SAFE Uniform State Content (USC) 3

Question 1

Under USC, which of the following individuals is typically EXEMPT from state MLO licensing requirements?

Accepted Answer

An employee of a federally chartered bank who originates mortgage loans

Answer

Employees of federally chartered banks are regulated by federal banking agencies and are exempt from state MLO licensing, though they must still register in NMLS.

Question 2

Under USC provisions, what is the minimum number of hours of NMLS-approved continuing education required annually for state-licensed MLOs?

Accepted Answer

8 hours

Answer

SAFE Act and USC provisions require a minimum of 8 hours of NMLS-approved continuing education annually for state-licensed MLOs.

Question 3

An MLO applicant was convicted of a misdemeanor involving dishonesty 4 years ago. Under USC, this conviction would most likely:

Accepted Answer

Be evaluated by the state on a case-by-case basis as a factor in the licensing decision

Answer

While felony convictions involving fraud trigger mandatory bars, misdemeanors involving dishonesty are considered on a case-by-case basis by the licensing state.

Question 4

Under USC, a state must deny an MLO license application if the applicant has had a mortgage-related license revoked in ANY other state within the past:

Accepted Answer

Any time — there is no time limit for prior revocations

Answer

Under the SAFE Act as reflected in USC, a prior revocation of any mortgage-related license in any state is a permanent disqualifier with no time limitation.

Question 5

Which of the following describes the 'de minimis' exemption available to some individuals under USC loan originator definitions?

Accepted Answer

A person who originates 5 or fewer loans per year using their own funds is typically exempt

Answer

Many states adopt a de minimis exemption for individuals who originate a very small number of loans per year using their own funds, such as sellers carrying back financing.

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

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

SAFE Uniform State Content (USC) 3