NMLS S.A.F.E EXAM PRACTICE
QUESTIONS
Enhancing,protection,and,reducing,fraud,by,directing,states,to,adopt,minimum,uniform,sta
ndards,for,the,licensing,and,registration,of,residential,mortgage,loan,originators,was,the,p
urpose,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,-,ans-✔✔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,-,ans-
✔✔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,-,ans-✔✔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,-,ans-
✔✔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,authorit
y,to,enact,licensing,standards,that,meet,the,requirements,of,the,Act,,while,overall,responsi
bility,for,interpretation,,implementation,,and,compliance,currently,lies,with:
a.,The,NMLS
b.,The,Federal,Reserve
c.,HUD
d.,The,CFPB,-,ans-✔✔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,-,ans-✔✔d.,The,State,Regulatory,Authority
An,individual,who,is,an,employee,of,a,depository,institution,or,a,subsidiary,of,a,depository,i
nstitution,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,-,ans-✔✔c.,Registered,mortgage,loan,originator
Which,of,the,following,is,used,as,a,method,of,identifying,and,holding,licensees,accountabl
e,,according,to,the,S.A.F.E.,Act?
a.,NMLS,ID
b.,Records,of,annual,loan,originator,volume
c.,Unique,identifier
d.,CSBS,number,-,ans-✔✔c.,Unique,identifier
Taneka,is,licensed,and,has,received,her,unique,identifier,from,the,NMLS.,Taneka,must,cle
arly,show,her,unique,identifier,on,all,of,the,following,,except:
a.,Residential,mortgage,loan,applications
b.,Solicitations,and,advertisements
c.,Websites
d.,Interoffice,communications,-,ans-✔✔d.,Interoffice,communications
Each,of,the,following,is,true,about,the,Department,of,Housing,and,Urban,Development,
(HUD),,except:
, a.,The,Federal,Housing,Administration,,with,its,liberal-
eligibility,FHA,loan,programs,,operates,under,HUD's,authority
b.,It,provides,or,makes,referrals,related,to,housing,counseling,for,loan,applicants,seeking,
a,HECM,or,high-cost,home,loan
c.,Public,housing,and,multi-family,housing,fall,under,its,purview
d.,It,has,a,major,role,in,overseeing,the,mortgage,industry,-,ans-
✔✔d.,It,has,a,major,role,in,overseeing,the,mortgage,industry
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,real,estate,brokerage,activities
d.,For,compensation,or,gain,,negotiates,residential,mortgage,loans,-,ans-
✔✔c.,Person,or,entity,that,only,performs,real,estate,brokerage,activities
Which,of,the,following,would,most,likely,not,be,considered,a,federally-
regulated,mortgage,loan,as,defined,by,RESPA?
a.,Construction,Loans
b.,Subprime,loan
c.,FHA,loan
d.,Conventional,loan,-,ans-✔✔a.,Construction,Loans
Mortgage,loan,originator,Trevor,Tibbs,has,accepted,a,loan,application,for,a,dwelling,that,is
,a,mobile,home,not,permanently,affixed,to,the,land.,Does,this,mobile,home,meet,the,requir
ements,necessary,for,it,to,be,considered,security,for,a,residential,mortgage,loan?
a.,Yes,,a,dwelling,includes,a,structure,whether,or,not,that,structure,is,attached,to,real,prop
erty
b.,No,,dwellings,must,be,permanently,attached,to,real,property
c.,No,,mobile,homes,are,classified,as,personal,property,,not,real,property
d.,Yes,,as,long,as,the,real,property,upon,which,the,mobile,home,will,be,located,is,in,the,bor
rower's,name,,the,loan,may,be,a,residential,mortgage,loan,-,ans-
✔✔a.,Yes,,a,dwelling,includes,a,structure,whether,or,not,that,structure,is,attached,to,real,p
roperty
Which,of,the,following,statements,about,the,Loan,Estimate,is,NOT,true?
