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A person with a felony conviction involving fraud applies for an MLO license. Under SAFE Act requirements, what is the outcome?

Uniform State Test (UST) · 11% of the SAFE exameasy

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Correct answer: The applicant is permanently barred from obtaining an MLO license

Under the SAFE Act, felony convictions involving fraud, dishonesty, breach of trust, or money laundering result in a PERMANENT bar from MLO licensing, regardless of when the conviction occurred. There is no waiting period or exception for these specific offense types. This is one of the most frequently tested topics on the exam.

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