NMLS Licensing and Registration 2

Question 1

Which entity maintains the Nationwide Multistate Licensing System & Registry (NMLS)?

Accepted Answer

The Conference of State Bank Supervisors (CSBS)

Answer

NMLS is owned and operated by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).

Question 2

What is the maximum number of days a licensed MLO may operate under a temporary authority to operate (TAO) after changing employers?

Accepted Answer

120 days

Answer

Under SAFE Act provisions, a qualifying MLO may operate under temporary authority for up to 120 days while a new state license application is pending.

Question 3

A loan originator who works exclusively for a federally chartered credit union must be:

Accepted Answer

Registered through NMLS as a registered MLO

Answer

MLOs employed by federally chartered depository institutions register with NMLS rather than obtaining a state license.

Question 4

Under the SAFE Act, which of the following is NOT a required element for obtaining an MLO license?

Accepted Answer

A surety bond

Answer

A surety bond is a state-level requirement, not a universal federal SAFE Act requirement for every state; states may require net worth OR a surety bond.

Question 5

Which section of the SAFE Act established the requirement for all states to participate in NMLS?

Accepted Answer

Section 1508

Answer

SAFE Act Section 1508 requires states to participate in NMLS to provide a uniform system for licensing and registering mortgage loan originators.

(NMLS) National Mortgage Licensing System Practice Test

(NMLS) National Mortgage Licensing System Practice Test

NMLS Licensing and Registration 2