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NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. The ability to originate loans under temporary authority applies to which of the following?
A) An MLO who is still waiting for their credit check to be completed
B) An MLO who has scheduled their test but not completed it
C) Previously licensed real estate brokers
D) Previously registered mortgage loan originators (MLOs)
2. 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) $25, 000 for each act or omission: $250,000 maximum
C) 000 for each act or omission
D) $2,500 for each act or omission; $25,000 maximum
3. A mortgage loan originator (MLO) takes an application for a borrower who is obtaining an owner-occupied maximum amount refinance loan. The borrower also asks for a loan application for a new house that they are purchasing that will not be finished until 60 days after the refinance loan closes. Although the MLO advises the borrower that the terms of the refinance loan require that they occupy the property for 12 months, the borrower says that the new purchase loan will not close until after the refinance loan has closed. The MLO must:
A) advise the borrower that the MLO can do the refinance loan as a non-owner-occupied loan and the purchase loan as an owner-occupied loan.
B) refer the borrower to another lender for the purchase loan so that the MLO is permitted to get a commission on the refinance loan.
C) take both applications and do one loan "in house" and broker the second loan to another lender.
D) refer the purchase loan to another MLO in their company to obtain a referral fee.
4. It is acceptable for a lender to request a co-applicant in which of the following situations?
A) The co-applicant is gifting money to the borrower to make a down payment on a purchase-money mortgage
B) The borrower will not qualify for the loan on their own.
C) The co-applicant will be residing in the house with the borrower.
D) The borrower's future income is dependent on the co-applicant.
5. When providing documents to a state regulator regarding a consumer complaint that was submitted to the state regulator, a licensed company should:
A) Send the documents by U.S. mail rather than electronically for privacy reasons.
B) Redact any names and personal information before providing the documents for privacy reasons.
C) Contact the consumer to get their authorization to provide documents to the regulator.
D) Provide the documents along with the company's explanation of what caused the complaint.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |



