SAFE MLO Exam 2022 QUESTIONS WITH COMPLETE SOLUTIONS

AARMR stands for Correct Answer: American Association of Residential Mortgage Regulations AML Correct Answer: Anti-Money Laundering Blockbusting Correct Answer: Illegal practice of inducing homeowners to sell their properties cheaply by telling them that a certain people of a certain race, national origin or religion are moving into the area, and thus profiting by reselling at a higher price CC&R Correct Answer: covenants, conditions, and restrictions CFPB Correct Answer: The Consumer Financial Protective Bureau - an independent federal agency that holds primary responsibility for regulating consumer protection. (Created via Dodd-Frank (2010) and began operating in 2011) CFR Correct Answer: Code of Federal Regulations, Divided into 50 Titles CHARM Correct Answer: Consumer Handbook on Adjustable Rate Mortgages - Required to be given for all ARMs within 3 days of application, per TILA COFI Correct Answer: (Cost of Funds Index) Cost of Funds Index An index that reflects the cost of borrowing money as per the 11th District Federal Home Loan Bank. This index is used by Fannie Mae when purchasing ARM loans. CRA (what, when; note: not Credit Reporting Agency) Correct Answer: Community Reinvestment Act of 1977; requires Fed Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of communities they do business in, including low- and moderate-income (LMI) neighborhoods CRV Correct Answer: Certificate of Reasonable Value (VA). CSBS Correct Answer: Conference of State Bank Supervisors Disposal Rule Correct Answer: Part of FACTA; dictates how to dispose of consumer info (this is why you are required to shred!) ECOA (what, year, and Reg letter) Correct Answer: Equal Credit Opportunity Act, Regulation B; federal law prohibiting discrimination in credit/lending based on race, marital status, age, etc,. (Passed in 1974, expanded in 1976) EEM Correct Answer: Energy Efficient Mortgage (FHA; allows financing cost of improvements like solar)