Uniform State Content

Question 1

Which of the following was issued by the CFPB to implement the Dodd-Frank Act requirements in January 2013 to build upon existing requirements under the SAFE Act?

Answer 1

the Loan Originator Rule

Question 2

Which statement about a loan originator advertising to solicit mortgage business for his employing mortgage banker is FALSE?

Answer 2

The ad does not need to include license number of employing banker’s principal place of business.

Question 3

A state-licensed MLO has resigned his position with his sponsoring employer to accept a new position as an MLO with a new licensed employer. Which statement is FALSE as it relates to the MLO changing his sponsorship status?

Answer 3

The new employer must access the company’s NMLS account and the individual MLO’s NMLS account to end the relationship with the existing employer and to request the new sponsoring relationship.

Question 4

Registered mortgage loan originator refers to

Answer 4

an MLO who is registered with and maintains a unique identifier through the NMLS.

Question 5

Which statement is TRUE in respect to the authority of the state regulator to conduct examinations and investigations of state-licensed mortgage lenders?

Answer 5

A mortgage lender must not knowingly withhold or destroy records.

Question 6

Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the

Answer 6

SAFE Act

Question 7

Lori is a state-licensed MLO working full-time for the Magnificent Mortgage Company, a licensed lender. She has been offered the opportunity to work part-time as an MLO for the Bravura Mortgage Company, another licensed lender, evenings and weekends. Can Lori lawfully accept the second job?

Answer 7

No, an MLO is prohibited from working for two companies as an MLO at the same time

Question 8

Wishing Well Mortgage Company, a licensed residential mortgage lender, has one principal location in the state. Which other business location is considered a branch and therefore IS required to be licensed by the state regulatory authority as a residential mortgage lender branch office?

Answer 8

A leased office suite in a law office in which applications and fees for mortgage loans with Wishing Well are distributed and received from consumers

Question 9

Which activity is defined as an administrative/clerical task?

Answer 9

Receive, collect and or distribute information common for the processing or underwriting of a loan

Question 10

A licensed mortgage lender may NOT publish an advertisement that uses

Answer 10

A post office box number in place of the business address that appears on the license

Question 11

Which number must be used to identify a mortgage loan originator on solicitations and advertisements?

Answer 11

NMLS unique identifier

Question 12

The federal rulemaking authority for the SAFE Act is the responsibility of the

Answer 12

Consumer Financial Protection Bureau

Question 13

The unique identifier of any person originating residential mortgage loans must be clearly shown on all of the following documents EXCEPT

Answer 13

Appraisal reports

Question 14

To maintain a license in good standing, state law prohibits licensed MLOs from certain acts. Which of the following is NOT one of these prohibited acts?

Answer 14

An MLO disburses the mortgage loan proceeds into a customer’s account via direct deposit

Question 15

A _____ is defined by the NMLS as the individual that represents a company and may be required to meet specific requirements.

Answer 15

Qualified individual

Question 16

To be eligible to receive temporary authority to act as a state-licensed MLO, the licensee must have either been registered in NMLS as an MLO continuously during the one-year period preceding the application submission or licensed as an MLO continuously during the ___-day period preceding the date of application.

Answer 16

30

Question 17

Which federal act requires that all states have in place a system of licensure for mortgage loan originators?

Answer 17

SAFE Act

Question 18

The SAFE Act sets forth that each state regulatory entity has the authority to

Answer 18

Write state specific rules or regulations or adopt procedures related to licensing of persons covered under this Act

Question 19

The SAFE Act mandates that there is public access and public display of the _____ assigned to any person originating residential mortgage loans, including display on any loan application forms and advertisements.

Answer 19

NMLS unique identifier

Question 20

Which BEST describes the purpose of the NMLS Registry?

Answer 20

Facilitate electronic tracking and uniform identification of loan originators

Question 21

Which law requires that all state-licensed mortgage loan originators pass a national licensing exam as a condition to be granted a license?

Answer 21

SAFE Act

Question 22

The SAFE Act sets forth that _______ access to information or material relating to the employment history and disciplinary actions imposed on licensed mortgage loan originators.

Answer 22

There must be public

Question 23

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 requires all mortgage loan originators originating residential loans to be licensed or registered with the

Answer 23

Nationwide Mortgage Licensing System and Registry

Question 24

The temporary authority to act as a state-licensed MLO will expire ____ calendar days after the date the applicant was issued a temporary license.

Answer 24

120

Question 25

The Secure and Fair Enforcement for Mortgage Licensing Act is designed to

Answer 25

Enhance consumer protection and reduce fraud through MLO licensing

Question 26

The state entity responsible for mortgage lender licensing has received a customer complaint about XYZ Mortgage Company. For the purpose of investigating this complaint or any other complaints arising under the SAFE Act, the state licensing agency may investigate the licensee

Answer 26

At any time

Question 27

What entity is responsible for enforcement of the SAFE Act at the federal level, including the authority to examine the records of a state-licensed MLO to investigate compliance with the SAFE Act?

