Practice Test Geeks(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test
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Origination Activities Flashcards

7 cards from real SAFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Origination Activities flashcards as text

  1. A borrower asks an MLO to submit their loan application to multiple lenders simultaneously without disclosing this to each lender. What should the MLO do?

    Answer: Refuse and explain that undisclosed multiple submissions are improper

    MLOs must act with integrity and cannot participate in practices that mislead lenders; undisclosed simultaneous submissions are improper.

  2. Under RESPA, which of the following is prohibited when an MLO refers a borrower to a settlement service provider?

    Answer: Receiving a fee or thing of value for making the referral

    RESPA Section 8 prohibits receiving any fee, kickback, or thing of value in exchange for referring settlement service business.

  3. When must an MLO provide the borrower with a copy of the appraisal report?

    Answer: At least 3 business days before loan consummation

    ECOA/Regulation B requires lenders to provide a copy of the appraisal at least 3 business days before consummation.

  4. A borrower's credit score is 580. The MLO tells the borrower they have a 680 score to help them get a better rate. This is an example of:

    Answer: Misrepresentation

    Falsifying a borrower's credit score on a loan application constitutes misrepresentation and mortgage fraud.

  5. Which document provides an itemized list of all settlement charges and must be provided to borrowers at or before closing?

    Answer: Closing Disclosure

    Under TRID, the Closing Disclosure itemizes all final settlement charges and must be provided at least 3 business days before consummation.

  6. An MLO discovers mid-process that a borrower's employment was terminated. What is the MLO's obligation?

    Answer: Notify the lender immediately of the material change in circumstances

    MLOs must disclose material changes in borrower circumstances to the lender promptly to maintain accuracy in the loan file.

  7. Under the S.A.F.E. Act, a state-licensed MLO who wants to temporarily conduct business in a new state while their new state license is pending may do so under which provision?

    Answer: Temporary authority to operate

    The Economic Growth Act of 2018 added a temporary authority to operate provision allowing licensed MLOs to work in a new state while their application is pending.