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Florida Mortgage > Florida Mortgage Intro > Flashcards

Florida Mortgage Intro Flashcards

1
Q

the bill excludes who from individual licensure, so long as the individuals s an exclusive employee of a single mortgage broker or a mortgage lender?

A

in house processors

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2
Q

What type of processors need a license?

A

Contract (i.e., independent) loan processors

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3
Q

The Financial Services Commission was created within what department?

A

Department of Financial Services

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4
Q

Who appoints the commissioner of the Office of Financial Regulation and the commissioner of the Office of Insurance Regulation?

A

Financial Services Commission. The commission, which comprises the governor and Cabinet

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5
Q

licenses, examines and regulates non-depository financial services companies and other related industries in the State of Florida

A

Division of Finance

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6
Q

the Bureau of Finance Regulation does what?

A

conducts examinations of the books and records of mortgage brokers, mortgage brokerage businesses and mortgage lenders; consumer finance companies; retail installment sales finance companies to ensure compliance with the appropriate rules and statutes. The Bureau also processes complaints dealing with debt collection companies

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7
Q

This company conducts examinations of funds transmitters, payment instrument sellers, check cashers, foreign currency exchangers and payday lenders ?

A

Bureau of Money Transmitter Regulation

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8
Q

What Bureau approves, imposes licensing restrictions or denies licensure based on findings?

A

Bureau of Regulatory Review

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9
Q

What is the overall responsibility of Bureau of Regulatory Review ?

A

reviews applications and processes amendments and renewals for all entities and individuals (approximately 31 license types) regulated by the Division

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10
Q

What is this goal of he Florida Office of Financial Regulation?

A

To protect citizens and help maintain the growth of florida’s economy.

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11
Q

When must licensed loan originators, brokers and lenders will be required to
renew their license by >

A

December 31

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12
Q

an individual who is licensed under part II of this
chapter as a loan originator, who is an independent contractor for a mortgage broker or mortgage lender, and who engages only in loan processing.

A

Contract loan processor

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13
Q

an individual who is licensed under part II of this
chapter as a loan originator, who is an independent contractor for a mortgage broker or mortgage lender, and who engages only in loan processing is how

A

Contract loan processor

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14
Q

For a partnership show is the Control Person?

A

For a partnership, all general partners and limited or special partners that have contributed 10 percent or more or that have the right to receive, upon dissolution, 10 percent or more of the partnership’s capital

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15
Q

For a trustee show is the Control Person?

A

each trustee

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16
Q

For a Limited Liability Company show is the Control Person?

A

all elected managers and those members that have
contributed 10 percent or more or that have the right to receive, upon dissolution, 10 percent or more of the partnership’s capital.

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17
Q

What is the Financial audit report?

A

means a report prepared in connection with a financial audit that is conducted in accordance with generally accepted auditing standards prescribed by the American Institute of Certified Public Accountants by a certified public accountant licensed to do business in the United States.

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18
Q

what is a depository institution, real estate investment trust, insurance company, real estate company, accredited investor as defined in 17 C.F.R. ss. 230.501 et seq., mortgage broker or mortgage lender licensed under this chapter, or other business entity that invests in mortgage loans?

A

Institutional Investor

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19
Q

A loan modification does not apply to what type of transaction?

A

Refinance

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20
Q

what is a loan Originator?

A

an individual who, directly or indirectly, solicits or offers to solicit a mortgage loan, accepts or offers to accept an application for a mortgage loan, negotiates or offers to negotiate the terms or conditions of a new or existing mortgage loan on behalf of a borrower or lender, or negotiates or offers to negotiate the sale of an existing mortgage loan to a noninstitutional investor for compensation or gain. The term includes an individual who is required to be licensed as a loan originator under the S.A.F.E. Mortgage Licensing Act of 2008.

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21
Q

this is a means closing a mortgage loan in a person’s name, advancing funds, offering to advance funds, or making a commitment to advance funds to an applicant for a mortgage loan:

A

Making a mortgage loan

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22
Q

What is material Change?

A

means a change that would be important to a reasonable borrower in making a borrowing decision, and includes a change in the interest rate previously offered a borrower, a change in the type of loan offered to a borrower, or a change in fees to be charged to a borrower resulting in total fees greater than $100.

