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SAFE > Practice Questions > Flashcards

Practice Questions Flashcards

1
Q

What law pertains to why a mortgage loan originator would need to be licensed?

A

SAFE Act

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2
Q

Where would an NMLS number (unique identifier) not need to be displayed?

A

Inter-office communications and company signage

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3
Q

As part of minimum standards to verify your identity, what is something a mortgage loan originator would be required to do?

A

Be fingerprinted

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4
Q

What is the purpose of finger printing?

A

To ensure that the individual has not had a felony in the past 7 years, or a financial related felony ever

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5
Q

Adrian Beltre was convicted of felony assault 8 years ago, Michael Young was convicted of fraud 35 years ago. Which individual would be able to hold an NMLS license?

A

Adrian Beltre. Tolerance level for non-financial felonies is 7 years, where the tolerance for financial related felonies is indefinite

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6
Q

State licensed originators work for ____ institutions

A

Non-depository

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7
Q

Registered Loan originators work for:

A

Banks, credit unions, etc. They are exempt from testing

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8
Q

What are the step for NMLS licensing?

A
  1. 20 hours of pre licensing education
  2. Pass the SAFE Test
  3. Fingerprinting for background information
  4. 8 hours of continued education
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9
Q

What is the total number of hours for pre-licensing education?

A 
20.
3 hours of federal laws
3 hours of ethics
2 hours of non traditional
12 hours of electives
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10
Q

What is something the state regulatory may never do?

A

Waive the mandatory 20 hours of pre licensed education

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11
Q

What is the hour breakdown of the 8 hours of continued education?

A

3 hours of federal laws
2 hours of ethics
2 hours non traditional
1 elective hour

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12
Q

If a MLO fails the SAFE test, how long will they need to wait before taking it again?

A

30 calendar days

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13
Q

An MLO has just failed their test for the third time, how long must they wait before testing again?

A

6 months;180 calendar days

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14
Q

Who would not be exempt from holding a state license?

A

A processor or underwriter that is NOT a W2ed employee

Independent contractor

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15
Q

What is the purpose of RESPA?

A

To allow the borrower to shop for settlement services, ensure accurate disclosure , and prevent against unearned fees

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16
Q

Who is in charge of RESPA?

A

CFPB

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17
Q

What law was the CFPB created under?

A

Dodd Frank

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18
Q

What by definition is a transaction that would be covered by RESPA?

A

Residential transactions with 1-4 units for permanent financing

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19
Q

Which of the following transactions would not be applicable to RESPA?

a. An apartment building
b. A duplex occupied by the owner and a renter
c. A single family home
d. a condominium occupied by the owner

A

a.

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20
Q

What loan is exempt from RESPA?

A

A construction loan.

This is an example of temporary financing

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21
Q

The loan estimate is required to be disclosed after what 6 pieces of information are collected?

A 
A- Address
L- Loan amount
I- Income for qualification
E- Estimated home value
N- Name of Applicant
S- Social Security
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22
Q

When is the LE due to the customer?

A

Within 3 business days of application

starts the day after application

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23
Q

What is the only fee a customer could be charged prior to receiving an LE

A

The credit report fee

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24
Q

Whose responsibility is it to ensure the borrower receives the LE on time?

A

The lender

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25
Q

Based on the date that the loan estimate is issued, how long would a consumer have to wait before consummation of the loan?

A

7 business days

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26
Q

A customers loan estimate is generated on Tuesday, what is the earliest the loan can be consummated?

A

Wednesday of the following week

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27
Q

When the LE is disclosed, how long are the rates valid for?

A

10 business days

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28
Q

What is needed before the applicant can be financial committed to the loan?

A

Intent to proceed

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29
Q

How long must the intent to proceed be kept?

A

3 years

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30
Q

Once intent to proceed has been given, what is the only lender fee that the customer could incur?

A

Application fee

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31
Q

If a change of circumstance occurs, how long does the lender have to re disclose the LE

A

3 business days of the discovery of the change of circumstance

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32
Q

Once a revised loan estimate has been given to the customer, how long must they wait before signing

A

4 business days

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33
Q

What type of charge has 0% tolerance?

A

Any lender fee or fee required by the lender

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34
Q

What type of fee has a 10% tolerance rate?

A

Any fee that the applicant can shop for but instead uses a lender suggested settlement service

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35
Q

What type of fee has no tolerance?

A

Any fee that the borrower can shop for

escrow, prepaid interest

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36
Q

Which of the following would not be an accepted change of circumstance?

a. Act of God
b. New information
c. Changes in information on original LE
d. The consumer decides to change mortgage companies

A

d.

