Enhancing protection and reducing fraud by directing states to adopt minimum uniform
standards for the licensing and registration of residential mortgage loan originators was the
purpose of the federal act known as the:
a. S.A.F.E. Act
b. Federal Trade Act
c. Consumer Financial Protection Act
d. Dodd-Frank Act - ANSWER a. S.A.F.E. Act
Loan processors and underwriters may not:
a. Communicate with consumers to obtain information necessary for loan processing
b. Collect information required to document a loan application
c. Distribute disclosures required in accordance with federal law
d. Take a loan application in the absence of a loan originator - ANSWER d. Take a loan
application in the absence of a loan originator
The term " state licensed mortgage loan originator" applies to an individual that works for:
a. Bank or credit union
b. Mortgage broker only
c. Mortgage broker or lender
d. Mortgage lender only - ANSWER c. Mortgage broker or lender
Which of the following is not a part of the definition of a loan originator?
1
,a. For compensation or gain, takes residential mortgage applications
b. For the expectation of compensation or gain, offers or negotiates terms of a residential
mortgage loan
c. Person or entity that only performs clerical duties in the processing of the documents
d. For compensation or gain, negotiates residential mortgage loans - ANSWER c. Per-
son or entity that only performs clerical duties in the processing of the documents
Under the S.A.F.E. Act, states and their regulatory agencies have the duty and the authority
to enact licensing standards that meet the requirements of the Act, while overall responsibil-
ity for interpretation, implementation, and compliance currently lies with:
a. The NMLS
b. The Federal Reserve
c. HUD
d. The CFPB - ANSWER d. The CFPB
Which of the following is responsible for determining whether to issue a license approval?
a. The NMLS
b. The Governor
c. The CFPB
d. The State Regulatory Authority - ANSWER d. The State Regulatory Authority
An individual who is an employee of a depository institution or a subsidiary of a depository
institution meets the definition of a loan originator, defined as a(n):
a. Licensed mortgage loan originator
b. Exempt mortgage loan originator
2
,c. Registered mortgage loan originator
d. Qualified mortgage loan originator - ANSWER c. Registered mortgage loan origina-
tor
Which of the following is used as a method of identifying and holding licensees accountable,
according to the S.A.F.E. Act?
a. NMLS ID
b. Records of annual loan originator volume
c. Unique identifier
d. CSBS number - ANSWER c. Unique identifier
Taneka is licensed and has received her unique identifier from the NMLS. Taneka must
clearly show her unique identifier on all of the following, except:
a. Residential mortgage loan applications
b. Solicitations and advertisements
c. Websites
d. Interoffice communications - ANSWER d. Interoffice communications
Each of the following is true about the Department of Housing and Urban Development
(HUD), except:
a. The Federal Housing Administration, with its liberal-eligibility FHA loan programs, oper-
ates under HUD's authority
b. It provides or makes referrals related to housing counseling for loan applicants seeking a
HECM or high-cost home loan
c. Public housing and multi-family housing fall under its purview
d. It has a major role in overseeing the mortgage industry - ANSWER d. It has a major
role in overseeing the mortgage industry
3
, Which of the following is not a part of the definition of a loan originator?
a. For compensation or gain, takes residential mortgage applications
b. For the expectation of compensation or gain, offers or negotiates terms of a residential
mortgage loan
c. Person or entity that only performs real estate brokerage activities
d. For compensation or gain, negotiates residential mortgage loans - ANSWER c. Per-
son or entity that only performs real estate brokerage activities
Which of the following would most likely not be considered a federally-regulated mortgage
loan as defined by RESPA?
a. Construction Loans
b. Subprime loan
c. FHA loan
d. Conventional loan - ANSWER a. Construction Loans
Mortgage loan originator Trevor Tibbs has accepted a loan application for a dwelling that is a
mobile home not permanently affixed to the land. Does this mobile home meet the require-
ments necessary for it to be considered security for a residential mortgage loan?
