Welcome to your SAFE MLO Practice Exam - Part B
1.
Under the SAFE Act, what is the purpose of the unique identifier assigned to each mortgage loan originator?
2.
Which document outlines the final terms and costs of a mortgage loan?
3.
Which law mandates that lenders must provide borrowers with a notice of their right to receive a copy of the appraisal report?
4.
What is the role of continuing education in the SAFE Act requirements?
5.
What does the SAFE Act require mortgage loan originators to do before offering loans?
6.
Which document provides details about the loan terms and closing costs before closing?
7.
Which of the following is NOT a responsibility of a mortgage loan originator?
8.
Which type of mortgage allows the borrower to pay only the interest for a specified number of years?
9.
What is the purpose of the annual renewal requirement for mortgage loan originators?
10.
What does LTV stand for in mortgage terms?
11.
What is the purpose of a Good Faith Estimate (GFE)?
12.
What is the primary purpose of a mortgage?
13.
Which type of loan is specifically designed for low-to-moderate income borrowers?
14.
How often must a licensed mortgage loan originator complete continuing education to maintain their license?
15.
Which type of mortgage loan originator is required to be licensed under the SAFE Act?
16.
If an MLO fails the SAFE MLO Test, how long must they wait before retaking it?
17.
Which of the following topics is covered in the pre-licensing education for MLOs?
18.
What is a key feature of an adjustable-rate mortgage (ARM)?
19.
Which agency is responsible for maintaining the Nationwide Multistate Licensing System (NMLS)?
20.
What is the main goal of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act)?
21.
What is the purpose of the Fair Credit Reporting Act (FCRA) in the context of mortgage lending?
22.
What does MLO stand for in the context of mortgage loans?
23.
What is the minimum education requirement for a mortgage loan originator under the SAFE Act?
24.
Under the SAFE Act, which entity is responsible for maintaining the Nationwide Multistate Licensing System and Registry (NMLS)?
25.
Under the Truth in Lending Act (TILA), what is the annual percentage rate (APR) intended to reflect?
26.
Under the Truth in Lending Act (TILA), which of the following disclosures is required to be provided to borrowers?
27.
Which entity is responsible for the registration of mortgage loan originators?
28.
Which of the following is a type of mortgage loan?
29.
What is the minimum passing score for the SAFE MLO Test?
30.
What is the primary purpose of the SAFE Act in mortgage lending?
31.
Which of the following best describes a Qualified Mortgage under the Dodd-Frank Act?
32.
In the context of the SAFE Act, what does MLO stand for?
33.
Which document must be provided to the borrower at least three business days before closing, according to the TILA-RESPA Integrated Disclosure (TRID) rule?
34.
Which federal law aims to ensure that all consumers are given an equal chance to obtain credit?
35.
What does the acronym NMLS stand for?
36.
What is the primary purpose of the SAFE Act in mortgage loan origination?
37.
Which of the following is a characteristic of a balloon mortgage?
38.
How often must mortgage loan originators renew their licenses according to the SAFE Act?
39.
What is the minimum passing score required on the SAFE MLO national test?
40.
What is the primary function of the Nationwide Multistate Licensing System & Registry (NMLS)?
41.
What is the minimum number of hours of pre-licensing education required under the SAFE Act for mortgage loan originators?
42.
Which federal law requires mortgage lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?
43.
What is the maximum back-end DTI ratio typically allowed for a conventional mortgage?
44.
How many hours of pre-licensure education are required for mortgage loan originators under the SAFE Act?
45.
What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?
46.
What is the primary role of the NMLS in relation to mortgage loan originators?
47.
The Home Ownership and Equity Protection Act (HOEPA) is designed to protect consumers from what type of lending practices?
48.
Who is responsible for assessing the value of a property during the mortgage process?
49.
Which federal law requires mortgage lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?
50.
Which of the following is required to be disclosed to a borrower by a mortgage loan originator?
51.
Which of the following is true about the Truth in Lending Act (TILA)?
52.
Under the Fair Credit Reporting Act (FCRA), what must lenders do before denying a mortgage application based on a credit report?
53.
Which government entity provides insurance for FHA loans?
54.
Under the Equal Credit Opportunity Act (ECOA), which of the following is a prohibited basis for discrimination in lending?
55.
Which of the following topics is NOT typically covered in the pre-licensure education for mortgage loan originators?
56.
Which of the following is NOT a component of the 20 hours of pre-licensing education required by the SAFE Act?
57.
What is the main objective of the SAFE Act in mortgage lending?
58.
What does 'LTV' stand for in mortgage lending?
59.
What is the purpose of the pre-licensing education requirement under the SAFE Act?
60.
What is the role of a mortgage broker?
61.
What is the purpose of the Nationwide Multistate Licensing System (NMLS)?