Answer 27

Consumer Financial Protection Bureau

Question 28

The SAFE Act sets forth that the CFPB may impose a civil penalty on a state-licensed MLO if the Director finds, after notice and opportunity for hearing, that the MLO violated any requirement of the SAFE Act. The maximum amount of penalty for each violation of the Act is _____. Annually, as required by federal law, the CFPB adjusts this penalty amount for inflation.

Answer 28

$25,000

Question 29

The _____ Registry is the national database that tracks mortgage industry licensees and their licenses

Answer 29

NMLS

Question 30

Each state must set forth license law that complies with SAFE Act's continuing education requirements, including the requirement that MLO licensees complete how many total hours of education each calendar year?

Answer 30

8

Question 31

Bernice is a state-licensed MLO in her state of residence. She must complete a minimum of 8 hours of continuing education to renew her license each year before December 31. The state has the authority to mandate that ___ hour(s) of the 8 hours be on either a state-specific topic or an elective topic.

Answer 31

1

Question 32

As set forth by the SAFE Act, all persons originating mortgage loans must

Answer 32

Obtain a unique identifier through the NMLS

Question 33

As set forth by the SAFE Act, the license law of each state must provide the state with the authority to oversee and regulate all the following aspects of MLO licensing EXCEPT the

Answer 33

Approval of continuing education courses

Question 34

Which service is NOT typically conducted by the state regulatory authority?

Answer 34

Creates loan products to meet a variety of consumer needs

Question 35

A mortgage banker and/or mortgage lender is

Answer 35

Any person who directly originates, acquires, or provides mortgage loans

Question 36

As defined and used throughout license law, the term "individual" refers to a

Answer 36

Natural person

Question 37

According to the Truth in Lending Act definition, which is considered a dwelling?

Answer 37

a duplex

Question 38

As set forth by the SAFE Act, _____ is defined as any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a residential structure or mobile home that contains one-to four-family housing units.

Answer 38

Residential mortgage loan

Question 39

A loan processor refers to any person who

Answer 39

Performs certain administrative or clerical duties related to mortgage loans

Question 40

As required by the SAFE Act, what DOES need to be included in a state's system of supervision and enforcement of the SAFE Act?

Answer 40

Authority to subpoena witnesses and documents

Question 41

Of these, which is considered a residential mortgage loan?

Answer 41

A loan for one to four family owner occupied property

Question 42

As set forth in the SAFE Act, a state's regulatory entity has the authority to require a licensee to satisfy a requirement specific to any of the following EXCEPT a

Answer 42

Loan origination funding amount

Question 43

All of these are duties granted to a state regulatory authority under the SAFE Act EXCEPT for the duty to

Answer 43

Approve pre licensing and continuing education course offerings and course providers

Question 44

As defined and used throughout license law, the term "immediate family member" does NOT include

Answer 44

Aunts, uncles, and cousins

Question 45

Brenda earns a salary as well as a commission for every residential mortgage loan application she takes for her employer, a state-registered mortgage broker. Brenda must be a state

Answer 45

Licensed mortgage loan originator

Question 46

The SAFE Act sets forth that states must establish minimum standards for the licensing and registration of state-licensed MLOs. Which of the following does NOT reflect a minimum standard that must be established for state MLO licensing?

Answer 46

The applicant must never have been convicted of a felony of any kind

Question 47

Who is NOT "taking" a loan application?

Answer 47

Rita describes for a borrower the loan application process without any discussion of specific loan products

Question 48

The SAFE Act sets forth that states must establish minimum standards for the licensing and registration of state-licensed MLOs. One minimum standard that must be set forth in state MLO license law is that applicants must furnish

Answer 48

An independent credit report obtained from a consumer reporting agency

Question 49

Who IS "taking" a loan application?

Answer 49

Ellen responds to a borrower's request for a different rate or fees by presenting the borrower with a revised loan offer

Question 50

All of these activities are examples of offering or negotiating the terms of a loan EXCEPT

Answer 50

Making an underwriting decision about whether the borrower or prospective borrower qualifies for a loan

Question 51

As defined by the SAFE Act, which IS an example of "offering or negotiating the terms of a loan"?

Answer 51

Communicating directly or indirectly with a borrower in order to reach a mutual understanding about prospective residential mortgage loan terms

Question 52

Which of the following is a task that requires an MLO license to be legally performed?

Answer 52

Counsel consumers about available residential mortgage loan rates or terms

Question 53

When can a mortgage lender employ an individual who is NOT state-licensed or state-registered to fulfill the duties of a mortgage loan originator for its company?

