Term
| Who is responsible for determining whether to issue a license approval |
|
Definition
| The Commissioner of the DFI/MRC |
|
|
Term
| How long is a loan origination license valid? |
|
Definition
|
|
Term
|
Definition
| Department of Financial Institutions |
|
|
Term
| What is the Mortgage Regulatory Commission? |
|
Definition
|
|
Term
| Who is responsible for issuing license approval |
|
Definition
| The commisioner of DFI/MRC |
|
|
Term
| How long is a loan originator license valid? |
|
Definition
|
|
Term
| What laws specify requirements for Loan Originators |
|
Definition
- Title V (S.A.F.E.)
- Regulation H (SAFE part 1008 State compliance & Bureau Registration System)
-SML State Model Legislature |
|
|
Term
| Who wrote the implementing regulations for S.A.F.E and what are they known as? |
|
Definition
|
|
Term
| Who provides a surety bond? |
|
Definition
| The individual or if the person is an employee or exclusive agent of a person subject to the states SAFE Act, the surety bond of the employing licensee may satisfy the bond requirement |
|
|
Term
| What are the 3 MLO Renewal Requirements |
|
Definition
- Continue to meet min standards for license
- Satisfy annual continuing education
- Pay all required fees. |
|
|
Term
| What does Licensee submit to NMLS? |
|
Definition
| Reports of condition. I.E. Mortgage Call Reports |
|
|
Term
| What regulation G created under the S.A.F.E act? |
|
Definition
| Created the registration system and transferred responsibility to CFPB. |
|
|
Term
|
Definition
HUD
Known as Regulation H it gave HUD
-responsibility for monitoring states compliance with SAFE
- authority to establish & maintain licensing systems in states without a licensing system. |
|
|
Term
| State Licensing & regulatory agencies have? |
|
Definition
the authority to investigate and examine any:
- Licensed Loan originator
- Individual required to have a loan originator license |
|
|
Term
| What are the purposes for SLA (state licensing agency) investigations |
|
Definition
Initial or renewal of license
License suspension, conditioning, revocation, or termination
Determining compliance w/state law |
|
|
Term
| What are NMLS confidentiality requirements for information disclosed to them? |
|
Definition
The same as applied to the information prior to being disclosed.
- May be shared with state & federal officials involved in Mortgage oversight sans loss of privilege & confidentiality protections provided by law.
- Is not subject to; disclosure or subpoena(unless waived by owner.
Personal material LO employment and or disciplinary information is not protected/ |
|
|
Term
| What is the SAFE definition of MLO |
|
Definition
Mortgage Loan Originator
Takes an application 1003
Offers or negotiates terms of a mortgage loan. |
|
|
Term
| Real estate brokerage activities include: |
|
Definition
- Acting as a real estate agent or broker
- Bringing parties together in the interest of sale/purchase/rental or exchange of real property
Negotiating on behalf of a party any portion of a sale/purchase/rental or property exchange contract.
- Engaging in activities where a person is required to be a registered or licensed real estate agent or broker. |
|
|
Term
| What is a loan processor or underwriter? |
|
Definition
| a person who performs clerical or support duties at the direction of & subject to supervision of a State Licensed LO. |
|
|
Term
|
Definition
-Permanently ID's LO
- Is assigned by protocols from NMLS federal banking agencies |
|
|
Term
| What is the max penalty for each act or omission under the SAFE act? |
|
Definition
|
|
Term
| What are the State Agencies 6 remedies for violations |
|
Definition
-Deny, suspend, revoke, or decline to renew, a license
- Order restitution be paid
-Impose fines
- Issue orders (cease & desist from business or harmful activities
-Order and direct other affirmative action |
|
|
Term
| When new or edited state law is amended or passed, what can the CFPB request |
|
Definition
- Evidence of SAFE compliance
- Citations to relevant state laws
- Information on states supervisory process
- Data on State Regulators work (investigations, examinations, enforcement) |
|
|
Term
| Who determines that state laws satisfy S.A.F.E. licensing requirements? |
|
Definition
|
|
Term
| How long do states have to remedy non-compliance with S.A.F.E? |
|
Definition
|
|
Term
| When must the initial 20 hour class be completed? |
|
Definition
| Any time 2 years prior to passing the S.A.F.E. test |
|
|
Term
Advertising
What is bait and switch |
|
Definition
| advertising a loan at very attractive terms and then informing potential customers that that loan is not available but that a loan with different terms is. |
|
|
Term
Advertising
What are 4 triggering terms? |
|
Definition
- The amount or % of any down payment (except for 0)
- The Number of payments or period of repayment (150 payments)
- The amount of any payment
- The amount of any finance charge |
|
|
Term
Advertising
Disclosures required by triggering terms |
|
Definition
- Amount or % of down payment
- Terms of repayment (i.e. schedule, timing, balloon)
- APR |
|
|
Term
Advertising
Credit secured by dwelling
What is disclosure is required for an ad with simple annual rate, where more than one rate will apply over life of loan? |
|
Definition
-Each applicable rate
-The period of time each rate is applied
-The APR of the loan |
|
|
Term
Advertising
Credit secured by dwelling
What is disclosure is required for an ad stating the amount of payment? |
|
Definition
The amount of each payment
The period of time during which payment applies
For credit secured by a 1st lien on a dwelling, the fact that payments DO NOT include taxes /ins/ if appicable and that the obligation will be greater |
|
|
Term
Advertising
Credit secured by dwelling
Cannot use "fixed" to refer to payments, rates, or credit transaction on what type of transactions? |
|
Definition
variable rate
where payment will increase
where there are transactions with both variable & fixed transactions |
|
|
Term
| Who is/are responsible for renewal of LO license? |
|
Definition
|
|
Term
| What are the NMLS requirements for an independent contractor? |
|
Definition
| He must become state licensed. |
|
|
Term
| What are the federal S.A.F.E. requirements for a state licensing agency? |
|
Definition
- Effective supervision & enforcement
- Writing rules & regs necessary to license LO
- setting and resetting of renewal or reporting dates.
- conduct background checks
- Participate in NMLS |
|
|
Term
| When would a license be suspended with out a hearing? |
|
Definition
| Anytime. Hearings aren't required. However, the LO has a right to request one. |
|
|
