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MLO Study Guide > State Exam Review > Flashcards

State Exam Review Flashcards

1
Q

Deadline for submitting applications for DRE licensees to be issued a license endorsement by January 1, 2011 is _____________________.

A

SEPTEMBER 15, 2010

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2
Q

NMLS&R is the Nationwide Mortgage Licensing System & ________.

A

REGISTRY

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3
Q

The total cost of a DOC application for MLO is ________.

A

$169

$100 fee, $39 fingerprint processing and $30 NMLS&R Fee

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4
Q

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 ________.

A

$10,000

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5
Q

An application fee for becoming an endorsed lender is refundable when?

A

NEVER

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6
Q

The NMLS&R form for an application for a license for everyone is ________.

A

MU4

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7
Q

The NMLS&R form for an application for a Company business license is ________.

A

MU1

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8
Q

The NMLS&R form for an application for a Officers of a Corporation is ________.

A

MU2

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9
Q

he NMLS&R form for an application for a NMLS&R branch office application is ________.

A

MU3

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10
Q

I have five branch offices. I need ________ licenses.

A

5

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11
Q

Two categories not considered MLO’s: Time Shares and ________.

A

LOAN MODIFIERS

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12
Q

True or False: An independent contractor employed by a lender is exempt from licensing.

A

FALSE

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13
Q

Which California bill was passed to comply with the Safe Act? ________.

A

S.B. 36

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14
Q

True or False: A surrender of a license in another state would be grounds for no license in California.

A

FALSE

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15
Q

SAFE stands for______________________.

A

SECURE AND FAIR ENFORCEMENT

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16
Q

The number of hours of pre-licensing education is ________. DRE licensees can get this waived by _________________.

A

20

DEADLINE 8/31/10

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17
Q

The fee for waiver of the 20 hour pre-licensure course is ________.

A

$15

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18
Q

The 20-hour pre-licensing course must include 3 hours in Federal Law, 2 hours on Non-Traditional Mortgages and 3 hours on ________.

A

ETHICS

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19
Q

True or False: Your NMLS State component exam can be taken in Florida.

A

TRUE

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20
Q

A person who is unemployed can still take _______________________

A

EDUCATION COURSES

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21
Q

Yes or No: I take 14 hours of CE in 2011; can I use the extra 6 hours in 2012?

A

NO

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22
Q

If your application is deficient: Time to correct is ________ days.

A

90

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23
Q

True or False: NMLSR pre-licensing education credit from another state would be valid in California.

A

TRUE

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24
Q

True or False: If I’m not currently employed by a licensed lender or servicer, I can still get my license.

A

FALSE (SPONSORED)

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25
Q

True or False: A license revoked in another state means no license in California.

A

TRUE

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26
Q

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.

A

FALSE

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27
Q

I sent in the application fee, fingerprints, my NMLSR number, my pre-licensing course. What am I missing? ____________________________.

A

PERSONAL HISTORY and CREDIT CHECK

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28
Q

True or False: The MLO application must include a surety bond.

A

FALSE

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29
Q

The yearly requirement for MLO Continuing Education courses is ________ hours.

A

8

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30
Q

A loan processing job involving clerical duties is probably ________ from licensing.

A

EXEMPT

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31
Q

The passing grade on the State Exam is ________.

A

75%

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32
Q

If there is a material change to your application information, notify DOC or DRE within ________ days.

A

20

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33
Q

Loan processors must be licensed if they are _____________________.

A

INDEPENDENT CONTRACTORS

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34
Q

Fingerprints are required to allow a ________ background check.

A

CRIMINAL

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35
Q

The credit report will be a ____________ process and is covered by Proposed Regulation ________.

A

SOFT PULL

2758.3

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36
Q

An act of fraud, dishonesty, breach of trust or money laundering is on your record ________.

A

FOREVER

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37
Q

A real estate agent who receives referrals for performing loan brokerage activities must have an _____________.

A

ENDORSEMENT

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38
Q

True or False: MLO continuing education courses will not satisfy California DRE continuing education requirements.

A

TRUE

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39
Q

My application is denied. I must be told the ________ in writing.

A

REASON

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40
Q

The MLO license will ________ replace the DRE license.

A

NOT

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41
Q

A licensee may apply to renew a NMLS license endorsement in ________ and ________ for the next year.

