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Question 1 of 10

1. Question
Third-Party Fees as Compensation

When are fees paid to third-party providers considered compensation to the loan originator?
- A. Always, regardless of the amount charged
- B. Only when the creditor pays the fee
- C. When the loan originator charges the consumer more than the actual third-party cost
- D. Only when the fee is called a ‘broker fee’
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Question 2 of 10

2. Question
Prohibited Compensation Factors

Which of the following may NOT be used as a basis for compensation paid by a creditor to a loan originator?
- A. Hourly rate of pay for actual hours worked
- B. Whether the consumer is an existing customer of the creditor
- C. Loan volume delivered to the creditor
- D. Higher compensation based on borrowers having higher credit scores
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Question 3 of 10

3. Question
MLO Qualification – General

Which of the following best describes the general requirement for a Mortgage Loan Originator (MLO)?
- A. MLO must be related to a licensed real estate agent
- B. MLO must be ‘qualified’ and meet applicable criteria and regulations
- C. MLO must work only for depository institutions
- D. MLO must have at least 10 years of industry experience
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Question 4 of 10

4. Question
MLO Licensing

What is required regarding licensing for Mortgage Loan Originators?
- A. Licensing is voluntary if sponsored by a bank
- B. MLO must be licensed as required under federal and state regulations
- C. Only state licensing is required
- D. Only federal registration is required
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Question 5 of 10

5. Question
Depository MLOs

MLOs employed by depository institutions are:
- A. Exempt from all qualification requirements
- B. Subject only to federal registration, not qualification
- C. Subject to qualification requirements
- D. Required to hold only a state license
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Question 6 of 10

6. Question
Background Checks

Which of the following is specifically required as part of MLO qualification?
- A. A signed code-of-ethics pledge only
- B. Required background checks
- C. A minimum of 20 years of mortgage experience
- D. Membership in a trade association
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Question 7 of 10

7. Question
Character and Fitness

What type of personal evaluation is explicitly required under MLO qualification standards?
- A. Social media screening
- B. Financial wealth assessment
- C. Character and fitness checks
- D. Political affiliation review
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Question 8 of 10

8. Question
Training and Education

Which of the following is required for MLOs as part of their professional standards?
- A. Only initial licensing, no ongoing education
- B. Required training, education, and testing
- C. Only completion of an internal company course
- D. Only a one-time exam at hire
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Question 9 of 10

9. Question
Non-Depository MLOs

MLOs employed by non-depository institutions are generally:
- A. Exempt from state licensing
- B. Subject only to federal registration
- C. Subject to state licensing requirements
- D. Exempt if supervised by a bank holding company
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Question 10 of 10

10. Question
Organization Responsibilities

Mortgage loan originator organizations must ensure that:
- A. Only managers are licensed
- B. Employees are licensed or registered as required under the SAFE Act or state law
- C. Only processors are registered
- D. Only underwriters are licensed
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