NMLS Licensing and Registration 5

Question 1

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

Accepted Answer

A real estate agent who receives a referral fee for sending clients to a lender

Answer

An independent contractor who originates loans for multiple lenders

Answer

An employee of a state-licensed mortgage company who takes applications

Answer

A person who negotiates loan terms directly with borrowers for compensation

Question 2

Under NMLS procedures, which of the following is required to be publicly accessible through the NMLS Consumer Access portal?

Accepted Answer

An MLO's license status, employer, and disciplinary actions

Answer

An MLO's salary and commission history

Answer

An MLO's complete credit report

Answer

The specific loan files an MLO has originated

Question 3

An MLO's NMLS license must be renewed by what deadline each year?

Accepted Answer

December 31

Answer

June 30

Answer

September 30

Answer

March 31

Question 4

Which of the following correctly describes a 'sponsorship' in NMLS?

Accepted Answer

An employer's attestation in NMLS that an MLO is authorized to conduct business on its behalf

Answer

A state's endorsement of an MLO's license application

Answer

A CFPB certification that an MLO has met federal standards

Answer

A credit union's pledge to cover an MLO's surety bond

Question 5

If a state does not implement SAFE Act minimum standards, which agency has the authority to establish and enforce MLO licensing in that state?

Accepted Answer

The Department of Housing and Urban Development (HUD)

Answer

The CFPB

Answer

The Federal Reserve

Answer

The Office of the Comptroller of the Currency (OCC)

Question 6

Which of the following background check components is required as part of the NMLS MLO license application?

Accepted Answer

Credit report review and FBI-channeled fingerprint-based criminal background check

Answer

Drug screening

Answer

Personal reference letters from three current clients

Answer

Verification of college degree or equivalent

Question 7

An MLO licensed in State A wants to originate a loan for a borrower who is purchasing property in State B, where the MLO is not licensed. Under most state laws, the MLO must:

Accepted Answer

Obtain a license or temporary authority in State B before originating the loan

Answer

Rely on State A's license since federal law allows cross-state origination

Answer

Have the borrower travel to State A to complete the application

Answer

Use a 'licensed correspondent' arrangement without additional licensing