New York State Department of Financial Services (5% = 2-3 scored questions)

Question 1

Agency Currently Regulating Mortgage professionals

Answer 1

New York State Department of Financial Services

Question 2

the licensing requirements for mortgage brokers and mortgage bankers regulated under…

Answer 2

Article 12-D.

Question 3

The Department is headed by the Superintendent and consists of five main divisions:

Answer 3

 The Insurance Division
 The Banking Division
 The Financial Frauds and Consumer Protection Division
 The Real Estate Finance Division
 The Capital Markets Division

Question 4

Which Division maintains authority over state chartered banks and other financial services providers, including mortgage servicers and originators?

Answer 4

The Banking Division

Question 5

What Division will concentrate on the mortgage industry in an effort to ensure that lessons have been learned from the financial crisis and that new reforms are in place?

Answer 5

the Real Estate Finance Division

Question 6

What Articles of New York Banking Law regulate the licensing procedures and regulations for mortgage professionals

Answer 6

12-D and 12-E

Question 7

The General Regulations of the Banking Board exempt promotional items from the classification of advertising – these include items with ___ words or less such as balloons, hats, pens, etc.

Answer 7

15

Question 8

Methods of advertising include…

Answer 8

direct mail, newspaper and magazine ads, radio and television broadcasts, billboards, electronic media and any other similar display. Information that is disseminated through any of these media that concerns “…a mortgage loan to be solicited, processed, negotiated or funded by a mortgage broker, mortgage banker or exempt organization…” is considered an advertisement.

Question 9

A written or electronically transmitted offer to make a mortgage loan signed by a licensee or exempt organization

Answer 9

Commitment

Question 10

A commitment accepted by an applicant for a mortgage loan. The acceptance must be evidenced by either a handwritten or digital signature to the extent that the signatures are recognized as binding under New York State Law

Answer 10

Commitment agreement

Question 11

Who is An individual engaged in regulated activities as an independent contractor of a mortgage broker, mortgage banker or exempt organization?

Answer 11

An Employee

Question 12

An individual or any corporation, company, limited liability company, partnership, association or other entity

Answer 12

Person

Question 13

The mortgage loan rate that is set by the mortgage banker or exempt organization after the time a commitment is issued but prior to, or on, the closing date

Answer 13

Prevailing rate

Question 14

A loan to a natural person made primarily for personal, family or household use, secured by either a mortgage, deed of trust or other equivalent consensual security interest on a dwelling or residential real property. The term also includes a certificate of stock or other evidence of ownership in, and proprietary lease from, a corporation or partnership formed for the purpose of cooperative ownership of residential real property. Finally, a residential mortgage loan includes the refinance or modification of an existing loan.

Answer 14

Residential mortgage loan

Question 15

Real property located in New York improved by a one- to four-family residence or residential unit in a building used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons. However, the term does not refer to unimproved real property upon which a residence is to be constructed

Answer 15

Residential real property

Question 16

Licensed mortgage bankers are authorized to offer a graduated payment mortgage, which is defined as a mortgage providing:

Answer 16

 Monthly payments of principal and interest which are lower during the initial years of the mortgage;
 The graduation rate for the monthly payments, the term, and the interest rate are fixed throughout the loan term; and
 Monthly payments of principal and interest must be sufficient to pay all interest and to cause full repayment of the principal within the mortgage term as fixed at its origination

Question 17

Principal and interest payments are required in amounts sufficient to pay all interest and full repayment of principal within ___ years or less

Answer 17

40

Question 18

A subprime home loan is a loan in which the higher of the initial interest rate or the fully-indexed rate exceeds by more than ____ percentage points for a first-lien loan or by more than ____ percentage points for a subordinate-lien loan the average prime rate.

Answer 18

• 1.75

- 3.75