Brainscape's Knowledge GenomeTM

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


See full index

Affinity 844 Flashcards > SAFE ACT > Flashcards

SAFE ACT Flashcards

1
Q
  1. SAFE is an acronym for
A

Secure and Fair Enforcement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  1. The purpose of the SAFE Act is to
A

promote financial stability through accountability and transparency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
  1. The SAFE Act is part of the
A

Housing and Economic Recovery Act (HERA) of 2008.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
  1. The Dodd-Frank Act is charged with
A

overseeing the federal financial laws that specifically protect consumers who deposit their money in banks and credit unions, pay for goods and services with credit cards, and rely on loans to pay for services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
  1. Consumer Financial Protection Bureau (CFPB) was created by
A

the Dodd Frank Act and the Consumer Finance Protection Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  1. The Conference of State Bank Supervisors (CSBS), the American Association of Residential Mortgage Regulators (AARMR), and the Consumer Financial Protection Bureau oversee compliance with
A

with the SAFE Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
  1. NMLSR stands for.
A

Nationwide Mortgage Licensing System & Registry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  1. CSBS/AARMR (What does it do)
A

maintains the registry, approves mortgage schools, and courses, and oversees state compliance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q
  1. Everyone’s loan origination license expires (when)
A

annually. Most states have a December 31st renewal date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q
  1. The renewal period for the NMLS is (when)
A

November 1st thru December 31st.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. The Housing and Economic Recovery Act allowed the
A

Federal Housing Finance Agency to take control of Fannie Mae and Freddie Mac in 2008.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. Applicant information is
A

stored in a national registry.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  1. Consumer –
A

people who keep their money in banks and credit unions, pay for goods and services with credit cards, and rely on loans to buy homes and pay for college, among other services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
  1. Consumers can search a separate database for
A

non-confidential licensee information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. Federal banking agencies include
A

Federal Reserve System Board of Governors, National Credit Union Administration, Comptroller of the currency and the Federal Deposit Insurance Corporation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. Immediate family members include a
A

spouse, parents, stepparents, child, stepchild, sibling, stepsibling, grandparent, grandchild, and adopted members.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q
  1. An individual is a
A

a natural person.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q
  1. A person is a
A

natural person, limited liability corporation, association, company, corporation, and partnership.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q
  1. Underwriters and loan processors are
A

individuals who perform clerical or support tasks at the direction of a state-licensed loan originator or registered loan originator. They don’t negotiate loan terms.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q
  1. Loan processors and underwriters who function as independent contractors must
A

be state-licensed loan originators and register with the NMLSR.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q
  1. Supervised loan processors and underwriters who do not represent to the public that they can perform any of the activities of a loan originator are
A

not required to be state licensed loan originators.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q
  1. Mortgage Loan Originator -
A

an individual who for compensation or gain, or in expectation of compensation or gain, takes a residential mortgage loan application, offers, or negotiates terms of a residential mortgage loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q
  1. Registered Mortgage Loan Originator -
A

any individual who meets the definition of mortgage loan originator and is an employee of a depository institution (Bank).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q
  1. State-licensed Mortgage Loan Originator -
A

any individual who meets the definition of mortgage loan originator and IS NOT an employee of a depository institution (Bank).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q
  1. States have the authority to
A

design application forms; collect transaction fees; conduct background checks; issue licenses; write regulations; deny, suspended revoke licenses; investigate complaints; subpoena witnesses and documents;
assesses penalties, and order the termination of individuals who are regarded as threats to the public welfare.

26
Q
  1. Individuals who negotiate a mortgage loan for themselves or family members are
A

exempt from (do not require) licensing

27
Q
  1. Attorneys who negotiate loan terms as an ancillary service and who are not compensated by a loan originator or lender are
A

exempt from licensing.

28
Q
  1. All applicants need to provide their
A

fingerprints, credit report and criminal background check authorizations

29
Q
  1. The NMLS uses a generic application, known as the
A

MU4. The NMLS does not give a person their license, only a state can give a license to someone. The MU4 is the application for any state, it includes information all states require on their license.

30
Q
  1. Applicants must never have had a
A

loan originator license revoked in any governmental jurisdiction; had no felony conviction during the past seven years or no felony conviction ever if offense is related to fraud, dishonesty, money laundering or breach of trust. The only exception is if he/she has received a pardon.

