Secure and Fair Enforcement Act
Which of the following is not necessary for an MLO to register with the NMLS? Pass a credit check Submit appropriate MU forms to the NMLS 10 year history in the mortgage industry Submit fingerprints to the NMLS
10 year history in the mortgage industry
Minimum educational requirements under the SAFE Act to obtain a license include all of the following, except? 2 hours non-traditional mortgage products 3 hours ethics 2 hours ethics 3 hours federal law
2 hours ethics
In order to maintain an MLO license, individual MLOs must complete which of the following? 8 hours of continuing education each year Submit annual MCRs to the NMLS Continue to meet state-specific surety bond/net worth requirements 20 hours of pre-licensing education
8 hours of continuing education each year
Which of the following best describes the NMLS? A centralized database for loan applications A centralized database and communication hub for the mortgage industry A corporation that creates loan qualifications for the FHA A corporation that approves and denies MLO license applications
A centralized database and communication hub for the mortgage industry
Which best describes the NMLS&R as created by the SAFE Act? A database used by mortgage industry employers to check the background of mortgage loan originators A system that allows mortgage originators to locate various mortgage loan products to better assist the consumer A system to assist mortgage loan originators better understand the regulations of the mortgage industry A comprehensive licensing database to be used by multiple regulators concerning mortgage loan originators
A comprehensive licensing database to be used by multiple regulators concerning mortgage loan originators
Which of the following best describes The State Model? A template for how states regulate the number of licensed MLOs reside within their state A template for how states should regulate mortgage activity in their respective state A template for how states handle consumer complaints about MLOs A law for how states should regulate mortgage activity in their respective state
A template for how states should regulate mortgage activity in their respective state
On behalf of the CSBS and AARMR, which of the following does the State Regulatory Registry (SRR) do? Select all that apply. Allows for consumers to seek out information regarding MLOs Oversee education and testing content Operate the system as a database of information about MLOs Replace the NMLS if the system is no longer fit or meets industry requirements
Allows for consumers to seek out information regarding MLOs Oversee education and testing content Operate the system as a database of information about MLOs
The NMLS issues all MLOs a unique identifier in order to: Better track MLO activity and increase transparency in the mortgage industry Increase MLO awareness on the SAFE Act Increase consumer awareness on the SAFE Act Better track MLO approvals and denials of mortgage loan applications
Better track MLO activity and increase transparency in the mortgage industry
All of the following activities are prohibited under the SAFE Act and related federal laws, except? Requiring the purchase of optional insurance products Solely considering a client's equity to qualify for a mortgage loan Commercial lending Advertising an interest rate that is not available
Commercial lending
What is the main purpose of The State Model? Encourage consumer complaints to the CFPB Encourage consumer education on the costs associated with mortgage loan origination Encourage consistency in the deregulation of the mortgage industry among all US states Encourage consistency in the regulation of the mortgage industry among all US states
Encourage consistency in the regulation of the mortgage industry among all US states
What is the main purpose of The Secure and Fair Enforcement for Mortgage Licensing Act? Improve consumer protection in the mortgage industry Inform consumers about the costs of settling real estate transactions Inform consumers about the costs of financing Improve consumer education in the licensing industry
Improve consumer protection in the mortgage industry
Which of the following are responsibilities of the NMLS? Select all that apply. Increase consumer protection and support anti-fraud measures Streamline the licensing process Issue, deny, revoke and suspend MLO licenses Establish requirements for mortgage loan originators to act in consumers' best interests
Increase consumer protection and support anti-fraud measures Streamline the licensing process Establish requirements for mortgage loan originators to act in consumers' best interests
Which of the following entities can be found in the NMLS? Select all that apply. Individual MLOs employed by depository institutions Individual MLOs employed by non-depository institutions All underwriter and processing professionals All mortgage brokers
Individual MLOs employed by depository institutions Individual MLOs employed by non-depository institutions All mortgage brokers
Which of the following does not need to obtain a license? Processors and underwriters working as independent contractors MLOs working for non-depository institutions MLOs working for depository institutions Mortgage brokers
MLOs working for depository institutions
Which database did the SAFE Act create? Nationwide Multistate Licensing System and Registry Loan Application Register Secure and Fair Enforcement Registry Mortgage Loan Originator Registry
Nationwide Multistate Licensing System and Registry
Under Regulation G, MLOs are required to: Only register with the NMLS Obtain 20 hours of pre-licensing education Obtain 8 hours of continuing education annually Register with the NMLS and obtain licenses from the states
Only register with the NMLS
If there is a need to replace the NMLS, which regulatory authority has that ability? The FTC The CFPB The FHA The State
The CFPB
Which of the following is not true regarding the state regulatory authority in relation to the SAFE Act? The state authority may amend the SAFE Act The state authority may apply and interpret the SAFE Act The state authority may implement the SAFE Act The state authority may adopt and enforce the SAFE Act
The state authority may amend the SAFE Act
Which of the following is not a reason that an MLO's license could be revoked? They've demonstrated good financial character They've please guilty or no lo contendere (no contest) to a felony in the last 7 years They failed to meet maintenance requirements They've plead guilty or no lo contendere (no contest) to a financial felony ever
They've demonstrated good financial character
What is the main purpose of the CSBS? To promote the exchange of information and knowledge between the states regarding commercial lending, servicing, and brokering To act as a single voice to Congress for the NMLS and AARMR and serves as a liaison between federal and state regulators To promote the exchange of information and knowledge between the states regarding residential mortgage lending, servicing, and brokering To act as a single voice to Congress for state banks and serves as a liaison between federal and state regulators
To act as a single voice to Congress for state banks and serves as a liaison between federal and state regulators
