By The Numbers Flashcards
Mortgage lender and servicer surety bond ?
$50,000
Branch application fee?
$320
*including NMLS fee
Time frame that your file a new surety bond if a recovery is made on an existing surety bond ?
10 days
Tangible Net Worth requirement for a mortgage lender ?
$250,000
Failure to provide 10 days notice prior to opening a branch or new location
$500
Record retention
3 years
Per violation penalty for failure to comply with provisions of the finance lenders law.
$25,000
Max penalty for failure for Real Estate Broker to file notice or obtain licensure to originate mortgage?
$10,000
Penalty for failure for Real Estate Broker to file notice or obtain licensure to originate mortgage?
$50 per day
Up to 30 days
Penalty for failure for real Real Estate Broker to file notice or obtain licensure to originate mortgage?
$100.00 per day
after 30 days
Charged or convicted if misdemeanor involving financial services
Disclosure within 10 years
Operated as mortgage lender/broker that was subject of bankruptcy petition
Disclosure within 10 years
Opening a branch office at a new location or prior to changing the location of a business, what is the notification time frame?
10 days notice
To request a hearing after receiving notice that the commissioner intends to suspend a license?
15 days
The commissioner must schedule a hearing within 30 days of receiving a request, true or false ?
True
MU1 COMPANY APP
MORTGAGE BROKER -
Initial license setup fee $400 +100 NMLS fee
Fingerprint fees $20 for live scan
Finger print cards $86 are additional
MU1 COMPANY APP
Mortgage Lender/ Servicer
Initial license setup fee - $1100 +100 NMLS fee + 100 investigation fee.
Fingerprints $20 for live scan
Fingerprint cards $86 are additional
MU1 COMPANY APP
Exempt Company Registrant
$100 processing fee for NMLS
$20 branch location processing fee for NMLS
Real Estate Broker License (MLO license endorsement)
$100 processing fee for NMLS
$20 branch location processing fee for NMLS.
FORM MU2 (For Control Persons)
Control persons must file this specific application; how ever, they will receive an individual loan originator license.
FORM MU3 (Branches)
Mortgage Lender/ Servicer Branch Office
Initial license setup fee - $20
Which is also the NMLS fee, which means that is the only fee paid.
FORM MU4 (individuals)
MLO
Initial license setup fee 330 + 30 NMLS fee
Credit report $15
Criminal background check $39 are additional
Real Estate Salesperson License (individual - Mortgages Loan Origination License Endorsement)
$330 (includes $30 NMLS fee)
Credit report fee $15
Criminal check $39 optional
Financial Responsibility (surety bond and net worth or recovery bond)
Mortgage Broker
Surety bond = $25k
Tangible net worth = $250k
Financial Responsibility (surety bond and net worth or recovery bond)
Mortgage Lender / Servicer
Surety bond = $50k
Tangible net worth = $250k
Financial Responsibility (surety bond and net worth or recovery bond)
If a licensee is found in violation of the law:
Regulations, or orders issued by the DOB, the bond requirement maybe increased to $100,000.
A new bond must be filed with in 10 days of recovery being made from the existing bond.
Personal information updates and required notifications
Mortgage lender / Servicer
Any change of address, change of name or change in control? Must be recorded on the appropriate form MU1 and MU2 form. These changes must be electronically submitted and and any information that cannot be sent electronically must be sent within 5 business days of the submission to the NMLS.
Change of ownership = $100
Fingerprints = $20 (for live scan)
$62 for fingerprint cards
Personal information updates and required notifications
Branch offices under the CRMLA:
Any change in branch manager must be reported on the appropriate MU1 or MU2 form. All other amendments should be filed through the MU3 form. There are no fees for branch amendments.
These changes must be electronically submitted and any information that cannot be sent electronically must be sent within 5 business days of the electronic submission to the NMLS
Personal information updates and required notifications
Brokers license under the finance lenders law
Any changes of address, name, ownership, control person or lessons authority must be reported and completed on the appropriate MU1, MU2, and MU3 form. For change of address, the change must be reported 10 days prior to relocation (if the notification is more than 10 days after a change of address a $500 penalty will be charged).
No fee for change of address, name, ownership, control person or lessons authority, but there is a charge for fingerprinting of the new control person ($20 for live scan processing or $86 for fingerprint cards)
Changes must be electronically submitted and any information that could not be sent electronically must be sent within 5 business days of the electronic submission to the NMLS
Renewal
Mortgage broker
On or before the 30th day of September each year, the department will notify each licensee of the amount assessed and levied against it and that amount shall be paid by October 31.
