compliance Enterprises inc.
P.O Box 64,
Lake Worth, FL 33460
Tel: (561)
586-3645
Web: www.ComplianceEnterprisesInc.com
Email: info@ComplianceEnterprisesInc.com
The questions
contained herein are copyrighted.
© 2011 -- Asset
Appreciation LLC. Used by permission.
Fair Warning: We’re not going to tell you what the
correct answers to these practice test questions are – you can find the answers
and a discussion of each topic on the pages noted below in Compliance
Enterprises Inc.’s Test
Prep Manual for the Florida Component of the NMLS/SAFE Act Test - which is available for purchase on our website. You can however, test your knowledge here
for FREE.
Although the practice questions below are not exactly the same as what you will find on the real test (that would be cheating), they were designed to mimic the difficulty of the NMLS / SAFE Act National test assuming the Florida test will be similar. As of 9/19/2010 (the date of this publication), the Florida test is not yet available. One of the frustrations expressed by most NMLS test takers is the trouble in understanding what each question is actually asking(!). Hopefully, you will experience some of that here…
Scoring well on a practice test is NOT a guarantee you will pass the Florida test - no practice test alone can adequately prepare you for the real thing. It is very important that you are fully versed in all of the material found on the Florida test outline before taking the National test. We suggest that you read each question below and eliminate the answers that you are sure are incorrect, then keep whittling away until you have only one or two possible solutions left. Finally, choose the best answer.
All
questions were excerpted from Compliance Enterprises Inc.’s Test
Prep Manual for the NMLS/SAFE Act Florida Test (there are many more
practice test questions in our manual).
Here is a list of topics covered by these questions. These topics reflect chapter titles in our
Florida Test Prep Manual.
1. Florida’s Office of
Financial Regulation (OFR) has the responsibility for which of the following?
a. Creating and enforcing the
laws and rules for loan originators living in Florida
b.Enforcing mortgage brokering and lending laws and
creating rules for Florida residential transactions
c. Licensing all employees of
mortgage brokering and lending businesses
d.Making sure inexperienced institutional investors
receive certain disclosures
This practice test
question topic is discussed on pages 2-3 of our NMLS / SAFE Florida Test Prep Manual
2. Which of the following is
TRUE regarding F.S. 494 licensing requirements?
a. Merely negotiating, but not
collecting a finder’s fee for referring mortgage applicants does not require a
license
b.A lender’s loan originating employee has no
licensing or education requirements
c. The OFR regulates the
licensing of Florida mortgage brokers, lenders, and loan originators
d.A Branch Manager does not need any experience or be
licensed
This
practice test question topic is discussed on pages 2-5 of our NMLS / SAFE Florida Test Prep Manual
3. Each of the following
actions requires a branch office to be registered EXCEPT
a. Loan originator holds
first-time-homebuyer classes in his basement where he solicits applications
b.Website provides driving directions and mailing
address to drop off completed applications
c. Business card provides home
office email, cell phone and website
d.Postcard solicitation boasts of office park location
with in-house originating, processing and underwriting
This
practice test question topic is discussed on page 6 of our NMLS / SAFE Florida Test Prep Manual
4. A licensed loan
originator may do each of the following EXCEPT
a. Receive compensation
directly at closing from a lender for brokering a mortgage loan to a borrower
b.Choose to originate loans as a lender’s employee, or
as an independent contractor for a licensed mortgage broker (business)
c. Receive compensation from a
licensed business with whom he is employed or associated for brokering a loan
d.Earn consulting fees for helping a non-institutional
lender close hard money loans
This
practice test question topic is discussed on pages 10, 12, 18-19 of our NMLS / SAFE Florida Test Prep Manual
5. A licensed and active
mortgage broker since 2005 must do each of the following to become a licensed
mortgage broker EXCEPT
a. Submit fingerprint cards and
other requested information on every control person
b.Designate himself or another as the qualified
principal loan originator
c. Submit a completed
application form with the required fee
d.Attest to having a properly configured principal
office location in the U.S.
This
practice test question topic is discussed on pages 12-13 of our NMLS / SAFE Florida Test Prep Manual
1. A person is “holding himself
out to the public” and must be properly licensed in each of the following
situations EXCEPT
a. When operating a business
entity that makes or sells mortgage loans to non-institutional investors
b.When a loan originator places himself in a position
where he is likely to come in contact with borrowers or investors
c. When offering to make
mortgage loans while being employed by a federally chartered depository
institution
d.When advertising in a manner that would lead the
public to believe the person was in the mortgage lending business
This
practice test question topic is discussed on pages 59-60 of our NMLS / SAFE Florida Test Prep Manual
2. Each of the following
statements are true about the principal loan originator EXCEPT
a. The principal loan
originator must either reside in Florida or have a 10% or greater ownership
share in the entity
b.Any change in the designated principal loan
originator must be reported to the OFR
c. Failure to properly
designate a principal loan originator will result in every officer, director
and 10% or greater share owner of the lending business to fulfill that
responsibility
d.A newly designated principal loan originator must be
licensed as a Florida loan originator
This
practice test question topic is discussed on page 46 of our NMLS / SAFE Florida Test Prep Manual
3. Who is exempt from
licensure as a lender in Florida?
a. Entities that lend only on
behalf of non-institutional investors
b.Lenders that only make open-ended loans
c. Sellers of real estate who
provide their own financing for all or part of the sale
d.Attorneys licensed in other states
This
practice test question topic is discussed on page 59 of our NMLS / SAFE Florida Test Prep Manual
4. Licensees must report
each of these events to the OFR within 30 days EXCEPT
a. Any change in partners or
control persons
b.Any significant drop in net worth
c. Any change in information
provided on the initial application
d.Following any indictment or plea of nolo contendere
regarding any a crime involving fraud, dishonest dealing, or act of moral
turpitude
This
practice test question topic is discussed on pages 47, 55 of our NMLS / SAFE Florida Test Prep Manual
5. The CHARM booklet
disclosure is required
a. Within 3 business days of
having any discussion with a consumer about an ARM
b.Whenever a first time home buyer makes an
application
c. Under the Truth-in-Lending
Act but not required under F.S. 494
d.At least 3 days prior to closing
This practice test question topic is discussed on page 56 of our NMLS / SAFE Florida Test Prep Manual