Safe( Secure And Fair Mortgage Licensing Act)

Question 1

Safe ACT covers

Answer 1

Mortgage loan originator that

takes residential mortgage loan applications and Offers or negotiate loan terms

Note. More than 5 applications in 12 months must register. Month is a rolling 12

Question 2

SAFE does not include individuals that

Answer 2

only perform clerical tasks on behalf of mortgage loan originator

Are Brokers but not originators

extend credit for time shares

Are Employees of regulated financial institutions

Question 3

What is considered a Residential Mortgage Loan

Answer 3

Primarily for personal, family or household purposes

Question 4

What does the residential loan have to be secured by

Answer 4

One to four family dwelling

Mobile home

Condominium

Cooperative unit

Property under construction

Property to be constructed

Question 5

What type of credit is considered to be a Residential loan.

Answer 5

Origination

Refinancing

Reverse mortgages

Home equity

Lines of credit

Question 6

Mortgage Loan Originators must submit the following to registry

Answer 6

Identifying information (name, address, San, gender, date and place of birth)

Financial services employment history for past 10 years

Convictions

Civil judicial actions

Fingerprints

Authorize resister to make their information available

Question 7

Regulated institutions may submit the following for an individual

Answer 7

Name
Address
EIN
ID number of bank originator
RSSD of the parent bank

Question 8

Registration Information has what 4 elements

Answer 8

What is required to be submitted

Maintaining registration

Policies and Procedures

Unique identifiers

Question 9

The Individual submitting the information on behalf of the bank must

Answer 9

Attest they have the authority to enter the data on behalf of the bank and that it is correct and the bank will keep it current

Question 10

Information submitted to the bank must be updated within —-days of the date the information becomesr inaccurate

Answer 10

30 days

Question 11

After employee information has been received by the registry, the bank must

Answer 11

Confirm they employ the registrant

Question 12

The Registry must be notified within — days when the registrant is no longer employed and the date they stopped working

Answer 12

30

Question 13

Mortgage loan originator must renew registration

Answer 13

Annually

Question 14

Registry information must be updated 30 days of

Answer 14

A name change

Ceases to be an employee of a regulated institution

Any required information becomes inaccurate

Question 15

Regulated institutions that employee one or more mortgage loan originators must

Answer 15

Written policies and procedures

Require their employees who are loan originators to register

Question 16

Policies and procedures must be

Answer 16

Commensurate with size

Create a process to identify employees that should be reported

Trained of the Safe act

Confirming accuracy of what is reported

Ensure compliance with unique identifier requirements

Provide independent testing

Provide criminal background check

Ensure third party providers have a check system in place to comply with safe

Question 17

The bank must make unique identifiers of its registered mortgage loan originators to

Answer 17

Consumers upon request

Before action as a mortgage loan originator

Via paper or electronics to consumer

Question 18

Which of the following persons would be a Mortgage Loan Originator under the terms of the Safe act

A. A real estate agent who assists clients in completing loan applications before turning the over to a lender
B. An administrative assistant to a loan officer who sends information requests to loan applicants to facility the loan process
C. A broker who takes applications and assists the applicant in choosing s 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

Answer 18

C

Question 19

Which of the following is not a responsibility of a regulated financial institution under the Safe act
A. Hire mortgage loan originators as employees
B. Ensure mortgage loan originators that are employees register with the registry
C. Adopt policies and procedures for compliance with the Safe act
D. Submit required information on the bank to the Refistry

Answer 19

A

Question 20

What must Employers of Mortgage loan originators do

Answer 20

Employers must make them register, maintain the registry, and obtain a unique identifier, not work unless registered, change employment information when changing jobs

Question 21

If mortgage loan originators merge, the registry must up dated in

Answer 21

60 days

Question 22

What things have to happen with safe

Answer 22

Annual Renewal (Annual renewal in November - December)

Register prior to 6th application in 12 months

Self report convictions, pleas or regulatory sanctions when occurs

Question 23

Where must the banker ID number appear

Answer 23

Initial written communication to the customer

When requested

Question 24

The bank must make the unique identifier of its registered mortgage loan originator available to

Answer 24

Consumers

Question 25

A registered mortgage loan originator must provide his unique identifier to a consumer

Answer 25

Upon request

Before acting as a mortgage loan originator

Through the originator initial written communication with a consumer, whether electronics or on paper

Question 26

The purpose of SAFE is to

Answer 26

Facility the flow of information on mortgage originators between regulators

Provide accountability and tracking of mortgage loan originators

Provide consumer protections to mortgage loan applicants