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37
Q

In a purchase transaction, the Real Estate Settlement Procedures Act requires what document be disclosed within 3 business days?

A

The Special Information booklet- Your Home Loan Tool Kit: a Step by Step Guide

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38
Q

When is the Affiliated Business Arrangement due?

A

At the time of referral

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39
Q

When is a ABA necessary?

A

When a lender is suggesting a service that they own 1% or more stake in

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40
Q

The Closing disclosure is due how many days before closing?

A

3 business days

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41
Q

Who must receive a closing disclosure?

A

All parties with ownership rights of the property

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42
Q

What is the purpose of an aggregate adjustment?

A

To prevent escrow overages

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43
Q

How much can an individual be charged for a preparation fee of any federal document?

A

zero

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44
Q

The servicing transfer notice is due how many days before transfer?

A

15 days

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45
Q

The new servicing company must notify the customer within how many days of taking over the loan?

A

15 days

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46
Q

No late fees can be incurred for how many days following transfer of a loan?

A

60 days

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47
Q

After transfer of a loan to the servicing company, they have _______ days to complete the initial escrow analysis

A

45

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48
Q

What would happen to an overage of $40 in escrow

A

It will remain in escrow

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49
Q

What would happen to an escrow overage of $51?

A

It would be refunded to the customer within 30 days

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50
Q

If an escrow shortage occurs, what may the borrower do?

A

Spread it over 12 months in order to catch up

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51
Q

What is escrowed?

A

taxes, flood insurance, mortgage insurance, home owner’s insurance

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52
Q

What fee is never escrowed?

A

HOA fee

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53
Q

fee splitting is only allowed under RESPA if:

A

Both parties render a service

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54
Q

If a processor charges a $500 fee, but the loan originator charges the borrower $800, they are guilty of what

A

A markup or unilateral increase

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55
Q

If a customer does not have HOI, the servicer will disclose ______ notices and give the borrower _____ days to prove that they have insurance

A

2;45

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56
Q

If a borrower is wrongfully given force placed insurance, the lender has how many days to refund any overlapping fees?

A

15 days

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57
Q

What is the maximum cushion that can be placed on an escrow account?

A

2 months or 1/6 of total annual disbursements

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58
Q

when would live contact be required when a customer has their loan with a servicing company and are delinquent on payments?

A

Must be made by the 36th day

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59
Q

How long does a servicing company have to provide written contact to a borrower delinquent on payments?

A

No later than the 45th day

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60
Q

A customer has an ARM that is soon to be subject of adjustment. how long does the servicing company have to send the customer the rate change disclosure?

A

No later than 60 days before adjustment, but no sooner than 120 to adjustment

this allows customer time to refinance

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61
Q

Which transaction would not apply to TILA

A

An investment property

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62
Q

How is the cost of credit displayed as a dollar amount?

A

Finance charges

P- Processing Fee
O- Origination Fee
D- Discount Points
I- Interest
U- underwriting
M- Mortgage Broker fee
M- MIP
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63
Q

How is the cost of credit displayed as a percentage?

A

APR

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64
Q

If APR changes by more than ______ a revised LE must be sent to the customer

A

.125% or 1/8%

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65
Q

What would always be a finance charge?

A

lender fees

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66
Q

What is never a finance charge?

A

escrow

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67
Q

Along with an LE and a CD what is the customer always going to receive with an ARM

A

CHARM booklet and a loan program disclosure for ever ARM they show interest in

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68
Q

What does the borrower receive when applying for a HELOC

A

“What you should know when your home is on the line”

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69
Q

In addition to the CFPB who would also help regulate for advertising under the Truth in Lending Act

A

FTC- Federal Trade commission

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70
Q

If only APR is disclosed in an advertisement, what other information is needed?

A

Nothing

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71
Q

In order to stay in compliance with the Truth in Lending Act, how long would a lender need to keep record of an advertisement?

A

36 Months

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72
Q

Which of the following transactions allows rescission rights?

a. refinance of a investment property
b. purchase transaction
c. purchase of land
d. a refinance transaction

A

d. refinance transaction

only applies to primary residence

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73
Q

A husband and wife show up to closing. The husband receives 2 copies of the rescission rights while the wife receives 1 copy. How long are the rescission rights now?

A

3 years

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74
Q

If the borrower exercises rescission rights, how long does the lender have to place them back in the prior financial situation before the loan?

