Uniform State Content (SAFE Act)Question 386 of 400
An individual originates a mortgage loan secured by their own residence for their own personal use and receives no compensation. Under a common SAFE Act exemption, this person is:
a.Required to obtain a full state MLO license
b.Generally exempt, because an individual who originates a loan for their own residence is typically not acting as an MLO under the SAFE Act
c.Required to register federally as an MLO
d.Required to post a surety bond even though no license is needed
Explanation
The SAFE Act's MLO definition centers on originating loans for others for compensation or gain. An individual who originates a loan secured by their own residence, for their own use and without compensation, generally does not meet the definition and is not required to be licensed. Compensation and originating for others are key triggers.
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Related questions on this topic
- The SAFE Act sets minimum national standards but allows states to do which of the following?
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- What was a primary factor motivating Congress to pass the SAFE Act in 2008?
- Which of the following best describes the 'general fitness and character' standard the SAFE Act requires of MLO applicants?
- A state-licensed MLO completes their 8 hours of continuing education on December 30 but does not submit the renewal request until January 15 of the next year. What is the most likely consequence?
- Which federal agency was given rulemaking authority over the SAFE Act after passage of the Dodd-Frank Act?
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