SAFE MLO PRACTICE TEST 2 EXAM
2025/2026 QUESTIONS AND ANSWERS
100% PASS
a) A conventional/conforming loan on a two-family property - ANS Which of the following is
not excluded from higher priced mortgage considerations?
d) None of the above - ANS 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 - ANS 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 - ANS What is the APR?
c) Enforcing a pre-payment penalty - ANS Which of the following is permitted when servicing
or originating a HOEPA loan?
a) A conventional/conforming loan on a two-family property - ANS Which of the following is
not excluded from higher priced mortgage considerations?
c) Based off of the interest rate - ANS Loan originators may be compensated through all but
which of the following methods:
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, d) Issue a Loan Estimate within three general business days - ANS 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 - ANS Which of the
following is not a consideration of HMDA?
d) Consumer Reporting Agency - ANS What does CRA stand for?
c) The freedom to receive and sign documents in paper format - ANS 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 - ANS FACTA affords individuals which of the following considerations?
a) consumer / customer - ANS 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 -
ANS 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 - ANS 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 - ANS What is the penalty for violating the
Telemarketing Sales Rule?
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
2025/2026 QUESTIONS AND ANSWERS
100% PASS
a) A conventional/conforming loan on a two-family property - ANS Which of the following is
not excluded from higher priced mortgage considerations?
d) None of the above - ANS 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 - ANS 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 - ANS What is the APR?
c) Enforcing a pre-payment penalty - ANS Which of the following is permitted when servicing
or originating a HOEPA loan?
a) A conventional/conforming loan on a two-family property - ANS Which of the following is
not excluded from higher priced mortgage considerations?
c) Based off of the interest rate - ANS Loan originators may be compensated through all but
which of the following methods:
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, d) Issue a Loan Estimate within three general business days - ANS 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 - ANS Which of the
following is not a consideration of HMDA?
d) Consumer Reporting Agency - ANS What does CRA stand for?
c) The freedom to receive and sign documents in paper format - ANS 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 - ANS FACTA affords individuals which of the following considerations?
a) consumer / customer - ANS 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 -
ANS 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 - ANS 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 - ANS What is the penalty for violating the
Telemarketing Sales Rule?
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
