Wisconsin Mortgage Loan Originator
Test (SAFE MLO) Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which federal law established the Nationwide Multistate Licensing
System (NMLS) for mortgage loan originators?
A. Truth in Lending Act (TILA)
B. Equal Credit Opportunity Act (ECOA)
C. Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act)
D. Real Estate Settlement Procedures Act (RESPA)
Answer: C
Rationale: The SAFE Act established nationwide licensing standards for
mortgage loan originators and created the NMLS to improve accountability
and consumer protection.
, 2. Which agency is primarily responsible for administering and enforcing
the SAFE Act?
A. Federal Reserve
B. Consumer Financial Protection Bureau (CFPB)
C. Federal Deposit Insurance Corporation
D. Internal Revenue Service
Answer: B
Rationale: The CFPB oversees implementation of the SAFE Act and
supervises compliance with federal mortgage lending regulations.
3. Which law requires lenders to provide borrowers with a Loan Estimate
within three business days of receiving a loan application?
A. ECOA
B. HMDA
C. TRID Rule
D. Fair Housing Act
Answer: C
,Rationale: The TILA-RESPA Integrated Disclosure (TRID) Rule requires a
Loan Estimate to be delivered within three business days after receiving a
completed application.
4. Which disclosure replaced the HUD-1 Settlement Statement for most
residential mortgage loans?
A. Loan Estimate
B. Good Faith Estimate
C. Truth in Lending Disclosure
D. Closing Disclosure
Answer: D
Rationale: The Closing Disclosure replaced the HUD-1 for most closed-end
consumer mortgage transactions under TRID.
5. Under TRID, the borrower must generally receive the Closing
Disclosure at least:
A. One business day before closing
B. Two business days before closing
C. Three business days before closing
, D. Five business days before closing
Answer: C
Rationale: The Closing Disclosure must generally be received by the
consumer at least three business days before consummation.
6. Which law prohibits discrimination in residential mortgage lending?
A. RESPA
B. TILA
C. Equal Credit Opportunity Act (ECOA)
D. SAFE Act
Answer: C
Rationale: ECOA prohibits discrimination in any aspect of a credit
transaction based on protected characteristics.
7. Which federal law prohibits discrimination in housing-related
transactions based on race, color, religion, sex, disability, familial
status, or national origin?
A. TILA
B. Fair Housing Act
Test (SAFE MLO) Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which federal law established the Nationwide Multistate Licensing
System (NMLS) for mortgage loan originators?
A. Truth in Lending Act (TILA)
B. Equal Credit Opportunity Act (ECOA)
C. Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act)
D. Real Estate Settlement Procedures Act (RESPA)
Answer: C
Rationale: The SAFE Act established nationwide licensing standards for
mortgage loan originators and created the NMLS to improve accountability
and consumer protection.
, 2. Which agency is primarily responsible for administering and enforcing
the SAFE Act?
A. Federal Reserve
B. Consumer Financial Protection Bureau (CFPB)
C. Federal Deposit Insurance Corporation
D. Internal Revenue Service
Answer: B
Rationale: The CFPB oversees implementation of the SAFE Act and
supervises compliance with federal mortgage lending regulations.
3. Which law requires lenders to provide borrowers with a Loan Estimate
within three business days of receiving a loan application?
A. ECOA
B. HMDA
C. TRID Rule
D. Fair Housing Act
Answer: C
,Rationale: The TILA-RESPA Integrated Disclosure (TRID) Rule requires a
Loan Estimate to be delivered within three business days after receiving a
completed application.
4. Which disclosure replaced the HUD-1 Settlement Statement for most
residential mortgage loans?
A. Loan Estimate
B. Good Faith Estimate
C. Truth in Lending Disclosure
D. Closing Disclosure
Answer: D
Rationale: The Closing Disclosure replaced the HUD-1 for most closed-end
consumer mortgage transactions under TRID.
5. Under TRID, the borrower must generally receive the Closing
Disclosure at least:
A. One business day before closing
B. Two business days before closing
C. Three business days before closing
, D. Five business days before closing
Answer: C
Rationale: The Closing Disclosure must generally be received by the
consumer at least three business days before consummation.
6. Which law prohibits discrimination in residential mortgage lending?
A. RESPA
B. TILA
C. Equal Credit Opportunity Act (ECOA)
D. SAFE Act
Answer: C
Rationale: ECOA prohibits discrimination in any aspect of a credit
transaction based on protected characteristics.
7. Which federal law prohibits discrimination in housing-related
transactions based on race, color, religion, sex, disability, familial
status, or national origin?
A. TILA
B. Fair Housing Act
