Chapter 1 Flashcards
The anti-coercion notice:
A. Must be signed by the lender
B. Is only required for high-cost loan transactions
C. Must be signed by the borrower and retained by the lender
D. Is only required for reverse mortgage transactions
C. Must be signed by the borrower and retained by the lender
A mortgage loan originator license applicant who commits a Class C crime will be ineligible for licensure: A. For 15 years from the trigger date B. For 10 years from the trigger date C. Indefinitely D. For 7 years from the trigger date
D. For 7 years from the trigger date
Contract loan processors:
A. May not work for more than one mortgage broker or mortgage lender at the same time
B. Are not permitted to conduct business in the state of Florida
C. May work for more than one mortgage broker or mortgage lender at the same time
D. Are not required to obtain a mortgage loan originator license
C. May work for more than one mortgage broker or mortgage lender at the same time
A loan \_\_\_\_\_\_\_\_ is 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. A. Promise B. Pledge C. Declaration D. Commitment
D. Commitment
What is the term for a person conducting loan originator activities through one or more licensed loan originators employed by the licensee or as independent contractors to the licensee? A. Mortgage broker B. Mortgage servicer C. Principal loan originator D. Contract loan processor
A. Mortgage broker
Licensees must retain copies of advertisements for ____ years after the date of publication or broadcast.
A. Four
B. Two
C. Three
D. Five
B. Two
Maggie is a loan originator in Florida. On her business cards, she includes the language, “Maggie Johnson is endorsed by HUD.” Which of the following is true?
A. Maggie must provide the address and phone number of a specific HUD office on her cards
B. Maggie is violating the law
C. Maggie may include any language on her business cards
D. Maggie must specify the name of the endorser at HUD
B. Maggie is violating the law
The maximum fee or commission that may be charged for a mortgage loan of $1,000 or less is: A. $250 B. $150 C. $25 D. $10
A. $250
The Mortgage Guaranty Trust Fund:
A. Maintains funds for payment of claims to borrowers under the law
B. Reimburses license application fees to rejected applicants
C. Provides a funding source for mortgage loans in Florida
D. Maintains funds for payment of fines that licensees refuse to pay
A. Maintains funds for payment of claims to borrowers under the law
In Florida, a conveyance or other written instrument conveying or selling property to secure the payment of money is considered to be: A. Prohibited B. A commitment C. A mortgage D. A loan modification
C. A mortgage
All of the following individuals are exempt from licensure under Florida mortgage law, EXCEPT:
A. Contract loan processors
B. Registered mortgage loan originators
C. Licensed attorneys who act on behalf of clients as part of their representation
D. Individuals involved solely in the extension of credit for timeshare plans
A. Contract loan processors
To serve as a principal loan originator, a licensee must have at least:
A. One year of experience as a loan originator
B. Five years of experience as a mortgage broker
C. One year of experience as a mortgage lender
D. Five years of experience as a loan processor
A. One year of experience as a loan originator
Mortgage lenders must file a(n) \_\_\_\_\_\_\_\_\_\_\_\_\_ with the Office within 120 days after close of the fiscal year. A. Mortgage call report B. Financial condition report C. Audited financial statement D. Loan originator employee roster
C. Audited financial statement
As a contract loan processor, Diana will need to obtain a license as a(n): A. Independent loan originator - wrong B. Mortgage loan originator C. Registered mortgage loan originator D. She will not need a license
B. Mortgage loan originator
Juan, who will meet with consumers to discuss rates and terms and help them fill out mortgage loan applications, is being hired as a(n): A. Loan processor - wrong B. Mortgage loan originator C. Underwriter D. Loan servicer
B. Mortgage loan originator
Diana, who will work part-time for Succeed Mortgage with the option to take on work from other lenders and brokers, is being hired as a(n) \_\_\_\_\_\_ loan processor. A. In-house B. Partial C. Contract D. Limited
C. Contract
Lindsey, who will communicate with consumers to collect basic information and organize documentation to assist Lucille, Juan, and others in the process of originating mortgage loans, is being hired as a(n): A. In-house loan processor B. Mortgage loan originator C. Customer service representative D. Loan servicer
A. In-house loan processor
In order to serve as principal loan originator for Succeed Mortgage, Lucille must have:
A. Been licensed as a loan originator for at least one year before being designated as principal loan originator
B. At least five years of mortgage-related experience
C. Completed 40 hours of pre-licensing training pertaining to mortgage-related knowledge and management topics
D. Lived in Florida for at least seven years before being designated as principal loan originator
A. Been licensed as a loan originator for at least one year before being designated as principal loan originator
Mortgage lenders and brokers must designate a(n) \_\_\_\_\_\_\_\_\_ to oversee operations, including the activities of all employees and independent contractors. A. Assistant lender or broker B. Lender C. Principal loan originator D. Human resources manager
C. Principal loan originator
Which of the following sectors of the Office of Financial Regulation regulates mortgage licensees in the state?