a. Yes, a dwelling includes a structure whether or not that structure is attached to real prop-
erty
b. No, dwellings must be permanently attached to real property
c. No, mobile homes are classified as personal property, not real property
d. Yes, as long as the real property upon which the mobile home will be located is in the bor-
rower's name, the loan may be a residential mortgage loan - ANSWER a. Yes, a dwell-
ing includes a structure whether or not that structure is attached to real property
4
standards for the licensing and registration of residential mortgage loan originators was the
purpose of the federal act known as the:
a. S.A.F.E. Act
b. Federal Trade Act
c. Consumer Financial Protection Act
d. Dodd-Frank Act - ANSWER a. S.A.F.E. Act
Loan processors and underwriters may not:
a. Communicate with consumers to obtain information necessary for loan processing
b. Collect information required to document a loan application
c. Distribute disclosures required in accordance with federal law
d. Take a loan application in the absence of a loan originator - ANSWER d. Take a loan
application in the absence of a loan originator
The term " state licensed mortgage loan originator" applies to an individual that works for:
a. Bank or credit union
b. Mortgage broker only
c. Mortgage broker or lender
d. Mortgage lender only - ANSWER c. Mortgage broker or lender
Which of the following is not a part of the definition of a loan originator?
1
,a. For compensation or gain, takes residential mortgage applications
b. For the expectation of compensation or gain, offers or negotiates terms of a residential
mortgage loan
c. Person or entity that only performs clerical duties in the processing of the documents
d. For compensation or gain, negotiates residential mortgage loans - ANSWER c. Per-
son or entity that only performs clerical duties in the processing of the documents
Under the S.A.F.E. Act, states and their regulatory agencies have the duty and the authority
to enact licensing standards that meet the requirements of the Act, while overall responsibil-
ity for interpretation, implementation, and compliance currently lies with:
a. The NMLS
b. The Federal Reserve
c. HUD
d. The CFPB - ANSWER d. The CFPB
Which of the following is responsible for determining whether to issue a license approval?
a. The NMLS
b. The Governor
c. The CFPB
d. The State Regulatory Authority - ANSWER d. The State Regulatory Authority
An individual who is an employee of a depository institution or a subsidiary of a depository
institution meets the definition of a loan originator, defined as a(n):
a. Licensed mortgage loan originator
b. Exempt mortgage loan originator
2
,c. Registered mortgage loan originator
d. Qualified mortgage loan originator - ANSWER c. Registered mortgage loan origina-
tor
Which of the following is used as a method of identifying and holding licensees accountable,
according to the S.A.F.E. Act?
a. NMLS ID
b. Records of annual loan originator volume
c. Unique identifier
d. CSBS number - ANSWER c. Unique identifier
Taneka is licensed and has received her unique identifier from the NMLS. Taneka must
clearly show her unique identifier on all of the following, except:
a. Residential mortgage loan applications
b. Solicitations and advertisements
c. Websites
d. Interoffice communications - ANSWER d. Interoffice communications
Each of the following is true about the Department of Housing and Urban Development
(HUD), except:
a. The Federal Housing Administration, with its liberal-eligibility FHA loan programs, oper-
ates under HUD's authority
b. It provides or makes referrals related to housing counseling for loan applicants seeking a
HECM or high-cost home loan
c. Public housing and multi-family housing fall under its purview
d. It has a major role in overseeing the mortgage industry - ANSWER d. It has a major
role in overseeing the mortgage industry
3
, Which of the following is not a part of the definition of a loan originator?
a. For compensation or gain, takes residential mortgage applications
b. For the expectation of compensation or gain, offers or negotiates terms of a residential
mortgage loan
c. Person or entity that only performs real estate brokerage activities
d. For compensation or gain, negotiates residential mortgage loans - ANSWER c. Per-
son or entity that only performs real estate brokerage activities
Which of the following would most likely not be considered a federally-regulated mortgage
loan as defined by RESPA?
a. Construction Loans
b. Subprime loan
c. FHA loan
d. Conventional loan - ANSWER a. Construction Loans
Mortgage loan originator Trevor Tibbs has accepted a loan application for a dwelling that is a
mobile home not permanently affixed to the land. Does this mobile home meet the require-
ments necessary for it to be considered security for a residential mortgage loan?
a. Yes, a dwelling includes a structure whether or not that structure is attached to real prop-
erty
b. No, dwellings must be permanently attached to real property
c. No, mobile homes are classified as personal property, not real property
d. Yes, as long as the real property upon which the mobile home will be located is in the bor-
rower's name, the loan may be a residential mortgage loan - ANSWER a. Yes, a dwell-
ing includes a structure whether or not that structure is attached to real property
4
