CRAM ARCADE Open App

Under the SAFE Act's Temporary Authority to Originate (TAO) provision, which scenario would allow an MLO to originate loans in a new state without yet holding a license in that state?

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

Show the answer and explanation

Correct answer: A state-licensed MLO who moves to a new state and has applied for a license in that new state while their application is pending

The Temporary Authority to Originate (TAO) provision, added to the SAFE Act by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, allows a state-licensed MLO who moves to a new state and submits a license application in that state to continue originating loans while the application is pending. "An MLO whose license was revoked who is appealing th..." is incorrect — TAO is not available to individuals who have never held a license; it requires an existing valid license history. "A state-licensed MLO who moves to a new state and ha..." is incorrect — a federally registered MLO at a bank wanting to originate outside their institution does not qualify for TAO in this manner. "A newly hired MLO with no prior license who is waiti..." is incorrect — TAO is explicitly not available to individuals whose license was revoked.

Drill 2,078 more questions like this, free

CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.

Start studying free