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23
Q

Who goes thru a means a person conducting loan originator activities through one or more licensed loan originators employed by the mortgage broker or as independent contractors to the mortgage broker.

A

Mortgage broker

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24
Q

what is a mortgage lender?

A

means a person making a mortgage loan or servicing a mortgage loan for others, or, for compensation or gain, directly or indirectly, selling or offering to sell a mortgage loan to a non-institutional investor.

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25
Q

What is a mortgage loan application?

A

means the submission of a borrower’s financial information in anticipation of a credit decision, which includes the borrower’s name, the borrower’s monthly income, the borrower’s social security number to obtain a credit report, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any other information deemed necessary by the loan originator. An application may be in writing or electronically submitted, including a written record of an oral application.

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26
Q

What does office refer to ]?

A

the Office of Financial Regulation.

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27
Q

what is a Principal loan originator?

A

means the licensed loan originator in charge of, and responsible for, the operation of a mortgage lender or mortgage broker, including all of the activities of the mortgage lender’s or mortgage broker’s loan originators, in-house loan processors, and branch managers, whether employees or independent contractors.

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28
Q

what is a Principal loan originator?

A

means the licensed loan originator in charge of, and responsible for, the operation of a mortgage lender or mortgage broker, including all of the activities of the mortgage lender’s or mortgage broker’s loan originators, in-house loan processors, and branch managers, whether employees or independent contractors.

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29
Q

what is a Registered loan originator?

A

means a loan originator who is employed by a depository institution, by a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency, or by an institution regulated by the Farm Credit Administration, and who is registered with and maintains a unique identifier through the registry.

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30
Q

what is a Registry?

A

means the Nationwide Mortgage Licensing System and Registry, which is the mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of loan originators.

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31
Q

this means authorizing a mortgage lender to service a loan for
more than 4 months.

A

Servicing endorsement

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32
Q

Each branch office of a mortgage broker must be licensed under this section.

A

MORTGAGE BROKER BRANCH OFFICE LICENSE

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33
Q

When should a branch office renew their license?

A

must be renewed annually at the time of renewing the mortgage broker license under s. 494.00322. A nonrefundable branch renewal fee of $225 per branch office must be submitted at the time of renewal.

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34
Q

How often should should the requirements be maintained as a condition of licensure ?

A

continually

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35
Q

If a mortgage lender fails to satisfy the net worth requirements, the mortgage lender shall immediately cease taking any new mortgage loan applications. Thereafter, the mortgage lender shall have up to how many days which to satisfy the net worth requirements

A

60 days

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36
Q

f the licensee makes the office aware, prior to an examination, that the licensee no longer meets the net worth requirements, the mortgage lender shall have up to how many days to satisfy the net worth requirements or else the license will be relinquished and canceled?

A

120 days

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37
Q

f the licensee makes the office aware, prior to an examination, that the licensee no longer meets the net worth requirements, the mortgage lender shall have up to how many days to satisfy the net worth requirements or else the license will be relinquished and canceled?

A

120 days

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38
Q

All audited financial statements required by ss. 494.001-494.0077 must be prepared by an:

A

independent licensed certified public accountant.

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39
Q

A mortgage lender must obtain an __________ as of the date of the licensee’s fiscal year end, as disclosed to the office on the application or a subsequent amendment to the application. The mortgage lender shall submit a copy of the report to the office within 120 days after the end of the licensee’s fiscal year.

A

annual financial audit report

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40
Q

A mortgage lender must obtain an __________ as of the date of the licensee’s fiscal year end, as disclosed to the office on the application or a subsequent amendment to the application. The mortgage lender shall submit a copy of the report to the office within 120 days after the end of the licensee’s fiscal year.

A

annual financial audit report

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41
Q

How long should the office keep records after orignal date of entry

A

3 years

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42
Q

when will a lender be notified that an audited financial reports ?

