NMLS Licensing and Registration 4

Question 1

How many hours of pre-licensure education does the SAFE Act require before an individual may obtain an MLO license?

Accepted Answer

20 hours

Answer

12 hours

Answer

16 hours

Answer

24 hours

Question 2

The SAFE MLO Test includes a national component and, for most states, a state-specific component. What is the minimum passing score for the national component?

Accepted Answer

75%

Answer

70%

Answer

80%

Answer

85%

Question 3

If an MLO fails the SAFE MLO Test, how long must they wait before retaking it a fourth time after a third failure?

Accepted Answer

180 days

Answer

30 days

Answer

90 days

Answer

6 months

Question 4

An independent mortgage broker company (not a depository institution) that employs MLOs is called a:

Accepted Answer

Licensed mortgage company or state-licensed entity

Answer

Registered mortgage entity

Answer

Federally covered institution

Answer

NMLS sponsored originator

Question 5

Under the SAFE Act, which entity is responsible for reviewing and approving NMLS-approved pre-licensure education courses?

Accepted Answer

NMLS on behalf of the state agencies

Answer

The CFPB

Answer

The state banking regulator of each state

Answer

The Federal Reserve Board

Question 6

What is the minimum number of hours of federal law content that must be included in the 20-hour SAFE Act pre-licensure education?

Accepted Answer

3 hours

Answer

1 hour

Answer

2 hours

Answer

5 hours

Question 7

Which of the following actions would constitute 'acting as an MLO without a license' under the SAFE Act?

Accepted Answer

Completing a loan application on behalf of a borrower for compensation without a license

Answer

Referring a borrower to a licensed MLO for a referral fee

Answer

Explaining general mortgage products at a homebuyer seminar

Answer

Processing loan documents as a loan processor under MLO supervision