SAFE NMLS Licensing and Registration 3

Question 1

Under the SAFE Act, if a state-licensed MLO's license is revoked, when may they apply for a new MLO license?

Accepted Answer

They are permanently barred from obtaining a new license

Answer

After one year from the revocation date

Answer

After five years from the revocation date

Answer

After completing 40 hours of remedial education

Question 2

Which organizations developed and administer the NMLS system?

Accepted Answer

The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)

Answer

The Federal Reserve and OCC

Answer

The CFPB and FTC

Answer

HUD and the FHA

Question 3

What must a state-licensed MLO do when changing employers?

Accepted Answer

Update their sponsorship information in NMLS to reflect the new employer

Answer

Obtain an entirely new MLO license from scratch

Answer

Retake the SAFE national test

Answer

Wait 30 days before beginning work at the new employer

Question 4

What is the required waiting period before retaking the SAFE MLO test after the first or second failure?

Accepted Answer

30 days

Answer

No waiting period is required

Answer

15 days

Answer

60 days

Question 5

A loan processor who works under the supervision of a licensed MLO and does NOT independently take applications or negotiate loan terms is:

Accepted Answer

Generally exempt from MLO state licensing requirements

Answer

Required to obtain a full MLO license before performing any duties

Answer

Required to register in NMLS as a supervised loan processor

Answer

Required to pass the SAFE test but not complete pre-licensing education

Question 6

How many of the 8 required annual CE hours must cover ethics, fraud prevention, consumer protection, and fair lending issues?

Accepted Answer

2 hours

Answer

1 hour

Answer

3 hours

Answer

4 hours

Question 7

Which category of MLO registers with NMLS but is NOT required to pass the SAFE MLO national test?

Accepted Answer

MLOs employed by federally insured depository institutions such as national banks

Answer

Independent mortgage brokers operating their own firm

Answer

MLOs employed by state-licensed mortgage companies

Answer

MLOs who originate loans only in a single state