31
Q
  1. Applicant must meet either a
A
  1. net worth
  2. surety bond requirement
  3. pay into a state fund.

These are the three protection options that each State must have in place.

32
Q
  1. A minimum of 20 hours of pre-licensing education is
A

required for all loan originators.

33
Q
  1. Pre-licensing must include.
A

3 hours of federal law, 3 hours of ethics, and 2 hours of training on non-traditional mortgage products

34
Q
  1. A minimum of
A

8 hours of annual continuing education is required for all loan originators.

35
Q
  1. Continuing education must include
A

3 hours of federal law, 2 hours of ethics, and 2hours of training on non-traditional mortgage products.

36
Q
  1. The NMLS unique identifier is
A

required on all marketing materials.

37
Q
  1. If the marketing materials reference the company only, the
A

company’s unique identifier must be used.

38
Q
  1. If the marketing materials and business cards are issued in the name of the mortgage loan originator, then
A

the marketing materials and business cards require the MLO’s unique identifier.

39
Q
  1. All disclosures require the
A

MLO’s unique identifier.

40
Q
  1. If you fail the NMLS Exam, you must
A

wait 30 days before you can retake the exam.

41
Q
  1. If you fail the exam three times, you
A

must wait 6 months (180 days) before you can retake the exam

Buy Your Going To Pass

42
Q
  1. Retest after Lapse of License:
A

A licensed MLO who fails to maintain a valid license (does not renew his/her license) for a period of 5 years shall retake the test.

43
Q
  1. Once an individual is unlicensed for three (3) years as an MLO, most states require that
A

the individual retake the 20hrs of pre-licensing education in order to have his MLO license reinstated.

44
Q
  1. Once unlicensed for
A

five (5) years, the individual must retake and pass the National Exam. If the individual has worked as a registered MLO during this unlicensed period, he is credited for that time.

45
Q
  1. Instructor Credit -
A

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 1hour taught.

46
Q
  1. Successive Year Rule -
A

A licensed MLO may only receive credit for a CE course in the year in which the course is taken.

47
Q
  1. Loan originators may not
A

advertise or commit to loan terms that aren’t currently available.

48
Q
  1. Loan originators may not
A

collect a commission if the loan doesn’t close.

49
Q
  1. Loan originators may not
A

attempt to illegally influence individuals responsible for loan approval including lenders, appraisers, and underwriters.

50
Q
  1. Loan originators may not
A

misrepresent a property.

51
Q
  1. MLOs, processors, and underwriters employed by credit unions and depository institutions do not
A

do not need to be licensed under the SAFE Act - employees of these institutions must be registered through the NMLS and Registry and have an NMLS Unique Identifier.

52
Q
  1. Loan originators may not
A

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

53
Q
  1. Mortgage companies and lenders must submit Mortgage Call Reports (MCR) to the
A

NMLSR Quarterly, regarding the condition of the business. The MCR is a quarterly report of the condition an entity submits thru the NMLS.

54
Q
  1. The MCR report is comprised of two parts: The
A

The state-level “Residential Mortgage Loan Activity Report”

and the entity level “Financial Condition Report”.

55
Q
  1. The state-level “Residential Mortgage Loan Activity Report” –

(When is it completed?)

A

completed quarterly, within 45 days of the end of the calendar quarter.

56
Q
  1. The entity level “Financial Condition Report” –

When is it completed?

A

completed annually, within 90days of the company’s fiscal year end.

57
Q
  1. Loan servicers or employees who assist in refinancing a loan or changing the terms on an existing loan are considered -
A

considered loan originators.

58
Q
  1. Loan originator ORGANIZATIONS can receive compensation for
A

for selling additional products such as title insurance, but individual loan originators may not.

59
Q
  1. Loan originator organizations must keep a
A

record of payments from a creditor and payments to individual originators for three years.

( The files must also contain a copy of the compensation agreements that govern the payments. )

60
Q
  1. Creditors may not
A

include mandatory arbitration clauses or waivers of the consumer’s right to file a lawsuit alleging federal violations in transactional agreements.

61
Q
  1. It is a penalty of $ 30,058 for violating the
A

the SAFE Act.

Affinity 844 Flashcards (15 decks)

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