Mortgage Mortgage SAFE Act and MLO Licensing Questions and Answers 2

Question 1

Under the SAFE Act, which federal agency is responsible for maintaining the Nationwide Multistate Licensing System and Registry (NMLS)?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Federal Housing Finance Agency (FHFA)

Answer

Department of Housing and Urban Development (HUD)

Answer

Federal Deposit Insurance Corporation (FDIC)

Question 2

What is the minimum number of continuing education hours required annually for MLO license renewal under the SAFE Act?

Accepted Answer

8 hours

Answer

12 hours

Answer

16 hours

Answer

20 hours

Question 3

An MLO applicant has a felony conviction from 9 years ago involving fraud. Under the SAFE Act, what is the status of their application?

Accepted Answer

Automatically denied due to the felony involving fraud

Answer

Eligible since more than 7 years have passed

Answer

Eligible with a waiting period waiver

Answer

Subject to state discretion only

Question 4

Which of the following activities would require an individual to be licensed as an MLO under the SAFE Act?

Accepted Answer

Taking a residential mortgage loan application and offering loan terms

Answer

Performing purely administrative tasks such as data entry

Answer

Providing real estate brokerage services without discussing loan terms

Answer

Conducting a home appraisal for a mortgage lender

Question 5

Under SAFE Act provisions, what happens if a state-licensed MLO fails to meet renewal requirements by the deadline?

Accepted Answer

The license lapses and the MLO must cease origination activities

Answer

The license is automatically extended for 90 days

Answer

The MLO may continue working under a supervisor's license

Answer

The state must provide a 60-day cure period

Question 6

A mortgage loan originator registered with a federally regulated institution wants to move to a state-licensed mortgage company. What must they do under the SAFE Act?

Accepted Answer

Obtain a state MLO license through the NMLS, including passing the SAFE MLO test

Answer

Simply transfer their federal registration to the state

Answer

Notify the NMLS of the employment change only

Answer

Work under a temporary license for 120 days while applying