SAFE Act and MLO Licensing Flashcards
7 cards from real Mortgage practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 SAFE Act and MLO Licensing flashcards as text
Under the SAFE Act, which entity maintains the Nationwide Multistate Licensing System (NMLS)?
Answer: The Conference of State Bank Supervisors (CSBS)
The NMLS is maintained by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).
An MLO applicant has a felony conviction for financial fraud from 7 years ago. Which statement is correct under SAFE Act standards?
Answer: The applicant may be denied because fraud-related felonies have no time limit for disqualification
Under the SAFE Act, felonies involving fraud, dishonesty, breach of trust, or money laundering are permanently disqualifying, with no time limit.
What is the minimum number of hours of SAFE Act-mandated pre-licensure education that must cover federal mortgage law and regulations?
Answer: 3 hours
The SAFE Act requires at least 3 hours of federal mortgage law and regulations as part of the 20-hour pre-licensure education requirement.
Which of the following individuals is EXEMPT from SAFE Act MLO licensing requirements?
Answer: An employee of a federally chartered bank who takes loan applications
Employees of federally regulated depository institutions must register under the SAFE Act but are exempt from state licensing requirements.
Under the SAFE Act, what must an MLO do if they move from one state-licensed company to another?
Answer: Submit a sponsorship transfer request through NMLS
When changing employers, the MLO must submit a transfer of sponsorship through NMLS, and the new employer must approve the sponsorship.
The SAFE Act requires state-licensed MLOs to complete how many hours of continuing education annually?
Answer: 8 hours
State-licensed MLOs must complete at least 8 hours of continuing education annually to maintain their license.
Which scenario would trigger a requirement for MLO licensure under the SAFE Act?
Answer: An individual who for compensation helps a borrower negotiate the interest rate on a mortgage
Negotiating loan terms for compensation or gain is a core activity that triggers MLO licensing requirements under the SAFE Act.