The minimum assessment will be $250 per license location and failure to pay the assessment will result in the loss of the license.
Renewal
Mortgage lender/servicer
On or before September 30 of each year, the department levies annual assessment to be paid by each licensee for its pro rata share of all costs and expenses reasonably incurred in the administration of CRMLA.
The pro rata share is the proportion which a licensee is lending, brokering and servicing activity as reported on the annual report for the previous calendar year bears the aggregate activity at all licenses.
The minimum amount provided by statute is $1000 with a maximum of $5000.
Payment of the annual assessment is required within 20 days of the invoice date.
Renewal
MLO
Renewal fee 330
100 for late renewal
Renewal
Exempt company registrant
$100 processing fee for NMLS
$20 branch location processing fee for NMLS
Renewal
Real estate broker license
individual – mortgage loan originator license endorsement
Initial license set up fee = $330
Renewal
Real estate corporation license (MLO license endorsement)
$400
- $100 NMLS fee
Renewal
Real estate sales person license (individual - MLO license endorsement)
Renewal fee $330 + $30 NMLS fee
Prohibited conduct and practices 1
Sell more than 8 loans per year to a person who is not an institutional investor
Prohibited conduct and practices 2
Increasing a borrowers monthly payment on an adjustable rate mortgage by more than 7.5% per year
Prohibited conduct and practices 3
Charging private mortgage insurance (PMI) for mortgage guarantee insurance on loans who’s unpaid principal balance is 75% or less.
Prohibited conduct on higher-priced mortgage loans
Within 90 days of the loan closing them prior to the institution of any action against a licensed person under the section the license person did all of the following:
Notify the power of the compliance failure
Tendered appropriate restitution
Prohibited conduct on a covered loan 1
Make a covered loan having a term of less than five years that includes terms in which the total amount of the regular periodic payments would not fully amortized the principal balance (balloon)
Prohibited conduct on a covered loan 2
Make a covered loan if the consumers total monthly debt, including amounts owed under the loan, exceed 55% of the consumers monthly gross income
Prohibited conduct on a covered loan 3
The covered loan cannot be made unless the following disclosure, written and 12 point font or larger, has been provided to the consumer no later then three business days prior to signing of the loan documents of the transaction (closing)
Required conduct
Blenders/servicers must:
Hey at least 2% simple interest annually on prepaid funds received from the borrower for the purpose of mortgage insurance or taxes held in escrow
The interest should be credited to the borrowers account annually or upon termination of the escrow account
Required conduct
Blenders/servicers must:
Must wait 30 days from initial contact with the borrower regarding a loan default status before filing a notice of default
Personal Information updates and required notifications
Mortgage lender/ Servicer
Any change of address, change of name or change in control person must be reported on the appropriated form MU1 and form MU2. These names must be electronically submitted and any information that cannot be sent electronically must be sent with in 5 business days of the electronic submission to the NMLS.
Change of ownership $100
Finger prints $20 (for live-scant processing) or $62 for finger prints cards.
Personal Information updates and required notifications
Brokers licensed under the FLL
Any change of address, name, ownership, control person or licensee authority must be reported and completed on the appropriate MU1, MU2, and MU3 form. For change of address, the change must be reported 10 days prior to relocation (if the notification is more than 10 days after a change of address a $500 penalty will be charged).
No fee for change of address, name, ownership, control person or licensed authority, but there is a charge for fingerprinting of the new control person ($20 for lives scan processing or $86 for finger print cards)
These changes must be electronically submitted and any information that cannot be submitted electronically must be sent with in 5 business days of the electronic submission to the NMLS.
Branch Offices licensed under the FLL
Any change of address, change or addition of trade name, control person or manager must be reported and completed on the appropriate MU1, MU2, and MU3 form. For change of address, the change must be reported 10 days prior to relocation (if the notification is more than 10 days after a change of address a $500 penalty will be charged).
No fee for change or addition of Trade Name or Change of branch manager, but there is a charge for fingerprinting of the new branch manager ($20 for live scan process or $86 for finger printing cards)
These changes must be electronically submitted and any information that cannot be submitted electronically must be sent with in 5 business days of the electronic submission to the NMLS.
