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MLO Test 2020 > Extra-Test > Flashcards

Extra-Test Flashcards

1
Q

What are the continuing education requirements?

A

3 hours of federal law/reg
2 hours of ethics
2 hours of non traditional

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2
Q

How long must LO keep records of loan compensation?

A

3 years

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3
Q

What are some of the enforcement actions a Comminsioner can take?

A

Deny, suspend or revoke license, impose finds, tell them to cease or desist

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4
Q

What financial responsibility must MLO have?

A

No outstanding judgments (Except medical)
No tax or govt leans
Foreclosure past 3 years
Pattern of delinquent accounts in last 3 years

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5
Q

To obtain a license the applicant must have …

A
  • 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
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6
Q

What created the NMLS?

A

SAFE Act

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7
Q

What is a silent second?

A

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.

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8
Q

What is a red flag rule?

A

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
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9
Q

Within the GLB act we have Safeguard, Opt out rule and Pretexting rule. What are the opt out options?

A

Initial, opt out, annual, revised

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10
Q

What are the two types of buy downs?

A

Temporary (2-1 by down)

Permanent ( discount points)

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11
Q

Under ECOA when must the lender advise of adverse action? What if counter offer?

A

30 days after application

90 days for counter offer

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12
Q

What is the appraisal form called?

A

URAR (Form 1004)

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13
Q

A 203K Loan is what program?

A

FHA Loan

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14
Q

When must you receive escrow statement information how many days after closing?

A

45 days

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15
Q

How long must you wait for conventional loan with short sale

A

4 years

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16
Q

How much interest must an entity have to be considered affiliated with another business?

A

1% interest

17
Q

What is the short sale waiting period for FHA loans?

A

3 years

18
Q

Max fine for telemarketer calling a no call….

A

$40,000

19
Q

LE revisions have to be made no later than…

A

4 bus days prior to consummation

20
Q

How long is an LE valid for?

A

10 days

21
Q

What section is HOEPA

A

High Cost Loans - Section 32

22
Q

What’s a form 1008?

A

Transmittal Summary Form

23
Q

How many days do you have to make FACTA disputes on credit?

A

60 days

24
Q

What does the Mortgage Servicing Disclosure Statement fall under?

A

RESPA

25
Q

If denied application to loan, how many days to contact person to see the reason for denial?

A

60 days

26
Q

What Disclosure must be mailed to borrower after pulling credit for application?

A

Notice to Home Loan Applicant Disclosure

27
Q

What is the max penalty for providing false info on a federally related loan?

A

Up to 1,000,000 fine and jail time

28
Q

Penalty for referral fee to realtor?

A

10,000 per incident and up to one year in jail

29
Q

The responsibility of financial institutions to meet needs of community is called?

A

The Community Reinvestment Act

30
Q

“20 basis points” is what in a percentage

A

.20%

31
Q

One page sheet that summarizes all the insurance information is known as?

A

Declaration page

32
Q

Repairs can be done after loan closes by including them in….

A

Escrow holdback

33
Q

What’s the most a regulatory authority can fine?

A

$25,000

34
Q

What are the tolerable for appraisal

A

Gross adjustments cannot exceed 25% on appraisals or 15% net of the comparable. The maximum line item adjustment is 10%.

35
Q

Difference in protection between ECOA and FHA. What doesn’t overlap?

A

Age is covered in ECOA

Disability is covered in FHA

MLO Test 2020 (7 decks)

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