NMLS S.A.F.E Exam Practice Questions
and Answers Graded A+
Enhancing protection and reducing fraud by directing states to adopt minimum
uniform standards for the licensing and registration of residential mortgage loan
originators was the purpose of the federal act known as the:
a. S.A.F.E. Act
b. Federal Trade Act
c. Consumer Financial Protection Act
d. Dodd-Frank Act - Correct answer-a. S.A.F.E. Act
Loan processors and underwriters may not:
a. Communicate with consumers to obtain information necessary for loan
processing
b. Collect information required to document a loan application
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,c. Distribute disclosures required in accordance with federal law
d. Take a loan application in the absence of a loan originator - Correct answer-d.
Take a loan application in the absence of a loan originator
The term " state licensed mortgage loan originator" applies to an individual that
works for:
a. Bank or credit union
b. Mortgage broker only
c. Mortgage broker or lender
d. Mortgage lender only - Correct answer-c. Mortgage broker or lender
Which of the following is not a part of the definition of a loan originator?
a. For compensation or gain, takes residential mortgage applications
b. For the expectation of compensation or gain, offers or negotiates terms of a
residential mortgage loan
c. Person or entity that only performs clerical duties in the processing of the
documents
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,d. For compensation or gain, negotiates residential mortgage loans - Correct
answer-c. Person or entity that only performs clerical duties in the processing of
the documents
Under the S.A.F.E. Act, states and their regulatory agencies have the duty and the
authority to enact licensing standards that meet the requirements of the Act, while
overall responsibility for interpretation, implementation, and compliance currently
lies with:
a. The NMLS
b. The Federal Reserve
c. HUD
d. The CFPB - Correct answer-d. The CFPB
Which of the following is responsible for determining whether to issue a license
approval?
a. The NMLS
b. The Governor
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, c. The CFPB
d. The State Regulatory Authority - Correct answer-d. The State Regulatory
Authority
An individual who is an employee of a depository institution or a subsidiary of a
depository institution meets the definition of a loan originator, defined as a(n):
a. Licensed mortgage loan originator
b. Exempt mortgage loan originator
c. Registered mortgage loan originator
d. Qualified mortgage loan originator - Correct answer-c. Registered mortgage loan
originator
Which of the following is used as a method of identifying and holding licensees
accountable, according to the S.A.F.E. Act?
a. NMLS ID
b. Records of annual loan originator volume
c. Unique identifier
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers Graded A+
Enhancing protection and reducing fraud by directing states to adopt minimum
uniform standards for the licensing and registration of residential mortgage loan
originators was the purpose of the federal act known as the:
a. S.A.F.E. Act
b. Federal Trade Act
c. Consumer Financial Protection Act
d. Dodd-Frank Act - Correct answer-a. S.A.F.E. Act
Loan processors and underwriters may not:
a. Communicate with consumers to obtain information necessary for loan
processing
b. Collect information required to document a loan application
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,c. Distribute disclosures required in accordance with federal law
d. Take a loan application in the absence of a loan originator - Correct answer-d.
Take a loan application in the absence of a loan originator
The term " state licensed mortgage loan originator" applies to an individual that
works for:
a. Bank or credit union
b. Mortgage broker only
c. Mortgage broker or lender
d. Mortgage lender only - Correct answer-c. Mortgage broker or lender
Which of the following is not a part of the definition of a loan originator?
a. For compensation or gain, takes residential mortgage applications
b. For the expectation of compensation or gain, offers or negotiates terms of a
residential mortgage loan
c. Person or entity that only performs clerical duties in the processing of the
documents
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,d. For compensation or gain, negotiates residential mortgage loans - Correct
answer-c. Person or entity that only performs clerical duties in the processing of
the documents
Under the S.A.F.E. Act, states and their regulatory agencies have the duty and the
authority to enact licensing standards that meet the requirements of the Act, while
overall responsibility for interpretation, implementation, and compliance currently
lies with:
a. The NMLS
b. The Federal Reserve
c. HUD
d. The CFPB - Correct answer-d. The CFPB
Which of the following is responsible for determining whether to issue a license
approval?
a. The NMLS
b. The Governor
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, c. The CFPB
d. The State Regulatory Authority - Correct answer-d. The State Regulatory
Authority
An individual who is an employee of a depository institution or a subsidiary of a
depository institution meets the definition of a loan originator, defined as a(n):
a. Licensed mortgage loan originator
b. Exempt mortgage loan originator
c. Registered mortgage loan originator
d. Qualified mortgage loan originator - Correct answer-c. Registered mortgage loan
originator
Which of the following is used as a method of identifying and holding licensees
accountable, according to the S.A.F.E. Act?
a. NMLS ID
b. Records of annual loan originator volume
c. Unique identifier
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
