MLO National Prep Test| 104 QUESTIONS| WITH COMPLETE SOLUTIONS

S.A.F.E. ACT Correct Answer: * Secure And Fair Enforcement Mortgage Licensing Act * 2008 *Establishes minimum standards for licensing and registering of mortgage loan originators. *Everyone has to be registered with NMLS&R N.M.L.S.&R. Correct Answer: National Mortgage Licensing System and Registry: * NMLS-A mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators * Provides uniform license applications and reporting requirements for State-licensed loan originators *Provides a comprehensive licensing and supervisory database. *Aggregates and improves the flow of information to and between regulators. * Provides increased accountability and tracking of loan originators. * Streamlines the licensing process. * Enhances consumer protection and supports anti-fraud measures. * Provides consumers with easily accessible information. * Establishes a means by which residential Mortgage Loan Originators would be required to act in the best interests of the consumer. * Facilitates responsible behavior in the sub-prime mortgage market place and provides comprehensive training and examination requirements related to sub-prime mortgage lending. * Facilitates the collection and disbursement of consumer complaints on behalf of State and Federal mortgage regulators. RESPA Correct Answer: *Real Estate Settlement Procedures Act *Regulation X Enacted in 1974 *Requires that all mortgage loan compensation be disclosed in HUD-1 Statement. RESPA requires that a preliminary copy of the HUD-1 Settlement Statement be provided to the borrower if requested 1 business day prior to closing RESPA CPVERAGE Correct Answer: Applies to all "federally related mortgage loans - Any loan secured by a first or subordinate lien on residential real property designed for the occupancy of one to four families and made, in whole or in part, by a lender whose deposits and accounts are insured or regulated by an agency of the federal government. RESPA EXEMPTIONS Correct Answer: A - Agricultural - 25 acres or more B - Business, regardless of personal gurantee C - Commercial T - Temporary Financing V - vacant Land RESPA - Regulation X Correct Answer