SAFE MLO PRACTICE TEST 2 EXAM QUESTIONS AND ANSWERS
a) A conventional/conforming loan on a two-family property - CORRECT ANSWER✅✅Which of the
following is not excluded from higher priced mortgage considerations?
d) None of the above - CORRECT ANSWER✅✅Joan applies for a mortgage on Tuesday. By the end of
what day must the Transfer of Servicing disclosure be issued?
b) A Notice of Incomplete Application - CORRECT ANSWER✅✅An application is taken on May 1st. By
May 30th the customer has not returned most of the documentation needed in order to underwrite the
file. What must be issued by the end of the day?
b) The cost of the credit expressed as an interest rate - CORRECT ANSWER✅✅What is the APR?
c) Enforcing a pre-payment penalty - CORRECT ANSWER✅✅Which of the following is permitted when
servicing or originating a HOEPA loan?
a) A conventional/conforming loan on a two-family property - CORRECT ANSWER✅✅Which of the
following is not excluded from higher priced mortgage considerations?
c) Based off of the interest rate - CORRECT ANSWER✅✅Loan originators may be compensated through
all but which of the following methods:
d) Issue a Loan Estimate within three general business days - CORRECT ANSWER✅✅Loan Officer Larry
receives a call from Borrower Brandi during which they discuss many aspects of applying for a mortgage
to refinance her home. Among other things, Borrower Brandi shares her income, date of birth, bank
account balances, social security number, marital status, property address, years of schooling, property
value, needed loan amount, and her employer's name. After the call ends, what, if anything, must Loan
Officer Larry do?
b) Ethnicity, previous employer, loan disposition, and property location - CORRECT ANSWER✅✅Which
of the following is not a consideration of HMDA?
d) Consumer Reporting Agency - CORRECT ANSWER✅✅What does CRA stand for?
, c) The freedom to receive and sign documents in paper format - CORRECT ANSWER✅✅The E-Sign Act
requires that all of the individuals needed to electronically sign documentation be provided with:
a) A free credit report annually from all three CRAs, the protection of account number truncation on
credit card receipts, and the ability to dispute discrepancies appearing on one's credit profile - CORRECT
ANSWER✅✅FACTA affords individuals which of the following considerations?
a) consumer / customer - CORRECT ANSWER✅✅A/an _________ is an individual who uses a financial
institution's products and services while a/an _________ is an individual who has a formal business
relationship with that institution.
b) A non-current customer, but someone who was a customer within the previous 24 months - CORRECT
ANSWER✅✅Which of the following is not an exception to having to scrub a telephone number through
the Do Not Call Registry before making an outbound call?
c) Every 31 days - CORRECT ANSWER✅✅How often must telephone numbers be scrubbed through the
Do Not Call Registry in order to ensure compliance?
c) A fine of up to $42,530 per occurrence - CORRECT ANSWER✅✅What is the penalty for violating the
Telemarketing Sales Rule?
b) Politely terminate the call and refer the request internally so that Customer Cathy's number is added
to the company's internal do not call list - CORRECT ANSWER✅✅Loan Office Lenny calls Customer
Cathy to attempt to get her to refinance her mortgage. Customer Cathy politely requests not to receive
any further sales calls. What, if anything, must Loan Officer Lenny now do?
a) Finish the sales call and refrain from calling her back
b) Politely terminate the call and refer the request internally so that Customer Cathy's number is added
to the company's internal do not call list
c) Politely inform Customer Cathy that, since she is a current customer, they have the right to call her
d) End the phone call and move on to the next call
a) A conventional/conforming loan on a two-family property - CORRECT ANSWER✅✅Which of the
following is not excluded from higher priced mortgage considerations?
d) None of the above - CORRECT ANSWER✅✅Joan applies for a mortgage on Tuesday. By the end of
what day must the Transfer of Servicing disclosure be issued?
b) A Notice of Incomplete Application - CORRECT ANSWER✅✅An application is taken on May 1st. By
May 30th the customer has not returned most of the documentation needed in order to underwrite the
file. What must be issued by the end of the day?
b) The cost of the credit expressed as an interest rate - CORRECT ANSWER✅✅What is the APR?
c) Enforcing a pre-payment penalty - CORRECT ANSWER✅✅Which of the following is permitted when
servicing or originating a HOEPA loan?
a) A conventional/conforming loan on a two-family property - CORRECT ANSWER✅✅Which of the
following is not excluded from higher priced mortgage considerations?
c) Based off of the interest rate - CORRECT ANSWER✅✅Loan originators may be compensated through
all but which of the following methods:
d) Issue a Loan Estimate within three general business days - CORRECT ANSWER✅✅Loan Officer Larry
receives a call from Borrower Brandi during which they discuss many aspects of applying for a mortgage
to refinance her home. Among other things, Borrower Brandi shares her income, date of birth, bank
account balances, social security number, marital status, property address, years of schooling, property
value, needed loan amount, and her employer's name. After the call ends, what, if anything, must Loan
Officer Larry do?
b) Ethnicity, previous employer, loan disposition, and property location - CORRECT ANSWER✅✅Which
of the following is not a consideration of HMDA?
d) Consumer Reporting Agency - CORRECT ANSWER✅✅What does CRA stand for?
, c) The freedom to receive and sign documents in paper format - CORRECT ANSWER✅✅The E-Sign Act
requires that all of the individuals needed to electronically sign documentation be provided with:
a) A free credit report annually from all three CRAs, the protection of account number truncation on
credit card receipts, and the ability to dispute discrepancies appearing on one's credit profile - CORRECT
ANSWER✅✅FACTA affords individuals which of the following considerations?
a) consumer / customer - CORRECT ANSWER✅✅A/an _________ is an individual who uses a financial
institution's products and services while a/an _________ is an individual who has a formal business
relationship with that institution.
b) A non-current customer, but someone who was a customer within the previous 24 months - CORRECT
ANSWER✅✅Which of the following is not an exception to having to scrub a telephone number through
the Do Not Call Registry before making an outbound call?
c) Every 31 days - CORRECT ANSWER✅✅How often must telephone numbers be scrubbed through the
Do Not Call Registry in order to ensure compliance?
c) A fine of up to $42,530 per occurrence - CORRECT ANSWER✅✅What is the penalty for violating the
Telemarketing Sales Rule?
b) Politely terminate the call and refer the request internally so that Customer Cathy's number is added
to the company's internal do not call list - CORRECT ANSWER✅✅Loan Office Lenny calls Customer
Cathy to attempt to get her to refinance her mortgage. Customer Cathy politely requests not to receive
any further sales calls. What, if anything, must Loan Officer Lenny now do?
a) Finish the sales call and refrain from calling her back
b) Politely terminate the call and refer the request internally so that Customer Cathy's number is added
to the company's internal do not call list
c) Politely inform Customer Cathy that, since she is a current customer, they have the right to call her
d) End the phone call and move on to the next call
