Chapter 1: Introduction to Mortgage Lending

Question 1

______ was designed to help with the recovery and the revitalization of America’s residential housing market and to provide additional protections for consumers.

Answer 1

Housing and Economic Recovery Act (HERA) of 2008

Question 2

_______ established requirements for the licensing and registration of all mortgage loan originators in the United States.

Answer 2

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”)

Question 3

Do MLOs who work for an insured depository or its owned or controlled subsidiary (such as banks, savings associations, and credit unions) need to be registered?

Answer 3

Yes, Mortgage Loan Originators (MLOs) who work for an insured depository or its owned or controlled subsidiary (such as banks, savings associations, and credit unions) must be registered. All other MLOs must be licensed by the states.