A

120 notification from the end of the lenders fiscal year

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43
Q

when must a lender file a report when they change their fiscal year

A

18 months after previously submitted report

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44
Q

A high-cost home loan may not contain terms that require a borrower to pay a prepayment penalty for paying all or part of the loan principal before the date on which the payment is due, this must not be administer a____

A

Prepayment penalty

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45
Q

A prepayment penalty can be added to a high cont for up to the first 36 months if

A
  1. The borrower has also been offered a choice of another product without a prepayment penalty.
  2. The borrower has been given, at least 3 business days prior to the loan consummation, a written disclosure of the terms of the prepayment fee or penalty by the lender, including the benefit the borrower will receive for accepting the prepayment fee or penalty through either a reduced interest rate on the loan or reduced points or fees.
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46
Q

A prepayment penalty can be added to a high cont for up to the first 36 months if

A
  1. The borrower has also been offered a choice of another product without a prepayment penalty.
  2. The borrower has been given, at least 3 business days prior to the loan consummation, a written disclosure of the terms of the prepayment fee or penalty by the lender, including the benefit the borrower will receive for accepting the prepayment fee or penalty through either a reduced interest rate on the loan or reduced points or fees.
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47
Q

How long should advertisement samples be kept?

A

2 years

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48
Q

Lien theory refers to the concept that

A

the lender acquires only a lien on the property and the borrower retains both legal and equitable title unless a valid foreclosure occurs.

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49
Q

The Administrative Procedures Act is found in Chapter ____ of the Florida Statutes.

A

120

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50
Q

The Save Our Homes Amendment 10 benefit limits any increase in assessed value of properties with the Homestead Exemption to ____ or the Consumer Price Index change, whichever is less, in the second consecutive year the exemption is received

A

3%

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51
Q

Exceptions to the Save our homes amendment 10 includes

A

to that limitation include new additions or construction. Another exception occurs when ownership of a homestead property is changed in any way, affecting the homestead. Assessed value then returns to fair market (just) value in the year following the change.

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52
Q

According to the rules for classifying crimes set forth in 69V-40, any felony that involves fraud, dishonesty, or any other act of moral turpitude is considered

A

Class A

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53
Q

Any person who knowingly and willfully gives false information for the purpose of claiming the Amendment 1 Homestead Exemption is guilty of a misdemeanor punishable by up to __________ in prison and/or a _________ fine.

A

1 year / $5, 000

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54
Q

In order to revoke or suspend a license, the Office of Financial Regulation must provide the licensee a

A

written notification of intent to issue a final order.

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55
Q

According to the Florida Statute Chapter 196.131, any person who knowingly and willfully gives false information for the purpose of claiming the Florida Homestead Exemption is guilty of a

A

misdemeanor punishable by up to one year in prison and/or a $5,000 fine.

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56
Q

Any person not exempt from licensing who acts as a mortgage loan originator in Florida without having obtained a license may be penalized for

A

each transaction of unlicensed operation as a separate violation.

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57
Q

In addressing a violation or alleged violation of Chapter 494 of Florida Statutes, the Office of Financial Regulation has the authority to perform any of these acts EXCEPT

A

Make an arrest

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58
Q

Identify which statement is NOT a purpose of consumer counseling programs.

A

establish penalties for creditors who use predatory lending methods

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59
Q

When a cancellation of a Loan modification occurs any payments after must be refunded within how many days ?

A

10 days

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60
Q

In order to become licensed under Chapter 494 Florida Statutes, a licensee’s legal name cannot include the word

A

National, United States, Federal

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61
Q

To qualify for the Florida Homestead Exemption,

A

a resident alien or green card is required if the permanent resident is not a U.S. citizen.

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62
Q

When a mortgage loan originator refers a borrower to a third party company for a required settlement service, the loan originator may charge

A

The mortgage loan originator is permitted to charge only the actual amount of the third party charge. RESPA rules prohibit payment for referrals and charging unearned fees for services.

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63
Q

Which language in an advertisement placed by a mortgage broker would NOT be prohibited?

A

5% APR available to qualified applicants!”

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64
Q

To be in compliance with Chapter 69O-124 rules and regulations, the Anti-Coercion disclosure form must be

A

A copy of the Anti-Coercion disclosure form must be signed by the borrower and retained by the lender. The disclosure form is not required to be part of the mortgage contract.

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65
Q

Annie is employed full-time as a registered mortgage loan originator with Trident Bank, which is regulated by the FDIC. In her role, she originates mostly commercial loans but does engage in making at least 10 residential loans in a calendar year. Is Annie required to become licensed as a mortgage loan originator under Chapter 494 regulations?

