SAFE Cheat Sheet 2026

The 30 highest-yield SAFE facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which document is used to disclose the final loan terms and closing costs to a borrower at least three business days before closing? → Closing Disclosure
2. What does 'loan-to-value ratio' (LTV) measure? → Loan amount divided by the appraised property value
3. Home Mortgage Disclosure Act (HMDA) data is collected primarily to help identify which of the following? → Potential discriminatory lending patterns in communities
4. Under USC, an MLO licensee is required to display their NMLS unique identifier on which of the following? → Residential mortgage loan applications, solicitations, and advertisements
5. What is the 'annual percentage rate' (APR) designed to reflect? → The total cost of credit, including fees, expressed as a yearly rate
6. Under RESPA, which of the following is considered a 'controlled business arrangement'? → A referral between affiliated companies where compensation is paid
7. Under TILA, the right to rescind a home equity loan expires after how long if the lender never provided required disclosures? → 3 years
8. When verifying a self-employed borrower's income, which two years of tax documents are typically required? → Personal and business tax returns for two years
9. Under Regulation Z, the right of rescission for a refinance of a primary residence allows the consumer how many business days to cancel the transaction? → 3 business days
10. A servicer receives a borrower's Qualified Written Request (QWR) under RESPA. The servicer must acknowledge receipt within: → 5 business days
11. Which employees of federally chartered banks are required to register with NMLS under the SAFE Act? → Employees who take residential mortgage loan applications or offer/negotiate loan terms
12. Under USC, which of the following individuals is typically EXEMPT from state MLO licensing requirements? → An employee of a federally chartered bank who originates mortgage loans
13. What is the primary purpose of the pre-qualification process in mortgage loan origination? → To provide an informal estimate of how much a borrower may be able to borrow
14. Which type of income is typically NOT acceptable for qualifying purposes without a two-year history? → Overtime and bonus income
15. After failing the SAFE MLO test three consecutive times, how long must a candidate wait before retaking it? → 180 days
16. What does 'debt-to-income ratio' (DTI) measure in mortgage underwriting? → The borrower's total monthly debt payments divided by gross monthly income
17. Under TILA's right of rescission, which of the following transactions does NOT give borrowers the right to rescind? → Purchase money mortgage on a primary residence
18. What unique identifier does NMLS assign to each registered or licensed mortgage loan originator? → An NMLS ID number
19. Under the Homeowners Protection Act, when can a borrower request cancellation of PMI? → When the loan balance reaches 80% LTV based on original value
20. Under RESPA, a lender may require a borrower to use a particular title company only if: → A lender may never require use of a specific title company
21. What is the purpose of a closing disclosure in the mortgage process? → To summarize loan terms and closing costs before finalization
22. A 5/1 ARM means the interest rate is fixed for the first 5 years and then adjusts every: → 1 year
23. Which entity sets the guarantee fee (g-fee) on loans sold to Fannie Mae and Freddie Mac? → The FHFA
24. What does a mortgage loan originator do? → Assesses financial situation and guides loan application
25. A borrower wants to use gift funds for a down payment on a conventional loan. What is typically required? → A gift letter stating no repayment is required, plus documentation of the transfer
26. Under TILA's high-cost mortgage (HOEPA) provisions, which of the following triggers HOEPA coverage for a closed-end mortgage? → APR exceeds APOR by more than 6.5 percentage points for a first-lien loan
27. Which federal agency has primary enforcement authority over fair lending laws such as ECOA and the Fair Housing Act for non-bank mortgage lenders? → The Consumer Financial Protection Bureau (CFPB)
28. Under Uniform State Content, the 'prelicensure education' requirement of 20 hours must include a minimum of how many hours covering federal law and regulations? → 3 hours
29. Which of the following is a characteristic of a reverse mortgage? → Monthly payments are made by the lender to the borrower
30. Which of the following charges on a Closing Disclosure is considered a prepaid item? → First year's homeowners insurance premium