Chapter 1 Quiz: FinTech, SAFE Act, and The Fed

Question 1

All licensed/registered MLOs:

a. are issued a unique identifier number
b. must be bonded
c. must carry liability insurance
d. all of the above

Answer 1

a. are issued a unique identifier number

Question 2

The SAFE Act defines a Mortgage Loan Originator (MLO) as an individual who:

a. takes a residential mortgage loan application
b. offers or negotiates terms of a residential mortgage loan for compensation gain
c. both a & b
d. none of the above

Answer 2

c. both a & b

Question 3

All state-licensed MLOs must have NEVER:

a. had a mortgage loan originator license revoked
b. had a felony in the past seven years
c. had a felony involving fraud, dishonesty, breach of trust, or money laundering
d. all of the above

Answer 3

d. all of the above

Question 4

The minimum number of hours of mandatory pre-license education for MLOs is:

a. 10
b. 20
c. 8
d. 45

Answer 4

b. 20

Question 5

How many Federal Reserve Districts are there across the nation?

a. 3
b. 12
c. 6
d. 18

Answer 5

b. 12

California is in the 12th District of the Federal Reserve System.

Question 6

The Federal Open Market Committee:

a. carries out open market operations
b. computes the Consumer Price Index
c. determines all farm subsidies in the U.S.
d. all of the above

Answer 6

a. carries out open market operations

Question 7

The rate of interest charged by the Fed to member banks is called the:

a. federal funds rate
b. discount rate
c. prime rate
d. usury rate

Answer 7

b. discount rate

Question 8

Who has the power of currency issue?

a. congress
b. the president of the U.S.
c. the federal reserve
d. the U.S. treasury

Answer 8

c. the federal reserve

Though they have the power of issuing, they do not actually print the money.

Question 9

Prior to getting licensed by the NMLS all applicants must:

a. provide fingerprints for a FBI criminal background check
b. provide authorization for NMLS to obtain a credit report
c. pass a 125 question Uniform State Test (UST)
d. all of the above

Answer 9

d. all of the above

Question 10

The Truth in Lending Law is supervised by the:

a. Department of Justice
b. Consumer Financial Protection Bureau
c. Federal Deposit Insurance Corporation
d. U.S. Treasury

Answer 10

b. Consumer Financial Protection Bureau