UST UPDATED ACTUAL Exam
Questions and CORRECT Answers
A loan primarily for personal, family or household use that is secured by a mortgage or deed of
trust is a(n) - CORRECT ANSWER - residential mortgage loan.
Which of the following individuals must be licensed as a loan originator? - CORRECT
ANSWER - A licensed attorney who works part time for compensation with a lender
originating loans.
In order to be licensed as a mortgage loan originator, an individual must - CORRECT
ANSWER - an applicant must complete the required prelicense education and pass a
written licensing exam; obtain a unique identifier from the NMLS, complete an application and
pay the required licensing fees. A letter of recommendation from a former employer is not a
requirement for licensure.
A loan originator license is valid for _____ year(s). - CORRECT ANSWER - 12 months
and must be renewed each year.
A state-licensed loan originator is - CORRECT ANSWER - is an employee of a
nondepository institution and is licensed by the state.
The administrative authority of the state regulatory agency includes all of the following -
CORRECT ANSWER - State regulators such as a commissioner, director or
superintendent are not responsible for determining criminal sentences for violators of the SAFE
Act.
loan originator - CORRECT ANSWER - does not include an individual who performs
only real estate brokerage activities and is licensed or registered in the state to do so. A mortgage
loan originator is an individual who, for compensation or gain, offers or negotiates the terms of a
residential mortgage loan and/or takes residential mortgage loan applications.
, Investigations conducted by a state licensing authority include all of the following - CORRECT
ANSWER - a state licensing authority may administer oaths, subpoena witnesses, require
the production of books and records and control access to documents. An investigation may not
include the suspension of a person's license without making the person aware of why an action
may be taken and the right to request a hearing.
Which of the following is within the authority of the state regulators responsible for the effective
system of supervision and enforcement of the SAFE Act? - CORRECT ANSWER -A
state regulator is authorized to carry out the administration of the SAFE Act but is not involved
in any criminal prosecution of a violator or in making a decision as to what penalty will be
imposed.
The method of identifying licensees and the ability to hold them accountable is through the use
of - CORRECT ANSWER - a unique identifier is a number or other identifier assigned by
protocols established by the NMLS and federal banking agencies that permanently identifies a
licensee and which may be used to track and hold accountable a licensee or individual involved
in the mortgage lending industry.
a state regulator - CORRECT ANSWER - is responsible for determining whether an
applicant for a loan originator license has met the financial responsibility requirements for
licensure. They are the ultimate decision maker in terms of granting a license.
The NMLS - CORRECT ANSWER - consolidates and makes licensing records available
to state regulators.
Under the SAFE Act, how many total hours of ethics coursework are required to satisfy the
annual continuing education requirement? - CORRECT ANSWER - a loan originator
licensee must complete at least two hours of NMLS-approved ethics training each year. A total
of eight hours of coursework is required each year to meet the continuing education requirement.
In terms of prelicensing education, how many hours of coursework in ethics are required for
licensure? - CORRECT ANSWER - a mortgage loan originator must complete at least 20
hours of NMLS-approved prelicense education, with at least three of those hours consisting of
ethics coursework.
Questions and CORRECT Answers
A loan primarily for personal, family or household use that is secured by a mortgage or deed of
trust is a(n) - CORRECT ANSWER - residential mortgage loan.
Which of the following individuals must be licensed as a loan originator? - CORRECT
ANSWER - A licensed attorney who works part time for compensation with a lender
originating loans.
In order to be licensed as a mortgage loan originator, an individual must - CORRECT
ANSWER - an applicant must complete the required prelicense education and pass a
written licensing exam; obtain a unique identifier from the NMLS, complete an application and
pay the required licensing fees. A letter of recommendation from a former employer is not a
requirement for licensure.
A loan originator license is valid for _____ year(s). - CORRECT ANSWER - 12 months
and must be renewed each year.
A state-licensed loan originator is - CORRECT ANSWER - is an employee of a
nondepository institution and is licensed by the state.
The administrative authority of the state regulatory agency includes all of the following -
CORRECT ANSWER - State regulators such as a commissioner, director or
superintendent are not responsible for determining criminal sentences for violators of the SAFE
Act.
loan originator - CORRECT ANSWER - does not include an individual who performs
only real estate brokerage activities and is licensed or registered in the state to do so. A mortgage
loan originator is an individual who, for compensation or gain, offers or negotiates the terms of a
residential mortgage loan and/or takes residential mortgage loan applications.
, Investigations conducted by a state licensing authority include all of the following - CORRECT
ANSWER - a state licensing authority may administer oaths, subpoena witnesses, require
the production of books and records and control access to documents. An investigation may not
include the suspension of a person's license without making the person aware of why an action
may be taken and the right to request a hearing.
Which of the following is within the authority of the state regulators responsible for the effective
system of supervision and enforcement of the SAFE Act? - CORRECT ANSWER -A
state regulator is authorized to carry out the administration of the SAFE Act but is not involved
in any criminal prosecution of a violator or in making a decision as to what penalty will be
imposed.
The method of identifying licensees and the ability to hold them accountable is through the use
of - CORRECT ANSWER - a unique identifier is a number or other identifier assigned by
protocols established by the NMLS and federal banking agencies that permanently identifies a
licensee and which may be used to track and hold accountable a licensee or individual involved
in the mortgage lending industry.
a state regulator - CORRECT ANSWER - is responsible for determining whether an
applicant for a loan originator license has met the financial responsibility requirements for
licensure. They are the ultimate decision maker in terms of granting a license.
The NMLS - CORRECT ANSWER - consolidates and makes licensing records available
to state regulators.
Under the SAFE Act, how many total hours of ethics coursework are required to satisfy the
annual continuing education requirement? - CORRECT ANSWER - a loan originator
licensee must complete at least two hours of NMLS-approved ethics training each year. A total
of eight hours of coursework is required each year to meet the continuing education requirement.
In terms of prelicensing education, how many hours of coursework in ethics are required for
licensure? - CORRECT ANSWER - a mortgage loan originator must complete at least 20
hours of NMLS-approved prelicense education, with at least three of those hours consisting of
ethics coursework.
