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

A real estate agent who merely refers borrowers and receives a referral fee, without taking applications or negotiating terms, is generally exempt from MLO licensing.

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

NMLS Consumer Access (www.nmlsconsumeraccess.org) allows the public to verify an MLO's licensing status, current employer, and any regulatory actions.

Question 3

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

Accepted Answer

December 31

Answer

NMLS licenses expire on December 31 of each year and must be renewed before that date to remain active.

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

Sponsorship in NMLS is a required step where the employing company certifies in the system that the MLO is authorized to originate loans on its behalf.

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

HUD has the authority to establish and administer a SAFE Act licensing system in any state that fails to enact its own compliant licensing law.

(NMLS) National Mortgage Licensing System Practice Test

(NMLS) National Mortgage Licensing System Practice Test

NMLS Licensing and Registration 5