Chapter 2 SAFE Flashcards
Which of the following must be a licensed loan originator?
A. Commercial loan originator
B. Independent contractor who is an underwriter
C. Supervised loan processor employee
D. An individual who negotiates the terms of his own mortgage loan
B
Which of the following do NOT need to be licensed?
A. Independent contractors who are loan originators
B. Independent contractors who are underwriters
C. Independent contractors who are loan processors
D. Federally chartered bank employees
D
Shawna is a mortgage loan originator who has let her state license lapse for the last 6 years. Which of the following scenarios most likely will happen?
a) Shawna will need to retake the licensing test
b) The state authority will serve a cease and desist
c) Shawna will need an additional 3 hours of training
d) The state authority will impose a fee.
Shawna will need to retake the licensing exam.
A
All of the following MLOs are required to be state-licensed except:
A. An MLO working under the authority of the Bureau of Real Estate
B. An MLO working as a Consumer Finance Lender (CFL)
C. An MLO working for a federally insured depository institution
D. An MLO working as a mortgage banker through the DBO
The correct answer is C. This would include banks, credit unions and subsidiaries owned and controlled by a depository institution and regulated by a federal banking agency.
Which of the following plays a major role in recommending the breakup of companies such as large banks that may pose a threat to the financial
stability of the United States?
A. FFEIC
B. Federal Deposit Insurance Company (FDIC)
C. Office of FinancialRegulation
D. Financial Stability Oversight Council
D
***The State’s authority to examine, investigate and conduct
enforcement actions to carry out the intended purposes of the SAFE Act, including the authority to subpoena
A. Once a year
B. Every three months
C. Every six months
D. As necessary
D
***An MLO just moved from another state, how many days do they have temporary authority to work in Texas? A. 90 Days B. 120 Days C. One year D. Two Years
Temporary Authority to submit loan - 120 days from the date of submission of an incomplete application.
**Which of the following is NOT a loan origination activity?
A. Assisting in a refinance
B. Assisting in a purchase loan
C. Assisting in a loan modification
D. Changing the name of debtors on an existing loan
C
Which of the following is true about the Loan Applicant Register (LAR)?
A. LARS must be submitted each year
B. Individual institutions must never share LARS information
C. Individual institutions must make their LARs available upon written consent
D. Individual institutions must make their LARsavailable to the public upon request.
A
Where is the LAR summited to? a. FDIC B. CFPB C. FFEIC D. HMDA
Answer: FFEIC
The LAR is the Lending Institution and submit their LARs to the
Federal Financial Institution Examination Council (FFIEC) every year.
Which of the following created LARS? A. RESPA B. HMDA C. FFEIC D. FDIC
B
***A real estate refers a Someone tells you it’s a loan for him. At the last minute, the borrower disclosed that he’s living with his mom and the loan is really for to be used as a rental. What should the MLO do n this case?
NA
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**If an RMLO uses an outside processor, which of the following should be done?
A. Make sure there is a physical office
B. Check with CFPB
C. Make sure at least one person is present at the office
D. Make sure they are licensed
If a company’s loan processors qualify as W-2 “employees” rather than 1009 “independent contractors” then they are exempt for obtaining a MLO license in the majority of the states
NA
*** Lowest Rate in town not trigger term
NA
****In form FMNA 1003 or URLA what information is not provided? Credit Score
Credit balance
Credit Monthly payment and months left
NA
