NMLS S.A.F.E Exam Practice Questions with correct answers

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