NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 1:

  What is the maximum civil penalty that is permitted to be imposed for each violation or failure to comply with the SAFE Act?

  A. $2,500 for each act or omission
  B. 000 for each act or omission
  C. $2,500 for each act or omission; $25,000 maximum
  D. $25, 000 for each act or omission: $250,000 maximum
  A. $2,500 for each act or omission

• Question 2:

  A mortgage loan originator (MLO) is in the process of taking an application for a 30-year mortgage, and the borrowers are over 72 years old. Which of the following actions must the MLO take?

  A. The MLO must present them with a reverse mortqaqe.
  B. The MLO must present them with a home equity line of credit (HELOC).
  C. The MLO must complete the application and proceed as normal.
  D. The MLO must inquire about the ability to repay in the event of a borrower's death.
  C. The MLO must complete the application and proceed as normal.

• Question 3:

  The purpose of a Suspicious Activity Report (SAR) is to report known or suspected violations or suspicious activity observed by financial institutions subject to the:

  A. Bank Secrecy Act (BSA).
  B. Truth in Lending Act (TILA).
  C. Gramm-Leach-Bliley Act(GLBA).
  D. Real Estate Settlement Procedures Act(RESPA).
  A. Bank Secrecy Act (BSA).

• Question 4:

  Which of the following is an example of a non-fluctuating income source?

  A. Salaried W-2 position
  B. Self-employed income
  C. Commission-based W-2 income
  D. Part-time work with irregular hours
  A. Salaried W-2 position

• Question 5:

  Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?

  A. Receipt of child support
  B. Immigration status
  C. Marital status
  D. Country of birth
  B. Immigration status

• Question 6:

  During the closing the borrower notices that the interest rate increased from 3.250% to 3.875%. The lender must:

  A. tell the borrower to close the loan.
  B. close the loan, then re-disclose after the loan funds.
  C. postpone the closing, re-disclose and wait three days.
  D. postpone the closing, re-disclose and wait three business days.
  D. postpone the closing, re-disclose and wait three business days.

• Question 7:

  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 8:

  Which of the following fees or charges is an allowable closing cost typically found on a Closing Disclosure?

  A. Origination charge
  B. Referral fee
  C. Servicing fee
  D. Yield-to-loan fee
  A. Origination charge

• Question 9:

  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 10:

  Which of the following is not a primary function for compensation undertaken by a mortgage loan originator on an FHA loan?

  A. Taking an application
  B. Offering or negotiating credit terms
  C. Assisting a consumer in applying for credit
  D. Performing real estate brokerage activities
  D. Performing real estate brokerage activities