Term
| What law prohibits a lender from requiring mortgage insurance through any agent or company? |
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Definition
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Term
| Who supervises all activities of the OFR? |
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Definition
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Term
| What are examples of prohibited practices under Chapter 494? |
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Definition
| mostly fraud related items. |
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Term
| Who can a fee or commission related to a mortgage loan transaction be paid to under chapter 393? |
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Definition
Mortgage broker
Mortgage lender
A person exempt from licensure under the law. |
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Term
| What disclosures need to be provided to the borrower in the case of a conflict of interest? |
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Definition
The nature of the relationship, ownership, or financial interests.
The estimated charge.
The financial benefit.
That alternative sources may be chosen by the borrower. |
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Term
| In what cases would a licensee have a conflict of interest? |
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Definition
additional products or services are provided by the licensee or licensee's family member.
1% is the key figure of ownership. |
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Term
| How are files for each mortgage transaction to be maintained by mortgage brokers? |
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Definition
| in a central location and in an alphabetical or numerical sequence. |
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Term
| What must each mortgage brokerage file contain? |
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Definition
mortgage broker agreement
copy of signed closing statement or documentation of denial or cancellation
GFE |
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Term
| If the mortgage broker issues a written commitment for the loan on behalf of the lender, what must be maintained in the file? |
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Definition
| A copy of the written commitment issued by the mortgage broker, AND a copy of the written commitment provided by the lender. |
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Term
| What must the journal of mortgage brokerage transactions include? |
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Definition
Name of applicant
Date of application
Disposition of the mortgage loan application
Name of lender, if applicable |
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Term
| What must mortgage lender files include? (not brokers) |
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Definition
A copy of the GFE
The original 1003
Copy of the closing statement
Copy of any written lock-in agreement
Copy of any written commitment
Copy of written disclosures of any conflict of interest |
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Term
| When must a licensee notify a borrower of a change in the terms after being made aware of such changes? |
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Definition
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Term
| Within how many days must a mortgage assignment be recorded? |
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Definition
| As soon as practical, but no later than 30 business days after the date of closing. |
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Term
| If a title insurance policy is issued, what must it include? |
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Definition
1) It must insure the non-institutional investor against the "unmarketability" of the mortgage interest in the property.
It must specify any superior liens that exist against the property. |
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Term
| What are the maximum fees for mortgage loans. |
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Definition
Loans of of $1000 or less = $250
Loans between 1K and 2K = $250 for the first 1k and $10 for each additional $100.
Loans between 2K and 5K = $350 for first 2K plus $10 for each additional $100
Loans greater than 5K = $250 plus 10% of the entire mortgage loan. |
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Term
| What is the maximum commission for a loan? |
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Definition
| Loans of $5760 and over, divide the gross proceeds by 11 and add $227.27 |
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Term
| It is a violation of the law for any person to advertise than an applicant will have unqualified access to credit without disclosing what material limitations on the availability of credit exist. What do this limitations include? (but not limited to) |
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Definition
The percentage of downpayment required
That a higher rate or points could be required
That restrictions as to the maximum principal amount of the loan offered could apply. |
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Term
| If a specific interest rate is advertised, what else must be disclosed? |
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Definition
| That the rate could change or not be available at commitment or closing. |
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Term
| Is it okay for lenders to advertise mortgage loans and rates if it is not available to a reasonable number of qualified applicants? |
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Definition
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Term
| For how long must advertisements and scripts be maintained? |
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Definition
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Term
| Within how many days at the end of the fiscal year must the audited financial statements be submitted? |
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Definition
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Term
| Who appoints the director of the OFR? |
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Definition
| The financial services commission. |
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Term
| When does equitable right of redemption end? |
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Definition
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Term
| Failure to keep a mortgage transaction journal will result in what penalty for the first offense? |
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Definition
| A "notice of non-compliance" issuance. |
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Term
| What dollar amount change in fees would be considered material? |
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Definition
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Term
| Are maximum commissions from a loan based on net proceeds of the loan, or net total from the GFE? |
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Definition
| Net proceeds of the loan. |
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Term
| Florida law requires a licensee to keep records of a mortgage transaction for how long? |
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Definition
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Term
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Definition
| General provisions as they apply to mortgage professionals. |
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Term
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Definition
| Florida laws applicable to mortgage brokers and loan originators. |
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Term
|
Definition
| relates to mortgage lenders. |
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Term
| Does a branch manager of a broker shop have to be licensed? |
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Definition
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Term
|
Definition
| The Financial Services Commission. |
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Term
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Definition
| A statement by the lender setting forth the terms and conditions upon which the lender is willing to make a particular mortgage loan to a particular borrower. |
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Term
|
Definition
| Compensation from any source received by a mortgage broker acting as a loan originator. |
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Term
| What change in fees is considered to be a "material change?" |
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Definition
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Term
| Who is considered to be a relative by definition? |
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Definition
Spouse, father, mother, children, brothers, sister.
