SAFE Mortgage Loan Originator Test (National Test with Uniform State Content)
Uniform State Content: practice questions
Our SAFE MLO Test (NMLS) bank has 38 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
Under the SAFE Act, an MLO must be sponsored by:
- The state real estate commission
- The CFPB, through its Office of Mortgage Markets and its regional offices
- The company that employs or supervises the MLO
- A credit reporting agency
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C. The company that employs or supervises the MLO — State model law and NMLS require a licensed MLO to be associated with and sponsored by an employing entity through the NMLS; a license is not active without sponsorship.
Question 2
After failing the SAFE MLO Test, a candidate must wait how long before retaking it?
- 7 days
- 30 days
- 60 days
- 6 months
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B. 30 days — Each of the first two retakes requires a 30-day wait.
Question 3
A stated purpose of the SAFE Act is to:
- Replace all state mortgage regulators with a federal agency
- Enhance consumer protection and reduce fraud through uniform licensing
- Guarantee mortgage loans against default when borrowers lose their jobs
- Set maximum mortgage interest rates nationwide
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B. Enhance consumer protection and reduce fraud through uniform licensing — 12 U.S.C. 5101 lists purposes including uniform license applications, a comprehensive licensing database, enhanced consumer protection and fraud reduction.
Question 4
Under the SAFE Act, a 'loan originator' is an individual who, for compensation or gain:
- Only services loans after closing
- Takes a loan application and offers or negotiates loan terms
- Only underwrites loans for a bank
- Only appraises residential property for a lender or an appraisal management company
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B. Takes a loan application and offers or negotiates loan terms — Regulation H § 1008.103(c) defines engaging in the business of a loan originator as taking an application and offering or negotiating terms, for compensation or gain.
Question 5
The SAFE Mortgage Licensing Act of 2008 was enacted as part of:
- The Housing and Economic Recovery Act of 2008
- The Dodd-Frank Act of 2010
- The Gramm-Leach-Bliley Act of 1999
- The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018
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A. The Housing and Economic Recovery Act of 2008 — The SAFE Act is Title V of the Housing and Economic Recovery Act of 2008, signed 30 July 2008.