SAFE MLO EXAM PREP QUESTIONS & ANSWERS
ECOA is Regulation ______ - Answer -Regulation B
TILA is administered by ______ - Answer -CFPB
HOEPA considers a loan to be high cost if total charges to borrower exceeds ______ %
of loan amount? - Answer -5%
For reverse mortgage, TILA disclosure must be delivered how many days prior to
closing? - Answer -7 days
Home Mortgage Disclosure Act (HMDA) implemented by _____ - Answer -FRB
Loan amount, gender, race, & age; which is not required on HMDA? - Answer -Age
HMDA does not - Answer -Set lending quotas for protected classes
Bankruptcies are kept on record for how long? - Answer -10 years
Tax liens are kept on record for how long? - Answer -7 years
Borrowers entitled to a free credit report if lender takes adverse action and they ask for
the report within how many days of receiving notice of the action? - Answer -60 days
Company with established relationship can call someone _____ after last purchase -
Answer -18 months
If consumer inquiry or submits an application, can call for how long? - Answer -3
months
Lender has how long to refund excessive variance? - Answer -60 days
How many days before loan consummation is a borrower entitled to see a revised CD
that did not trigger an additional 3-day waiting period? - Answer -1 business day
How may days before loan consummation is a seller entitled to see the CD? - Answer -
0 (day of closing)
Without defaut or termination due to refinance, repayment or rescission, lender has how
long to deliver "Escrow Closing Notice" when canceling an escrow account - Answer -3
business days
Lender has to retain CD and LE for how long? - Answer -5 years
, Lender has to retain Partial Payment Policy for how long? - Answer -5 years
Lender has to retain Escrow Cancellation Notice for how long? - Answer -5 years
TILA Disclosure, Loan Estimate, Good Faith Estimate, HUD-1; which is NOT delivered
to a reverse mortgage applicant? - Answer -Loan Estimate
How many hours of CE required? - Answer -8 hours
Maximum # of consecutive times SAFE can be taken? - Answer -3 times
Wait how many days between first 2 exams? - Answer -15 days
After failing _____ times, you have to wait how long to retake? - Answer -3 times, 6
months
adopted brother, aunt grandfather, stepmother; which is NOT an immediate family
member? - Answer -Aunt is not immediate family member
What may be true of registered LOs? - Answer -Registered loan originators may be
bank employee
Independent contractor underwriter must be... - Answer -a licensed LO
How often does a mortgage company needs to provide report of financial condition? -
Answer -Annually
What types of liens are mortgages? - Answer -Voluntary liens
Forbearance - Answer -When a lender chooses to NOT take legal action upon a default
Escalation Clause - Answer -allows lender to increase the interest rate
Acceleration Clause - Answer -gives "teeth;" Allows mortgagee to call the entire loan
balance if borrower is in default
Due-on-sale Clause aka Alienation Clause - Answer -Mortgage may require loan
balance be paid off when property is sold or transferred; loan is NOT assumable
Defeasance Clauses - Answer -prevents lender from foreclosing unless borrower is in
default; recordable SoM within 60 days
Opposite of Prepayment Penalty Clause? - Answer -Prepayment Privilege Clause
Open-End Clause - Answer -permits future additional advances from the same lender
without rewriting the mortgage (applies to HELOC)
ECOA is Regulation ______ - Answer -Regulation B
TILA is administered by ______ - Answer -CFPB
HOEPA considers a loan to be high cost if total charges to borrower exceeds ______ %
of loan amount? - Answer -5%
For reverse mortgage, TILA disclosure must be delivered how many days prior to
closing? - Answer -7 days
Home Mortgage Disclosure Act (HMDA) implemented by _____ - Answer -FRB
Loan amount, gender, race, & age; which is not required on HMDA? - Answer -Age
HMDA does not - Answer -Set lending quotas for protected classes
Bankruptcies are kept on record for how long? - Answer -10 years
Tax liens are kept on record for how long? - Answer -7 years
Borrowers entitled to a free credit report if lender takes adverse action and they ask for
the report within how many days of receiving notice of the action? - Answer -60 days
Company with established relationship can call someone _____ after last purchase -
Answer -18 months
If consumer inquiry or submits an application, can call for how long? - Answer -3
months
Lender has how long to refund excessive variance? - Answer -60 days
How many days before loan consummation is a borrower entitled to see a revised CD
that did not trigger an additional 3-day waiting period? - Answer -1 business day
How may days before loan consummation is a seller entitled to see the CD? - Answer -
0 (day of closing)
Without defaut or termination due to refinance, repayment or rescission, lender has how
long to deliver "Escrow Closing Notice" when canceling an escrow account - Answer -3
business days
Lender has to retain CD and LE for how long? - Answer -5 years
, Lender has to retain Partial Payment Policy for how long? - Answer -5 years
Lender has to retain Escrow Cancellation Notice for how long? - Answer -5 years
TILA Disclosure, Loan Estimate, Good Faith Estimate, HUD-1; which is NOT delivered
to a reverse mortgage applicant? - Answer -Loan Estimate
How many hours of CE required? - Answer -8 hours
Maximum # of consecutive times SAFE can be taken? - Answer -3 times
Wait how many days between first 2 exams? - Answer -15 days
After failing _____ times, you have to wait how long to retake? - Answer -3 times, 6
months
adopted brother, aunt grandfather, stepmother; which is NOT an immediate family
member? - Answer -Aunt is not immediate family member
What may be true of registered LOs? - Answer -Registered loan originators may be
bank employee
Independent contractor underwriter must be... - Answer -a licensed LO
How often does a mortgage company needs to provide report of financial condition? -
Answer -Annually
What types of liens are mortgages? - Answer -Voluntary liens
Forbearance - Answer -When a lender chooses to NOT take legal action upon a default
Escalation Clause - Answer -allows lender to increase the interest rate
Acceleration Clause - Answer -gives "teeth;" Allows mortgagee to call the entire loan
balance if borrower is in default
Due-on-sale Clause aka Alienation Clause - Answer -Mortgage may require loan
balance be paid off when property is sold or transferred; loan is NOT assumable
Defeasance Clauses - Answer -prevents lender from foreclosing unless borrower is in
default; recordable SoM within 60 days
Opposite of Prepayment Penalty Clause? - Answer -Prepayment Privilege Clause
Open-End Clause - Answer -permits future additional advances from the same lender
without rewriting the mortgage (applies to HELOC)
