Missouri License Law and Regulation Flashcards
The Missouri Division of Finance states that a license is required to do what?
To broker, fund, service, or purchase residential mortgage loans
In what year did Missouri require that all residential mortgage originators be licensed?
2010
Who establishes licensing rules and acceptance of license applications?
The Director
What are some mortgage loan originator license exemptions?
- MLO employed by a depository institution
- An individual who offers or negotiates residential mortgage loan terms on behalf of an immediate family member
- An individual who offers or negotiates terms that is secured by their own dwelling
- Licensed attorney as a matter ancillary
When is a Missouri Company License required?
When an entity has its corporate office located within the state, or a servicer primarily engaged in servicing in MO (75% or more of gross income in MO from residential loan servicing)
When is a Missouri Company Registration required?
When an entity has its corporate office outside of the state
Residential Mortgage Loan Broker License Exemptions?
- Depository institutions
- Person engaged solely in commercial mortgage lending
- Any person solely in the business of securing existing loans on the secondary market
- A wholesale mortgage lender who purchases existing loans
Who must an exemption letter be sent to?
The Division of Finance, Residential Mortgage Section
What are three Missouri-specific requirements that MLO applicants must satisfy?
- For any “Yes” to disclosures on MU4, applicants must provide complete details and supporting docs
- Must complete and submit the “Access to Credit Report and Law Enforcement Info” and “Request for Criminal Records Check” release forms
- Must supply proof of employment
What is the maximum amount of days an applicant has to reply to a request from the Director needing more information on the application?
They have ten business days until the application is denied
What factors will be considered for financial responsibility?
- Foreclosures in the past three years
- A pattern of seriously delinquent accounts within the past three years
- Outstanding tax liens and judgments
How much should a surety bond be for a MLO?
No less than $50k, no more than $1 million
Who is not required to fulfill pre-licensing education requirements? What is required?
Mortgage Loan Brokers, must have “mortgage broker or lender experience”
“Substantial continuity”
Exists between the applicant and some other person that has violated one or more of the provisions of the licensing laws
By what date should a bond increase be filed with The Director? What is the penalty if not?
May 1st, may result in license suspension
For someone to obtain a mortgage broker license, where must an applicant file an application?
Through the NMLS (used to be through the Division of Finance)
What are the fees for obtaining a mortgage broker license?
$1000 licensing costs = $300 investigation fee, $600 first year MO fee, $100 NMLS processing fee
What are the continuing education requirements for mortgage loan brokers?
There are no requirements
How many days does a MLO have to notify the Director of 1. filing a bankruptcy 2. institution by any state of a regulatory action 3. Entry of judgment 4. ETC?
Within 5 days of the occurrence
When must changes be provided to the Director regarding a report that lists all MLOs under a licensee’s supervision?
NO later than the next business day following the change
How long do licensees have to notify the Director of any changes regarding directors or principal officers? What is the fee for each notice?
Must provide a 30 day notice; $50 for each notice
How long do licensees have to provide a notice when a name or address changes? What is the fee?
Ten days notice; $50
What notice must be filed for a licensee to open an additional full-service office? How many days notice must be given? What is the fee?
Notice of Intent to Establish an Additional Full-Service Office; 30 days before beginning operations, $50
What is the time frame that a notice must be submitted to The Director regarding a change to ownership or control? What is the fee?
45 days prior to the proposed change; $50