62.
Which of the following is an ethical responsibility of a mortgage loan originator?
63.
Which act mandates that lenders report detailed information about their mortgage lending activity to ensure compliance with fair lending laws?
64.
In a fixed-rate mortgage, what remains constant throughout the term of the loan?
65.
What is the role of the Consumer Financial Protection Bureau (CFPB) in the context of mortgage loans?
66.
Which of the following is a requirement for passing the SAFE MLO exam?
67.
The Real Estate Settlement Procedures Act (RESPA) prohibits which of the following practices?
68.
What is the main objective of the annual continuing education requirement for MLOs?
69.
What is the main purpose of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act)?
70.
What is the minimum passing score for the SAFE MLO Exam?
71.
Which of the following is a requirement under the SAFE Act for mortgage loan originators?
72.
Which entity is responsible for maintaining the Nationwide Multistate Licensing System & Registry (NMLS)?
73.
What is the purpose of the NMLS?
74.
What is the significance of the 'ability to repay' rule in mortgage origination?
75.
Which federal law is designed to protect consumers from unfair billing practices and to provide them with a means to resolve billing disputes?
76.
Which law requires lenders to provide a clear disclosure of the annual percentage rate (APR) and other loan terms?
77.
What does the acronym APR stand for in mortgage terms?
78.
Which federal act requires lenders to provide consumers with a Closing Disclosure at least three business days before closing on a mortgage?
79.
Which of the following is NOT a component of the SAFE MLO Exam?
80.
Which entity is responsible for overseeing the implementation of the SAFE Act?
81.
Which of the following is a component of the SAFE MLO test?
82.
Which of the following is NOT a type of mortgage insurance?
83.
Which federal law is primarily associated with the SAFE Act?
84.
Under the Real Estate Settlement Procedures Act (RESPA), which document must be provided to the borrower at least three days before closing?
85.
How often must a licensed MLO complete continuing education to maintain their license?
86.
What is a down payment in the context of a mortgage?
87.
Why is ethics an important part of the SAFE MLO Exam?
88.
Which of the following is a requirement for obtaining a mortgage loan originator license under the SAFE Act?
89.
What is the passing score required on the SAFE MLO exam to obtain a mortgage loan originator license?
90.
What is the primary function of the Truth in Lending Act (TILA)?
91.
Which law prohibits discrimination in mortgage lending based on race, color, religion, national origin, sex, marital status, or age?
92.
What is the primary purpose of the SAFE Act in mortgage lending?
93.
Which of the following is typically required to qualify for a conventional mortgage?
94.
What does the Home Mortgage Disclosure Act (HMDA) require lenders to do?
95.
Which of the following actions is prohibited for mortgage loan originators under the SAFE Act?
96.
The Real Estate Settlement Procedures Act (RESPA) prohibits which of the following practices in the mortgage lending process?
97.
Which of the following is NOT a requirement for obtaining an MLO license under the SAFE Act?
98.
Under the SAFE Act, what is one of the key components included in the background check for mortgage loan originators?
99.
Which of the following is a responsibility of a licensed mortgage loan originator?
100.
Which federal act requires financial institutions to explain their information-sharing practices to consumers?
101.
Which of the following topics is covered in the pre-licensing education for mortgage loan originators?
102.
Which federal act requires lenders to verify the ability of borrowers to repay their mortgage loans?
103.
What is the primary purpose of the SAFE Act in the mortgage industry?
104.
What is the consequence for a mortgage loan originator who does not renew their license by the annual deadline?
105.
What is the main purpose of an escrow account in mortgage transactions?
106.
Which federal law requires lenders to provide a Loan Estimate to borrowers within three business days of receiving a loan application?
107.
What does 'MLO' stand for in the context of the SAFE Act?
108.
Which of the following is NOT a requirement for obtaining a mortgage loan originator license under the SAFE Act?
109.
What is the primary purpose of the Loan Estimate in the mortgage loan origination process?
110.
Which of the following is a requirement for maintaining a mortgage loan originator license under the SAFE Act?
111.
Under the Fair Credit Reporting Act (FCRA), what right does a consumer have if they find an error on their credit report?
112.
What does the acronym 'APR' stand for in mortgage terms?
113.
Which of the following is a requirement for renewing an MLO license under the SAFE Act?
114.
What is the primary purpose of the SAFE Act in mortgage loan origination?
115.
Which of the following topics is NOT typically covered in the SAFE MLO Test?
116.
Which of the following is a key component of the SAFE Act's objectives?
117.
What is the role of the Nationwide Multistate Licensing System (NMLS) in mortgage loan origination?
118.
Which entity is responsible for overseeing the implementation of the SAFE Act?
119.
Which of the following is considered a predatory lending practice?
120.
What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)?
