Missouri NMLS Flashcards
Who is responsible for supervising those who are licensed (or who should be licensed) to do business in the residential mortgage industry?
Missouri Division of Finance
Missouri Division of Finance is a part of the?
Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP).
Who is to hear appeals from license denials, license revocation or other enforcement actions?
Residential Mortgage Board
The Board consists of…
five appointed members, including one attorney, three people with experience in mortgage brokering and one person with no financial interest in any mortgage brokering business. No more than three board members can be members of the same political party. Three members constitute a quorum. In addition to hearing appeals, the Residential Mortgage Board approves or disapproves of regulations proposed by the Director
What means the power to, directly or indirectly, affect the voting interest of twenty-five percent (25%) or more of any class of the outstanding voting shares, or partnership interest or limited liability company interest, of a broker?
Control
Exempt persons:
- An individual who is engaged solely as a loan processor or underwriter, unless that person performs his/her duties as an independent contractor (RSMo 443.707)
- A person involved solely in extending credit for time-share plans
- An individual who services a mortgage loan
- A person employed by a licensed mortgage broker or loan originator to accept or receive residential mortgage loan applications
office and staff in Missouri reasonably adequate to handle efficiently communications, questions, and other matters relating to any application for a new or existing home mortgage loan which the residential mortgage loan broker is brokering, funding, originating, purchasing, or servicing. The management and operation of each full-service office shall include observance of good business practices such as adequate, organized, and accurate books and records, ample phone lines, hours of business, staff training and supervision, and provision for a mechanism to resolve consumer inquiries, complaints, and problems. The director shall promulgate rules with regard to the requirements of this subdivision and shall include an evaluation of compliance with this subdivision in the periodic examination of the residential mortgage loan broker
Full-service office
Mortgage loan originator does not include:
a) An individual engaged solely as a loan processor or underwriter except as otherwise provided in sections 443.701 to 443.893 (The Residential Mortgage Brokers License Act).
b) A person that only performs real estate brokerage activities and is licensed or registered in accordance with Missouri law, unless the person is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator;
c) A person solely involved in extensions of credit relating to time-share plans, as the term time-share plans is defined in section 101(53D) of Title 11, United States Code;
d) An individual who is servicing a mortgage loan; and
e) A person employed by a licensed mortgage broker or loan originator who accepts or receives residential mortgage loan applications
What is defined as the purchase of conventional or government-insured mortgage loans secured by residential real estate from either the lender or from the secondary market?
Purchasing
What is defined as any real property located in Missouri upon which is constructed or intended to be constructed a dwelling?
Residential real estate
Credit issues that may affect an individual’s ability to obtain a license include, but are not limited to, the following:
Current outstanding judgments
Current outstanding tax liens or other government liens and filings
Foreclosures within the past three (3) years
A pattern of seriously delinquent accounts within the past three (3) years
A loan processor or underwriter who is an independent contractor….
must be licensed
The following are exempt from licensure:
(1) Registered mortgage loan originators when employed and acting under subdivision (34) of subsection 1 of section 443.703;
(2) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual;
(3) Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence;
(4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator
Requirements for company licensure:
In-state, full service, staffed Missouri office that is open to the general public
Minimum $50,000 Missouri Residential Mortgage Loan Broker Bond (Subject to change – section 443.849.2 requires a bond to be maintained in an amount of no less than $50,000 and no more than $1,000,000 based on volume of activity as determined by the director. See the http://finance.mo.gov/mortgage/SuretyBondSchedule.php.)
Must have mortgage broker or lender experience
Background criminal and credit investigations are required on all directors, members, owners, partners, proprietors and anyone else who influences the management of the company
Pay one-time application/investigation fee of $300 upon submission of application
Upon license approval, pay annual license fee – presently the license fee is $600
Note: Processing time for a mortgage broker application is four to six weeks.
What is the fees for a MLO license?
- A state application fee of $250
* NMLS processing fees of $69
Mortgage loan originator applicants also have three Missouri-specific requirements that they must meet, which must be received within five business days of the NMLS application:
- For any answer of “Yes” to the disclosure questions on the NMLS Form MU4 application (such as a prior criminal record or a bankruptcy), they must provide complete details of the event or events giving rise to the “Yes,” together with a copy of any applicable orders or documents
- They must complete and submit the “Access to Credit Report and Law Enforcement Information” and “Request for Criminal Record Check” release forms
- They must supply proof of employment by a single Missouri licensed residential mortgage loan broker, which may include an employment contract or a letter from the employer
How many days to respond if Director requests more info if the application is deemed to be incomplete?
