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Question 1 of 8

1. Question
A mortgage company’s compliance officer discovers that loan officers have not received anti-money laundering training in more than three years. During an audit, regulators express concern. Which statement is most accurate?
- A) AML training is optional if no suspicious activity has occurred
- B) AML training should be periodically reviewed and enhanced to support anti-money laundering efforts
- C) Only underwriters require AML training
- D) Training is required only for bank tellers
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Question 2 of 8

2. Question
A mortgage lender experiences a significant increase in fraud attempts involving unverifiable assets and suspicious wire transfers. Management decides to strengthen monitoring procedures. Which AML concept is being addressed?
- A) Internal controls
- B) Fair lending requirements
- C) Appraisal independence
- D) HMDA reporting
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Question 3 of 8

3. Question
A processor identifies multiple unexplained cash deposits shortly before closing but is unsure how to report the activity internally. Which deficiency may exist within the lender’s AML program?
- A) Missing flood-certification procedures
- B) Incomplete appraisal documentation
- C) Inadequate suspicious-activity reporting procedures
- D) Improper escrow calculations
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Question 4 of 8

4. Question
A mortgage company employee discovers a pattern of transactions that may indicate money laundering. The company’s AML policy requires escalation to the compliance department for review. Why is this procedure important?
- A) It eliminates underwriting requirements
- B) It replaces borrower verification requirements
- C) It prevents credit reports from being ordered
- D) It creates a process for referring suspicious activity to appropriate authorities
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Question 5 of 8

5. Question
During a state examination, regulators ask a mortgage lender to demonstrate how it detects and monitors potential money-laundering activity. What will regulators most likely review?
- A) Marketing materials
- B) Internal AML controls and monitoring procedures
- C) Property appraisals
- D) Loan pricing exceptions
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Question 6 of 8

6. Question
A mortgage company’s AML training program focuses only on compliance officers and excludes loan officers and processors who regularly handle borrower funds documentation. Why could this be a problem?
- A) Training applies only to executives
- B) Processors are exempt from AML requirements
- C) AML training should be reviewed and enhanced throughout the organization
- D) Loan officers are not involved in fraud prevention
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Question 7 of 8

7. Question
A lender’s AML audit reveals that employees identify suspicious activity but no formal process exists for documenting or escalating concerns. What weakness is most evident?
- A) Missing internal controls for reporting suspicious activity
- B) Inadequate HMDA reporting
- C) Lack of appraisal reviews
- D) Insufficient RESPA disclosures
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Question 8 of 8

8. Question
A mortgage lender updates its AML procedures after regulators identify new money-laundering risks in residential real estate transactions. Which principle of the MLSA is best reflected by this action?
- A) Elimination of internal controls
- B) Reduced employee training
- C) Elimination of suspicious-activity reporting
- D) Continuous review and enhancement of anti-money laundering efforts
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