A

20 business days

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75
Q

What would be a situation where the customer could waive their right to rescission

A

Bona fide financial emergency

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76
Q

When does the rescission period begin?

A

the day after closing

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77
Q

The loan closes on Tuesday, when would the loan be scheduled to fund?

A

Saturday

the day after the rescission period ends

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78
Q

What is considered a business day when disclosing the initial LE?

A

Any day that the financial institution is open

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79
Q

What is considered a business day in all situations except disclosure of the initial LE?

A

Any day except Sunday and public holidays

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80
Q

What 6 elements constitute an active application?

A 
A- Address
L- Loan Amount
I- Income Used
E- Estimated home value
N- Name of applicants
S- Social security Number
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81
Q

How long does the lender have to refund any overages between the LE and CD to stay in compliance with TRID

A

within 60 days of consummation

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82
Q

How long must record of the LE be kept?

A

3 years

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83
Q

How long must record of the CD be kept?

A

5 Years

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84
Q

What is the only way a MLO can be paid?

A

basis points on the volume of loans generated

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85
Q

What is the definition of steering?

A

Pushing an applicant towards a program for the personal gain of the MLO, not the customer

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86
Q

How could a loan originator help a loan applicant who is struggling to bring all the funds to closing?

A

May suggest a higher rate than par and use borrower credit to offset closing costs

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87
Q

What is considered a non traditional mortgage?

A

anything other than a 30 year fixed rate

can be FHA, VA, Conventional, etc. Just has to be 30 years with a fixed rate

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88
Q

What 2 loan options are exempt from the ATR rule under Dodd Frank?

A

HELOC and reverse mortgage

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89
Q

What entity would be responsible for setting guidelines and managing conduct for appraisers?

A

Uniform Standards of Professional Appraisal Practice

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90
Q

Which of the following would be allowed when conversing with an appraiser?
a. misrepresenting or mischaracterizing the appraised value of security collateral

b. Seeking to influence the appraisal or encouraging a target value
c. withholding or threatening to withhold payment for an appraisal contingent on value or loan settlement
d. asking an appraiser why that specific property appraised for the amount that it did

A

d. asking an appraiser why that specific property appraised for the amount that it did

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91
Q

How does a qualified mortgage benefit a lender?

A

Gives a safe harbor that upon sale make the loan non transferable back to the lender

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92
Q

How long can a prepayment penalty be place on a loan?

A

3 years

in the first 2 years they cannot be charged more than 2% and in the last year they cannot be charged more than 1%

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93
Q

How long does the customer have to manage an escrow account in an HPML

A

5 years

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94
Q

What section is HOEPA in TILA

A

Section 32

95
Q

What transaction would be considered a High cost loan for a first lien if the APOR today is 3%?

A

Any loan above 9.5%

APOR+ trigger of 6.5% for a first lien

96
Q

What is something an individual applying for an high cost loan would have to do?

A

HUD approved counseling with 10 local counselors

97
Q

To be a qualified mortgage, points and fees cannot exceed what percentage of the loan amount?

A

3%

ex. $2,500 in fees and points on a $100,000 loan

98
Q

If a customer is doing a second mortgage it would be considered a high cost mortgage loan if the APR exceeds more than what percentage over the APOR?

A

8.5% is the trigger for subordinate liens

99
Q

For High Cost Loans, fees and points exceed:

A

5% of the loan amount

100
Q

What are the three scenarios where HUD counseling is required?

A

High cost loans, reverse mortgages, and loan that results in negative amortization

101
Q

To be considered a Higher Priced Mortgage loan (HPML), APR must exceed APOR by what percentage for first liens?

A

1.5% above APOR

102
Q

To be considered a Higher Priced Mortgage loan (HPML), APR must exceed APOR by what percentage for subordinate liens?

A

3.5% above APOR

103
Q

To be considered a Higher Priced Mortgage loan (HPML), APR must exceed APOR by what percentage for first lien jumbo loans?

A

2.5% above APOR

104
Q

To be considered a higher priced mortgage loan, points and fees must be:

A

Above 3% but below 5% of the loan amount

105
Q

If a loan is given to a customer based on the amount of equity they have in their home, which law does this violate?

A

HOEPA

106
Q

What is something a borrower cannot do when refinancing a HOEPA (high cost) loan?

A

go from one high cost loan to another high cost loan within 12 months without establishing a net tangible benefit to the borrower

107
Q

What is a reason to allow a customer to go from one HOEPA loan to another HOEPA loan?

