Nmls Safe Mortgage Loan Originator Exam A+ Grade Assured Complete Solutions And Verified Answers

NMLS EXAMms




Exam Solution
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MLO SAFE Exam 2026 A+ GRADE ASSURED COMPLETE
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SOLUTIONS AND VERIFIED ANSWERS (58689) ms ms ms ms




QUESTION 1 ms




What are the types of Reverse Mortgages?
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ANSWER

HECM, Proprietary, Single purpose
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QUESTION 2 ms




Finance charges paid upfront at closing are called ..?
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ANSWER

Prepaid finance charges
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QUESTION 3 ms




What Laws require 5 year records retention?
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ANSWER

TILA-TRID, RESPA, BSA/AML,ms ms




QUESTION 4 ms




What Laws require 3 years records retention?
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ANSWER

HMDA, TILA ms




QUESTION 5 ms

,What laws does FTC look over?
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ANSWER

TSR, FCRA-Red Flags Rule, Fact Act Disposal Rule, ECOA, Safeguards Rule (GLBA)
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QUESTION 6 ms




What are the 3 types of rate caps for ARMs?
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ANSWER

initial, subsequent, lifetime
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QUESTION 7 ms




What are the 3 insititutions originating mortgage loans?
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ANSWER

Depository Institutions, Mortgage Lenders/Bankers, Mortgage Brokers
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QUESTION 8 ms




What is a financial institution that provides funds to mortgage lenders/bankers throu
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gh a line of credit?
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ANSWER

Warehouse Lenders - (mortgage lenders typically use this to finance mortgage loans)
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QUESTION 9 ms




What is a financial institution that fund mortgage loans without direct contact with th
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e borrowers (via third parties) who then match borrower with appropriate loan?
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ANSWER

Wholesale Lenders ms




QUESTION 10 ms




The SAFE act requires MCRs to be submitted how often?
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ANSWER

quarterly (or within 45 days of end of calendar quarter)
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, QUESTION 11 ms




What are the hours of pre-licensing education?
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ANSWER

20 hours - 3 hours of Fed Law, 3 hours of Ethics, 2 hours of standards on non-
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traditional mortgages, 12 hours undefined instruction on mortgage origination
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QUESTION 12 ms




An individual must retake the MLO test if he or she fails to maintain a valid license fo
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r how many years?
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ANSWER

5 years or longer
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QUESTION 13 ms




What is the renewal period for MLO state-licenses?
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ANSWER

November 1-December 31 ms ms




QUESTION 14 ms




What are the CE requirements for MLO license?
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ANSWER

8 hours-
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3 hours of Fed Law, 2 hours of Ethics, 2 hours of nontraditional standards, 1 hour undefined mortg
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age originiation
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QUESTION 15 ms




What does the Temporary Authority to Operate do?
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ANSWER

allows an MLO working for a depository institution who wants to begin working for a non-
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depository OR state-licensed MLO moving interstate may originate for 120 days
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QUESTION 16 ms




A registered MLO working for a depository institution must be registered in NMLSR as
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an LO for how long to have the temporary authority to operate?
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