SAFE MLO NATIONAL COMPONENT WITH UNIFORM STATE FINAL PAPER PRACTICE SOLUTION TESTED QUESTIONS WITH COMPLETE ANSWERS

SAFE MLO NATIONAL COMPONENT WITH
UNIFORM STATE FINAL PAPER PRACTICE
SOLUTION TESTED QUESTIONS WITH
COMPLETE ANSWERS

●● SAFE ACT Purpose
Answer: - to create uniform regulation and minimum uniform standard
of mortgage loan originators in every state
- registration and license for mortgage loan originators
- enhance consumer protection & reduce fraud


●● CSBS and AARMR wrote model legislation ____ approved
Answer: HUD


●● Model legislation reflects
Answer: minimum licensing standards every state requirements


●● HERA stands for
Answer: Housing and Economic Recovery Act


●● The SAFE Act is what title of HERA
Answer: V (5)

,●● SAFE is regulated under
Answer: Regulation H & Regulation G


●● SAFE act gave HUD
Answer: 1) responsibility of monitoring states' compliance
2) authroity to establish and maintain a licensing systems


●● What authority regulates SAFE?
Answer: CFPB


●● Who decides whether you get a license?
Answer: the state not CFPB


●● SAFE ACT requirements
Answer: 1) directs states to adopt minimum uniform standards for
licensing registration of MLOS
2) requires state participation in the NMLS
3) Authority to adopt standards delegated to state regulatory agencies
4) complete education
5) pay surety or net bond
6) requirements vary from state to state

, ●● The authority to adopt and implement these standards (under SAFE)
is delegated to
Answer: state regulatory agencies by state law


●● Departments/agencies may be headed by (3)
Answer: commissioner
director
superintendent


●● State licensing Agencies
Answer: - loan originator licensing requirements
requirements for
- effective supervision of those who are licensed
- a program for enforcement of the law


●● Effective supervision by a regulator
Answer: - participating in the NMLS
- writing rules/regulations
- conducting background checks
- setting and accepting fees
- setting or resetting renewal/ reporting dates