NMLS SAFE-MLO Online Practice Questions and Exam Preparation

NMLS SAFE-MLO Online Questions & Answers

• Question 51:

  A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer's mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower's bank records. Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?

  A. The buyer's agent
  B. All parties involved in the transaction
  C. His loan processor
  D. The report Is not permitted to be discussed with any parties involved in the transaction.
  D. The report Is not permitted to be discussed with any parties involved in the transaction.

• Question 52:

  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

• Question 53:

  According to the SAFE Act, which of the following activities requires licensure as a mortgage loan originator?

  A. Providing a consumer with a Homebuyer's Toolkit
  B. Providing a consumer with the loan policies of the lender
  C. Communicating with a consumer to arrange a loan closing
  D. Communicating the details of an offer for the first time over the phone
  D. Communicating the details of an offer for the first time over the phone

• Question 54:

  Which of the following is a requirement for a mortgage loan originator (MLO) license?

  A. Completed at least 10 hours of pre-licensing education
  B. Have not had an MLO license revoked in the last five years
  C. Have never been convicted of a felony in a domestic, foreign or military court
  D. Are covered by either a net worth or surety bond or pay into a state fund as required by the state loan originator's supervisory authority
  D. Are covered by either a net worth or surety bond or pay into a state fund as required by the state loan originator's supervisory authority

• Question 55:

  According to the Truth in Lending Act (TILA), the term "finance charge" includes which of the following charges?

  A. Daily or per diem interest paid by borrower
  B. Seller's points offered to reduce the borrower's closing costs
  C. A standard credit application fee charged to all loan applicants
  D. Document preparation fees for items such as mortgages and deeds
  A. Daily or per diem interest paid by borrower

• Question 56:

  The SAFE Act prohibits individuals from engaging in the business of a residential mortgage loan originator without first obtaining a:

  A. unique identifier
  B. compliance plan.
  C. high school diploma.
  D. originator counseling certificate.
  A. unique identifier

• Question 57:

  In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?

  A. Only the borrower who makes the most income
  B. Only the borrower with the majority interest in the transaction
  C. Only the person who will actually occupy the property
  D. Any person who has an ownership interest in the property
  D. Any person who has an ownership interest in the property

• Question 58:

  A licensed mortgage loan originator (MLO) sharing his commission with another licensed MLO at his company for actual services performed on a loan is considered which of the following terms?

  A. Tip sharing
  B. Fee splitting
  C. Single fee method
  D. Double fee method
  B. Fee splitting

• Question 59:

  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 60:

  Which of the following loan types may be considered a qualified loan under ability-to-pay rules

  A. An interest-only mortgage
  B. A loan with a balloon payment
  C. A loan with negative amortization
  D. A mortgage with an adjustable rate
  D. A mortgage with an adjustable rate