A

No, Annie is exempt from licensing requirements because she works for a bank that is regulated by a federal agency.

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66
Q

According to the Anti-Coercion Law, a lender cannot

A

require the borrower to purchase insurance through any particular agent or company.

67
Q

What fees can a mortgage loan originator collect without, or prior to, a loan commitment?

A

credit report

68
Q

Of these, which would NOT be eligible for the Florida Homestead Exemption?

A

property used exclusively as a rental property

69
Q

The rental of an entire dwelling constitutes abandonment of the dwelling until once again occupied by the owner?

A

Yes

70
Q

All would be considered material changes to the terms of a mortgage loan EXCEPT a change in the

A

source of the funds for the down payment being provided by the borrower.

71
Q

The branch office is required to have a branch manager who is licensed under what Chapter?

A

494

72
Q

Within ___ days after receipt of a loan application, a mortgage broker must fully disclose to the borrower total compensation that the broker would receive from any loan options that the lender or mortgage broker presents to the borrower.

A

3

73
Q

All the following would be considered evidence of adverse credit history EXCEPT a(n)

A

outstanding unpaid hospital bill

74
Q

How many years would a bankruptcy have and adverse effect on credit history

A

5 yearts

75
Q

A licensed mortgage loan originator acting solely as a loan processor

A

can work for more than one mortgage broker or lender at the same time.

76
Q

For a high cost mortgage loan that does NOT have a fixed rate of interest, the lender is required to provide these disclosures to the borrower: The APR of the loan, the amount of the regular monthly payment, the amount of the maximum monthly payment based on the maximum interest rate, and a statement that

A

the interest rate and monthly payment may increase.

77
Q

Any change to the loan terms from the Good Faith Estimate must be disclosed to the borrower

A

at least 24 hours prior to close or within 24 hours upon awareness of change.

78
Q

How many days does a licensee have to provide to the Office of financial regulation paperwork for invesitigation and a written request has been sent ?

A

3 days

79
Q

Authorizing a mortgage lender to service a loan for more than 4 months is known as

A

service endorsement.

80
Q

If a licensee has a particular conflicting interest in a mortgage loan transaction, the licensee must

A

disclose in writing that an affiliated business relationship exists among providers.

81
Q

Applicants are required to provide authorization for a credit report as part of an initial MLO application primarily so the OFR can evaluate

A

the overall financial responsibility of the applicant.

82
Q

How many days does a mortgage loan originator applicant have to respond and provide the additional information or documents after receiving notification from the Office of Financial Regulation (OFR) that an application is missing a required component?

A

120 days

83
Q

Under Florida law, a person who intends to act solely as a loan processor is

A

required to be licensed as an individual mortgage loan originator.

84
Q

Fingerprint images are required of every applicant as part of an initial MLO application in order to

A

conduct a criminal background check.

85
Q

A principal mortgage loan originator

A

must have at least one year of experience as a mortgage loan originator.

86
Q

To be a Principal Mortgage loan originator a licensee must have

A

licensed under Chapter 494; must be a W2 employee of a single mortgage lender or mortgage broker at one time; and must have at least 1 year of previous experience as a mortgage loan originator.

87
Q

Which characteristic would NOT automatically deny a mortgage loan originator of receiving a license in Florida?

A

license obtained in another state

88
Q

Upon examination of licensee Edward’s mortgage lending operation, the OFR has determined that proper disclosures are not being made to borrowers. The OFR issues a suspension order to stop Edward’s company from making any further loans until he provides evidence his disclosures to borrowers comply with federal and state laws and regulations. Edward has received a written notice of impending license suspension. If Edward wishes to fight this suspension order, he must

A

: file a written request within 21 days, requesting a hearing to contest the order.

89
Q

A lock-in rate is

A

n agreement by a lender to guarantee the availability of a specific rate of interest for a stated time period if the loan is approved and closed by a certain date.

90
Q

Of these, which is NOT considered a mortgage loan under Chapter 494 of the Florida Statutes?

A

a loan on improved real property consisting of five or more dwelling units if the lender is institutional investor

91
Q

The Mortgage Guaranty Trust Fund is funded through

A

fees for license applications.

