THE SAFE MORTGAGE LOAN
ORIGINATOR NATIONAL EXAM STUDY
GUIDE PRACTICE EXAM 2 WITH
COMPLETE SOLUTIONS
1. Which of the following is NOT a loan origination activity? - ANSWER-C. Assisting in a
loan modification
2. A unilateral contract is binding on: - ANSWER-A. One party
3. Loan originator organizations must keep compensation records for how many years?
- ANSWER-C. Three
4. Mortgage companies must submit a residential loan origination activity report to the
NMLSR every: - ANSWER-B. Three months
5. How many years must loan originator applicants wait after a felony fraud conviction,
in order to qualify for a license? - ANSWER-D. They aren't eligible for licensing
6. How many years must loan originator applicants wait after having a loan origination
license revoked in another state, in order to qualify for a license? - ANSWER-C. They
aren't eligible for licensing
7. Who chooses force-placed hazard insurance companies? - ANSWER-A. Lender
8. Which of the following is required for an FHA Streamline refinance loan? - ANSWER-
C. Current on mortgage payments for the last three months
9. What law addresses loan originators' compensation issues? - ANSWER-B. Loan
Origination Rule
10. Commercial telemarketers are restricted to calling: - ANSWER-C. Between 8 AM
and 9 PM
11. Commercial telemarketers must search the Do-Not-Call registry: - ANSWER-B.
Every 31 days
12. In order to send a fax, advertisers must: - ANSWER-A. Have an established
business relationship with recipient
13. The first page of an advertiser's fax must include: - ANSWER-D. Opt-out instructions
, 14. What type of real estate co-ownership is only for married couples? - ANSWER-C.
Tenancy by the entireties
15. Increasing neighborhood crime exemplifies what type of depreciation? - ANSWER-
A. Economic obsolescence
16. What agency was established to respond to consumer financial complaints? -
ANSWER-D. Consumer Financial Protection Bureau
17. What law protects homeowners from foreclosure-prevention scams? - ANSWER-B.
Mortgage Assistance Relief Services Rule
18. Individuals must file a report when they transport how much cash out of the country?
- ANSWER-B. $10,000 or more
19. What type of federal report is filed when financial institutions detect suspicious
activity? - ANSWER-A. Suspicious Activity Report
20. What agency becomes the receiver for some failing financial institutions? -
ANSWER-A. Federal Deposit Insurance Company
21. The ability-to-repay regulation applies to: - ANSWER-C. Investment home
purchases
22. Which of the following is NOT a feature of a qualified mortgage? - ANSWER-C.
Maximum debt-to-income ratio of 50 percent
23. Individuals submit an annual Report of Foreign Bank and Financial Accounts to: -
ANSWER-A. IRS
24. Which of the following is part of the Mortgage Assistance Relief Services Rule? -
ANSWER-C. Negotiators can't interfere with communication between borrowers and
25. Loan originators aren't allowed to receive compensation: - ANSWER-A. Based on
loan terms
26. High-cost home loans require a borrower to: - ANSWER-B. Receive homeownership
counseling
27. Which law prohibits discrimination by lenders? - ANSWER-C. Total amount of
payments
28. Which of the following is NOT true of high-cost home loans? - ANSWER-B.
Borrower must have a minimum credit score of 650
ORIGINATOR NATIONAL EXAM STUDY
GUIDE PRACTICE EXAM 2 WITH
COMPLETE SOLUTIONS
1. Which of the following is NOT a loan origination activity? - ANSWER-C. Assisting in a
loan modification
2. A unilateral contract is binding on: - ANSWER-A. One party
3. Loan originator organizations must keep compensation records for how many years?
- ANSWER-C. Three
4. Mortgage companies must submit a residential loan origination activity report to the
NMLSR every: - ANSWER-B. Three months
5. How many years must loan originator applicants wait after a felony fraud conviction,
in order to qualify for a license? - ANSWER-D. They aren't eligible for licensing
6. How many years must loan originator applicants wait after having a loan origination
license revoked in another state, in order to qualify for a license? - ANSWER-C. They
aren't eligible for licensing
7. Who chooses force-placed hazard insurance companies? - ANSWER-A. Lender
8. Which of the following is required for an FHA Streamline refinance loan? - ANSWER-
C. Current on mortgage payments for the last three months
9. What law addresses loan originators' compensation issues? - ANSWER-B. Loan
Origination Rule
10. Commercial telemarketers are restricted to calling: - ANSWER-C. Between 8 AM
and 9 PM
11. Commercial telemarketers must search the Do-Not-Call registry: - ANSWER-B.
Every 31 days
12. In order to send a fax, advertisers must: - ANSWER-A. Have an established
business relationship with recipient
13. The first page of an advertiser's fax must include: - ANSWER-D. Opt-out instructions
, 14. What type of real estate co-ownership is only for married couples? - ANSWER-C.
Tenancy by the entireties
15. Increasing neighborhood crime exemplifies what type of depreciation? - ANSWER-
A. Economic obsolescence
16. What agency was established to respond to consumer financial complaints? -
ANSWER-D. Consumer Financial Protection Bureau
17. What law protects homeowners from foreclosure-prevention scams? - ANSWER-B.
Mortgage Assistance Relief Services Rule
18. Individuals must file a report when they transport how much cash out of the country?
- ANSWER-B. $10,000 or more
19. What type of federal report is filed when financial institutions detect suspicious
activity? - ANSWER-A. Suspicious Activity Report
20. What agency becomes the receiver for some failing financial institutions? -
ANSWER-A. Federal Deposit Insurance Company
21. The ability-to-repay regulation applies to: - ANSWER-C. Investment home
purchases
22. Which of the following is NOT a feature of a qualified mortgage? - ANSWER-C.
Maximum debt-to-income ratio of 50 percent
23. Individuals submit an annual Report of Foreign Bank and Financial Accounts to: -
ANSWER-A. IRS
24. Which of the following is part of the Mortgage Assistance Relief Services Rule? -
ANSWER-C. Negotiators can't interfere with communication between borrowers and
25. Loan originators aren't allowed to receive compensation: - ANSWER-A. Based on
loan terms
26. High-cost home loans require a borrower to: - ANSWER-B. Receive homeownership
counseling
27. Which law prohibits discrimination by lenders? - ANSWER-C. Total amount of
payments
28. Which of the following is NOT true of high-cost home loans? - ANSWER-B.
Borrower must have a minimum credit score of 650
