FREE MLO Questions and Answers

Question 1

Which of the following best describes a non-traditional mortgage product, as defined by the SAFE Act:

Accepted Answer

Any mortgage other than 30-year fixed

Answer

According to the SAFE Act, this qualifies as a factual statement.

Question 2

Which of the following would be exempt from the MLO designation requirement under the SAFE Act?

Accepted Answer

A real estate broker performing brokerage activity

Answer

An MLO designation is not required for brokers who engage in real estate brokerage activities.

Question 3

An individual who works for any of the following, with the exception of:

Accepted Answer

A mortgage brokerage company under the authority of the DRE

Answer

MLOs working with the DRE's permission need to be licensed.

Question 4

A residential mortgage loan is any loan that is primarily used for one of the purposes listed below, with the exception of:

Accepted Answer

1-4 owner-occupied use

Answer

Owner occupied properties are not mentioned in the SAFE Act. The SAFE Act defers to TILA, Sec. 103(v), which defines a habitation as a residential building, a mobile home, or individual condominium or cooperative units that house one to four families.

Question 5

What one phrase best captures the intent behind having a unique identification number?

Accepted Answer

Accountability

Answer

The unique identity number's function is to hold MLOs responsible for the tasks they perform.

Mortgage Loan Originator Practice Test

Mortgage Loan Originator Practice Test

FREE MLO Questions and Answers