a.,The,lender,is,solely,responsible,for,providing,the,Loan,Estimate,to,the,prospective,borro
wer
b.,The,Loan,Estimate,must,be,provided,if,the,borrower,is,seeking,a,Home,Equity,Line,of,Cr
edit
c.,The,Loan,Estimate,is,not,a,loan,guarantee
QUESTIONS
Enhancing,protection,and,reducing,fraud,by,directing,states,to,adopt,minimum,uniform,sta
ndards,for,the,licensing,and,registration,of,residential,mortgage,loan,originators,was,the,p
urpose,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,-,ans-✔✔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,-,ans-
✔✔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,-,ans-✔✔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,-,ans-
✔✔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,authorit
y,to,enact,licensing,standards,that,meet,the,requirements,of,the,Act,,while,overall,responsi
bility,for,interpretation,,implementation,,and,compliance,currently,lies,with:
a.,The,NMLS
b.,The,Federal,Reserve
c.,HUD
d.,The,CFPB,-,ans-✔✔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,-,ans-✔✔d.,The,State,Regulatory,Authority
An,individual,who,is,an,employee,of,a,depository,institution,or,a,subsidiary,of,a,depository,i
nstitution,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,-,ans-✔✔c.,Registered,mortgage,loan,originator
Which,of,the,following,is,used,as,a,method,of,identifying,and,holding,licensees,accountabl
e,,according,to,the,S.A.F.E.,Act?
a.,NMLS,ID
b.,Records,of,annual,loan,originator,volume
c.,Unique,identifier
d.,CSBS,number,-,ans-✔✔c.,Unique,identifier
Taneka,is,licensed,and,has,received,her,unique,identifier,from,the,NMLS.,Taneka,must,cle
arly,show,her,unique,identifier,on,all,of,the,following,,except:
a.,Residential,mortgage,loan,applications
b.,Solicitations,and,advertisements
c.,Websites
d.,Interoffice,communications,-,ans-✔✔d.,Interoffice,communications
Each,of,the,following,is,true,about,the,Department,of,Housing,and,Urban,Development,
(HUD),,except:
, a.,The,Federal,Housing,Administration,,with,its,liberal-
eligibility,FHA,loan,programs,,operates,under,HUD's,authority
b.,It,provides,or,makes,referrals,related,to,housing,counseling,for,loan,applicants,seeking,
a,HECM,or,high-cost,home,loan
c.,Public,housing,and,multi-family,housing,fall,under,its,purview
d.,It,has,a,major,role,in,overseeing,the,mortgage,industry,-,ans-
✔✔d.,It,has,a,major,role,in,overseeing,the,mortgage,industry
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,real,estate,brokerage,activities
d.,For,compensation,or,gain,,negotiates,residential,mortgage,loans,-,ans-
✔✔c.,Person,or,entity,that,only,performs,real,estate,brokerage,activities
Which,of,the,following,would,most,likely,not,be,considered,a,federally-
regulated,mortgage,loan,as,defined,by,RESPA?
a.,Construction,Loans
b.,Subprime,loan
c.,FHA,loan
d.,Conventional,loan,-,ans-✔✔a.,Construction,Loans
Mortgage,loan,originator,Trevor,Tibbs,has,accepted,a,loan,application,for,a,dwelling,that,is
,a,mobile,home,not,permanently,affixed,to,the,land.,Does,this,mobile,home,meet,the,requir
ements,necessary,for,it,to,be,considered,security,for,a,residential,mortgage,loan?
a.,Yes,,a,dwelling,includes,a,structure,whether,or,not,that,structure,is,attached,to,real,prop
erty
b.,No,,dwellings,must,be,permanently,attached,to,real,property
c.,No,,mobile,homes,are,classified,as,personal,property,,not,real,property
d.,Yes,,as,long,as,the,real,property,upon,which,the,mobile,home,will,be,located,is,in,the,bor
rower's,name,,the,loan,may,be,a,residential,mortgage,loan,-,ans-
✔✔a.,Yes,,a,dwelling,includes,a,structure,whether,or,not,that,structure,is,attached,to,real,p
roperty
Which,of,the,following,statements,about,the,Loan,Estimate,is,NOT,true?
a.,The,lender,is,solely,responsible,for,providing,the,Loan,Estimate,to,the,prospective,borro
wer
b.,The,Loan,Estimate,must,be,provided,if,the,borrower,is,seeking,a,Home,Equity,Line,of,Cr
edit
c.,The,Loan,Estimate,is,not,a,loan,guarantee
