State Exam Review Flashcards
Deadline for submitting applications for DRE licensees to be issued a license endorsement by January 1, 2011 is _____________________.
SEPTEMBER 15, 2010
NMLS&R is the Nationwide Mortgage Licensing System & ________.
REGISTRY
The total cost of a DOC application for MLO is ________.
$169
$100 fee, $39 fingerprint processing and $30 NMLS&R Fee
The penalty for failing to obtain the MLO endorsement is $50 per day for the first 30 days and $100 per day thereafter, not to exceed ________.
$10,000
An application fee for becoming an endorsed lender is refundable when?
NEVER
The NMLS&R form for an application for a license for everyone is ________.
MU4
The NMLS&R form for an application for a Company business license is ________.
MU1
The NMLS&R form for an application for a Officers of a Corporation is ________.
MU2
he NMLS&R form for an application for a NMLS&R branch office application is ________.
MU3
I have five branch offices. I need ________ licenses.
5
Two categories not considered MLO’s: Time Shares and ________.
LOAN MODIFIERS
True or False: An independent contractor employed by a lender is exempt from licensing.
FALSE
Which California bill was passed to comply with the Safe Act? ________.
S.B. 36
True or False: A surrender of a license in another state would be grounds for no license in California.
FALSE
SAFE stands for______________________.
SECURE AND FAIR ENFORCEMENT
The number of hours of pre-licensing education is ________. DRE licensees can get this waived by _________________.
20
DEADLINE 8/31/10
The fee for waiver of the 20 hour pre-licensure course is ________.
$15
The 20-hour pre-licensing course must include 3 hours in Federal Law, 2 hours on Non-Traditional Mortgages and 3 hours on ________.
ETHICS
True or False: Your NMLS State component exam can be taken in Florida.
TRUE
A person who is unemployed can still take _______________________
EDUCATION COURSES
Yes or No: I take 14 hours of CE in 2011; can I use the extra 6 hours in 2012?
NO
If your application is deficient: Time to correct is ________ days.
90
True or False: NMLSR pre-licensing education credit from another state would be valid in California.
TRUE
True or False: If I’m not currently employed by a licensed lender or servicer, I can still get my license.
FALSE (SPONSORED)
True or False: A license revoked in another state means no license in California.
TRUE
True or False: I was NMLS licensed in 2011 but it lapsed. It is now 2012. I can get relicensed if I complete education requirements for 2012.
FALSE
I sent in the application fee, fingerprints, my NMLSR number, my pre-licensing course. What am I missing? ____________________________.
PERSONAL HISTORY and CREDIT CHECK
True or False: The MLO application must include a surety bond.
FALSE
The yearly requirement for MLO Continuing Education courses is ________ hours.
8
A loan processing job involving clerical duties is probably ________ from licensing.
EXEMPT
The passing grade on the State Exam is ________.
75%
If there is a material change to your application information, notify DOC or DRE within ________ days.
20
Loan processors must be licensed if they are _____________________.
INDEPENDENT CONTRACTORS
Fingerprints are required to allow a ________ background check.
CRIMINAL
The credit report will be a ____________ process and is covered by Proposed Regulation ________.
SOFT PULL
2758.3
An act of fraud, dishonesty, breach of trust or money laundering is on your record ________.
FOREVER
A real estate agent who receives referrals for performing loan brokerage activities must have an _____________.
ENDORSEMENT
True or False: MLO continuing education courses will not satisfy California DRE continuing education requirements.
TRUE
My application is denied. I must be told the ________ in writing.
REASON
The MLO license will ________ replace the DRE license.
NOT
A licensee may apply to renew a NMLS license endorsement in ________ and ________ for the next year.
NOVEMBER
DECEMBER
broker must provide information about a new associate to NMLS&R within ________ days.
5
If you fail to renew your NMLS endorsement, you have until ________ to request reinstatement. CCR Code 2758.7
MARCH 1st
True or False: If you are an agent who has a transaction with a seller carryback loan, you need a license endorsement.