Answer 53

Under no circumstances

Question 54

Doris performs only clerical duties for a licensed mortgage broker putting together loan packages. She is most likely a loan _________ from needing to be licensed as an MLO.

Answer 54

Processor that is exempt

Question 55

Who IS exempt from licensing under the SAFE Act?

Answer 55

Juan, who negotiates the terms of a residential mortgage loan on behalf of his sister

Question 56

Which license type may NOT be issued to a corporation?

Answer 56

Mortgage loan originator

Question 57

Wayne has been hired by Reasonable Mortgage Company to collect or receive payments of principal, interest, and escrow due to the note holder for residential mortgage loans. Wayne's job is

Answer 57

An individual loan servicer that does not require licensing

Question 58

Model state law sets forth minimum qualifications for a state to issue an applicant an MLO license, including that the MLO needs to have demonstrated financial responsibility. Though state law may differ, model state law sets forth that an individual has not shown financial responsibility when there is a foreclosure within the past

Answer 58

3 years

Question 59

Fingerprint images are required of every applicant as part of an initial MLO application in order to

Answer 59

Conduct a criminal background check

Question 60

What topic is NOT required as part of the 20 hours of a mortgage loan originator applicant's pre-licensing education?

Answer 60

Real estate concepts

Question 61

A minimum of how many hours of approved pre-licensing education is required by the SAFE Act for state-licensed mortgage loan originators?

Answer 61

20

Question 62

Who is NOT exempt from the MLO license and registration requirements as set forth by the SAFE Act?

Answer 62

Ben, who refers or steers a prospective borrower to a particular lender or set of residential mortgage loan terms with respect to his work duties

Question 63

To be qualified for a license, an MLO license applicant must NOT have been convicted of a felony during the ______-year period immediately preceding the date of application for the license.

Answer 63

7

Question 64

A state-licensed mortgage broker has maintained one principal location for eight years. The broker now wants to expand by opening another full-service brokerage office in another area of the same state. A mortgage _____is required for this expansion.

Answer 64

Broker branch office license

Question 65

_____ is a minimum standard requirement for obtaining an MLO license with an active status.

Answer 65

Sponsorship

Question 66

As set forth by the SAFE Act, what term is defined as an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain?

Answer 66

Mortgage loan originator

Question 67

If an MLO license applicant fails the qualified SAFE MLO pre-licensing test three consecutive times, he will need to wait at least how long before taking the test again?

Answer 67

6 months

Question 68

To pass the qualified SAFE MLO pre-licensing test, an MLO license applicant must achieve a minimum test score of

Answer 68

75%

Question 69

____ is defined by the NMLS as a company's indication that an individual MLO will conduct business under a specific license/registration for the company.

Answer 69

Sponsorship

Question 70

An MLO license applicant must NOT have been convicted of a felony ______ if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering.

Answer 70

At any time

Question 71

To achieve a score of 75%, license applicant Coleman may retake the qualified pre-licensing test ____ consecutive times with each consecutive test not occurring less than 30 days after the preceding test.

Answer 71

3

Question 72

Which statement is FALSE as it relates to minimum standards for pre-licensing education and testing that must be met to obtain an MLO license?

Answer 72

If the test is failed 3 consecutive tests, the applicant must wait one year before taking the test again

Question 73

If a licensed mortgage loan originator is convicted of a felony, the _____ is responsible for reporting this information to the NMLS.

Answer 73

Mortgage loan originator

Question 74

When Bart's sponsorship terminates, his mortgage loan originator license is given what status?

Answer 74

Inactive

Question 75

Maureen, a licensed MLO, retakes the same 2-hour online course on the topic of nontraditional mortgage products that she took the previous year. She cannot count the 2 hours of education toward her continuing education requirements for license renewal this year because

Answer 75

She cannot receive credit for the same course taken in the same or successive years

Question 76

The SAFE Act sets forth that to perform defined duties as an MLO in multiple states Jeff must meet national license requirements

Answer 76

And state license requirements for each state for which he conducts loan origination activities

Question 77

A licensed MLO may credit a 2-hour online course in ethics toward his continuing education renewal requirement

Answer 77

Once in the same calendar year in which the course is taken

Question 78

Every state-licensed MLO (in any approved status) is required to complete at least _____ of NMLS-approved education annually.

Answer 78

8 hours

Question 79

The application for a state mortgage loan originator license is likely to be denied if the applicant

Answer 79

Scored only 70% on the National SAFE MLO pre licensing exam

Question 80

A licensed mortgage loan originator must comply with requirements for license renewal

Answer 80

Annually by December 31

Question 81

The time period that state-licensed MLO Maureen can submit her application for renewal is from

Answer 81

November 1 through December 31

Question 82

According to the SAFE Act, each state must set forth the requirement that a person must be state-licensed as an MLO to legally perform which activity?

