NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 1:

  A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home. During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?

  A. Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction
  B. [Consider the issue to be a private family matter and proceed with the next steps in the application process
  C. Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan
  D. Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf
  A. Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction

• Question 2:

  How many continuing education hours must mortgage loan originators complete every year to renew their license?

  A. 3 hours
  B. 8 hours
  C. 16 hours
  D. 20 hours
  B. 8 hours

• Question 3:

  How many days before consummation must a borrower receive a revised Loan Estimate?

  A. 4 business days
  B. 5 business days
  C. 7 business days
  D. 10 business days
  C. 7 business days

• Question 4:

  A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:

  A. been convicted of a felony within the past seven years.
  B. had an MLO license suspended in any governmental jurisdiction.
  C. taken and failed the SAFE MLO National Test three times within the last year.
  D. never been licensed or registered as an MLO in any governmental jurisdiction.
  A. been convicted of a felony within the past seven years.

• Question 5:

  A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

  A. Oral confirmation from the borrower
  B. An updated statement showing a zero balance
  C. A letter from the borrower explaining that they paid it off
  D. No additional information required
  B. An updated statement showing a zero balance

• Question 6:

  Which of the following acts provides a state licensing and regulatory agency to investigate and examine a mortgage company?

  A. SAFE Act
  B. Truth in Lending Act (TILA)
  C. Real Estate Settlement Procedures Act (RESPA)
  D. Home Ownership and Equity Protection Act (HOEPA)
  A. SAFE Act

• Question 7:

  Offering or negotiating the terms of a loan includes which of the following actions?

  A. Providing general explanations or descriptions in response to a consumer's inquiry
  B. Making an underwriting decision about whether an applicant qualifies for a loan
  C. Presenting particular loan terms to an applicant verbally, in writing, or otherwise
  D. Arranging the loan closing or other aspects of the loan process
  C. Presenting particular loan terms to an applicant verbally, in writing, or otherwise

• Question 8:

  Maximum available flood insurance structure coverage for a residential property from the National Flood Insurance Program is what amount?

  A. $50,000
  B. $100,000
  C. $750,000
  D. $1,000,000
  A. $50,000

• Question 9:

  Mortgage loan originators planning to renew their licenses are required by the SAFE Act to complete which of the following education topics as part of their mandatory annual continuing education?

  A. Credit score modeling standards
  B. Mortgage loan loss mitigation standards
  C. Nontraditional mortgage lending standards
  D. 30-year conventional mortgage lending standards
  C. Nontraditional mortgage lending standards

• Question 10:

  Which of the following scenarios describes an assumable loan?

  A. A borrower has an option to take out a second mortgage
  B. A borrower has an option to choose a loan servicer.
  C. A purchaser of a property may be able to take over the existing loan payments.
  D. A loan holder can sell the loan.
  C. A purchaser of a property may be able to take over the existing loan payments.