NMLS SAFE EXAM 2026 ACTUAL EXAM
COMPLETE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY
GRADED A+
What does FNMA stand for? - CORRECT ANSWER ✔✔- Fannie Mae, or the Federal
National Mortgage Association
What does FHLMC stand for? - CORRECT ANSWER ✔✔- Freddie Mac, or the
Federal Home Loan Mortgage Corporation
What does GNMA stand for? - CORRECT ANSWER ✔✔- Ginnie Mae, Government
National Mortgage Association
Who does HUD oversee? - CORRECT ANSWER ✔✔- The Fair Housing Act and other
fair housing laws
What do the Fair Housing Laws protect against? - CORRECT ANSWER ✔✔-
discrimination in the provision of *HOUSING* and *financing for housing*
Government Sponsored Enterprises (GSE) - CORRECT ANSWER ✔✔- Fannie Mae,
Freddie Mac and Ginnie Mae
Pg. 1
,-operate as private entities that were created to serve a public purpose
what's the main purpose of fannie mae and freddie mac? - CORRECT ANSWER
✔✔- establish standards for conventional conforming mortgages -> then bundled
as financial products and sold to investors in the secondary market
what's the main purpose of ginnie mae? - CORRECT ANSWER ✔✔- provides
insurance to investors on bundles of *non-conventional* loans
Department of Justice (DOJ) - CORRECT ANSWER ✔✔- enforces Fair Housing and
other federal laws
-serves as the *"prosecutor"* in cases where the federal government sues a MLO
what's the difference between the DOJ and HUD? - CORRECT ANSWER ✔✔- the
DOJ *ENFORCES* Fair Housing laws
HUD *OVERSEES* Fair Housing laws
Financial Crimes Enforcement Network (FinCEN) - CORRECT ANSWER ✔✔-
regulates and enforces financial crime laws (USA Patriot-Act and Anti-Money
Laundering laws)
Secretary of the Treasury - CORRECT ANSWER ✔✔- regulates and enforces
financial crime laws (USA Patriot-Act and Anti-Money Laundering laws)
who regulates/enforces financial crime laws? - CORRECT ANSWER ✔✔- financial
crimes enforcement network (FinCEN) and the secretary of the treasury
Pg. 2
,EXAMPLE of the FinCEN & Secretary of the Treasury fighting financial crime -
CORRECT ANSWER ✔✔- battling terrorists' use of money laundering as a tool to
support their activities
The Federal Trade Commission (FTC) - CORRECT ANSWER ✔✔- oversees activities
that CROSS state lines (when an MLO writes a loan for Pennsylvania out of
Michigan)
The Federal Communications Commission (FCC) - CORRECT ANSWER ✔✔- deals
with the communication of MLO's utilizing the internet and telephone to conduct
their business
Securities and Exchange Commission (SEC) - CORRECT ANSWER ✔✔- oversees the
secondary mortgage market (where MBS are dealt)
State Authority VS CFPB - CORRECT ANSWER ✔✔- main difference: jurisdiction
CFPB- focuses on federal law and MLO's
States-focus on the industry in their particular state
*THE STATES AND ONLY THE STATES CAN ISSUE, DENY, REVOKE OR SUSPEND AN
MLO'S LICENSE OR REGISTRATION*
Similarity between State Authority & CFPB - CORRECT ANSWER ✔✔- examinations
(audits) and reporting
Pg. 3
, what do examinations include? - CORRECT ANSWER ✔✔- - pre-examination:
determine the scope of the investigation
- institution licensing: review the company's ownership, structure, and affiliations
- human resources: review individual licenses and renewals
- compliance management: is the company client with NMLS rules and
regulations?
- operational management: personnel, training, systems, reporting, and internal
audits
- financial condition review: does the company meet necessary financial
standards?
- mortgage call review: did the company meet quarterly and annual reporting
requirements?
- interviews: w/ personnel and affiliates
who's responsible for complying with the request of the regulator to pay for all
costs associated w/ the examination? - CORRECT ANSWER ✔✔- the financial
institution
Mortgage Call Reports - CORRECT ANSWER ✔✔- filed both annually and quarterly.
