SAFE ACT Flashcards
Created by the Dodd-Frank Act and the Consumer Finance Protection Act.
CFPB
Who sees compliance over the SAFE Act
CSBS, AARMR, and CFPB
NMLS stands for
Nationwide Mortgage Licensing System & Registry
CSBS/AARMR duties:
maintains the registry, approves mortgage schools and courses, and oversees state compliance.
Took control of Fannie Mae and Freddie Mac in 2008.
Federal Housing Finance
Applicant information is stored in a
National register
Consumers can search for:
non-confidential licensee information.
Federal banking agencies
Federal Reserve System Board of Governors,
National Credit Union Administration, Comptroller of the currency and the Federal Deposit Insurance Corporation.
Loan processors and underwriters who function as independent contractors must be:
state-licensed loan originators and register with the NMLSR.
All applicants need to provide their
fingerprints, credit report and criminal
background check authorizations.
The NMLS does not give a person their license, only a
State can give someone their license
The NMLS uses a generic application, known as the
MU4
Applicants for LO must have no felony for the last
Seven years
FHA Underwriting Machine
Total Scorecard
Continuing education must include
3 hours of federal law, 2 hours of ethics, and
2 hours of training on non-traditional mortgage products.
The NMLS unique identifier is required on
ALL MARKETING MATERIAL
All disclosures require the
MLO’s unique identifier.
A licensed MLO who is an approved instructor may receive credit for their annual CE requirement at the rate of 2 hours’ credit for every 1 hour taught.
instructor credit
Loan originators may not cause a borrower to obtain property insurance coverage in an amount that exceeds the
replacement cost of the improvements as
established by the property insurer.
a quarterly report of the condition an entity submits thru the NMLS.
Mortgage Call Reports
The MCR report is comprised of two parts:
The state-level “Residential Mortgage Loan Activity Report” and the entity level “Financial Condition Report”.
The state-level “Residential Mortgage Loan Activity Report” is completed:
quarterly, within 45 days of the end of the calendar quarter.
The entity level “Financial Condition Report” is completed:
annually, within 90 days of the company’s fiscal year end.
Loan originator organizations can receive compensation for selling additional products such as title insurance, but
individual loan originators may not.