Licensing and Registration Flashcards
7 cards from real NMLS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Licensing and Registration flashcards as text
Under the SAFE Act, how many hours of continuing education must a licensed MLO complete each year?
Answer: 8 hours
The SAFE Act requires a minimum of 8 hours of annual continuing education for state-licensed MLOs.
Which topic is specifically mandated in the SAFE Act's 8-hour annual continuing education requirement?
Answer: 1 hour of non-traditional mortgage products
The SAFE Act mandates that the 8-hour CE include at least 1 hour covering non-traditional mortgage product marketplace lending.
An MLO applies for a license in a second state while actively licensed in their home state. This is known as:
Answer: Multi-state licensing
NMLS facilitates multi-state licensing, allowing an MLO to hold active licenses in multiple states through a single system.
Which federal law formally required states to adopt minimum standards for licensing and registering MLOs?
Answer: SAFE Mortgage Licensing Act of 2008
The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act of 2008 mandated that all states implement minimum MLO licensing standards.
A federally registered MLO changes jobs from one federally chartered bank to another. What must they do in NMLS?
Answer: Update their employment record in NMLS within 30 days
Registered MLOs must update their employer information in NMLS within 30 days of changing depository institution employment.
Which of the following criminal offenses would permanently bar someone from obtaining an MLO license under the SAFE Act?
Answer: A felony involving fraud, dishonesty, or money laundering at any time
The SAFE Act imposes a lifetime ban for felony convictions involving fraud, dishonesty, breach of trust, or money laundering.
Which of the following best describes 'temporary authority to operate' (TAO) under the SAFE Act?
Answer: Permission for a licensed MLO to originate in a new state while their license application is pending
TAO allows qualifying state-licensed or federally registered MLOs to originate loans in a new state while their license application is under review.