Chapter 3.1 Quiz

A state licensed loan originator may only receive credit for continuing education courses under the following conditions: (a) A course must be taken within the year credit is given. (b) May take the same approved course in successive years. (c) Can use any continuing education for credit. (d) Completing a course in commercial real estate.

(a) A course must be taken within the year credit is given.

A new MLO applicant took the national exam including the UST questions and passed with an 82% score. Are there any additional testing requirements the MLO must meet? (a) No, he has met all testing requirements. (b) No, he scored over 80% on the exam. (c) Yes, since his state did not participate in the UST, he must pass a state specific test. (d) Yes, because all states still have a state specific test component.

(a) No, he has met all testing requirements.

The following individual with a unique identifier through the NMLS would need to be a licensed originator under the SAFE Act: (a) The independent contractor processor (b) The employee of a credit union (c) The employee of a lender that is regulated by a banking agency (d) A manager of a depository institution

(a) The independent contractor processor

The SAFE Act is Title V of what Act? (a) The Fair Housing Act (b) The Housing and Economic Recovery Act (c) The Mortgage Licensing and Enforcement Act (d) The Consumer Fair Mortgage Act

(b) The Housing and Economic Recovery Act

Which of the following is NOT INVOLVED in the development and maintenance of the NMLS? (a) The Conference of State Bank Supervisors (CSBS) (b) The National Department of Banking and Finance (NDBF) (c) The American Association of Residential Mortgage Regulators (AARMR) (d) The SAFE Act

(b) The National Department of Banking and Finance (NDBF)

All of the minimum standards under the SAFE Act for licensing and registration relating to background activity as a state-licensed loan originator include the following, EXCEPT: (a) The applicant has never had a loan origination license revoked in any governmental jurisdiction. (b) The applicant has failed to meet the minimum origination volume requirements based on the NMLS&R standards. (c) The applicant has not been convicted of a felony at any time involving act of fraud, dishonesty, breach of trust or money laundering. (d) The applicant has not been convicted of, or pled guilty or nolo contendere to a felony in any court anywhere during a 7-year period preceding the date of the application.

(b) The applicant has failed to meet the minimum origination volume requirements based on the NMLS&R standards.

The unique loan originator identifier number under the SAFE Act is: (a) The loan originator license number assigned by the state licensing division. (b) The assigned NMLS number that gives the public access to employment history and the publicly adjudicated disciplinary and enforcement actions. (c) The assigned number provided by the employing lender. (d) The number that must be included with any request for credit.

(b) The assigned NMLS number that gives the public access to employment history and the publicly adjudicated disciplinary and enforcement actions.

The following statement is INCORRECT as it relates to temporary authority to originate loans: (a) Requires a registered loan originator sponsored by a depository institution to be continually employed for 1 year prior to applying for temporary authority. (b) Requires a state-licensed loan originator sponsored by a depository institution to be continually employed for 30 days prior to applying for temporary authority. (c) All education and testing must be completed prior to receiving approval for temporary authority. (d) An applicant for temporary authority must have been a W2 employee.

(c) All education and testing must be completed prior to receiving approval for temporary authority.

A Licensed MLO decides to deactivate her license to raise a family. Which of the following statements is CORRECT? (a) If she gives up her license and works as a registered MLO for an exempt institution and returns to being a licensed originator within 4 years, she will be required to retake the test to become eligible for licensure again. (b) If she completely leaves the industry, but maintains her CE courses annually and returns in 6 years, she will not be required to retake the test. (c) If she completely leaves the industry and returns within 5 years, she will not be required to retake the test. (d) If she completely stops originating and does not return to the industry, she will be required to retake the test.

(c) If she completely leaves the industry and returns within 5 years, she will not be required to retake the test.

The following are NOT required topics of the 20-Hour SAFE Comprehensive pre-license course: (a) 3 hours of federal law and regulations (b) 2 hours of standards on non-traditional mortgage lending (c) 3 hours of ethics, fraud, consumer protection and fair lending (d) 3 hours of conventional financing

(d) 3 hours of conventional financing

The SAFE ACT minimum annual continuing education hour requirements for loan originators are: (a) 5 hours (b) 6 hours (c) 7 hours (d) 8 hours

(d) 8 hours

The SAFE Act defines the following requirements for a residential mortgage loan EXCEPT: (a) Primarily for personal, family or household use (b) Secured by a mortgage, deed of trust (c) The secured property is a dwelling a defined in the Truth-In-Lending Act (d) A 6-unit multi-unit residential real estate dwelling

(d) A 6-unit multi-unit residential real estate dwelling

Which of the following statements is INCORRECT relating to how the SAFE Act defines the term 'loan processor' who is claiming an exemption from licensing? (a) A person who performs clerical or support duties at the direction of and subject to the supervision, and the instruction of a state licensed loan originator. (b) A person who performs clerical or support duties at the direction of and subject to the supervision and the instruction of a registered loan originator. (c) Provides clerical support duties including the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan. (d) A person who performs clerical and support duties and advertises that he also originates.

(d) A person who performs clerical and support duties and advertises that he also originates.

Which of the following MLO information maintained by the NMLS would not be available to the public? (a) Employment information (b) Publicly adjudicated disciplinary actions (c) Unique Identifier Number (d) Home Address

(d) Home Address

The SAFE Act minimum education requirement include the following EXCEPT: (a) Complete 20 hours of approved NMLS education courses by an approved NMLS education provider. (b) Complete 3 hours of federal law and regulations, 3 hours of ethics, including fraud, consumer protection and fair lending, and 2 hours of nontraditional lending. (c) Pass a written test including ethics, federal law, state law and non-traditional lending with a passing grade of 75%. (d) If an individual fails the test, they will be able to retake the test up to 4 times within a 120-day period.

(d) If an individual fails the test, they will be able to retake the test up to 4 times within a 120-day period.

SAFE ACT is an acronym for: (a) Safe and Fair Enforcement for Mortgage Licensing Act (b) Secure and Factual Enforcement for Mortgage Licensing Act (c) Safe and Factual Enforcement for Mortgage Licensing Act (d) Secure and Fair Enforcement for Mortgage Licensing Act

(d) Secure and Fair Enforcement for Mortgage Licensing Act

Which of the following statements is TRUE under the S.A.F.E. Act relating to the surety bond, net worth or state fund requirements? (a) The surety bond requirement is a NMLS requirement. (b) All states have surety bond requirements. (c) The minimum NMLS net worth requirement for an originator is $10,000. (d) States determine the net worth, surety bond or state fund requirements.

(d) States determine the net worth, surety bond or state fund requirements.