SAFE Mortgage Loan Originator Test
National Component Content Outline
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Legislative Updates - CORRECT ANSWER - Changes to statutes, regulations, and rules
SAFE MLO Test Structure - CORRECT ANSWER - 125 multiple-choice items in 5 major
content areas
Federal Mortgage-Related Laws - CORRECT ANSWER - Laws governing mortgage
industry at the federal level
RESPA - CORRECT ANSWER - Real Estate Settlement Procedures Act
Definition of 'mortgage broker' - CORRECT ANSWER - Explanation of the term
'mortgage broker'
Prohibitions, limitations, and exemptions set by RESPA - CORRECT ANSWER - Rules
and exceptions under RESPA
Types of loans to which RESPA is applicable - CORRECT ANSWER - Loans covered by
RESPA regulations
Settlement services - CORRECT ANSWER - Services provided during the settlement
process
Required disclosures to the customer for an MLO who is also a broker - CORRECT
ANSWER - Information that must be disclosed to customers
, Bona fide discount points and application during a mortgage loan origination - CORRECT
ANSWER - Discount points and their application in mortgage origination
Required information from a borrower that must be included on an application - CORRECT
ANSWER - Information that must be provided by borrowers on loan applications
Knowledge of third party settlement service providers - CORRECT ANSWER -
Understanding of third party service providers in settlement process
Overview of the foreclosure process - CORRECT ANSWER - Understanding the process
of foreclosure
Initial escrow statements - CORRECT ANSWER - Statements provided at the beginning
of an escrow account
Changes that can be made to the HUD-1/Good Faith Estimate - CORRECT ANSWER -
Modifications allowed for HUD-1/Good Faith Estimate
Issuing a Good Faith Estimate when not all information has been provided - CORRECT
ANSWER - Providing an estimate without complete information
Equal Credit Opportunity Act (ECOA) - CORRECT ANSWER - Law prohibiting credit
discrimination
Factors that cannot be used to discriminate - CORRECT ANSWER - Criteria that cannot
be used for credit discrimination
Notifying borrower of action taken - CORRECT ANSWER - Informing the borrower of
decisions taken
National Component Content Outline
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Legislative Updates - CORRECT ANSWER - Changes to statutes, regulations, and rules
SAFE MLO Test Structure - CORRECT ANSWER - 125 multiple-choice items in 5 major
content areas
Federal Mortgage-Related Laws - CORRECT ANSWER - Laws governing mortgage
industry at the federal level
RESPA - CORRECT ANSWER - Real Estate Settlement Procedures Act
Definition of 'mortgage broker' - CORRECT ANSWER - Explanation of the term
'mortgage broker'
Prohibitions, limitations, and exemptions set by RESPA - CORRECT ANSWER - Rules
and exceptions under RESPA
Types of loans to which RESPA is applicable - CORRECT ANSWER - Loans covered by
RESPA regulations
Settlement services - CORRECT ANSWER - Services provided during the settlement
process
Required disclosures to the customer for an MLO who is also a broker - CORRECT
ANSWER - Information that must be disclosed to customers
, Bona fide discount points and application during a mortgage loan origination - CORRECT
ANSWER - Discount points and their application in mortgage origination
Required information from a borrower that must be included on an application - CORRECT
ANSWER - Information that must be provided by borrowers on loan applications
Knowledge of third party settlement service providers - CORRECT ANSWER -
Understanding of third party service providers in settlement process
Overview of the foreclosure process - CORRECT ANSWER - Understanding the process
of foreclosure
Initial escrow statements - CORRECT ANSWER - Statements provided at the beginning
of an escrow account
Changes that can be made to the HUD-1/Good Faith Estimate - CORRECT ANSWER -
Modifications allowed for HUD-1/Good Faith Estimate
Issuing a Good Faith Estimate when not all information has been provided - CORRECT
ANSWER - Providing an estimate without complete information
Equal Credit Opportunity Act (ECOA) - CORRECT ANSWER - Law prohibiting credit
discrimination
Factors that cannot be used to discriminate - CORRECT ANSWER - Criteria that cannot
be used for credit discrimination
Notifying borrower of action taken - CORRECT ANSWER - Informing the borrower of
decisions taken
