Mortgage Mortgage SAFE Act and MLO Licensing Questions and Answers 2

Question 1

Under the SAFE Act, which federal agency is responsible for maintaining the Nationwide Multistate Licensing System and Registry (NMLS)?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

The CFPB is responsible for maintaining the NMLS under the SAFE Act, having assumed this role from HUD.

Question 2

What is the minimum number of continuing education hours required annually for MLO license renewal under the SAFE Act?

Accepted Answer

8 hours

Answer

The SAFE Act requires MLOs to complete at least 8 hours of continuing education annually to maintain their license.

Question 3

An MLO applicant has a felony conviction from 9 years ago involving fraud. Under the SAFE Act, what is the status of their application?

Accepted Answer

Automatically denied due to the felony involving fraud

Answer

The SAFE Act permanently bars individuals convicted of felonies involving fraud, dishonesty, or breach of trust from obtaining an MLO license, regardless of how long ago the conviction occurred.

Question 4

Which of the following activities would require an individual to be licensed as an MLO under the SAFE Act?

Accepted Answer

Taking a residential mortgage loan application and offering loan terms

Answer

The SAFE Act requires licensing for anyone who takes residential mortgage loan applications or offers or negotiates terms of a residential mortgage loan for compensation.

Question 5

Under SAFE Act provisions, what happens if a state-licensed MLO fails to meet renewal requirements by the deadline?

Accepted Answer

The license lapses and the MLO must cease origination activities

Answer

If renewal requirements are not met by the deadline, the MLO license lapses and the individual must immediately stop all mortgage origination activities.

Mortgage Practice Test

Mortgage Practice Test

Mortgage Mortgage SAFE Act and MLO Licensing Questions and Answers 2