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MLO-CA State 2013 > CA MLO - CA-DOC or CA-DRE > Flashcards

CA MLO - CA-DOC or CA-DRE Flashcards

1
Q
  1. The SAFE Mortgage Licensing Act is designed to enhance consumer protection and reduce fraud by providing:
    a. uniform license applications and reporting requirements for state licensed-loan originators.
    b. a comprehensive licensing and supervisory database.
    c. increased accountability and tracking of loan originators.
    d. all of the above.
A

d. all of the above.

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2
Q
  1. Currently, people with CRMLA, CFLL, and real estate licenses are permitted to negotiate residential mortgage loans. Which licensee will have an endorsement attached to his or her existing license rather than receiving a new MLO license to comply with the SAFE Act?
    a. Person with a CRMLA licensee
    b. Person with a CFLL licensee
    c. Person with a real estate license
    d. Person with a securities license
A

c. Person with a real estate license

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3
Q
  1. What is the basis for state licensing?
    a. Mortgage Bankers Registry
    b. Nationwide Mortgage Licensing System and Registry
    c. National Mortgage Lenders System Regulations
    d. SAFE Site
A

b. Nationwide Mortgage Licensing System and Registry
Correct answer is (b).
The NMLS is the basis for state licensing. It will contain a single license record for each mortgage loan lender, broker, branch and mortgage loan originator (MLO) that can be used to apply for, amend, and renew a license in any state.

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4
Q
  1. Why would the Corporation Commissioner deny a licensed mortgage broker’s application to open an additional office at another location?
    a. The proposed location is not ADA compliant.
    b. An additional office would put financial strain on the broker.
    c. The additional office is not in the best interests of the competitors.
    d. The licensed mortgage broker will not be able to adequately supervise the additional office.
A

a. The proposed location is not ADA compliant.

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5
Q
  1. The Financial Services Division (FSD) is one of the three operational divisions of the CA DOC. The FSD is headed by an Assistant Commissioner and is responsible for the regulation of six separate laws. The FSD is responsible for all of the following laws, except the:
    a. Administrative Procedures Act
    b. California Finance Lenders Law
    c. California Foreclosure Prevention Act
    d. California Residential Mortgage Lending Act
A

a. Administrative Procedures Act

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6
Q
  1. The Commissioner of the CA DOC is:
    a. elected by the California voters.
    b. appointed by the Legislature.
    c. appointed by the Governor.
    d. appointed by the Banking Board.
A

c. appointed by the Governor.

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7
Q
  1. Which number must be used to identify a mortgage loan originator on all forms, business cards, and advertising?
    a. CADOB license number
    b. Federal tax ID number
    c. NMLS unique identifier
    d. Social Security number
A

c. NMLS unique identifier

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8
Q
  1. The California Code of Regulations, Title 10, Chapter 3, Subchapter 11.5 prohibits _________ advertising.
    a. billboard
    b. blind
    c. Internet
    d. promotional
A

b. blind

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9
Q
  1. Who sets the amount and schedule for annual fees charged to lenders?
    a. California Department of Corporations
    b. Federal Reserve Board
    c. FDIC
    d. NMLS
A

a. California Department of Corporations

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10
Q
  1. What is the federal law requiring mortgage loan originators to be licensed according to national standards?
    a. Fair Credit Reporting Act
    b. Federal Finance Act
    c. Secure and Fair Enforcement for Mortgage Licensing Act
    d. Senate Bill 36
A

c. Secure and Fair Enforcement for Mortgage Licensing Act

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11
Q
  1. Which division is responsible for the regulation of the California Finance Lenders Law and the California Residential Mortgage Lending Act?
    a. Financial Services Division of the Department of Corporations
    b. Enforcement Division of the Department of Corporations
    c. Office of Management and Budget of the Department of Corporations
    d. Securities Regulation Division of the Department of Corporations
A

a. Financial Services Division of the Department of Corporations

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12
Q
  1. According to the California Department of Corporations (CA-DOC), who is considered a mortgage loan originator?
    a. An individual who processes a residential mortgage loan application
    b. An individual who, for compensation or gain, takes a residential mortgage loan application
    c. An individual who negotiates terms of a personal loan
    d. An individual who negotiates terms of a commercial mortgage loan
A

b. An individual who, for compensation or gain, takes a residential mortgage loan application

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13
Q
  1. Which division of the CA DOC regulates mortgage lenders?
    a. Enforcement Division
    b. Executive Office
    c. Financial Services Division
    d. Securities Regulation Division
A

c. Financial Services Division

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14
Q
  1. Which law was passed by the California Legislature in 2009 to allow the state to implement the national SAFE Act?
    a. Assembly Bill 36
    b. Legislative Finance Act
    c. Senate Bill 36
    d. Senate Bill 27
A

c. Senate Bill 36

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15
Q
  1. Unless licensed for more than 5 years in California, a residential mortgage lender who surrenders a lender’s license may not:
    a. apply for reinstatement of the license within 2 years.
    b. help an immediate family member negotiate the terms of a loan.
    c. make or service mortgage loans under a real estate license.
    d. originate mortgage loans as an employee of a federal housing agency.
A

c. make or service mortgage loans under a real estate license.

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16
Q
  1. Which California agency is authorized to issue licenses and endorsements for individuals working as mortgage loan originators?
    a. Department of Corporations
    b. Department of Insurance
    c. Department of Real Estate
    d. Department of Revenue
A

c. Department of Real Estate

17
Q
  1. Which companies are not regulated by the California Department of Corporations?
    a. Mortgage lenders, servicers, and loan originators
    b. Pawnbrokers, check cashers, and consumer discount companies
    c. Public schools, colleges, and churches
    d. Trust companies, savings associations, and credit unions
A

c. Public schools, colleges, and churches

18
Q
  1. Who establishes the timelines, fees, and assessments for obtaining original mortgage loan originator licenses, license renewals, and license changes in California?
    a. California Governor
    b. California Secretary of State
    c. Commissioner of Corporations
    d. NMLS
A

c. Commissioner of Corporations

19
Q
  1. Mortgage brokers must retain which record for 3 years?
    a. Contract for compensation
    b. Income statement
    c. Income tax return
    d. License application
A

a. Contract for compensation

20
Q
  1. Which California Department will issue MLO licenses to applicants transitioning from CRMLA and CFLL licenses?
    a. California Banking Commission
    b. California Department of Corporations
    c. California Department of Real Estate
    d. California Mortgage Bankers Association
A

b. California Department of Corporations
Correct answer is (b).
The Department of Corporations regulates licensees under the California Residential Mortgage Lending Act (CRMLA) or the California Finance Lenders Law (CFLL).

MLO-CA State 2013 (4 decks)

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