SAFE Act / Mortgage Loan Originator License (Reg G) Flashcards
What is a MLO, as defined by SAFE?
A. An individual who takes a residential mortgage loan application OR offers or negotiates the loan terms for compensation.
B. An individual who takes a residential mortgage loan application AND offers or negotiates the loan terms for compensation.
B. An individual who takes a residential mortgage loan application AND offers or negotiates the loan terms for compensation.
What are an individual’s responsibilities with SAFE Act if changing employment?
If an individual is already registered, they are considered in compliance if they update their registry and their fingerprints are less than 3 years old. If more than 3 years old, new fingerprints must be submitted in order to be in compliance.
When institutions merge or one is acquired, the registration requirements must be met for employees of the resulting regulated institution within __ days from the effective date of the acquisition or merger.
60
Financial services-related employment history for the __ years prior to the registration or renewal is required to be submitted to the Registry by the MLO.
10
Information submitted by the bank must be updated within __ days of the date the information becomes inaccurate. The bank must also renew the information on an annual basis.
30
Within __ days of the date the registrant ceases to be an employee of the bank, notify the Registry that the registrant is no longer employed and the date the individual ceased to be employed.
30
When must a MLO must provide his or her unique identifier to a consumer?
A. Upon request
B. Before acting as a MLO
C. Through the originator’s initial written communication with a consumer, whether electronically or on paper.
D. All of the above
D. All of the above
Which of the following persons would be a MLO under the terms of the SAFE Act?
A. A real estate agent who assists clients in completing loan applications before turning them over to a lender.
B. An administrative assistant to a loan officer who sends information request to loan applicants to facilitate the loan process
C. A broker who takes applications and assists the applicant in choosing a mortgage product before sending it to a lender for underwriting.
D. A customer service representative in a bank who refers applicants to the mortgage department.
C. A broker who takes applications and assists the applicant in choosing a mortgage product before sending it to a lender for underwriting.
Which of the following is NOT a responsibility of a regulated financial institution under the SAFE Act?
A. Hire MLOs as employees
B. Ensure that employee MLOs register with the NMLS
C. Adopt policies and procedures for compliance with the SAFE Act
D. Submit required information on the bank to the registry
A. Hire MLOs as employees
First National Bank just hired a new mortgage lender from another bank in town. The lender says that he’s already registered as a Mortgage Loan Originator. What does FNB need to do with regard to that new lender to be in compliance with the SAFE Act?
A. Verify the lender’s MLO number by inspecting a copy of the registration
B. Require the lender to re-register and obtain a new MLO number
C. Update the employment information on the Registry and submit new fingerprints if three years old
D. Go to the Registry and verify that the lender is on the list
C. Update the employment information on the Registry and submit new fingerprints if three years old
National Mortgage Licensing SystemThe loan originators for consumer credit transactions secured by a dwelling in your institution are subject to all of the following requirements EXCEPT:
A. A criminal background check through Nationwide Mortgage Licensing System and Registry (NMLSR) or law enforcement agency
B. Registration under the SAFE Act
C. Periodic training covering state and federal loan origination requirements
D. Membership in the National Mortgage Loan Originator Society (NMLOS)
D. Membership in the National Mortgage Loan Originator Society (NMLOS)
The compliance officer is tasked with developing a compliance management policy for compliance with the SAFE Act and must determine which employees of the bank will be covered by the policy. Which of the following employees of the bank would be considered Mortgage Loan Originators under the SAFE Act (Regulation G)?
A. An employee who takes consumer loan applications that are secured by a dwelling and has the authority to negotiate terms of such loans for compensation
B. An employee who takes consumer loan applications that are secured by a dwelling and has input into whether the customer has verified his or her identity
C. The Senior Credit Officer who doesn’t communicate directly with customers, but who has final authority over individual loan pricing and terms
D. An employee who receives consumer loan applications that are secured by a dwelling and who forwards those applications to the bank’s loan officers
A. An employee who takes consumer loan applications that are secured by a dwelling and has the authority to negotiate terms of such loans for compensation
The SAFE Act defines “Mortgage Loan Originators” (MLOs) as those to take applications for dwelling-secured loans AND have the authority to negotiate terms of such loans for compensation or gain. Both requirements must be met for the employee to be an MLO. Verification of identity is not a required element of the MLO definition.
Financial services-related employment history for the __ years prior to the registration or renewal is required to be submitted to the Registry by the MLO.
10
How many years must Loan Originator Organizations keep record of payments from a creditor and payments to individual originators?
3 years