92
Q

A mortgage lender

A

makes a mortgage loan or services a mortgage loan for others, or sells a mortgage loan to a noninstitutional investor for compensation or gain.

93
Q

All are included in the term “points and fees” EXCEPT

A

Tax Stamps

94
Q

The predatory practice of loan flipping is associated with

A

refinancing a mortgage loan within 12 months following the date the refinanced mortgage loan was originated, unless the refinancing is documented to be in the borrower’s best interest.

95
Q

In Florida, a mortgage loan originator is licensed under which law?

A

Chapter 494 of the Florida Statutes

96
Q

Which is the NMLSR registry form that is used by mortgage loan originators?

A

MU4

97
Q

To protect the citizens of Florida by providing regulation of businesses that promote the growth and development of the economy and by enforcing the banking, securities and financial laws of the state is the mission of the

A

OFR(Office of Financial Regulation)

98
Q

The Commissioner of the Florida Office of Financial Regulation (OFR) is

A

Financial Services Commission, which includes the Governor and Florida Cabinet members, appoints both the Commissioner of the Office of Financial Regulation (OFR) and the Commissioner of the Office of Insurance Regulation.

99
Q

Within the Florida Office of Financial Regulation, the responsibility for the establishment of regulations for chartering banks, savings and loans, and credit unions falls under the

A

Division of Financial Institution

100
Q

Within the Office of Financial Regulation (OFR), which is a criminal justice agency responsible for conducting financial investigations of illegal activities within the Office’s jurisdiction?

A

Bureau of Financial Investigations

101
Q

he licensed loan originator in charge of, and responsible for, the operation of a mortgage lender or mortgage broker, including all of the activities of the mortgage lender’s or mortgage broker’s loan originators and branch managers, whether employees or independent contractors is the

A

principal mortgage loan originator in Florida.

102
Q

Florida revised Chapter 494 of the Florida Statutes in order to comply with standards set by

A

The SAFE Act

103
Q

Of these identify which is considered a third party.

A

closing agent is considered a third party to the loan transaction.

104
Q

All of the following would likely be considered examples of conflicting interest EXCEPT

A

If a licensee’s son met the experience, responsible character and education requirements for the position, designating him as the principal loan originator would not be considered a conflicting interest for a licensee

105
Q

Provisions of the 69O-124 Rule related to anti-coercion does NOT apply t

A

title insurance.

106
Q

Of these, who is NOT considered a relative under Florida law?

A

Nephew

107
Q

What is considered a relative?

A

Relative” means any of the following, whether by the full or half blood or by adoption: a person’s spouse, father, mother, children, brothers, and sisters. The definition includes the father, mother, brothers, and sisters of the person’s spouse (in-laws through person’s marriage); and the spouses of the person’s children (son-in- law, daughter-in-law); brothers or sisters (in laws through marriage of a person’s siblings).

108
Q

Under Florida law, a mortgage broker is

A

a mortgage broker license is issued to a company (which employs or hires as independent contractors one or more licensed loan originators).

109
Q

Tyler, a mortgage loan originator, is being investigated for incompetence after a consumer filed a complaint with the OFR. Tyler is required to attend a hearing to give testimony on the transaction in question. Who is responsible for paying the expenses for the examination?

A

The expenses incurred in making any examination are assessed against and paid by the licensee who is being examined or by his or her originating entity.

110
Q

Within ____ days of receiving a mortgage loan originator application, the Office of Financial Regulation will review it for completeness and inform the applicant if additional information is required

A

30 days

the additional information must be received by the Office within 120 days from the date of the request.

111
Q

What is the the actual fee that is adminstered to become a loan originator?

A

195

112
Q

The initial application fee for a company seeking licensure to act as a mortgage lender is

A

$575

113
Q

Which topic is required to be included as part of a mortgage loan originator’s pre-licensing education?

A

At least 2 hours of this instruction must cover nontraditional mortgage products. Florida also requires 4 hours of instruction on state specific laws and rules

114
Q

Which individual is exempt from licensing requirements under Chapter 494 of the Florida Statutes?

