFE Act, how long must an MLO wait before retaking the licensing exam after failing it three consecutive times?

Accepted Answer

6 months

Answer

3 months

Answer

12 months

Answer

30 days

Question 3

Which of the following is NOT a required component of the 20-hour pre-licensure education for MLOs under the SAFE Act?

Accepted Answer

5 hours of commercial lending practices

Answer

3 hours of federal law and regulations

Answer

2 hours of ethics including fraud prevention

Answer

2 hours of training on lending standards for nontraditional mortgages

Question 4

Under the SAFE Act, what is the primary purpose of the surety bond or net worth requirement for state-licensed MLOs?

Accepted Answer

To protect consumers against financial losses caused by the MLO's violations

Answer

To ensure the MLO has sufficient capital to fund loans

Answer

To cover the cost of NMLS registration fees

Answer

To guarantee the MLO will complete continuing education

Question 5

Which entity has the authority to impose civil money penalties on mortgage loan originators for violations of the SAFE Act?

Accepted Answer

The CFPB for federally registered MLOs and state regulators for state-licensed MLOs

Answer

Only state regulators regardless of registration type

Answer

Only the CFPB regardless of registration type

Answer

The Department of Justice exclusively

Question 6

Under the SAFE Act, which of the following individuals is exempt from state MLO licensing requirements?

Accepted Answer

An MLO employed by a federally chartered bank who is registered through the federal system

Answer

A self-employed mortgage broker originating residential loans

Answer

A loan processor who independently contracts with a lender

Answer

An MLO working for a state-chartered non-depository mortgage company