Answer 82

Assisting a borrower in obtaining a mortgage loan by offering to negotiate terms for a lender

Question 83

The state regulatory authority will most likely deny a mortgage loan originator applicant a license if the applicant has

Answer 83

Ever been convicted of a felony involving fraud, dishonesty, breach of trust, or money laundering unless pardoned

Question 84

Which will NOT be counted toward Kyle's eight hours of National continuing education required by the SAFE Act to renew his loan originator license?

Answer 84

State approved 1 hour online course on state specific license law completed in the calendar year

Question 85

Which of these situations require registration as a mortgage broker?

Answer 85

A company that offers, for a fee to place mortgage loans for others

Question 86

All of the following documents require the inclusion of a licensee's assigned NMLS unique identifier EXCEPT

Answer 86

A copy of the title report tied to a mortgage loan application

Question 87

Sandy is a licensed MLO and an instructor of NMLS-approved continuing education (CE) courses. She is

Answer 87

Eligible to receive credit for annual CE requirements for hours taught

Question 88

The state regulatory authority may refuse to renew MLO Diane's license if there is a finding that she has

Answer 88

Demonstrated unfairness in the transaction of business

Question 89

Avery is a formerly licensed MLO who has failed to maintain a valid license for six years. To become a state-licensed MLO again, she must

Answer 89

Retake and pass the qualified SAFE MLO pre licensing exam

Question 90

The SAFE Act requires that the _____ be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements.

Answer 90

MLO's unique identifier

Question 91

States must set minimum standards for MLO license renewal. All of the following are required minimum standards for state license renewal EXCEPT the MLO does NOT need to

Answer 91

Pass the annual NMLS renewal exam with a minimum score of 75%

Question 92

Which statement is FALSE as it relates to providing disclosures required on individual or company license application forms submitted through the NMLS?

Answer 92

Application disclosure requirements for licensing in all states are the same

Question 93

Which occurrence does NOT require the licensee to file a written report disclosing the occurrence to the NMLS and state regulatory authority?

Answer 93

Cooper, a licensed mortgage loan originator is cited for driving with an expired vehicle registration

Question 94

Temporary authority to act as an MLO permits which of the following to originate loans while completing state-specific requirements for licensure?

Answer 94

Qualified applicants changing employment from a depository institution to a state licensed mortgage company

Question 95

The state regulatory authority may issue an order suspending the license of a mortgage loan originator if the MLO

Answer 95

Fails to provide loan records at the request of a state examiner

Question 96

Of the following, who is granted temporary authority to act as a loan originator while completing any state-specific requirements for licensure?

Answer 96

Danny, who is state licensed MLOs seeking MLO licensure in another state

Question 97

A licensed MLO who terminates his affiliation with an employing mortgage broker but wishes to resume working as a mortgage loan originator in the near future may NOT

Answer 97

Originate loans during the time he is not affiliated with an employing entity

Question 98

A person needs to submit an MLO license application through the

Answer 98

Nationwide Mortgage Licensing System and Registry

Question 99

Which statement is FALSE in respect to providing books and records to a state examiner?

Answer 99

A mortgage lender may not maintain books and records at an out of state location

Question 100

Pamela is employed to take residential mortgage loan applications for a federally-chartered bank. To legally do this job, she must be a

Answer 100

Registered mortgage loan originator

Question 101

Applicants are required to provide a credit report as part of an initial MLO application primarily so the state regulatory authority can evaluate

Answer 101

The overall financial responsibility of the applicant

Question 102

All of the following are requirements for the content of records that must be retained for examination by licensed lender's activities EXCEPT for

Answer 102

Area market trends and competitor analysis

Question 103

______ an MLO is allowed to pay for the advertising of a real estate agent in exchange for referrals.

Answer 103

Under no circumstances is

Question 104

Which situation BEST describes the prohibited marketing practice of bait-and-switch?

Answer 104

MLO Hermione advertises a "no points" loan to entice borrowers but does not intend to offer it

Question 105

The risk analysis of a mortgage lender must include all liabilities affecting income or assets that will affect the borrower's ability to fulfill the mortgage payment obligation. When the credit report does not contain a reference for each significant open debt shown on the loan application,

Answer 105

The lender must provide separate credit verification

Question 106

Inga is a loan processor that is NOT licensed as an MLO. Which of the following acts is a violation of the SAFE Act?

Answer 106

Inga circulates a business card that indicates she provides loan origination services

Question 107

State regulators have the authority to do all of the following EXCEPT

Answer 107

Impose a prison sentence for purposeful violations of the SAFE Act that cause consumer harm