NMLS Uniform State Content 5

Question 1

Under the SAFE Act, which of the following correctly describes the 'test component' structure of the NMLS examination?

Accepted Answer

A National Test Component with Uniform State Content, plus optional state-specific tests

Answer

One national test only, with no state-specific component

Answer

Separate tests for each state where the MLO wishes to be licensed

Answer

A federal test administered by the CFPB and a state test administered by the state

Question 2

A licensed MLO changes employers. What must they do in NMLS?

Accepted Answer

Update their sponsorship in NMLS to reflect the new employer

Answer

Apply for a brand new license in their state

Answer

Retake the NMLS National Test before starting the new job

Answer

File a termination notice with HUD within 7 days

Question 3

Which of the following describes the 'net worth' or 'surety bond' requirement under Uniform State Content?

Accepted Answer

Only the sponsoring mortgage company must meet net worth or surety bond requirements, not the individual MLO

Answer

Only individual MLOs must maintain surety bonds

Answer

Both the individual MLO and the company must each maintain separate surety bonds

Answer

Net worth requirements apply only to federally chartered institutions

Question 4

An MLO applicant discloses a prior bankruptcy on their NMLS application. The regulator will most likely:

Accepted Answer

Review the circumstances and timing of the bankruptcy before making a decision

Answer

Automatically deny the license

Answer

Approve the license with a notation but no restriction

Answer

Require the applicant to retake pre-licensing education

Question 5

Under the SAFE Act, the term 'engage in the business of a loan originator' requires that the activity be performed:

Accepted Answer

For gain or compensation

Answer

Only on behalf of a bank

Answer

Under the supervision of a licensed broker

Answer

At least 20 hours per week

Question 6

Which of the following continuing education topics is specifically required within the 8 annual CE hours for MLO license renewal?

Accepted Answer

1 hour of federal law updates

Answer

2 hours of sales and marketing

Answer

3 hours of ethics

Answer

4 hours of appraisal law

Question 7

Which statement is TRUE regarding the NMLS background check requirement for MLO applicants?

Accepted Answer

All MLO applicants must submit fingerprints for an FBI criminal background check through NMLS

Answer

Background checks are voluntary and only required if the state requests them

Answer

Background checks are only required for applicants with prior criminal history

Answer

Only the sponsoring company undergoes background checks, not the individual MLO