Chapter 5: SAFE ACT and UST Content Update QUIZ Flashcards
Suspend or revoke an MLO license
Not provide proper disclosures to a borrower
Performing which task requires licensing?
offering or negotiating loan terms
What will underwriter take into consideration when approving a mortgage loan application?
likelihood of continued income
Who is exempt from licensing under the SAFE Act?
A person negotiates the terms of a residential mortgage loan on behalf of his sister
Which is an example of “offering or negotiating the terms of a loan”?
Communicating directly or indirectly with a borrower in order to reach a mutual understanding about prospective residential mortgage loan terms
All of these are required of the state regulatory authority EXCEPT to
approve prelicensing and continuing education course offerings and course providers
The SAFE Act made it the responsibility of states to use unique identifiers instead of
Social Security numbers
Which of the following would constitute a violation of the SAFE Act?
David circulates a business card that indicates he provides loan origination services when not licensed
Who would be subject to fines and penalties if a kickback is paid?
All parties paying or receiving a kickback
All of these examples illustrate an individual NOT engaged in the business of a mortgage loan originator EXCEPT
Kirk provides financing for the sale of multiple properties he owns repeatedly and with habitualness
A principal’s lending license was revoked for violations in another state
It is not likely that he will be granted a license in a new state
A broker rents office space from a title company at a discount in exchange for referring customers. This violates what?
RESPA
Does NOT violate ECOA
“Do you pay monthly child support, alimony, or separate maintenance?”
SAFE Act definition, a nontraditional mortgage loan is
any mortgage loan that is not a 30-year fixed rate mortgage loan
An individual’s act is “for compensation or gain”
receives anything of value