-collected by the NMLS from the MLO on behalf of the regulators
Cease & Desist Orders - CORRECT ANSWER ✔✔- legal order that requires the
recipient to immediately stop a specific action
-For MLO's this is considered temporary until a hearing takes place
Pg. 4
COMPLETE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY
GRADED A+
What does FNMA stand for? - CORRECT ANSWER ✔✔- Fannie Mae, or the Federal
National Mortgage Association
What does FHLMC stand for? - CORRECT ANSWER ✔✔- Freddie Mac, or the
Federal Home Loan Mortgage Corporation
What does GNMA stand for? - CORRECT ANSWER ✔✔- Ginnie Mae, Government
National Mortgage Association
Who does HUD oversee? - CORRECT ANSWER ✔✔- The Fair Housing Act and other
fair housing laws
What do the Fair Housing Laws protect against? - CORRECT ANSWER ✔✔-
discrimination in the provision of *HOUSING* and *financing for housing*
Government Sponsored Enterprises (GSE) - CORRECT ANSWER ✔✔- Fannie Mae,
Freddie Mac and Ginnie Mae
Pg. 1
,-operate as private entities that were created to serve a public purpose
what's the main purpose of fannie mae and freddie mac? - CORRECT ANSWER
✔✔- establish standards for conventional conforming mortgages -> then bundled
as financial products and sold to investors in the secondary market
what's the main purpose of ginnie mae? - CORRECT ANSWER ✔✔- provides
insurance to investors on bundles of *non-conventional* loans
Department of Justice (DOJ) - CORRECT ANSWER ✔✔- enforces Fair Housing and
other federal laws
-serves as the *"prosecutor"* in cases where the federal government sues a MLO
what's the difference between the DOJ and HUD? - CORRECT ANSWER ✔✔- the
DOJ *ENFORCES* Fair Housing laws
HUD *OVERSEES* Fair Housing laws
Financial Crimes Enforcement Network (FinCEN) - CORRECT ANSWER ✔✔-
regulates and enforces financial crime laws (USA Patriot-Act and Anti-Money
Laundering laws)
Secretary of the Treasury - CORRECT ANSWER ✔✔- regulates and enforces
financial crime laws (USA Patriot-Act and Anti-Money Laundering laws)
who regulates/enforces financial crime laws? - CORRECT ANSWER ✔✔- financial
crimes enforcement network (FinCEN) and the secretary of the treasury
Pg. 2
,EXAMPLE of the FinCEN & Secretary of the Treasury fighting financial crime -
CORRECT ANSWER ✔✔- battling terrorists' use of money laundering as a tool to
support their activities
The Federal Trade Commission (FTC) - CORRECT ANSWER ✔✔- oversees activities
that CROSS state lines (when an MLO writes a loan for Pennsylvania out of
Michigan)
The Federal Communications Commission (FCC) - CORRECT ANSWER ✔✔- deals
with the communication of MLO's utilizing the internet and telephone to conduct
their business
Securities and Exchange Commission (SEC) - CORRECT ANSWER ✔✔- oversees the
secondary mortgage market (where MBS are dealt)
State Authority VS CFPB - CORRECT ANSWER ✔✔- main difference: jurisdiction
CFPB- focuses on federal law and MLO's
States-focus on the industry in their particular state
*THE STATES AND ONLY THE STATES CAN ISSUE, DENY, REVOKE OR SUSPEND AN
MLO'S LICENSE OR REGISTRATION*
Similarity between State Authority & CFPB - CORRECT ANSWER ✔✔- examinations
(audits) and reporting
Pg. 3
, what do examinations include? - CORRECT ANSWER ✔✔- - pre-examination:
determine the scope of the investigation
- institution licensing: review the company's ownership, structure, and affiliations
- human resources: review individual licenses and renewals
- compliance management: is the company client with NMLS rules and
regulations?
- operational management: personnel, training, systems, reporting, and internal
audits
- financial condition review: does the company meet necessary financial
standards?
- mortgage call review: did the company meet quarterly and annual reporting
requirements?
- interviews: w/ personnel and affiliates
who's responsible for complying with the request of the regulator to pay for all
costs associated w/ the examination? - CORRECT ANSWER ✔✔- the financial
institution
Mortgage Call Reports - CORRECT ANSWER ✔✔- filed both annually and quarterly.
-collected by the NMLS from the MLO on behalf of the regulators
Cease & Desist Orders - CORRECT ANSWER ✔✔- legal order that requires the
recipient to immediately stop a specific action
-For MLO's this is considered temporary until a hearing takes place
Pg. 4