A

NOVEMBER

DECEMBER

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42
Q

broker must provide information about a new associate to NMLS&R within ________ days.

A

5

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43
Q

If you fail to renew your NMLS endorsement, you have until ________ to request reinstatement. CCR Code 2758.7

A

MARCH 1st

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44
Q

True or False: If you are an agent who has a transaction with a seller carryback loan, you need a license endorsement.

A

FALSE (Civil Code 2956)

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45
Q

The Endorsement fee for a DRE salesperson is ________ plus the ________ NMLS fee.

A

$300

$60

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46
Q

Cancellation of an exam must be at least _________________ prior to scheduled date.

A

2 BUSINESS DAYS

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47
Q

Why are 10 questions not scored of the 60 asked?

A

PILOT TESTING

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48
Q

A licensee who lends his or her funds for a 1-4 unit residential loan is an ________.

A

MLO (B&P Code 10166)

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49
Q

Exempt loan processors can handle phone calls but can’t discuss
loan _________________.

A

RATES AND TERMS

50
Q

DRE does not license LLC’s or ________________.

A

PARTNERSHIPS

51
Q

The DOC & DRE Commissioners are appointed by the _________________.

A

GOVERNOR

52
Q

A broker who starts “making” loans must notify DRE by Form 866 within _________.

A

30 DAYS

53
Q

Surrender of a license doesn’t affect liability for acts __________________.

A

COMMITTED EARLIER

54
Q

My license has been revoked. I can petition the commissioner for reinstatement after ____________.

A

ONE YEAR

55
Q

Refinancing a loan within 12 months could be flipping unless the new loan is in the _______________________.

A

BORROWER’S BEST INTEREST

56
Q

How often can the DOC Commission inspect my books?

A

ANYTIME, BUT AT LEAST EVERY 4 YEARS

57
Q

You must notify the State commissions when starting a new office within ________ days.

A

10

58
Q

If you do not give notice of a new office, the fine is ________ each of the first 10 days and ________ per day thereafter.

A

$100

$10

59
Q

My new business location is turned down but I continue. Fine ________

A

$500

60
Q

A DOC mortgage lender must show a tangible net worth of ________.

A

$250,000

61
Q

CFLL finance lenders (who do not do residential loans) have the following requirements: Net worth = ________; Surety Bond = ________.

A

$25,000(FC22104)

$25,000 (FC22112)

$25,000(FC22104)

$25,000 (FC22112)

$25,000(FC22104)

$25,000 (FC22112)

62
Q

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)

A

$50,000

$200,000

63
Q

CRMLA became effective in ________.

A

1996

64
Q

Under CRMLA, I can be a lender or a _______ or both.

A

SERVICER

65
Q

DOC does regulate ________, ________, etc. but not schools or churches.

A

CHECK CASHERS

PAWNBROKERS

66
Q

nforcement of the California Code is covered by

the ___________________________.

A

ADMINISTRATIVE PROCEDURES ACT

67
Q

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.

A

TRUE

68
Q

DRE licensees do not have to post a surety bond because of

the ____________________.

A

RECOVERY ACCOUNT

69
Q

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.

A

JANUARY 31st

2

70
Q

If a licensee fails to maintain the required net worth, there are ________ days for correction.

A

0

71
Q

An administrative penalty is ________ and civil court penalty ________.

A

$2,500

$25,000

72
Q

If I’m not in compliance with a DOC provision, my bond can be increased from $50,000 to ________.

A

$100,000

73
Q

If I’m doing loan processing and underwriting, I must be licensed with DOC for ________.

A

BOTH

74
Q

True or False: I work for a bank regulated by the Farm Credit Administration; I do not need to be licensed under CRMLA.

A

TRUE

75
Q

A broker licensed under CFL Law can only broker loans to

licensed _________________.

A

FINANCE LENDERS

76
Q

Which division of the California Department of Corporations handles violations of the California Financial Code? ____________________.

A

ENFORCEMENT

77
Q

Change of control must be reported for ownership of ________ or more.

A

10%

78
Q

Regulatory offices are not concerned with the amount of

the ___________________

A

LOAN PRODUCTION

79
Q

Time to restrain the enforcement of a suspension order is ________ days.

A

10

80
Q

If you don’t appear for a DRE hearing, the hearing _____________________.

A

GOES ON WITHOUT YOU

81
Q

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.

