NMLS S.A.F.E Exam Practice Questions

NMLS S.A.F.E Exam Practice Questions Enhancing protection and reducing fraud by directing states to adopt minimum uniform standards for the licensing and registration of residential mortgage loan originators was the purpose of the federal act known as the: a. S.A.F.E. Act b. Federal Trade Act c. Consumer Financial Protection Act d. Dodd-Frank Act - a. S.A.F.E. Act Loan processors and underwriters may not: a. Communicate with consumers to obtain information necessary for loan processing b. Collect information required to document a loan application c. Distribute disclosures required in accordance with federal law d. Take a loan application in the absence of a loan originator - d. Take a loan application in the absence of a loan originator The term " state licensed mortgage loan originator" applies to an individual that works for: a. Bank or credit union b. Mortgage broker only c. Mortgage broker or lender d. Mortgage lender only - c. Mortgage broker or lender Which of the following is not a part of the definition of a loan originator? a. For compensation or gain, takes residential mortgage applications b. For the expectation of compensation or gain, offers or negotiates terms of a residential mortgage loan c. Person or entity that only performs clerical duties in the processing of the documents d. For compensation or gain, negotiates residential mortgage loans - c. Person or entity that only performs clerical duties in the processing of the documents Under the S.A.F.E. Act, states and their regulatory agencies have the duty and the authority to enact licensing standards that meet the requirements of the Act, while overall responsibility for interpretation, implementation, and compliance currently lies with: a. The NMLS b. The Federal Reserve c. HUD d. The CFPB - d. The CFPB Which of the following is responsible for determining whether to issue a license approval? a. The NMLS b. The Governor c. The CFPB d. The State Regulatory Authority - d. The State Regulatory Authority An individual who is an employee of a depository institution or a subsidiary of a depository institution meets the definition of a loan originator, defined as a(n): a. Licensed mortgage loan originator b. Exempt mortgage loan originator c. Registered mortgage loan originator d. Qualified mortgage loan originator - c. Registered mortgage loan originator Which of the following is used as a method of identifying and holding licensees accountable, according to the S.A.F.E. Act? a. NMLS ID b. Records of annual loan originator volume c. Unique identifier d. CSBS number - c. Unique identifier Taneka is licensed and has received her unique identifier from the NMLS. Taneka must clearly show her unique identifier on all of the following,