©THESTAR 2024/2025 ALL RIGHTS RESERVED.
Mortgage educators and compliance -online
course Exam Questions And Answers.
Verified And Updated.
(true or false) in addition to the 20-hour course, it is suggested to spend an extra 40-60 hours
studying all the content before taking the exam - Answer✔true
(true or false) the federal reserve system was created in 1913 - Answer✔true
(true or false) prior to the federal government passing the SAFE act in 2008, all states required
MLOs to be licensed - Answer✔false
(true or false) a person who has worked at a bank giving loans could be considered a mortgage
loan originator - Answer✔false
(true or false) a loan processor and underwriter must be licensed if they are independent
contractors - Answer✔true
(ture or false) mortgage brokers usually do not fund their own loans - Answer✔true
(true or false) the three secondary market players are FNMA, FHLMC, and HMDA -
Answer✔false
(true or false) regulatory authorities have the authority to investigate, impose penalties, provide
supervision, or a combination of all three - Answer✔true
(true or false) to be a licensed MLO you must apply for a state, and national license -
Answer✔false
(true or false) your pre-licensing education requires, 3 hours of federal law, 2 hours of ethics, 2
hours of non-traditional mortgage products, and 12 hours of electives - Answer✔true
(true or false) the national test component with the uniform state content will test your
knowledge on the following five topics, federal laws and regulations, ethics, general mortgage
knowledge, MATH, and customer service essentials - Answer✔false
(true or false) if you fail the national test 3 times, you must wait 6 months to retake the test -
Answer✔true
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
(true or false) the national test contains 120 questions, and 10 of those are unscored -
Answer✔false
(true or false) you will pay a non-refundable application fee; the cost of the fee varies by state -
Answer✔true
(true or false) having your license revoked in another state is not a reason the state could deny
your license - Answer✔false
(true or false) once you have your license it must be renewed every year by December 31st or
sooner - Answer✔true
(true or false) if you forget to renew your license, there is a reinstatement period in some states,
and you can do late continuing education - Answer✔true
(true or false) filling out your MU4 is a one-time requirement and won't be updated again
throughout the course of your career - Answer✔false
(true or false) if you want to be licensed in multiple states it is important to do discover each
state, initial licensing, fees, pre-licensing education, requirements, renewal fees, continuing
education requirements, and one other important thing about initial licensing and continuing
licensure in each state - Answer✔true
(true or false) if you cant help a borrower, find a loan, charging a fee for best efforts isn't
considered prohibited conduct - Answer✔false
(true or false) every state has their own requirements related to disciplinary action -
Answer✔true
(true or false) if you have violated to comply with a cease and desist order the maximum penalty
for each act or omission is $25,000 - Answer✔true
how many hours of pre-licensing education is an individual required to take per the SAFE act? -
Answer✔20 hours (an individual who wants to become an MLO must take 20 hours of pre-
licensing education per the SAFE act)
what action can the commissioner not take? - Answer✔issuing unique identifier (the
commissioner cannot issue a unique identifier. the NMLS is responsible for issuing unique
identifiers)
what actions can a commissioner take? - Answer✔deny or revoke licenses, impose fines or
penalties, and investigate consumer complaints
all states require at least ____ hours of continuing education each year in order to renew an MLO
license - Answer✔8 hours (all states require at least 8 hours of continuing education each year)
what situation would an MLO license be required? - Answer✔when an individual offers or
negotiates the terms of a residential mortgage loan (an MLO license would be required when an
individual offers or negotiates the terms of a residential mortgage loan)
2|Page
Mortgage educators and compliance -online
course Exam Questions And Answers.
Verified And Updated.
(true or false) in addition to the 20-hour course, it is suggested to spend an extra 40-60 hours
studying all the content before taking the exam - Answer✔true
(true or false) the federal reserve system was created in 1913 - Answer✔true
(true or false) prior to the federal government passing the SAFE act in 2008, all states required
MLOs to be licensed - Answer✔false
(true or false) a person who has worked at a bank giving loans could be considered a mortgage
loan originator - Answer✔false
(true or false) a loan processor and underwriter must be licensed if they are independent
contractors - Answer✔true
(ture or false) mortgage brokers usually do not fund their own loans - Answer✔true
(true or false) the three secondary market players are FNMA, FHLMC, and HMDA -
Answer✔false
(true or false) regulatory authorities have the authority to investigate, impose penalties, provide
supervision, or a combination of all three - Answer✔true
(true or false) to be a licensed MLO you must apply for a state, and national license -
Answer✔false
(true or false) your pre-licensing education requires, 3 hours of federal law, 2 hours of ethics, 2
hours of non-traditional mortgage products, and 12 hours of electives - Answer✔true
(true or false) the national test component with the uniform state content will test your
knowledge on the following five topics, federal laws and regulations, ethics, general mortgage
knowledge, MATH, and customer service essentials - Answer✔false
(true or false) if you fail the national test 3 times, you must wait 6 months to retake the test -
Answer✔true
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
(true or false) the national test contains 120 questions, and 10 of those are unscored -
Answer✔false
(true or false) you will pay a non-refundable application fee; the cost of the fee varies by state -
Answer✔true
(true or false) having your license revoked in another state is not a reason the state could deny
your license - Answer✔false
(true or false) once you have your license it must be renewed every year by December 31st or
sooner - Answer✔true
(true or false) if you forget to renew your license, there is a reinstatement period in some states,
and you can do late continuing education - Answer✔true
(true or false) filling out your MU4 is a one-time requirement and won't be updated again
throughout the course of your career - Answer✔false
(true or false) if you want to be licensed in multiple states it is important to do discover each
state, initial licensing, fees, pre-licensing education, requirements, renewal fees, continuing
education requirements, and one other important thing about initial licensing and continuing
licensure in each state - Answer✔true
(true or false) if you cant help a borrower, find a loan, charging a fee for best efforts isn't
considered prohibited conduct - Answer✔false
(true or false) every state has their own requirements related to disciplinary action -
Answer✔true
(true or false) if you have violated to comply with a cease and desist order the maximum penalty
for each act or omission is $25,000 - Answer✔true
how many hours of pre-licensing education is an individual required to take per the SAFE act? -
Answer✔20 hours (an individual who wants to become an MLO must take 20 hours of pre-
licensing education per the SAFE act)
what action can the commissioner not take? - Answer✔issuing unique identifier (the
commissioner cannot issue a unique identifier. the NMLS is responsible for issuing unique
identifiers)
what actions can a commissioner take? - Answer✔deny or revoke licenses, impose fines or
penalties, and investigate consumer complaints
all states require at least ____ hours of continuing education each year in order to renew an MLO
license - Answer✔8 hours (all states require at least 8 hours of continuing education each year)
what situation would an MLO license be required? - Answer✔when an individual offers or
negotiates the terms of a residential mortgage loan (an MLO license would be required when an
individual offers or negotiates the terms of a residential mortgage loan)
2|Page
