SAFE Act

Question 1

SAFE Act is also known as Title “___”

Answer 1

V

Question 2

For a state to approve a license application, the following minimum standards:

Answer 2

• Never had a loan originator license revoked
• Not been convicted of felony within 7 years
• Neve been convicted of felony involved an act of fraud, dishonesty, a breach of trust, ormoney laundering
• Completed the pre-licensing education requirements and passed the applicable licensing test
• Met either a net worth or surety bond requirement or paid into a state fund
• Demonstrated the financial responsibility, character, and general fitness
• Background check
• Cant have any outstanding financial judgements except medical, no tax liens or foreclosures
• Education of 20 hrs
  
  • 3 hrs federal mortgage laws
  • 3 hr of Ethics, consumer protection and fair lending
  • 2 hrs of non traditional mortgage market
• Following Licensure MLO are required to obtain at least 8 hrs of education annually
• Must pass MLO test with 75%
  
  • Can. take test 3 times in a row with 30 days in between
  • If fail after 3rd attempt must wait 6 months before taking examiniation again
  • If you let your license lapse of 5 years or longer

Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA)

Act specifically address transitional licensing for mortgage loan originators.

upon becoming employed by a state-licensed mortgage company, an
individual who has been working as a registered mortgage loan originator will be deemed to
have temporary authority to act as a licensed mortgage loan originator in the state, provided that certain standards are met:

• has not had MLO license denied, revoked or suspended
• has not had case of cease or desist
• No misdemeanor or felony
• has submitted an application
• was registered with NMLS 1 year immediately proceeding

Mortgage loan originator who is already licensed in another state and is seeking
authority to conduct business in a new state

• Be employed by a state-licensed mortgage company in the application state, and
• Be licensed in a state (that is not the state in which a new license is sought) during the 30-day period preceding the date on which application information and materials are
  submitted in the new application state

Question 3

an individual who has been working as a registered mortgage loan originator will be deemed to have ________________ authority to act as a licensed mortgage loan originator in the state, provided that certain standards are met:

• has not had MLO license denied, revoked or suspended
• has not had case of cease or desist
• No misdemeanor or _________
• has submitted an application
• was registered with NMLS 1 year immediately proceeding

Answer 3

temporary
felony

Question 4

Mortgage loan originator who is already licensed in another state and is seeking authority to conduct business in a new state must

• Be ____________-by a state-licensed mortgage company in the application state, and
• Be licensed in a state (that is not the state in which a new license is sought) during the __-day period preceding the date on which application information and materials are submitted in the new application state

Answer 4

employed
30 day

Question 5

The period of temporary licensure will begin as of the date on which information for licensure is submitted and will end as of the earliest of the following events:

• The individual withdraws the application to be a state-licensed mortgage loan originator in the application state
• The mortgage loan originator license application is denied, or a notice of intent to deny is issued
• The mortgage loan originator license is granted in the application state, or A period of ______ days has passed, and the mortgage loan originator license as submitted
  through the NMLS is incomplete

Answer 5

120

Question 6

What is the full name of the S.A.F.E. Act?
- a) Secure and Federal Enforcement for Mortgage Licensing Act
- b) Secure and Fair Enforcement for Mortgage Licensing Act
- c) State and Fair Enforcement for Mortgage Licensing Act
- d) Secure and Fair Enforcement for Mortgage Lending Act

Answer 6

• Answer: b) Secure and Fair Enforcement for Mortgage Licensing Act
• Explanation: The S.A.F.E. Act stands for Secure and Fair Enforcement for Mortgage Licensing Act.

Question 7

What does Regulation H of the S.A.F.E. Act apply to?
- a) Non-depository institutions
- b) Depository institutions (Banks)
- c) Credit unions
- d) Private mortgage lenders

Answer 7

• Answer: a) Non-depository institutions
• Explanation: Regulation H applies to non-depository institutions.

Question 8

What does Regulation G of the S.A.F.E. Act apply to?
- a) Non-depository institutions
- b) Depository institutions (Banks)
- c) Credit unions
- d) Private mortgage lenders

Answer 8

• Answer: b) Depository institutions (Banks)
• Explanation: Regulation G applies to employees of depository institutions, such as banks.

Question 9

Which of the following is NOT a minimum standard for state license approval under the S.A.F.E. Act?
- a) Never had a loan originator license revoked
- b) Not been convicted of a felony within 7 years
- c) Completed 10 hours of pre-licensing education
- d) Demonstrated financial responsibility, character, and general fitness

Answer 9

• Answer: c) Completed 10 hours of pre-licensing education
• Explanation: The S.A.F.E. Act requires 20 hours of pre-licensing education, not 10.

Question 10

What is the minimum passing score for the MLO test under the S.A.F.E. Act?
- a) 60%
- b) 65%
- c) 70%
- d) 75%

Answer 10

75%

Question 11

How many times can an individual take the MLO test consecutively before waiting for 6 months?
- a) 2 times
- b) 3 times
- c) 4 times
- d) 5 times

Answer 11

3 times

An individual can take the test 3 times in a row with 30 days in between. After the third attempt, they must wait 6 months before retaking the test.

Question 12

What is the required annual continuing education for MLOs after licensure?
- a) 5 hours
- b) 6 hours
- c) 8 hours
- d) 10 hours

Answer 12

8 hours

Question 13

What is required for an MLO from another state to obtain temporary authority to operate in a new state?
- a) Has had MLO license denied in any state
- b) Has had case of cease or desist
- c) Was registered with NMLS 1 year immediately preceding
- d) Has submitted an application with no other requirements

Answer 13

c) Was registered with NMLS 1 year immediately preceding

An MLO must have been registered with NMLS for 1 year immediately preceding to obtain temporary authority.

Question 14

Regulation G applies to employees of non-depository institutions.
- True
- False

Answer 14

False , Reg G applies to employees of depository institutions (Banks)

Question 15

Regulation H applies to non-depository institutions.
- True
- False

Answer 15

True Regulation H applies to non-depository institutions.

Question 16

An individual can retake the MLO test immediately after failing it once
- True
- False

Answer 16

False An individual must wait 30 days before retaking the MLO test after failing

Question 17

What are the minimum pre-licensing education requirements for MLOs under the S.A.F.E. Act?

Answer 17

The minimum pre-licensing education requirements include 20 hours of education, comprising :

3 hours of federal mortgage laws, 3 hours of ethics (including consumer protection and fair lending), and 2 hours of non-traditional mortgage market education.

Question 18

What conditions must an MLO meet to obtain temporary authority to act as a licensed mortgage loan originator in a new state under the EGRRCPA?

Answer 18

The MLO must be employed by a state-licensed mortgage company,

have been registered with NMLS for 1 year immediately preceding,

not have had their license denied, revoked, or suspended,

not have been issued a case of cease and desist, and

have no misdemeanor or felony convictions.

Question 19

What does “transitional licensing” refer to in the context of the S.A.F.E. Act and EGRRCPA?

Answer 19

Transitional licensing allows MLOs who are already licensed in one state or registered with NMLS to temporarily operate as licensed mortgage loan originators in another state while their new application is processed.

This provision helps MLOs continue working without interruption when moving to a new state.

Question 20

What happens if an MLO fails the licensing test three times in a row?

Answer 20

The MLO must wait 6 months before taking the examination again.