FALSE (Civil Code 2956)
The Endorsement fee for a DRE salesperson is ________ plus the ________ NMLS fee.
$300
$60
Cancellation of an exam must be at least _________________ prior to scheduled date.
2 BUSINESS DAYS
Why are 10 questions not scored of the 60 asked?
PILOT TESTING
A licensee who lends his or her funds for a 1-4 unit residential loan is an ________.
MLO (B&P Code 10166)
Exempt loan processors can handle phone calls but can’t discuss
loan _________________.
RATES AND TERMS
DRE does not license LLC’s or ________________.
PARTNERSHIPS
The DOC & DRE Commissioners are appointed by the _________________.
GOVERNOR
A broker who starts “making” loans must notify DRE by Form 866 within _________.
30 DAYS
Surrender of a license doesn’t affect liability for acts __________________.
COMMITTED EARLIER
My license has been revoked. I can petition the commissioner for reinstatement after ____________.
ONE YEAR
Refinancing a loan within 12 months could be flipping unless the new loan is in the _______________________.
BORROWER’S BEST INTEREST
How often can the DOC Commission inspect my books?
ANYTIME, BUT AT LEAST EVERY 4 YEARS
You must notify the State commissions when starting a new office within ________ days.
10
If you do not give notice of a new office, the fine is ________ each of the first 10 days and ________ per day thereafter.
$100
$10
My new business location is turned down but I continue. Fine ________
$500
A DOC mortgage lender must show a tangible net worth of ________.
$250,000
CFLL finance lenders (who do not do residential loans) have the following requirements: Net worth = ________; Surety Bond = ________.
$25,000(FC22104)
$25,000 (FC22112)
$25,000(FC22104)
$25,000 (FC22112)
$25,000(FC22104)
$25,000 (FC22112)
CRMLA licensees who make/service residential loans need a minimum surety bond of ________ to ________ Net worth $250,000 (FC 22104)
CRMLA licensees who make/service residential loans need a minimum surety bond of ________ to ________ Net worth $250,000 (FC 22104)
CRMLA licensees who make/service residential loans need a minimum surety bond of ________ to ________ Net worth $250,000 (FC 22104)
$50,000
$200,000
CRMLA became effective in ________.
1996
Under CRMLA, I can be a lender or a _______ or both.
SERVICER
DOC does regulate ________, ________, etc. but not schools or churches.
CHECK CASHERS
PAWNBROKERS
nforcement of the California Code is covered by
the ___________________________.
ADMINISTRATIVE PROCEDURES ACT
True or False: The two groups regulated by the DOC (California Finance Lenders Act - CFLL and the California Residential Mortgage Lending Act) must meet MLO requirements.
TRUE
DRE licensees do not have to post a surety bond because of
the ____________________.
RECOVERY ACCOUNT
CFC Code 50144 states a DOC loan originator license that is not renewed by December 31st expires ______________ the next year. The grace period for a DRE license is ________ years.
JANUARY 31st
2
If a licensee fails to maintain the required net worth, there are ________ days for correction.
0
An administrative penalty is ________ and civil court penalty ________.
$2,500
$25,000
If I’m not in compliance with a DOC provision, my bond can be increased from $50,000 to ________.
$100,000
If I’m doing loan processing and underwriting, I must be licensed with DOC for ________.
BOTH
True or False: I work for a bank regulated by the Farm Credit Administration; I do not need to be licensed under CRMLA.
TRUE
A broker licensed under CFL Law can only broker loans to
licensed _________________.
FINANCE LENDERS
Which division of the California Department of Corporations handles violations of the California Financial Code? ____________________.
ENFORCEMENT
Change of control must be reported for ownership of ________ or more.
10%
Regulatory offices are not concerned with the amount of
the ___________________
LOAN PRODUCTION
Time to restrain the enforcement of a suspension order is ________ days.
