Extra-Test Flashcards
What are the continuing education requirements?
3 hours of federal law/reg
2 hours of ethics
2 hours of non traditional
How long must LO keep records of loan compensation?
3 years
What are some of the enforcement actions a Comminsioner can take?
Deny, suspend or revoke license, impose finds, tell them to cease or desist
What financial responsibility must MLO have?
No outstanding judgments (Except medical)
No tax or govt leans
Foreclosure past 3 years
Pattern of delinquent accounts in last 3 years
To obtain a license the applicant must have …
- No license revocation
- No felony conviction past 7 years or EVER if the crime involved fraud, dishonesty or laundering/breach of trust
- Demonstrate financial responsibility
- Net worth, surety bond, or state fund requirement
What created the NMLS?
SAFE Act
What is a silent second?
A silent second mortgage is a second mortgage placed on an asset (such as a home) for down payment funds that are not disclosed to the original lender on the first mortgage.
What is a red flag rule?
Created my FACTA, implements the safeguard of customer information.
- Establishes polities and procedures
- program is designed to detect red flags
- details how to keep program current and actions when red flag is detected
Within the GLB act we have Safeguard, Opt out rule and Pretexting rule. What are the opt out options?
Initial, opt out, annual, revised
What are the two types of buy downs?
Temporary (2-1 by down)
Permanent ( discount points)
Under ECOA when must the lender advise of adverse action? What if counter offer?
30 days after application
90 days for counter offer
What is the appraisal form called?
URAR (Form 1004)
A 203K Loan is what program?
FHA Loan
When must you receive escrow statement information how many days after closing?
45 days
How long must you wait for conventional loan with short sale
4 years
How much interest must an entity have to be considered affiliated with another business?
1% interest
What is the short sale waiting period for FHA loans?
3 years
Max fine for telemarketer calling a no call….
$40,000
LE revisions have to be made no later than…
4 bus days prior to consummation
How long is an LE valid for?
10 days
What section is HOEPA
High Cost Loans - Section 32
What’s a form 1008?
Transmittal Summary Form
How many days do you have to make FACTA disputes on credit?
60 days
What does the Mortgage Servicing Disclosure Statement fall under?
RESPA
If denied application to loan, how many days to contact person to see the reason for denial?
60 days
What Disclosure must be mailed to borrower after pulling credit for application?
Notice to Home Loan Applicant Disclosure
What is the max penalty for providing false info on a federally related loan?
Up to 1,000,000 fine and jail time
Penalty for referral fee to realtor?
10,000 per incident and up to one year in jail
The responsibility of financial institutions to meet needs of community is called?
The Community Reinvestment Act
“20 basis points” is what in a percentage
.20%
One page sheet that summarizes all the insurance information is known as?
Declaration page
Repairs can be done after loan closes by including them in….
Escrow holdback
What’s the most a regulatory authority can fine?
$25,000
What are the tolerable for appraisal
Gross adjustments cannot exceed 25% on appraisals or 15% net of the comparable. The maximum line item adjustment is 10%.
Difference in protection between ECOA and FHA. What doesn’t overlap?
Age is covered in ECOA
Disability is covered in FHA