Spouses father, mother, brothers, sisters,
Spouses of person's children, brothers, or sisters. |
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Term
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Definition
| Authorizing a mortgage lender to service a loan for more than four months. |
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Term
| Ultimate equitable owner. |
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Definition
| As it sounds. The one who controls the ownership interest of a corp. |
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Term
| What are the other state laws and regulations that are important for this test? |
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Definition
Chapter 673 - Uniform Commercial Cod
Chapter 697 - Instruments Deemed Mortgages and the Nature of a Mortgage
Chapter 712.26 - Waiver of Release of Liens
Chapter 687 - Lending Practices
Chapter 120 - Administrative Procedures Act |
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Term
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Definition
| Form used by business entities seking a license. |
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Term
|
Definition
| Individuals seeking a license. |
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Term
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Definition
| Form used to open a branch office. |
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Term
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Definition
| Form used by individuals seeking a license as an MLO. |
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Term
| If somebody has unpaid medical expenses, will that hinder him from getting a license? |
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Definition
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Term
| Within how many years will a foreclosure prevent somebody from getting an MLO license? Bankruptcy? |
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Definition
3 years for foreclosure.
1 year for bankruptcy.
5 years for foreclosure for a broker. |
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Term
| How many days does a mortgage lender have to satisfy net worth requirements? How many days if the licensee notifies the Office? |
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Definition
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Term
| For how many years must an applicant for an MLO license provide employment history? |
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Definition
| 10 years... "account for all time." |
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Term
| How many days does a licensee have to report convictions or pleas of "no contest" |
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Definition
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Term
| Within how many days must each licensed mortgage broker which proposes to change any of the control persons listed on the initial application file an amendment through the NMLS? |
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Definition
| Within 30 days or within two business days after the date the licensee first received the notice of change. |
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Term
| How much does it cost to renew a mortgage broker license? |
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Definition
| $375, plus $100 for the trust fund and $25.25 for further background checks. |
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Term
| How much does it cost to renew a mortgage lender license? |
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Definition
| $475 plus $100 for the Trust Fund. |
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Term
| How much does it cost to renew a loan originator licnese? |
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Definition
| $195.25, which inclues a $150 renewal fee, $20 for the mortgage recovery fund, and $25.25 for a background check. |
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Term
| If a licensee notifies the Office that it will maintain the books, accounts, and records at a location other than the principal place of business, within how many days must the licensee make the books available for review? |
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Definition
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Term
| What is the penalty for maintianing books at a location other than the principal place of business? |
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Definition
| A "notice of noncompliance" for the first offense and $500 fines for each additional offense. |
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Term
| What is the Mortgage Guaranty Trust Fund? |
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Definition
| A fund that ensures payment to consumers who suffer a financial loss due to fraud or deception on behalf of a mortgage oranginator. |
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Term
| Each individual licensee is required to pay $__ into the fund, and each mortgage brokerage and mortgage-lending business will be required to pay $___ into the fund. This fee is in addition to the regular application fee. Collection continues annually until the fund reaches $_ million at which time the collection fee will be discontinued. Following discontinuation, the fee is not re-imposed until the fund’s value drops below $_ million. |
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Definition
$20
$100
$5 million
$1 million |
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Term
| What must each file for a mortgage transaction contain? |
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Definition
Mortgage broker agreement
Copy of a signed closing statement or documentation of denial or cancellation of the mortgage loan applciation
GFE |
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Term
| Failure to update the transaction within how many business days will result in disciplinary action? |
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Definition
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Term
| Each file for lenders must contain what? |
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Definition
A copy of the GFE
Original 1003
Copy of the closing statement or documentation demonstrating that the application was cancelled or denied.
Copy of a lock-in agreement
Copy of a written commitment
Copy of written disclosures of a conflict of interest. |
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Term
| When must the licensee notify the borrower of material changes in the closing statement? |
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Definition
|
|
Term
| which act has to do with notifications, hearings, and appeals? |
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Definition
| Administrative Procedure Act. |
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Term
| What number of days is relevent to the Administrative Procedures Act? |
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Definition
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Term
| What is the order of penalities for violation of Ch. 494? |
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Definition
Notice of noncompliance
Reprimand
Fine
Probation
Suspension
Revocation |
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Term
| What is the maximum fine for a violation of Ch 494 laws? |
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Definition
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Term
| What is the daily fine for an unlicensed person acting in the capacity of a licensee/ |
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Definition
| $1000 per day up to $25,000 |
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Term
| What is the definition of "numerous instances" of incomplete files for brokers? |
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Definition
| 3 occurences and a percentage greater than or equal to 20% of the files examined. |
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Term
| What is the penalty for non-compliance with the journal laws? |
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Definition
| First, a notice of non-compliance and then a $500 fine for every subsequent instance. |
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Term
| What is the penalty for a third degree felony? |
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Definition
| Prison term up to five years and up to a $5000 fine. |
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Term
| What is the penalty for a first degree felony? |
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Definition
| 30 years of prison and up to $10,000 in fines. |
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Term
| What is the Homestead Exemption Law? |
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Definition
| A law that provides an exemption from property taxes, which is deducted from a property's assessed value if the owner qualifies. |
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Term
| When must applicants file for the Homestead Exemption Law? |
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Definition
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Term
| What is Florida's Anti-Coercion Law? |
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Definition
| The lender must not require the applicant to get a particular type of mortgage insurance through a particular company. |
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Term
| Is Florida a title theory or lein theory state? |
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Definition
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