A

A person who makes nonresidential mortgage loans or sells loans to institutional investors only is exempt from licensing requirements and regulation under Chapter 494. All the other individuals are required to be licensed under Florida law.

115
Q

Which characteristic would NOT automatically deny a loan originator of receiving a license?

A

licensed out of state

116
Q

Which entity requires a license under Chapter 494 of the Florida Statutes?

A

mortgage servicer of residential loans

117
Q

According to the Anti-Coercion Law, when negotiations for a loan begin, and prior to any formal application for a loan or the payment of any fees or costs required with the filing of an application, a lender must notify the borrower of his rights regarding the

A

PUrchase of insurance

118
Q

What is acceptable proof that an advertised loan by a mortgage broker is available?

A

Company rate sheet

119
Q

Of these, who is NOT eligible for the Homestead Exemption in Florida?

A

Although Josh is a legal resident of Florida, he is not the homeowner so is not eligible for the Homestead Exemption. Since the homeowner rents the property to Josh on a permanent basis, he would not be eligible for the Exemption either.

120
Q

Under the rules set forth in 69V-40.00112, two or more criminal offenses are considered

A

Under the rule, two or more offenses are considered a single crime if they are based on the same act or transaction or on two or more connected acts or transactions.

121
Q

The Florida OFR does NOT have the right to

A

ot revoke a license without offering the licensee the opportunity to request a hearing.

122
Q

The Florida OFR does have the right to

A

Interview past clients , File criminal or civil charges and subpoena a mortgage loan originator

123
Q

A final order is

A

written final decision that results from a proceeding under Chapter 120 of the Florida Statutes and that has been filed with the agency clerk

124
Q

Of these, which includes specific disciplinary guidelines related to the Florida OFR enforcement of mortgage licensing laws?

A

Disciplinary guidelines related to the Florida enforcement of mortgage licensing laws are contained in 67V-40 F.A.C.

125
Q

sss

A

wait longer before becoming eligible for licensure in order to assure that such applicant’s greater inability or unwillingness to abide by the law has been overcome.Therefore, if an applicant has been found guilty or pled guilty or pled nolo contendere to more than one crime, the Office will add five (5) years to the disqualifying period for each additional crime

126
Q

In considering the criminal history of a mortgage loan originator applicant, the Florida Office of Financial Regulation (OFR) classifies crimes as A, B, C, or D. Which classification includes any misdemeanor that involves fraud, dishonesty, or any other act of moral turpitude?

A

Class D

127
Q

Any person who knowingly and willfully gives false information for the purpose of claiming the Amendment 1 Homestead Exemption is guilty of a misdemeanor punishable by up to __________ in prison and/or a _________ fine.

A

(1) year in prison and/or a $5,000 fine.

128
Q

Belinda, a licensed mortgage loan originator working as an independent contractor performing loan processing functions, has decided to conduct business from her home office. She notified the OFR of the change of her business location. The OFR disapproved the change on the grounds that the location was not suitable due to zoning restrictions and issues regarding consumer access and parking and orders her to cease and desist the activity. If Belinda continues to process loan applications in her home office while she looks for a new location, the OFR may do any of the following EXCEPT

A

issue arrest warrants

129
Q

Belinda, a licensed mortgage loan originator working as an independent contractor performing loan processing functions, has decided to conduct business from her home office. She notified the OFR of the change of her business location. The OFR disapproved the change on the grounds that the location was not suitable due to zoning restrictions and issues regarding consumer access and parking and orders her to cease and desist the activity. If Belinda continues to process loan applications in her home office while she looks for a new location, the OFR may do any of the following EXCEPT

A

Fine belinda 1,000 perday up to 25,000

Issue to revoke or suspend her license

130
Q

Conviction of a felony involving moral turpitude results in a

A

15-year disqualifying period for anyone seeking licensure under Chapter 494 in Florida.

131
Q

For violations of administrative rules and regulations set forth in Chapter 494.00255, the Florida Office of Financial Regulation may impose administrative fines for each individual violation up to

A

The OFR may impose an administrative fine of up to $25,000 for one offense; or a fine of $1,000 per day that a violation occurs but not to exceed $25,000 cumulatively.

