Mortgage SAFE Act and MLO Licensing 2

Question 1

Under the SAFE Act, which entity maintains the Nationwide Multistate Licensing System (NMLS)?

Accepted Answer

The Conference of State Bank Supervisors (CSBS)

Answer

The Federal Reserve

Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The Department of Housing and Urban Development (HUD)

Question 2

An MLO applicant has a felony conviction for financial fraud from 7 years ago. Which statement is correct under SAFE Act standards?

Accepted Answer

The applicant may be denied because fraud-related felonies have no time limit for disqualification

Answer

The applicant is automatically eligible since it was more than 5 years ago

Answer

The applicant is permanently barred from licensure

Answer

The applicant must wait 10 years total before applying

Question 3

What is the minimum number of hours of SAFE Act-mandated pre-licensure education that must cover federal mortgage law and regulations?

Accepted Answer

3 hours

Answer

1 hour

Answer

2 hours

Answer

4 hours

Question 4

Which of the following individuals is EXEMPT from SAFE Act MLO licensing requirements?

Accepted Answer

An employee of a federally chartered bank who takes loan applications

Answer

A broker who originates loans for multiple lenders

Answer

An independent contractor who negotiates loan terms

Answer

A person who advertises mortgage services to the public

Question 5

Under the SAFE Act, what must an MLO do if they move from one state-licensed company to another?

Accepted Answer

Submit a sponsorship transfer request through NMLS

Answer

File a new NMLS application from scratch

Answer

Retake the SAFE MLO test

Answer

Obtain a temporary license waiver from HUD

Question 6

The SAFE Act requires state-licensed MLOs to complete how many hours of continuing education annually?

Accepted Answer

8 hours

Answer

4 hours

Answer

6 hours

Answer

10 hours

Question 7

Which scenario would trigger a requirement for MLO licensure under the SAFE Act?

Accepted Answer

An individual who for compensation helps a borrower negotiate the interest rate on a mortgage

Answer

A real estate agent who only refers clients to lenders without discussing loan terms

Answer

A loan processor who only verifies documents submitted by borrowers

Answer

A title company employee who coordinates loan closings