Mortgage Federal Mortgage-Related Laws 5

Question 1

The SAFE Act requires mortgage loan originators (MLOs) to complete how many hours of pre-licensing education before being licensed?

Accepted Answer

20 hours

Answer

The SAFE Mortgage Licensing Act requires a minimum of 20 hours of NMLS-approved pre-licensing education for state-licensed MLOs.

Question 2

Under the Gramm-Leach-Bliley Act (GLBA), mortgage lenders must provide borrowers with a privacy notice:

Accepted Answer

At account opening and annually thereafter

Answer

GLBA requires financial institutions to provide a privacy notice at the time a customer relationship is established and annually thereafter.

Question 3

The Bank Secrecy Act (BSA) requires mortgage companies to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?

Accepted Answer

45 days

Answer

BSA regulations require covered institutions to file a SAR within 30 days of initial detection of a suspicious transaction, with a 60-day extension if no suspect is identified — the standard deadline is 30 days.

Question 4

Under the Fair Credit Reporting Act (FCRA), if a borrower disputes information in their credit report, the credit bureau must investigate and respond within how many days?

Accepted Answer

30 days

Answer

FCRA generally requires credit bureaus to complete investigations of disputed items within 30 days (extended to 45 days if the consumer provides additional information).

Question 5

The SAFE Act created the Nationwide Multistate Licensing System (NMLS) primarily to:

Accepted Answer

Establish a uniform licensing and registration system for mortgage loan originators

Answer

The SAFE Act mandated NMLS as a uniform, centralized registry for licensing and tracking mortgage loan originators across states.

Mortgage Practice Test

Mortgage Practice Test

Mortgage Federal Mortgage-Related Laws 5