Safe Act

Question 1

Who Created the SAFE ACT?

Answer 1

HOUSING AND ECONOMIC RECOVERY ACT (HERA)

Question 2

What’s the purpose of the SAFE ACT?

Answer 2

SAFE ACT regulates the mortgage industry on a national level, establishes the minimum standards that must be met for licensure and requires mortgage loan originators be either state-licensed or federally registered.

Question 3

Who enforces the SAFE ACT?

Answer 3

CFPB

Question 4

Employees

Answer 4

Of financial institutions (depositories) must register as a MLO and get UI

Question 5

All other individual
Safe act

Answer 5

Apply for a License, State Licensed MLO and get UI

Question 6

Under SAFE ACT you have to update certain information within

Answer 6

30D

Question 7

What is the identifier that permanently identifies a registered or licensed MLO?

Answer 7

Unique identifier

Question 8

Unique identifiers are required to be disclosed on what?

Answer 8

● Trust deed ● All disclosures require the MLO’s NMLS number ● Mortgages ● Promissory note ● Advertisements of any kind ● 1003 URLA (loan application)

Question 9

Immediate family members include?

Answer 9

● Parents (stepparents) ● Spouse ● Children (stepchildren) ● Siblings (step siblings) ● Grandparents ● Grandchildren ● Adopted family members.

Question 10

What is the definition of a Mortgage loan originator (MLO)?

Answer 10

An individual who takes a residential mortgage loan application, offers and negotiates terms of a residential mortgage loan for compensation or gain. Mortgage originators are part of the Primary Mortgage Market. They must work with underwriters and loan processors.

Question 11

Nationwide Mortgage Licensing System and Registry, or NMLS system, was developed and is maintained by?

Answer 11

The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).

Question 12

Loan processor role is?

Answer 12

it to make sure all the proper documentation is organized to send to the underwriter

Question 13

Underwriter role is

Answer 13

to analyze if the borrower can make the necessary monthly mortgage payment and decide if the loan will be approved

Question 14

Any loan processor or underwriter who is an independent contractor and engages in residential mortgage loan origination activities as a loan originator with respect to any dwelling or residential real estate in the state must?

Answer 14

Obtain and maintain a valid loan originator license from the state.

Question 15

For an individual to be eligible for a loan originator license, they can not have been convicted of, or pled guilty to a felony during the period of _____ years preceding the date of the application for licensing.

Answer 15

7-years

Question 16

To be eligible for a loan originator license, how many hours is required for pre-licensing education and what is the breakdown?

Answer 16

20 hours ● 3 hours of federal law ● 3 hours of ethics and ● 2 hours of training on nontraditional mortgage products ● 12 electives

Question 17

To be eligible to renew a loan originator license, how many hours of annual continuing education is required and what is the break down?

Answer 17

8 hours ● 3 hours of Federal law ● 2 hours of ethics ● 2 hours of training related to nontraditional mortgage products ● 1 hour of electives

Question 18

Loan originators licenses expire annually, and must be renewed between what days?

Answer 18

November 1st- December 31st renewal due date.

Question 19

Who has legal authority to discipline loan originator licensees with appropriate enforcement actions, such as license suspensions or revocations, cease-and-desist orders, civil money penalties, and consumer refunds for violations of state or Federal law?

Answer 19

A State Supervisory
SusEDA

Question 20

Who oversees compliance over the State Authorities, registry of the NMLSR and mortgage schools and courses?

Answer 20

Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators Mortgage (AARMR)

Question 21

A licensed attorney performing activities that come within the definition of a loan originator is not required to be licensed, provided that such activities are?

Answer 21

● Carried out within an attorney-client relationship ● Accomplished by the attorney in compliance with all applicable laws, rules, ethics, and standards

Question 22

What agency is responsible for the effective supervision, regulation, and housing mission oversight of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac)?

Answer 22

The Federal Housing Finance Agency (FHFA)

Question 23

FHFA was established by

Answer 23

HERA

Question 24

What is the penalty for violating the SAFE ACT?

Answer 24

$36,083 (2025) $35,516 (2024) NMLS states $25K (Know both)

Question 25

The Mortgage Call Report (MCR)

Answer 25

report is filed by a company on behalf of its loan originators, shows the condition of the company and must be reported and filed with the NMLS

Question 26

When is the Residential Mortgage Loan Activity Report (RMLAR) due? and what is it for?

Answer 26

Within 45 days after every calendar quarter. Collects information about application, closed loan, individual mortgage loan originator (MLO), line of credit, servicing, and repurchase information by state.

Question 27

The Mortgage Call Report (MCR) has 2 components to it. What are they?

Answer 27

Residential Mortgage Loan Activity Report (RMLAR) and Financial Condition Report (FCR).

Question 28

When is the Financial Condition report (FC) due? and what is it for?

Answer 28

Due annually, within 90 days of the company's fiscal year end and collects financial information at the company level, which means it is not separated by each state. It is the company in whole.

Question 29

What amendment of the SAFE act mandates that all states implement Transitional Authority(Temporary Authority)?

Answer 29

The Economic Growth, Regulatory Relief and Consumer Protection Act

Question 30

How long after the date of the application does an MLO who is changing employment from a depository institution (bank) to a state licensed mortgage company have to be registered with NMLS before using Transitional Authority?

Answer 30

One-year period after the date of the application.

Question 31

How long after the date of application does a State-licensed MLOs seeking to get licensed in another state have to be licensed as an MLO continuously before using Transitional Authority?

Answer 31

30-day period

Question 32

Transitional Authority allows MLO’s to originate loans for how many days while completing any state-specific requirements for licensure such as education or testing?

Answer 32

120 days

Question 33

Who gives the license? State NMLSR

Answer 33

State the nmlsr is a system that keep the records