10 questions, graded as you go, with the reason for every answer. No sign-up.
What this covers
SAFE Act basics
NMLS
MLO definition
Licensing requirements
Continuing education
Testing
License maintenance
Registration versus licensing
Who needs a license
Temporary authority
Reporting
State regulator authority
Sample questions
Under the SAFE Act, a mortgage loan originator is an individual who, for compensation or gain, does which of the following?
Takes a residential mortgage loan application and offers or negotiates loan terms
Appraises residential real property for a lender that is making a mortgage loan
Collects monthly payments on residential mortgage loans on behalf of an investor
Enters applicant data into a loan file under the direction of a licensed person
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A. Takes a residential mortgage loan application and offers or negotiates loan terms
The definition turns on taking an application and offering or negotiating terms for compensation or gain. Data entry under supervision is clerical work, which the Act specifically leaves out of the definition.
Reference: SAFE Act; Regulation H (12 CFR Part 1008), 1008.103
Within the 20 hours of SAFE Act pre-licensing education, how many hours must cover federal law and regulations?
2 hours
5 hours
3 hours
8 hours
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C. 3 hours
The 20 hours must include 3 hours of federal law, 3 hours of ethics (including fraud, consumer protection and fair lending) and 2 hours on nontraditional mortgage products. Two hours is the nontraditional product requirement, the usual mix-up.
Reference: SAFE Act; Regulation H (12 CFR Part 1008), 1008.105(c)
An MLO took a particular 8-hour continuing education course last year. May she take the same approved course again this year to meet the requirement?
Yes, as long as the provider is still approved by the NMLS
Yes, but only half of the hours will count toward this year
No, a course may be taken only once in an MLO's career
No, credit is not given for the same course in successive years
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D. No, credit is not given for the same course in successive years
An MLO cannot receive credit for repeating the same approved course in the same or successive years. The restriction is on back-to-back repetition, not a lifetime bar.
Reference: SAFE Act; Regulation H (12 CFR Part 1008), 1008.107(a)
