SAFE MLO NATIONAL COMPONENT WITH
UNIFORM STATE TEST BANK FULL
SOLUTION VERIFIED QUESTIONS AND
ANSWERS GUARANTEED TO PASS
●● To maintain a license in good standing, state law prohibits licensed
MLOs from certain acts. Which of the following is NOT one of these
prohibited acts?
A. An MLO conducts business with a known unlicensed broker.
B. An MLO imposes an undisclosed charge on a borrower for
establishing an escrow account.
C. An MLO disburses the mortgage loan proceeds into a customer's
account via direct deposit.
D. An MLO accepts a deposit to induce the lender to produce a loan.
Answer: C. An MLO disburses the mortgage loan proceeds into a
customer's account via direct deposit.
This question is asking "what is permissible?" Disbursing mortgage loan
proceeds via direct deposit to the customer's account is certainly
permissible. The other choices describe acts that are prohibited under
state rules and regulations.
,●● Inga is a loan processor that is NOT licensed as an MLO. Which of
the following acts is a violation of the SAFE Act?
A. Inga distributes loan application information received from the
consumer to the underwriter for further analysis.
B. Inga calls a consumer directly to obtain some basic information that
was cut off when the loan application form was faxed.
C. Inga circulates a business card that indicates she provides loan
origination services.
D. Inga inputs loan application information into the computer system to
prepare for analysis.
Answer: C. Inga circulates a business card that indicates she provides
loan origination services.
An individual engaging solely in loan processor or underwriter
activities, must not represent to the public, through advertising or other
means of communicating or providing information including the use of
business cards, stationery, brochures, signs, rate lists, or other
promotional items, that such individual can or will perform any of the
activities of a mortgage loan originator.
●● The unique identifier of any person originating residential mortgage
loans must be clearly shown on all of the following documents EXCEPT
appraisal reports.
,security instruments.
company websites.
credit applications.
Answer: appraisal reports.
Unique identifiers are required on credit applications, a note or loan
contract, security instruments, the Loan Estimate, the Closing
Disclosure, and advertisements, including business cards and company
websites. The unique identifier does not need to be displayed on
appraisal reports provided to an applicant.
●● Which statement about a loan originator advertising to solicit
mortgage business for his employing mortgage banker is FALSE?
A. The loan originator may not advertise exclusively in his own name.
B. The ad does not need to include license number of employing
banker's principal place of business.
C. The loan originator must obtain the approval of the employing
mortgage banker.
D. The ad must include the loan originator's unique NMLS ID.
Answer: B. The ad does not need to include license number of
employing banker's principal place of business.
, Any outgoing communication is prohibited, including advertisements
soliciting mortgage business, unless the communication includes the
name and license number of the employing banker's principal place of
business. The communication must also include the NMLS ID of the
MLO and be approved by the employing banker.
●● State regulators have the authority to do all of the following
EXCEPT
A. order restitution against persons for violations of the SAFE Act.
B. deny, suspend, revoke, condition, or decline to renew a license for
violations of the SAFE Act.
C. impose fines on persons for violations of the SAFE Act.
D. impose a prison sentence for purposeful violations of the SAFE Act
that cause consumer harm.
Answer: D. impose a prison sentence for purposeful violations of the
SAFE Act that cause consumer harm.
State and federal regulating authorities do not have the authority, nor are
they empowered, to impose a prison sentence. The other disciplinary
actions listed can be imposed for violations.
●● Lori is a state-licensed MLO working full-time for the Magnificent
Mortgage Company, a licensed lender. She has been offered the
opportunity to work part-time as an MLO for the Bravura Mortgage
UNIFORM STATE TEST BANK FULL
SOLUTION VERIFIED QUESTIONS AND
ANSWERS GUARANTEED TO PASS
●● To maintain a license in good standing, state law prohibits licensed
MLOs from certain acts. Which of the following is NOT one of these
prohibited acts?
A. An MLO conducts business with a known unlicensed broker.
B. An MLO imposes an undisclosed charge on a borrower for
establishing an escrow account.
C. An MLO disburses the mortgage loan proceeds into a customer's
account via direct deposit.
D. An MLO accepts a deposit to induce the lender to produce a loan.
Answer: C. An MLO disburses the mortgage loan proceeds into a
customer's account via direct deposit.
This question is asking "what is permissible?" Disbursing mortgage loan
proceeds via direct deposit to the customer's account is certainly
permissible. The other choices describe acts that are prohibited under
state rules and regulations.
,●● Inga is a loan processor that is NOT licensed as an MLO. Which of
the following acts is a violation of the SAFE Act?
A. Inga distributes loan application information received from the
consumer to the underwriter for further analysis.
B. Inga calls a consumer directly to obtain some basic information that
was cut off when the loan application form was faxed.
C. Inga circulates a business card that indicates she provides loan
origination services.
D. Inga inputs loan application information into the computer system to
prepare for analysis.
Answer: C. Inga circulates a business card that indicates she provides
loan origination services.
An individual engaging solely in loan processor or underwriter
activities, must not represent to the public, through advertising or other
means of communicating or providing information including the use of
business cards, stationery, brochures, signs, rate lists, or other
promotional items, that such individual can or will perform any of the
activities of a mortgage loan originator.
●● The unique identifier of any person originating residential mortgage
loans must be clearly shown on all of the following documents EXCEPT
appraisal reports.
,security instruments.
company websites.
credit applications.
Answer: appraisal reports.
Unique identifiers are required on credit applications, a note or loan
contract, security instruments, the Loan Estimate, the Closing
Disclosure, and advertisements, including business cards and company
websites. The unique identifier does not need to be displayed on
appraisal reports provided to an applicant.
●● Which statement about a loan originator advertising to solicit
mortgage business for his employing mortgage banker is FALSE?
A. The loan originator may not advertise exclusively in his own name.
B. The ad does not need to include license number of employing
banker's principal place of business.
C. The loan originator must obtain the approval of the employing
mortgage banker.
D. The ad must include the loan originator's unique NMLS ID.
Answer: B. The ad does not need to include license number of
employing banker's principal place of business.
, Any outgoing communication is prohibited, including advertisements
soliciting mortgage business, unless the communication includes the
name and license number of the employing banker's principal place of
business. The communication must also include the NMLS ID of the
MLO and be approved by the employing banker.
●● State regulators have the authority to do all of the following
EXCEPT
A. order restitution against persons for violations of the SAFE Act.
B. deny, suspend, revoke, condition, or decline to renew a license for
violations of the SAFE Act.
C. impose fines on persons for violations of the SAFE Act.
D. impose a prison sentence for purposeful violations of the SAFE Act
that cause consumer harm.
Answer: D. impose a prison sentence for purposeful violations of the
SAFE Act that cause consumer harm.
State and federal regulating authorities do not have the authority, nor are
they empowered, to impose a prison sentence. The other disciplinary
actions listed can be imposed for violations.
●● Lori is a state-licensed MLO working full-time for the Magnificent
Mortgage Company, a licensed lender. She has been offered the
opportunity to work part-time as an MLO for the Bravura Mortgage