A

if their payment is decreasing

net tangible benefit

108
Q

If the APR on a first lien is higher than _____ above the APOR it is considered high cost

A

6.5%

109
Q

What law directly addresses private mortgage insurance?

A

HPA- the Homeowners protection act

110
Q

When can a customer request for PMI to be removed from a mortgage?

A

at 80% LTV or 20% equity

111
Q

When would a servicing company be required to remove PMI?

A

at 78%LTV, 22% equity

112
Q

The removal of PMI is based on…

A

The original transaction

113
Q

How is the removal of PMI beneficial to the customer?

A

It reduces the down payment requirement

114
Q

What transactions apply to ECOA?

A

All credit transactions

115
Q

What is required to be asked on an application for HMDA to police for ECOA?

A

Race, sex, ethnicity

Used for government monitoring requirements

116
Q

ECOA prohibits discrimination based on:

A

Age, sex, ethnicity, color, marital status, religion, national origin

117
Q

What are the three acceptable reasons to deny an application?

A
  1. Insufficient credit
  2. Excessive obligations
  3. Insufficient collateral
118
Q

The NOAT has to be sent within how many days of application?

A

30

119
Q

What essentially serves as a rejection letter?

A

Adverse action

120
Q

The notice of incomplete application must be sent how many days from application?

A

30

121
Q

Under ECOA, when does a customer need to receive the final appraisal report

A

at least 3 days prior to settlement

122
Q

When is the customer required to receive the Notice of right to receive the appraisal?

A

within 3 days of application

123
Q

Who is in charge of the Fair Housing Act?

A

HUD

124
Q

When is the Loan Application Report due?

A

Information must be sent by March 1st, no later than March 31st

125
Q

What loans are not covered under HMDA?

A

Personal property (A travel trailer)

The property must be affixed to the land

126
Q

Who does the FCRA police?

A

the CRA’s

127
Q

FACTA specifically addresses what?

A

Identity theft

128
Q

How long would a fraud report remain on a customers credit report under FACTA?

A

As long as the customer wishes

129
Q

The Red Flag rule is part of FACTA, but is overseen by who?

A

The FTC

130
Q

What methods of disposal are permitted under the FTC disposal rule?

A

Burning, shredding, pulverizing. should also properly discard any electronic information

131
Q

The USA PATRIOT ACT addresses what?

A

Money laundering

132
Q

Who is in charge of the USA PATRIOT Act

A

FinCEN- Financial Crimes Enforcement Network

133
Q

If suspicious activity is suspected, what should the MLO do under the USA PATRIOT Act

A

Complete a Suspicious Activity Report (SAR)

134
Q

How many days within speculation of suspicious activity must a SAR be completed?

A

30 days

135
Q

How much currency exchange would require a Cash Transaction Report?

A

$10,000

136
Q

A foreign account under the US PATRIOT Act is known as what?

A

A correspondent account

137
Q

What specifically does GLB cover?

A

Protection of Non-public personal information

138
Q

The MARS Rule prevents what?

A

charging of upfront fees for loan modification purposes

139
Q

What is a product of the Secondary Market?

A

A Mortgage Backed Security (MBS)

140
Q

The process of pooling loans and selling them off as a securitized asset is know as what?

A

Securitization

141
Q

If a customer is doing a conventional loan, what is the max housing ratio allowed?

A

28%

142
Q

If a customer is doing a conventional loan, what is the Total Debt Ratio allowed?

A

36%

143
Q

If a customer puts 10% down on a conventional loan, what are sellers concessions limited to?

A

6%

144
Q

If a customer puts less than 10% down on a conventional loan, what are sellers concessions limited to?

A

3%

145
Q

If a customer puts more than 25% down on a conventional loan, what are sellers concessions limited to?

A

Will allow up to 9%

146
Q

What are sellers concessions based on?

A

The sales price

147
Q

Who supervises FNMA and FHLMC and sets their loan limits?

A

The FHFA- Federal Housing Finance Agency

148
Q

What is the automated underwriting system for FNMA?

A

Desktop Underwriter

149
Q

What is the automated underwriting system for FHLMC?

A

Loan Product Advisor

150
Q

What is the automated origination system for FNMA

A

Desktop Originator

151
Q

A loan taking an inferior lien on a title is known as a what?

A

a second mortgage

152
Q

What is a loan offered to an applicant with below a 580 credit score?

A

a subprime loan

153
Q

What loan product would give the customer the option to pick which payment they want to make on a monthly basis and typically result in negative amortization?

