NMLS SAFE EXAM PRACTICE TEST WITH
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
State Standards and the SAFE Act Correct Answer standards the
State Model are expected to incorporate into their own laws:
- requirement for licensing/registration of MLO's
-application for/issuance of licenses or registries
-education requirements
-testing requirements
-license renewal
-enforcement, authority, violations and penalties
-surety bond, state fund, and net worth requirements
-investigation and examination requirements
-prohibited acts and practices
-mortgage call reports
-use of NMLS
-unique identifiers
-maximum penalty violation of SAFE= $29,707
,max penalty for violating SAFE act? Correct Answer $29,707
the state authority Correct Answer SAFE Act requires each state
have an authority to oversee MLO's.
-superintendent
-department
-commissioner
-director
-authority
-secretary
-bureau
-the state
state authority responsibilities Correct Answer -registration and
licensing for MLO's
-enforcing the SAFE act at the state level
-reporting MLO actions to the NMLS
-fines
-mortgage education requirements for the state
-state examinations
-orders and directives
,state enforcement actions Correct Answer -the state and only the
state has the ability to cease and desist orders to stop an
originator from performing actions that are harmful to consumers
cease and desist Correct Answer to stop
-orders may occur PRIOR to suspension or revocation of license
(provided a hearing is scheduled within 10 days to review issue)
prohibited conduct under the state model Correct Answer -directly
or indirectly employ any scheme, device, cunning trick to defraud
or mislead borrowers, lenders, or any person
-engage in any unfair or deceptive practice toward any person
-obtain property by fraud or misrepresentation
-earn a fee or commission to obtain a loan when no loan is
obtained for the borrower
-solicit, advertise, or enter into a contract for specific interest rates
or financing terms that are unavailable at the time
-aid and abet any person conducting business without a valid
license
-fail to make disclosures
-negligently make any false statement/omission of information
requested in connection to an investigated conducted by a
governmental authority
-make monetary bribes or threats to any person to
, influence their judgement related to a residential mortgage loan
-collect, charge, attempt to collect or charge or use any
agreement w any intention to collect or charge any prohibited fee
-cause or require a borrower to obtain property insurance in an
amount that exceeds the replacement cost of improvements
-fail to truthfully justify monies of a party in a residential mortgage
loan transaction
Consumer Financial Protection Bureau (CFPB) Correct Answer
created as part of the Dodd-Frank Act w/ the express
responsibility of providing a single federal regulator for consumer
financial protections
CFPB Mortgage Related Regulations: Correct Answer B-Equal
Credit Opportunity Act (ECOA)
C-Home Mortgage Disclosure Act (HMDA)
G-Secure and Fair Enforcement for Mortgage Licensing Act:
Federal Registration of Residential Mortgage Loan Originators
(SAFE Act)
H-Secure and Fair Enforcement for Mortgage Licensing Act: State
Compliance and Bureau Registration System (SAFE Act)
N-Mortgage Acts and Practices- Advertising (MAP)
P-Privacy of Consumer Financial Information (Gramm-Leach
Bliley Act (GLBA)
V-Fair Credit Reporting Act (FCRA)
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
State Standards and the SAFE Act Correct Answer standards the
State Model are expected to incorporate into their own laws:
- requirement for licensing/registration of MLO's
-application for/issuance of licenses or registries
-education requirements
-testing requirements
-license renewal
-enforcement, authority, violations and penalties
-surety bond, state fund, and net worth requirements
-investigation and examination requirements
-prohibited acts and practices
-mortgage call reports
-use of NMLS
-unique identifiers
-maximum penalty violation of SAFE= $29,707
,max penalty for violating SAFE act? Correct Answer $29,707
the state authority Correct Answer SAFE Act requires each state
have an authority to oversee MLO's.
-superintendent
-department
-commissioner
-director
-authority
-secretary
-bureau
-the state
state authority responsibilities Correct Answer -registration and
licensing for MLO's
-enforcing the SAFE act at the state level
-reporting MLO actions to the NMLS
-fines
-mortgage education requirements for the state
-state examinations
-orders and directives
,state enforcement actions Correct Answer -the state and only the
state has the ability to cease and desist orders to stop an
originator from performing actions that are harmful to consumers
cease and desist Correct Answer to stop
-orders may occur PRIOR to suspension or revocation of license
(provided a hearing is scheduled within 10 days to review issue)
prohibited conduct under the state model Correct Answer -directly
or indirectly employ any scheme, device, cunning trick to defraud
or mislead borrowers, lenders, or any person
-engage in any unfair or deceptive practice toward any person
-obtain property by fraud or misrepresentation
-earn a fee or commission to obtain a loan when no loan is
obtained for the borrower
-solicit, advertise, or enter into a contract for specific interest rates
or financing terms that are unavailable at the time
-aid and abet any person conducting business without a valid
license
-fail to make disclosures
-negligently make any false statement/omission of information
requested in connection to an investigated conducted by a
governmental authority
-make monetary bribes or threats to any person to
, influence their judgement related to a residential mortgage loan
-collect, charge, attempt to collect or charge or use any
agreement w any intention to collect or charge any prohibited fee
-cause or require a borrower to obtain property insurance in an
amount that exceeds the replacement cost of improvements
-fail to truthfully justify monies of a party in a residential mortgage
loan transaction
Consumer Financial Protection Bureau (CFPB) Correct Answer
created as part of the Dodd-Frank Act w/ the express
responsibility of providing a single federal regulator for consumer
financial protections
CFPB Mortgage Related Regulations: Correct Answer B-Equal
Credit Opportunity Act (ECOA)
C-Home Mortgage Disclosure Act (HMDA)
G-Secure and Fair Enforcement for Mortgage Licensing Act:
Federal Registration of Residential Mortgage Loan Originators
(SAFE Act)
H-Secure and Fair Enforcement for Mortgage Licensing Act: State
Compliance and Bureau Registration System (SAFE Act)
N-Mortgage Acts and Practices- Advertising (MAP)
P-Privacy of Consumer Financial Information (Gramm-Leach
Bliley Act (GLBA)
V-Fair Credit Reporting Act (FCRA)