132
Q

According to the classifications used by the Office of Financial Regulation in evaluating the eligibility for licensure of an applicant whose law enforcement record includes a single crime, an applicant who commits a Class A crime

A

not eligible for licensure in Florida.

133
Q

Class A Crimes include all felonies involving

A

an act of fraud, dishonesty, or a breach of trust, or money laundering, and the Office finds that such crimes constitute crimes of moral turpitude.

134
Q

Any person not exempt from licensing who acts as a mortgage loan originator in Florida without having obtained a license may be penalized for

A

each transaction of unlicensed operation.

135
Q

Against any licensee who is in violation of laws and regulations under Chapter 494 of the Florida Statutes, the OFR is authorized to

A

impose fines and/or initiate suspension or revocation of a license.

136
Q

Conviction of a felony involving moral turpitude results in a disqualifying period of

A

15 years

137
Q

The transfer of an interest in property against the will of the owner, or without action by the owner, occurring through operation of law, natural processes, or adverse possession.

A

Involuntary Alienation

138
Q

The Save Our Homes Amendment 10 benefit limits any increase in assessed value of properties with the Homestead Exemption to ____ or the Consumer Price Index change, whichever is less, in the second consecutive year the exemption is received.

A

3%

139
Q

Payments for claims from the Mortgage Guaranty Trust Fund are limited in the aggregate to __________ against any one licensee under the provisions of Chapter 494.00172.

A

$250,000

140
Q

Which program provides funds to local governments as an incentive to create partnerships to produce and preserve affordable home ownership and multifamily housing?

A

state Housing Initiatives Partnership (SHIP),

141
Q

In the event of a claim, what is the maximum amount a borrower who meets all of the conditions for eligibility may collect from the Mortgage Guaranty Trust Fund?

A

$50,000 from the trust fund regardless of the number of licensees liable for the borrower’s damages.

142
Q

The Administrative Procedures Act is found in Chapter ____ of the Florida Statutes.

A

120

143
Q

Florida’s constitution provides for a ________ exemption, which is deducted from a property’s assessed value if the owner qualifies

A

50,000.

144
Q

This fee is deposited into the Mortgage Guaranty Trust Fund of the OFR and is used for

A

he payment of claims.

145
Q

The state of Florida is

A

In a lien state, title stays with the borrower (mortgagor), and the lender (mortgagee) places a lien on the property using the mortgage instrument.

146
Q

Identify the statement about the Florida Homestead Exemption that is TRUE.

A

Rental of an entire dwelling that has received a Homestead Exemption constitutes abandonment of the dwelling until once again occupied by the owner. Abandonment after January 1 of any year will not affect the Homestead Exemption for that year. However, if abandonment occurs for a second consecutive year, the Homestead Exemption will be lost.

147
Q

Of these, which is NOT considered a mortgage loan under Chapter 494 of the Florida Statutes?

A

a loan on improved real property consisting of five or more dwelling units if the lender is institutional investor

Since the lender is an institutional investor, Chapter 494 rules and regulations related to non-institutional investors would not apply.

148
Q

Under Florida law, a mortgage broker is

A

person conducting loan originator activities through one or more licensed loan originators employed by or as independent contractors.

149
Q

The Office of Financial Regulation (OFR) is NOT responsible for

A

assisting low income families in obtaining safe, decent, and affordable housing.(Florida Housing)

150
Q

Any actual travel and per diem subsistence expenses incurred by an OFR examiner conducting an investigation of a licensee at an out-of-state location will be charged to

A

or an examination performed at a licensee’s out-of-state location, the licensee must pay the travel expense and per diem subsistence at the rate provided by law for up to thirty 8-hour days per year for each office examiner who participates in such an examination. However, if the examination involves or reveals fraudulent conduct by the licensee, the licensee will pay the travel expense and per diem subsistence provided by law, without limitation, for each participating examiner.

151
Q

A residential mortgage lender providing a loan must disclose to a borrower a description and amount of fees to be charged, which fees are refundable, and the terms and conditions for a refund

A

prior to receiving any fees from the borrower.

152
Q

Which agency within the OFR Division of Finance conducts examinations of the books and records of mortgage brokers, mortgage brokerage businesses and mortgage lenders?