A

An Option ARM

154
Q

Who is in charge of the FHA?

A

HUD

155
Q

In order to obtain the minimum down payment for an FHA loan, what credit score is needed?

A

580

156
Q

If a customer is putting less than 5% down on an FHA loan, seller concessions are capped at:

A

3%

157
Q

If a customer is putting 5% down or more on an FHA loan, seller concessions are capped at:

A

6%

158
Q

What 2 forms of insurance are charged on all FHA loans?

A

UFMIP and monthly MIP

159
Q

If a customer is putting less than 10% down on an FHA loan, how long does monthly MIP last?

A

the life of the loan

160
Q

If a customer is putting 10% or more down on an FHA loan, how long does monthly MIP last?

A

11 years

161
Q

who sets loan limits for FHA loans?

A

HUD

162
Q

What is the primary fixed rate program when someone is purchasing or re financing an FHA loan?

A

203(b)

163
Q

If a customer is obtaining a loan in order to rehab (remodel) a property, what would be the FHA product code that the customer would receive?

A

203(k)

164
Q

What is the max entitlement allowed on the COE on a VA loan?

A

$36,000 or 25% of the loan amount

165
Q

Do VA loans carry mortgage insurance?

A

no

166
Q

A customer is doing a VA loan for the first time. What is the funding fee?

A

2.3%

167
Q

What is the max DTI for a customer obtaining a VA loan?

A

41%

168
Q

What is the max housing ratio for a customer obtaining a FHA loan?

A

31%

169
Q

What is the max DTI for a customer obtaining a FHA loan?

A

43%

170
Q

A customer is currently on a VA loan and rates have reduced. What type of mortgage loan product may a MLO recommend to the borrower?

A

an IRRRl- Interest Rate Reduction Refinance Loan

VA version of streamline

171
Q

A customer is currently on a VA loan and rates have reduced. What type of mortgage loan product may a MLO recommend to the borrower?
an IRRRl- Interest Rate Reduction Refinance Loan

(VA version of streamline)
What is the name of the value when someone is obtaining a VA appraisal?

A

Certificate of Reasonable Value

172
Q

What type of loan would not be covered under RESPA?

A

A construction loan.

This is temporary financing

173
Q

How many extra payments woy someone pay if they are on a bi weekly loan program?

A

1 extra full payment per year

reduces a 30 year loan to 24.5 years

174
Q

Second mortgages are:

A

Conventional but non conforming

175
Q

In order to manipulate lien priority, what must a lender be able to do to assure they are in the proper lien position

A

a subordination agreement

176
Q

What clause could make a balloon mortgage less risky to an applicant?

A

A conditional refinance provision

177
Q

Due to the absence of a power of sale clause, what type of foreclosure transaction would ensue?

A

A judicial foreclosure

178
Q

What is a temporary reduction or suspension of payments for an agreed upon period?

A

Forbearance

179
Q

Because of the presence of the power of sale clause, what type of foreclosure transaction would take place?

A

Non-judicial foreclosure

180
Q

A customer has not made payments on time and are now delinquent. At what point of delinquency is a servicing company allowed to recapture the collateral?

A

120 days

181
Q

What does the original lender receive as compensation for selling or transferring the rights to servicing on a loan?

A

a SRP or Service Release Premium

182
Q

What type of transaction occurs when one company uses a warehouse line of credit to originate, fund, and close a loan and then assign it to another entity?

A

Table funding

183
Q

What is the loan application called?

A

the 1003, or the URLA- Uniform Residential Loan Application

184
Q

If a customer is receiving rental income, where would this information be shown on the 1003?

A

Income and Housing

185
Q

If an applicant is asked of their marital status, and report they are separated, what else would be needed?

A

the court documented separation agreement

186
Q

Under what section of the 1003 is the customer asked to disclose information?

A

Declarations

187
Q

Under what section of the 1003 is the applicant required to list the amount they are receiving or paying in child support or alimony?

A

assets and liabilities

188
Q

Where is the MLO’s unique identifier listed on the 1003?

A

Information for Government monitoring

189
Q

What is never listed under liabilities on the 1003?

A

The opening date or opening amount of the loan

190
Q

The transmittal summary is referred to as the:

A

1008

191
Q

Diligently matching customers with loan products to meet their financial needs is known as what?

A

Loan suitability

192
Q

Which of the following is not a suitable asset as a source of down payment for someone applying for a loan?

a. unsecured cash
b. checking or savings act
c. whole life insurance
d stocks or bonds

A

a.