10
If you don’t appear for a DRE hearing, the hearing _____________________.
GOES ON WITHOUT YOU
Impending suspension order: The time to request a hearing is ________ days.
15
Impending suspension order: The time to request a hearing is ________ days.
15
Impending suspension order: The time to request a hearing is ________ days.
15
A Lender doesn’t have to have an office in California but must have a ___________________ for process service.
REGISTERED AGENT
You have ________ days to pay a levy.
20
Annual fees charged to lenders are set by ________.
DOC AND DRE
The party who makes a loan with a finance charge is a ________.
CREDITOR
A party who performs administrative duties is a ________________.
A party who performs administrative duties is a ________________.
A party who performs administrative duties is a ________________.
LOAN PROCESSOR
An exception to the California Financial Code rule that loans have to be transacted at the licensed address is ________ or ___________________ (oral or verbal).
INTERNET
BORROWER REQUEST
When must a DRE loan broker file an activities report? ______
ANNUALLY (90 days after fiscal year end)
What is the penalty for not filing the activities report? ________
1 1/2 TIMES THE COST OF THE DRE EXAMINATION AND REPORT
You fail to file a report. After ________ days a suspension can occur.
30
Which of the following is a loan transaction?
Lease Auto Finance Contract Retail Installment Sale HELOC
HELOC
To suspend a license for 30 days pending an investigation, there must be ________ or risk of harm to the public.
?
I advertise on a radio station. I must retain a script or transcript of the ad for ________ days.
90
My ad has been disapproved. How long can I keep running it?
NO TIME
A license must be posted ________ in the business location.
PROMINENTLY
A lender can accept some fees without disclosing the ________.
APR (CREDIT/APPRAISAL)
Mortgage broker loans must be applied for through a licensed ________.
MLO
True or False: A loan underwriter employed by a licensed entity must be licensed.
FALSE
True or False: A mortgage broker may make mortgage loans.
FALSE
A licensee who offers a false instrument to be filed is guilty of a ________.
FELONY
Disbursing proceeds via direct deposit is ________.
RECOMMENDED
A surrender of a license requires a withdrawal plan and ________.
COMMISSIONER APPROVAL
True or False: A medical history must be submitted with an application.
FALSE
A place where records are maintained, applications are processed etc. is called a ________.
BRANCH OFFICE
If you don’t disclose or pay annual fees, the commission can be suspended or ________.
REVOKED
If rates advertised do not apply to all loans, this fact must be disclosed by a ________.
CLEAR STATEMENT
A broker can request a borrower to pay for a ________.
CREDIT REPORT
Not placing the proper license names and numbers in an ad is called a ________.
BLIND AD
An examiner can review files, administer oaths, compel papers to be released but can’t ________.
ISSUE ORDERS
I file bankruptcy. I must send written notification to the commission within ________.
5 DAYS
A residential mortgage loan is for ________ units in California.
1-4
A dwelling includes condos, co-ops and _____________________________.
MOBILE OR MANUFACTURED HOMES
The California law that helps borrowers work out loan modifications is the ______________________________.
CFPA CALIFORNIA FORECLOSURE PREVENTION ACT
A covered loan can include a prepayment fee for up to ________ months.
36
Permanent withdrawal of a license is ________.
REVOCATION
The Commissioner’s decision on a license must be within __________________.
60 CALENDAR DAYS
Determination if an application is complete or not: __________________.
45 CALENDAR DAYS
To revoke a license, the commissioner must provide __________________.
WRITTEN NOTIFICATION
A licensee’s loan log should include __________________.
LOAN APPLICATION RECORDS
What does not have to be in an ad?
Your regulatory body Your name Your license number Trade Association
TRADE ASSOCIATION
Your license numbers must be on business cards, websites and ________.
FLYERS
True or False: You can say in an ad “Licensed by Department of Corporations under the California Residential Mortgage Lending Act.”
TRUE
