NMLS Licensing and Registration 3

Question 1

Under the SAFE Act, how many hours of continuing education must a licensed MLO complete each year?

Accepted Answer

8 hours

Answer

The SAFE Act requires a minimum of 8 hours of annual continuing education for state-licensed MLOs.

Question 2

Which topic is specifically mandated in the SAFE Act's 8-hour annual continuing education requirement?

Accepted Answer

1 hour of non-traditional mortgage products

Answer

The SAFE Act mandates that the 8-hour CE include at least 1 hour covering non-traditional mortgage product marketplace lending.

Question 3

An MLO applies for a license in a second state while actively licensed in their home state. This is known as:

Accepted Answer

Multi-state licensing

Answer

NMLS facilitates multi-state licensing, allowing an MLO to hold active licenses in multiple states through a single system.

Question 4

Which federal law formally required states to adopt minimum standards for licensing and registering MLOs?

Accepted Answer

SAFE Mortgage Licensing Act of 2008

Answer

The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act of 2008 mandated that all states implement minimum MLO licensing standards.

Question 5

A federally registered MLO changes jobs from one federally chartered bank to another. What must they do in NMLS?

Accepted Answer

Update their employment record in NMLS within 30 days

Answer

Registered MLOs must update their employer information in NMLS within 30 days of changing depository institution employment.

(NMLS) National Mortgage Licensing System Practice Test