Florida Disciplinary Action (10%) and Unique State Test Areas (5%)

Question 1

Regarding the approval, denial, or renewal of a license, the OFR of the financial services commission will publish this where?

Answer 1

Florida Administrative Weekly

Question 2

When will they publish this information in the Florida Administrative Weekly?
When can you request a hearing?

Answer 2

a notice of the application will be published within 21 days after receipt.
Within 21 days after publication of notice.

Question 3

If a person fails to request a hearing within how many days, what happens? 2 questions

Answer 3

Within 21 days after notice

Constitutes a waiver of any right to a hearing.

Question 4

Who publishes the Florida Administrative Weekly?

Answer 4

the Office of Financial Regulation of the Financial Services Commission

Question 5

Licensees have the power to appeal an administrative decision to who?

Answer 5

the circuit court with appropriate jurisdiction

Question 6

When may the OFR conduct an investigation of any licensee?

Answer 6

Whenever there is reason to beleive, either by complaint or otherwise, that a violation has been committed or is about to be committed.

Question 7

Any person having reason to believe that a provision of this Act has been violated may file a….

Answer 7

written complaint with the Office setting forth details of the alleged violation.

Question 8

In any injunctive proceeding, the court may issue a subpoena requiring:

Answer 8

the attendance of any witness and requiring the production of any books, accounts, records, or other documents and materials that appear necessary to the expeditious resolution of the application for injunction.

Question 9

The court may grant injunctive relief restraining the person from:

Answer 9

advertising, promoting, soliciting, entering into, offering to enter into, continuing, or completing a mortgage loan or servicing a mortgage loan.

Question 10

If the person who received the subpoena refuses to comply, the Office may petition what court requiring the person to comply?

Answer 10

the county where the person subpoenaed resides or has his or her principal place of business for an order

Question 11

All procedural matters relating to issuance and enforcement of such orders are governed by:

Answer 11

the Administrative Procedure Act

Question 12

if a mortgage lender fails to meet the net worth requirements, its license will be suspended for up to ___ days so they may fulfill the net worth requirements.

Answer 12

120

Question 13

The Office may also revoke a license or place a licensee on probation for certain violations. The order of penalties, ranging from lowest to highest is:

Answer 13

1. Notice of noncompliance
2. Reprimand
3. Fine
4. Probation
5. Suspension
6. Revocation

Question 14

an administative fine of up to what, but not to exceed $25,000 cumulatively, for each day that a mortgage broker or mortgage lender… 2 things

Answer 14

admin fine of up to $1,000 per day.
Conducts business at an unlicensed branch office
Unlicensed person acts as a loan originator, a mortgage broker, or a mortgage lender

Question 15

Impose a fine in an amount … for each count or separate offense

Answer 15

not exceeding $25,000 for each count or separate offense

Question 16

Imposition of disciplinary penalties up to…

Answer 16

$5,000 for each violation

Question 17

What is the penalty if a Mort. Broker or lender fails to maintain loan files for a numerous offense?
What constitutes a numerous offense

Answer 17

the penalty is $300 for numerous offenses

a numerous offense is at least 3 occurrences and 20% or more of files examined.

Question 18

when is a cease and desist order effective?

Answer 18

Immediately

Question 19

If the licensee fails to maintain files and documentation so that an audit trail of all mortgage transactions can be provided, the penalty is a fine of?

Answer 19

$1,000 and a six-month suspension of the licensee.

Question 20

A licensee may be fined $250 per file for any of the following violations:

Answer 20

 Failing to provide a good faith estimate of costs
 Providing a commitment to a client without first obtaining a written commitment by the lender
 Providing a lock-in for a loan without first obtaining a written lock-in by the lender
 Failing to provide required disclosures
 Failing to provide a non-institutional investor with the required documentation (up to an aggregate of $2,500 per administrative complaint in addition to other penalties) The penalty for gross negligence in maintaining disclosures related to non-institutional investor transations is license revocation.

Question 21

Failure to keep the journal current by entering transactions within seven business days of initiation may result in the Office issuing?

Answer 21

a “notice of noncompliance” for a first offense.

Question 22

Any subsequent violations of the rule during an examination or investigation face a fine of?

Answer 22

$500

Question 23

The penalty for any intentional violation of the rule is a fine of ____ and ______ of the license.

Answer 23

$500 and suspension

Question 24

Failure to maintain an audit trail of all mortgage transactions subjects a lender to a fine of?