A

15

82
Q

A Lender doesn’t have to have an office in California but must have a ___________________ for process service.

A

REGISTERED AGENT

83
Q

You have ________ days to pay a levy.

A

20

84
Q

Annual fees charged to lenders are set by ________.

A

DOC AND DRE

85
Q

The party who makes a loan with a finance charge is a ________.

A

CREDITOR

86
Q

A party who performs administrative duties is a ________________.
A party who performs administrative duties is a ________________.
A party who performs administrative duties is a ________________.

A

LOAN PROCESSOR

87
Q

An exception to the California Financial Code rule that loans have to be transacted at the licensed address is ________ or ___________________ (oral or verbal).

A

INTERNET

BORROWER REQUEST

88
Q

When must a DRE loan broker file an activities report? ______

A

ANNUALLY (90 days after fiscal year end)

89
Q

What is the penalty for not filing the activities report? ________

A

1 1/2 TIMES THE COST OF THE DRE EXAMINATION AND REPORT

90
Q

You fail to file a report. After ________ days a suspension can occur.

A

30

91
Q

Which of the following is a loan transaction?

Lease
Auto Finance Contract
Retail Installment Sale
HELOC
A

HELOC

92
Q

To suspend a license for 30 days pending an investigation, there must be ________ or risk of harm to the public.

A

?

93
Q

I advertise on a radio station. I must retain a script or transcript of the ad for ________ days.

A

90

94
Q

My ad has been disapproved. How long can I keep running it?

A

NO TIME

95
Q

A license must be posted ________ in the business location.

A

PROMINENTLY

96
Q

A lender can accept some fees without disclosing the ________.

A

APR (CREDIT/APPRAISAL)

97
Q

Mortgage broker loans must be applied for through a licensed ________.

A

MLO

98
Q

True or False: A loan underwriter employed by a licensed entity must be licensed.

A

FALSE

99
Q

True or False: A mortgage broker may make mortgage loans.

A

FALSE

100
Q

A licensee who offers a false instrument to be filed is guilty of a ________.

A

FELONY

101
Q

Disbursing proceeds via direct deposit is ________.

A

RECOMMENDED

102
Q

A surrender of a license requires a withdrawal plan and ________.

A

COMMISSIONER APPROVAL

103
Q

True or False: A medical history must be submitted with an application.

A

FALSE

104
Q

A place where records are maintained, applications are processed etc. is called a ________.

A

BRANCH OFFICE

105
Q

If you don’t disclose or pay annual fees, the commission can be suspended or ________.

A

REVOKED

106
Q

If rates advertised do not apply to all loans, this fact must be disclosed by a ________.

A

CLEAR STATEMENT

107
Q

A broker can request a borrower to pay for a ________.

A

CREDIT REPORT

108
Q

Not placing the proper license names and numbers in an ad is called a ________.

A

BLIND AD

109
Q

An examiner can review files, administer oaths, compel papers to be released but can’t ________.

A

ISSUE ORDERS

110
Q

I file bankruptcy. I must send written notification to the commission within ________.

A

5 DAYS

111
Q

A residential mortgage loan is for ________ units in California.

A

1-4

112
Q

A dwelling includes condos, co-ops and _____________________________.

A

MOBILE OR MANUFACTURED HOMES

113
Q

The California law that helps borrowers work out loan modifications is the ______________________________.

A

CFPA CALIFORNIA FORECLOSURE PREVENTION ACT

114
Q

A covered loan can include a prepayment fee for up to ________ months.

A

36

115
Q

Permanent withdrawal of a license is ________.

A

REVOCATION

116
Q

The Commissioner’s decision on a license must be within __________________.

A

60 CALENDAR DAYS

117
Q

Determination if an application is complete or not: __________________.

A

45 CALENDAR DAYS

118
Q

To revoke a license, the commissioner must provide __________________.

A

WRITTEN NOTIFICATION

119
Q

A licensee’s loan log should include __________________.

A

LOAN APPLICATION RECORDS

120
Q

What does not have to be in an ad?

Your regulatory body
Your name
Your license number
Trade Association
A

TRADE ASSOCIATION

121
Q

Your license numbers must be on business cards, websites and ________.

A

FLYERS

122
Q

True or False: You can say in an ad “Licensed by Department of Corporations under the California Residential Mortgage Lending Act.”

A

TRUE

MLO Study Guide (5 decks)

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