A

Bureau of Finance Regulation

153
Q

The Florida OFR may deny the renewal of a mortgage loan originator license if the licensee has

A

failed to remit his renewal fee by the December 31 deadline

154
Q

If a loan requires the borrower to have reserves but the borrower does not have enough to verify, the mortgage loan originator should

A

request that the Verification of Deposit (VOD) be done after the borrower receives a large inheritance he is expecting to get.

155
Q

If a licensee is maintaining required books, accounts, and records at a location other than the specified principal place of business without submitting written notification of the change to the Office of Financial Regulation, the Office has the authority to

A

issue a notice of noncompliance

any subsequent finding of a violation of this rule during an examination or investigation will be subject to the assessment of a $500 fine.

156
Q

Which act by a mortgage loan originator would NOT be considered dishonest?

A

The mortgage loan originator inadvertently forgot to put his unique identifier number on his advertisements.

157
Q

When a mortgage broker accepts any third party fee from a borrower, the funds must immediately be placed in a/an

A

escrow account.

Funds are held in trust for the payor and remain in this account until disbursement. An escrow account may contain funds from multiple clients if there is proper accounting to identify the source of all funds.

158
Q

If a borrower does not have the required amount to pay closing fees, a mortgage loan originator may lawfully

A

lower the fee amount by forfeiting a portion of the broker’s commission.

159
Q

Against any licensee who is in violation of laws and regulations under Chapter 494 of the Florida Statutes, the OFR is authorized to

A

impose fines and/or initiate suspension or revocation of a license.

The OFR must provide written notification to an applicant who is denied a license and provide notification to a licensee giving a reason for license revocation. If a licensee requests a hearing related to a violation within 21 days, the right to a hearing must be granted.

160
Q

Diane performs only administrative and clerical duties for a licensed mortgage broker putting together loan packages. Her job is MOST LIKELY considered a

A

Diane is exempt from needing to be licensed as an MLO

161
Q

Surrender of an individual license does not affect the licensee’s

A

Surrender of a license does not affect the licensee’s civil or criminal liability for acts committed prior to surrender of the license. A licensee who surrendered a license would be in violation of the laws of Florida to work unlicensed in any loan originating capacity as an employee or independent contractor. The surrender of a license and the reasons for it would certainly be a factor in determining an applicant’s eligibility for obtaining a license in another state.

162
Q

Of these, which includes specific disciplinary guidelines related to the Florida OFR enforcement of mortgage licensing laws?

A

67V-40 F.A.C.

163
Q

When an applicant has been found guilty, pled guilty, or pled nolo contendere to multiple Class B, C, or D crimes,

A

The Florida OFR requires that applicants whose law enforcement record includes multiple class B, C, or D crimes wait longer before becoming eligible for licensure in order to assure that such applicant’s greater inability or unwillingness to abide by the law has been overcome. Therefore, if an applicant has been found guilty or pled guilty or pled nolo contendere to more than one crime, the Office will add five (5) years to the disqualifying period for each additional crime. The additional periods are added to the disqualifying period for the most serious crime, and the combined total disqualifying period runs from the conviction date of the most recent crime.

164
Q

Identify the statement about the Florida Homestead Exemption that is TRUE.

When actual ownership of the property changes, it does not affect the Homestead Exemption for the dwelling in any way.

A Florida resident who holds title to a mobile home and the land it is situated on is not eligible for the Florida Homestead Exemption, even if a Real Property (RP) decal is purchased.

Rental of a dwelling after January 1 does not affect the Homestead Exemption for that year; however, if abandonment occurs in the next consecutive year, the Exemption is lost.

Rental of a dwelling that has received the Florida Homestead Exemption for any month of the year constitutes abandonment and the homeowner is no longer eligible for the Exemption.

A

Rental of an entire dwelling that has received a Homestead Exemption constitutes abandonment of the dwelling until once again occupied by the owner. Abandonment after January 1 of any year will not affect the Homestead Exemption for that year. However, if abandonment occurs for a second consecutive year, the Homestead Exemption will be lost. The Homestead Exemption is typically permitted if a mobile home meets the requirements for real property and the permanent resident qualifies for the exemption. A change in the ownership of the property will affect the Homestead Exemption. Assessed value will return to fair market (just) value in the year following the change.

Florida Mortgage (1 decks)

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