193
Q

What is something the lender requires to be signed in order to obtain tax transcripts from the IRS

A

4506-T

194
Q

The tax return documents are also known as what?

A

the 1040

195
Q

If a customer is receiving $1,000 a month in social security, how much can be used as a qualifying income?

A

$1,250

it is ‘grossed up’ by 25%

196
Q

If a customer is receiving $1,000 a month in social security, how much can be used as a qualifying income?
$1,250

it is ‘grossed up’ by 25%
If a customer is receiving $1,000 a month in rent, how much can be used as a qualifying income?

A

$750

75% of rental income is used to compensate for vacancy

197
Q

What document would show AKA (also known as) information?

A

The Credit Report

198
Q

What are the 3 credit bureaus?

A

Experian, TransUnion, Equifax

199
Q

An opinion of value is referred to as a(n)

A

appraisal

200
Q

Who sets the guidelines and manages the conduct of appraisers?

A

The USPAP or Uniforms Standards Professional Appraisal Practice

201
Q

What is the most common and comprehensive appraisal form?

A

the 1004 or URAR

202
Q

what is the certificate of completion for appraisals?

A

form 442

203
Q

What appraising method would be used to determine the value of the collateral used in a transaction?

A

Sales comparison or market approach

204
Q

What appraising practice would be used when trying to establish the replacement cost of a dwelling for insurance purposes?

A

cost approach

205
Q

what appraisal method would be used when someone is applying for an investment property?

A

Income Approach

206
Q

When looking at the sales comparison approach on an appraisal, what is the maximum line adjustment allowed between the subject property and the comparable sale?

A

10%

207
Q

When evaluating the sales comparison approach to appraising, what is he maximum net adjustment that can used between the subject property and the comparable sale?

A

15%

208
Q

When evaluating the sales comparison approach to appraising, what is he maximum gross adjustment that can used between the subject property and the comparable sale?

A

25%

209
Q

What conveys something as fixed property?

A

If it is fixed to the land

HMDA does not apply to personal property

210
Q

What is something that could prevent a title from transferring free and clear?

A

An unpaid encumbrance

211
Q

What is something that would allow an individual onto a property without the consent of the homeowner?

A

an easement

212
Q

Why is title insurance not escrowed?

A

It is a one time fee

213
Q

A chain of title looks for what?

A

sequence of ownership

214
Q

What protects the owner against liens that are not their responsibility?

A

owners title insurance

215
Q

In a purchase transaction, transferring ownership right from the seller to the buyer is known as:

A

conveyance of title

216
Q

What would be listed in the original deed of trust agreement relaying to the customer that the lien against their home will be removed once the mortgage is paid in full?

A

Defeasance clause

217
Q

What is the act of transferring the title to a homeowner after the lien is paid in full?

A

Re-conveyance

218
Q

What is the security instrument in a lending transaction?

A

Mortgage or deed of trust

219
Q

under the Power of attorney document, who is allowed to sign for a borrower not able to be present?

A

The attorney in fact or a court appointed guardian

220
Q

How much hazard insurance is required on a property?

A

enough to cover the loan amount or the replacement cost of the home, the lower of the two

221
Q

How long must HOI be kept?

A

until the lien is paid off

222
Q

How is the lender listed on a homeowners insurance policy?

A

as the loss payee

223
Q

After closing on a loan, how long does the borrower have to movie into the property?

A

60 days

224
Q

What is never listed on the promissory note?

A

the servicer’s name

225
Q

a MLO gives an applicant a loan without verifying ability to repay. This is a violation of what law?

A

HOEPA

226
Q

Who is responsible for regulating the SAFE Act

A

The CFPB

227
Q

How often can a state regulator or the CFPB investigate under SAFE?

A

at any time

228
Q

what determines the amount held in a surety bond under SAFE?

A

the total amount of loan originations

229
Q

When does a surety bond need to be replenished?

A

Immediately upon action is filed against it

230
Q

A MLO takes a loan application on December 27th, but the loan does not fund until January 7th and they have not yet renewed their license. Can the MLO still be compensated?

A

No. Application must be taken and funded within the same calendar year to count in the act of non renewal of a license

231
Q

If a registered loan originator wants to become a state licensed originator, they can be granted a temporary license of how many days?

A

120

232
Q

In order for someone to become a temporary MLO to become state licensed, how long must have they needed to serve as a registered loan originator

A

1 year

233
Q

what is the max penalty for violated the SAFE act?

A

$25,000 per violation

SAFE (1 decks)

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