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

License revocation under the SAFE Act results in a permanent bar; individuals whose licenses have been revoked cannot obtain a new MLO license in any state.

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 NMLS was developed and is administered by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).

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

When changing employers, an MLO must update their sponsorship in NMLS to reflect the new employer; the existing license transfers and remains valid.

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

After the first or second consecutive failure, candidates must wait at least 30 days before retaking the SAFE MLO national test.

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

Supervised loan processors who do not independently solicit borrowers, take applications, or negotiate loan terms are generally exempt from MLO state licensing requirements.

(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test

(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test

SAFE NMLS Licensing and Registration 3