Answer 24

$1,000 and a six-month license suspension

Question 25

Failure to provide or maintain a copy of the good faith estimate may result in a fine of?

Answer 25

$250 per file up to an aggregate of $2,500 per administrative complaint, in addition to other penalties

Question 26

Failure to provide a non-institutional investor with proper documentation results in a fine of?

Answer 26

$250 per file up to an aggregate of $2,500 per administrative complaint in addition to other penalties. The Office will revoke a license if the licensee is grossly negligent in maintaining the required documentation.

Question 27

What is considered a 3rd degree felony?

What is the fine and penalty?

Answer 27

• Messing up an escrow is a 3rd degree felony
• Unlicensed practice
• Fraud

carry a prison term of up to five years and a fine up to $5,000. Habitual third degree felony offenders may receive up to ten years in prison.

Question 28

What is considered a 1st degree felony?

What is the fine and penalty?

Answer 28

• 5 or more victims
• Steal of $50,000 or more

-a prison term up to 30 years and a fine up to $10,000. Habitual first degree felony offenders may receive a life sentence

Question 29

If a mortgage transaction is made in violation of any provision of the law who is held liable?

Answer 29

the person making the transaction and every licensee, director, or officer who participated in making the transaction are jointly and severally liable to every party to the transaction in an action for civil damages incurred by the party or parties.

Question 30

A person who participated in an unlawful transaction is not considered liable if…

Answer 30

he/she can prove actions were taken in good faith and without knowledge of the violation

Question 31

the Office can immediatly suspend a mortgage loan originator, broker, or lender license if..?

Answer 31

if good cause is found that there will be immediate harm to the public

Question 32

What constitutes an immediate danger to the publics health, safety, or welfare?

Answer 32

any felony or crime involving fraud, breach of trust, money laundering, etc

Question 33

All legal Florida residents are eligible for a homestead exemption on their primary residence of up to?
If your home is worth at least $75,000, you will receive an additional?

Answer 33

• $25,000 for all levies excluding school district levies

- $25,000 ($50,000 total)

Question 34

Homestead exemption applications must be filed with the county property appraiser by _____ ___ of the tax year for which the exemption is sought

Answer 34

March 1st

Question 35

a Homestead exemption can only be used on what kind of residencies?

Answer 35

Owner occupied residences and mobile homes

Question 36

Sales tax and other non- property taxes are ?

Answer 36

excluded from the homestead exemption.

Question 37

In determining whether the property is a permanent residence, a property appraiser may consider a number of factors, including but not limited to:

Answer 37

 The existence of a formal declaration of domicile
 Where the owner’s children are registered for school
 The owner’s place of employment,
 The owner’s residency in another state
 The address where the owner is registered to vote
 The address on the owner’s driver’s license or identification card
 The address on the owner’s vehicle registration
 The address on the owner’s federal income tax returns, bank statements, and proof of payment for utilities at the subject property

Question 38

What states that the mortgage lender does not require that borrower use a particular insurance company?

Answer 38

Florida Anti-Coercion Law (prior to any application for a loan)

Question 39

Florida is a ____ theory state.

Answer 39

-lien

• Foreclosures are conducted via judicial methods
• All mortgages are foreclosed in equity (the court severs all counter claims against the foreclosing lender).
• Tried in a court w/o a jury

Question 40

When providing loan modification services, a licensee must first execute a written agreement with the borrower for modification services.

Answer 40

• Modification can’t be made without the consent of the borrower after the borrower is made aware of each modified term.
• You can’t ask for or collect payment of modification fee before all services in modification is complete.
• Fees can only be charged if the modification can benefit the borrower,

Question 41

The content of the loan modification agreement is regulated by Florida law, and it is important to include the correct disclosures in the agreement. The agreement must be signed by both parties and include the following:

Answer 41

 The name and address of the person providing the loan modification services
 The nature and detail of each service
 The total amount and terms of charges paid by the borrower

Question 42

When must a Loan Modification Agreement be presented to the borrower?

Answer 42

The agreement must be presented to the borrower for review at least one day before the borrower is to sign the agreement. The borrower may cancel the agreement, without penalty, within three business days of signing, and the right to cancel may not be waived by the borrower.

Question 43

Once the borrower signs the Loan Modification Agreement, the licensee must provide the borrower a copy within?

Answer 43

three hours.

Question 44

A lender cannot charge a borrower any fees or other charges to modify, renew, extend, or amend a what?

Answer 44

high-cost home loan

Question 45

• High cost loans can only be modified once every?

Answer 45

12 months