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NMLS Mortgage Loan Origination (SAFE MLO) Sample Questions:
1. The purpose of a Suspicious Activity Report (SAR) is to report known or suspected violations or suspicious activity observed by financial institutions subject to the:
A) Bank Secrecy Act (BSA).
B) Truth in Lending Act (TILA).
C) Gramm-Leach-Bliley Act(GLBA).
D) Real Estate Settlement Procedures Act(RESPA).
2. Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?
A) The Equal Credit Opportunity Act
B) The Truth in Lending Act (TILA)
C) The Dodd-Frank Act
D) The SAFE Act
3. An appraiser agrees to give a mortgage loan originator (MLO) half of her appraisal fees in return for the MLO's future business. This illegal practice is known as:
A) paying it forward.
B) blockbusting.
C) fee splitting.
D) redlining.
4. A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer's mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower's bank records. Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?
A) The buyer's agent
B) His loan processor
C) All parties involved in the transaction
D) The report Is not permitted to be discussed with any parties involved in the transaction.
5. Which of the following items may lenders use to verify a borrower's income for his ability to repay a mortgage?
A) An electronic paystub
B) The income stated on the loan application
C) A copy of a check register
D) The borrower's attestation that he expects a raise within 30 days
Solutions:
Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: A |