Failure to respond to the request within ten business days is grounds for a license deniaL
All applicants must meet the following minimum licensing requirements:
- Never have had a mortgage loan originator license revoked in any other state
- Never been convicted of, pled guilty to or pled no contest to a felony in any court either:
o During the seven years prior to the application date
o Ever, if the felony involved fraud, dishonesty, breach of trust or money laundering
- Has demonstrated financial responsibility, character and general fitness
- Has completed the pre-licensing education requirements
- Has passed the NMLS pre-licensing tests (National and state-specific components)
- Has met the surety bond requirements
When must license renewals be received by?
December 1st.
-Any license which is not renewed prior to December 31 may require the applicant to file a reinstatement application as provided for in these rules.
Background checks and fingerprint checks are performed every ____ years.
three (3)
All license holders renewing their license meet the following requirements:
- The mortgage loan originator must continue to meet all the minimum standards previously set forth for applicants
- The mortgage loan originator must meet all annual continuing education requirements
- The mortgage loan originator must have paid the $250 renewal fee
If license holders fail to meet any of the requirements, the license will not be renewed. If the license holder fails to renew by January 1”, helshe must file a reinstatement application. An application will be reinstated only if it meets the following requirements:
- The reinstatement is made through the NMLS
- All continuing education requirements have been met
- All reinstatement and late fees have been paid
lithe applicant fails to submit a renewal form by December 31’1 a late fee of$150 may be assessed.
License holders can obtain a duplicate original license or need to amend a license, such as where information has changed, must also pay a fee of…
$150
The director shall review the appeal and notify the mortgage loan originator of the director’s decision within _____ days of receipt of the appeal, which shall represent the director’s final decision.
thirty (30)
The mortgage broker license in Missouri is not tied to the NMLS. Instead, the process of obtaining a mortgage broker license is completed upon taking the following steps directly with the Director of the Division of Finance:
- Filing an application
- Filing a listing of judgments entered against, and bankruptcy petitions filed by, the applicant in the preceding seven years
- Paying an investigation and application fee of $1,500
The Director has the right to deny a license if:
- The applicant fails to comply with any provision
- “Substantial continuity” exists between the applicant and some other person that has violated one or more of the provisions of the licensing act
- The Director fails to determine that the applicant’s general fitness is sufficient
Mortgage broker licenses expire on the first anniversary of the date they were issued and every ____ years thereafter.
two
MB: The Director is required to send a renewal notice at least _______ before the renewal date
90 days
MB: The renewal application must be sent to the Director at least ______ prior to the renewal date. The license holder must pay an investigation fee of $1,500. Upon approval of the renewal, the biennial renewal fee is $3,000, half due at renewal and the other half due one year after. Failure to send in the renewal at least 60 days before the renewal date does not subject the license holder to a late fee, but it may mean that the license won’t be renewed by the expiration date.
60 days
MB: If the applicant fails to renew, the Director may assess an additional fee of _____ for a renewal sent within
30 days after the renewal date and a fee of $1,000 per month thereafter.
-$500
Mortgage loan originators are required to notify the Director within five days of the occurrence of any of the following:
- Filing of a bankruptcy petition or being subject to involuntary bankruptcy
- Any regulatory action instituted by Missouri or any other state
- Any action filed by the Missouri attorney general, or other enforcer of the consumer protection laws, to enforce the consumer protection laws against the license holder
- Having a license suspended or terminated under any state or federal program
- An entry of judgment against the license holder
- A conviction, a plea of guilty or a plea of no contest to a felony or misdemeanor, other than a traffic violation
- Entry of a tax lien against the license holder
- Revocation or suspension of the license holder’s business license
The mortgage loan originator’s unique identifier-the number or other identifier assigned by the NMLS to each license holder-must be clearly shown on all…
residential mortgage loan application forms, solicitations or advertisements. This requirement applies to a mortgage loan originator’s business cards and website.
