Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

California > Practice exam > Flashcards

Practice exam Flashcards

0
Q

The commissioner has the power to do what ?

A

Hold formal hearings
Suspending, revoking, denying licenses
Issuing cease and desist orders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Who are the two regulatory authorities for mortgage professionals in California.

A

The department of real estate and the DOB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The commissioner does Not have the power to:

A

Sentence to jail
Criminally prosecute
Hold in contempt of court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The following are required to be licensed :

A

Lenders
Brokers
Loan originators
Servicer’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The following are exempt from licensure:

A

Federally charted depository institutions
State charted depository institutions
Pension plan lenders
Attorneys acting on behalf of a clients case
Real estate brokers
Registered mortgage loan originators
Foreclosure trustees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The Application filing fee imposed in California for lending and mortgage servicer applicants is ?

A

$900.00

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

In the state of California the total initial application fee for a lender or servicer is ?
How much is the filing fee portion?
How much is the NMLS fee and investigation fee?

A

$1,100.00 total

$900.00 Application filing fee

$100.00 NMLS and investigation fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Commissioner may deny an applicants license request if any control person is convicted of ?

A
  • Fraud in anyway
  • Dishonesty or deceit in past 10 years
  • Held liable in any civil action by final judgement or any administrative judgement by:

Any public agency with in the past 7 years. ( including foreign courts )

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the minimum SURETY BOND required in California under the Residential Mortgage Lending Act?

A

$50,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

If a licensee commits a violation than the commissioner may increase the surety bond requirement to?

A

$100,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Mortgage brokers have minimum surety bond of ?

A

$25,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the minimum Net Worth requirement for mortgage lenders and servicers under the Residential Mortgage Lending Act?

A

$250,000

It is an audited financial statement prepared by an independent certified public accountant.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What date is the Annual Financial Report due for BROKER licensees in California ?

A

March 15th

  • it is filed to the commissioner for the purpose of determining the assessment amount for that year.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How often must the COMMISSIONER conduct and examination of every lender and servicer?

A

Every 48 months

Or at anytime they wish to do it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the maximum civil penalty the Commissioner may issue?

A

$25,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Under California law, a mortgage loan originator license will Expire on midnight on what date if not renewed?

A

December 31st

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the max penalty for failure to notify the Department of Real Estate that a real estate broker is involved in lending activities?

A

$10,000

  • Regardless of the number of days
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Real estate brokers who fail to notify the commissioner that they are involved in lending activities or who fail to obtain endorsement to act as a loan originator are subject to?

A
  • $50 per day fine in the firsts 30 days
  • $100 per day after the 31st day on
  • Maximum of $10,000 fine regardless of how many days
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Licensees must include a unique identifier on ?

A
  • business cards
  • stationary
  • websites
  • promotional fliers
  • brochures
  • emails
  • radio, cinema, television ads
  • print ads in news paper or periodical
19
Q

Licensees do not need to include a unique id on

A

“For sale signs”

20
Q

Funds in a trust account may only be taken out of the account for what reasons?

A
  • They are only allowed to be released for payments authorized by the borrower.
  • Refunds to the borrower
  • Transfer of funds from a trust account in another depository institution
  • Forwarding of funds when there is a new loan servicer for the mortgage loan.
  • Removal for any legal reason stated in the lending agreement.
  • Compliance with a court order from a regulatory agency.
  • release of funds for any other reason is prohibited.
21
Q

The following is not required to obtain licensure ?

A

Attorney working in an ancillary capacity

22
Q

Which California Code deals with discrimination in housing and lending?

A

Health and Safety Code

23
Q

California’s Health and Safety Code is also known as ?

A

the Housing Financial Discrimination Act and defines what is considered a housing accommodation .

24
Q

What is the TOTAL application fee for a Mortgage Loan Originator, including all fees for for complete processing?

A

$384

25
Q

What is the total break down of the total application fee for mortgage loan originators?

A

$330 - Initial license setup fee (includes $30 NMLS fee)

$15 - Credit Report fee

$39 - Criminal background check (additional)

26
Q

What are the Continuing education requirements ?

A

3 Federal
2 Ethics + Fraud
2 Non Traditional
1 undefined

27
Q

Marital Status is taken into consideration when qualifying a borrower for a loan in which case?

A

When taken into regard concerning California’s community property law.

  • the borrowers total debts, considered in their repayment ability, must include their spouses as well.
28
Q

What is the MAX penalty for a real estate agent non obtaining endorsement when when working as a loan originator?

A

$10,000 regardless of the number of days

29
Q

The Department of Real Estate has the power to do all of the following :

A 
Disciplinary actions for those who violate the Lending Law
Formal hearings
Suspending 
Revoking
Denying licenses 
Issuing cease and desist orders
30
Q

The Department of Real Estate does not have the power to?

A

Sentence licensees to jail
Criminally prosecute
Hold in contempt of court

31
Q

A unique identifier does not need to be included on ?

A

Promotional Items

32
Q

What is an example of unethical behavior by a mortgage broker?

A

A broker cashing a check made payable in the brokers name for settlement services.

Cannot accept cash or check for third party services that is made payable to them. ( Title insurance, appraisal )

33
Q

What are examples of acceptable behavior for a mortgage broker?

A

A mortgage broker obtains a credit report to qualify a borrower, I’m this case they are permitted to accept cash or check made payable to them.

34
Q

What are scenarios of Ethical behavior for a mortgage broker?

A
  • receiving a check for settlement services made payable to the Escrow company
  • receiving a check for the cost of a credit report made payable to the broker
  • a broker cashing a check for the cost of a credit report made payable to the broker
35
Q

If a client closes in there loan on January 15th. How long must the records be retained for ?

A

36 months - 3 years

*according to the Residential Mortgage Lending Act.

36
Q

After receiving and application for licensure, how many days does the commissioner have to make a decision ?

A

60 days

37
Q

MU4 must disclose:

A
  • charged, convicted, pled guilty, or no contest to a felony at any time
  • charged, convicted, pled guilty, or no contest to a misdemeanor involving financial services with in the past 10 years.
38
Q

MU4 does not need to disclose :

A

Any non-financial misdemeanor

Such as a DUI resulting in a fine.

39
Q

What are the reasons that the Commissioner will deny a request to obtain a license?

A
  • license revoked in any jurisdiction
  • convicted, pled guilty, or no contest to a felony with in the past 7 years.
  • fraud at any time
  • has no met the education requirement
40
Q

What must occur for a loan originator to have to notify the Department of Corporations and the NMLS ?

A

Change of residence or business address

  • Must notify the Department at least 10 days prior or the move.
  • Failure to notify may subject the licensee to a civil penalty not to exceed $500.
41
Q

The following acts and practices are PROHIBITED for MLOs under the Finance Lenders Law and the Residential Mortgage Lending Act ?

A
  • underwriter who states they can originate loans on their business cards.
  • an independent contractor preforming underwriting with out a unique ID.
  • originating with out a license.
42
Q

The following acts and practices are NOT prohibited for MLOs under the Finance Lenders Law and the Residential Mortgage Lending Act ?

A

A licensed loan originator collecting info t be used on 1003 form

43
Q

How long does an MLO have to file for a hearing after a notice of suspension?

A

15 days

  • failure to request a hearing within the 15 day period constitutes a waiver of the right to a hearing.
44
Q

What will happen if an MLO does not attend a scheduled hearing on a disciplinary action taken by the Commissioner?

A

The commissioner will deem the final order.

California (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions