Mortgage Loan Originator Federal Regulations and Ethics

Question 1

The SAFE Act requires mortgage loan originators to be registered or licensed under which system?

Accepted Answer

NMLS

Answer

HMDA

Answer

CFPB

Answer

FDIC

Question 2

Under the SAFE Act, which of the following is a pre-licensure education requirement for a state-licensed MLO?

Accepted Answer

20 hours including 3 hours of federal law, 3 hours of ethics, and 2 hours of nontraditional mortgage lending

Answer

10 hours including 3 hours of federal law

Answer

15 hours with no specific subject requirements

Answer

25 hours including 5 hours of state law

Question 3

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in credit transactions based on all of the following EXCEPT:

Accepted Answer

Loan amount requested

Answer

Race and national origin

Answer

Religion and sex

Answer

Marital status and age

Question 4

What is 'steering' as defined under the Dodd-Frank Act's loan originator compensation rules?

Accepted Answer

Directing borrowers to loan products not in their interest to increase MLO compensation

Answer

Directing borrowers to lenders offering the best rates

Answer

Advising borrowers on which credit bureau to use

Answer

Recommending specific title companies

Question 5

Under the Fair Housing Act, which is an example of 'redlining'?

Accepted Answer

Denying mortgage credit to applicants in minority neighborhoods regardless of creditworthiness

Answer

Charging higher rates to riskier borrowers

Answer

Requiring higher down payments on investment properties

Answer

Offering lower rates to first-time homebuyers

Question 6

What does HMDA require lenders to do?

Accepted Answer

Collect and report data on mortgage loan applications and originations to identify discrimination patterns

Answer

Disclose all lender fees upfront

Answer

Provide borrowers with a copy of their credit report

Answer

Obtain flood certification for all loans