SAFE Act & UST

Question 1

What does the SAFE Act stand for?

Answer 1

Secure and Fair Enforcement Act

Question 2

The SAFE Act is Title ___ of what Act?

Answer 2

5; HERA

Question 3

What law created and came before the SAFE Act?

Answer 3

The Housing and Economic Recovery Act (HERA)

Question 4

What does the SAFE Act do?

Answer 4

Requires states to implement the MLO licensing process that meets certain standards through the NMLS or NMLSR

Question 5

What does NMLSR stand for?

Answer 5

Nationwide Mortgage Licensing System and Registry

Question 6

Which two entities worked with HUD to establish the NMLS and establish min. standards for licensing or registration of all MLOs?

Answer 6

The Conference of State Bank Supervisors (CSBS) and American Association of Residential Mortgage Regulators (AARMR)

Question 7

What does the NMLSR do?

Answer 7

establishes min. standards for licensing or registration of all MLOs

Question 8

A loan originator is an individual who does what?

Answer 8

• takes residential mortgage loan application

- offers or negotiates terms of residential mortgage loan for compensation or gain

Question 9

What are the exceptions to the requirement to be state-licensed as an MLO?

Answer 9

• any individual who performs administrative or clerical tasks for licensee
• extending credit on timeshare plans
• individuals who negotiate a mortgage loan for themselves or immediate family members
• a loan processor or underwriter who does not represent the public through advertising (business cards, brochures, etc) that he or she is a loan originator.
• Attorneys who negotiate loan terms as an ancillary service and who aren’t compensated by a loan originator or lender

Question 10

What does the successive year rule state?

Answer 10

Successive Year Rule says you cannot take the same course as a previous year for CE credit. It can be the same provider but it must be a different course.

Question 11

What criminal history makes a person ineligible to qualify for licensure?

Answer 11

having an MLO license revoked in any government jurisdiction; Not guilty of or pled guilty of a felony in past 7 years unless it was pardoned; a felony involving an act of fraud, dishonesty, or a breach of trust, or money laundering ever

Question 12

What are three important facts about State Regulatory Authority responsibilities?

Answer 12

• Have in place one of three protection options: min net worth, surety bonding or state recovery fund
  
  • State and federal regulating authorities do no have authority to impose prison sentence
  • Penalties - the max for ea act or omission shall be $25K