A. Bureau of Financial Investigations
B. Division of Consumer Finance
C. Office of Mortgage Lending - wrong
D. Department of Banking
B. Division of Consumer Finance
According to the definition provided under Florida law, a loan originator who is employed by a depository institution is known as a(n):
A. Banking loan originator
B. Principal loan originator
C. Independent contractor
D. Registered loan originator
D. Registered loan originator
Which of the following is true if a licensee is unable to meet renewal requirements by December 31?
A. The license will expire and the licensee must apply for a new license - wrong
B. The licensee will be subject to a fine for every day in which the license is not renewed
C. The licensee will have a two-month window to satisfy renewal requirements
D. The license will expire and the licensee must wait for the next year’s renewal period to begin
C. The licensee will have a two-month window to satisfy renewal requirements
A mortgage lender is best defined as:
A. A person making or servicing mortgage loans for others
B. A person who negotiates loan terms and helps consumers fill out loan applications
C. An individual who oversees the operations of a licensed mortgage broker
D. An individual who performs clerical or support duties
A. A person making or servicing mortgage loans for others
Which of the following is true regarding in-house loan processors?
A. They must complete at least five hours of continuing education each year
B. They are defined as having the same responsibilities as loan originators
C. They may conduct business for only one licensee at a time
D. They must be licensed as mortgage brokers in Florida
C. They may conduct business for only one licensee at a time
If a mortgage loan originator license applicant fails to pass the pre-licensing examination after three attempts, he or she will be:
A. Required to wait six months before re-testing
B. Required to wait five years before re-testing
C. Barred from re-testing indefinitely
D. Required to wait 30 days before re-testing
A. Required to wait six months before re-testing
Third-party fees and refundable application fees collected by a mortgage broker must be recorded on a:
A. Fee Collection Form - wrong
B. Mortgage Brokerage Deposit Account Form
C. Loan Application Form
D. Good Faith Application Fee Deposit Form
B. Mortgage Brokerage Deposit Account Form
Mortgage lender files must include all of the following, EXCEPT:
A. The Loan Estimate
B. The loan application
C. Any lock-in agreement issued
D. A copy of the license of the loan originator
D. A copy of the license of the loan originator
A mortgage loan originator is prohibited from:
A. Working for one sponsoring entity at a time
B. Including their unique identifier in advertising materials
C. Altering computer records while under investigation
D. Engaging in business in good faith and character
C. Altering computer records while under investigation
A violator may face a maximum penalty of \_\_\_\_\_\_\_\_ per violation of Florida law. A. $1,000 B. $15,000 C. $25,000 D. $20,000
C. $25,000
If it is found that a licensee has violated Florida’s rules for providing loan modifications, the individual who brought the action may recover:
A. Actual damages, attorney’s fees, and court costs
B. Punitive damages and court costs
C. Up to $1,000
D. Treble damages
A. Actual damages, attorney’s fees, and court costs
Since Harold’s loan amount is $200,000, Beau’s loan origination fee may not exceed: A. $5,250 B. $10,250 C. $15,250 D. $20,250
D. $20,250
Beau may not pay a fee or commission to:
A. Any person other than a mortgage licensee who performs work related to Harold’s transaction
B. Any person, without exception
C. Any person, unless Harold consents to payment of the fee
D. Beau may pay a fee or commission to any person he wishes
A. Any person other than a mortgage licensee who performs work related to Harold’s transaction
The maximum fine that may be imposed for each violation of Florida law is: A. $50,000 B. $10,000 C. $100,000 D. $25,000
D. $25,000
A loan originator who is involved in a mortgage transaction that violates Florida law may not be considered liable for civil damages if he or she:
A. Pleads no contest to a regulatory infraction and accepts penalties from the regulator - wrong
B. Corrects the error resulting in the violation before the borrower files a claim
C. Can prove that he/she acted in good faith and was unaware of the violation
D. Makes restitution prior to being charged
C. Can prove that he/she acted in good faith and was unaware of the violation
All of the following are true of lock-in agreements, except:
A. Agreements must include a statement that advises the borrower of provisions of the law related to lock-in agreements
B. Agreements must be in writing
C. Agreements must include the lock-in expiration date
D. Agreements received by a lender via mail are not effective
B. Agreements must be in writing
A licensee must notify the Office within how many days of a felony conviction?
A. 25
B. 15
C. 5
D. 30
D. 30
Which of the following acts is not considered a felony in the third degree under Florida law?
A. Omitting the NMLS unique identifier from business cards
B. Acting as a loan originator without a license
C. Failing to deliver property belonging to a borrower
D. Willfully concealing false information in loan documents
A. Omitting the NMLS unique identifier from business cards
