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California Mortgage > Uniform State Content > Flashcards

Uniform State Content Flashcards

1
Q

Which of the following was issued by the CFPB to implement the Dodd-Frank Act requirements in January 2013 to build upon existing requirements under the SAFE Act?

A

the Loan Originator Rule

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2
Q

Which statement about a loan originator advertising to solicit mortgage business for his employing mortgage banker is FALSE?

A

The ad does not need to include license number of employing banker’s principal place of business.

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3
Q

A state-licensed MLO has resigned his position with his sponsoring employer to accept a new position as an MLO with a new licensed employer. Which statement is FALSE as it relates to the MLO changing his sponsorship status?

A

The new employer must access the company’s NMLS account and the individual MLO’s NMLS account to end the relationship with the existing employer and to request the new sponsoring relationship.

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4
Q

Registered mortgage loan originator refers to

A

an MLO who is registered with and maintains a unique identifier through the NMLS.

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5
Q

Which statement is TRUE in respect to the authority of the state regulator to conduct examinations and investigations of state-licensed mortgage lenders?

A

A mortgage lender must not knowingly withhold or destroy records.

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6
Q

Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the

A

SAFE Act

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7
Q

Lori is a state-licensed MLO working full-time for the Magnificent Mortgage Company, a licensed lender. She has been offered the opportunity to work part-time as an MLO for the Bravura Mortgage Company, another licensed lender, evenings and weekends. Can Lori lawfully accept the second job?

A

No, an MLO is prohibited from working for two companies as an MLO at the same time

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8
Q

Wishing Well Mortgage Company, a licensed residential mortgage lender, has one principal location in the state. Which other business location is considered a branch and therefore IS required to be licensed by the state regulatory authority as a residential mortgage lender branch office?

A

A leased office suite in a law office in which applications and fees for mortgage loans with Wishing Well are distributed and received from consumers

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9
Q

Which activity is defined as an administrative/clerical task?

A

Receive, collect and or distribute information common for the processing or underwriting of a loan

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10
Q

A licensed mortgage lender may NOT publish an advertisement that uses

A

A post office box number in place of the business address that appears on the license

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11
Q

Which number must be used to identify a mortgage loan originator on solicitations and advertisements?

A

NMLS unique identifier

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12
Q

The federal rulemaking authority for the SAFE Act is the responsibility of the

A

Consumer Financial Protection Bureau

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13
Q

The unique identifier of any person originating residential mortgage loans must be clearly shown on all of the following documents EXCEPT

A

Appraisal reports

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14
Q

To maintain a license in good standing, state law prohibits licensed MLOs from certain acts. Which of the following is NOT one of these prohibited acts?

A

An MLO disburses the mortgage loan proceeds into a customer’s account via direct deposit

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15
Q

A _____ is defined by the NMLS as the individual that represents a company and may be required to meet specific requirements.

A

Qualified individual

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16
Q

To be eligible to receive temporary authority to act as a state-licensed MLO, the licensee must have either been registered in NMLS as an MLO continuously during the one-year period preceding the application submission or licensed as an MLO continuously during the ___-day period preceding the date of application.

A

30

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17
Q

Which federal act requires that all states have in place a system of licensure for mortgage loan originators?

A

SAFE Act

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18
Q

The SAFE Act sets forth that each state regulatory entity has the authority to

A

Write state specific rules or regulations or adopt procedures related to licensing of persons covered under this Act

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19
Q

The SAFE Act mandates that there is public access and public display of the _____ assigned to any person originating residential mortgage loans, including display on any loan application forms and advertisements.

A

NMLS unique identifier

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20
Q

Which BEST describes the purpose of the NMLS Registry?

A

Facilitate electronic tracking and uniform identification of loan originators

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21
Q

Which law requires that all state-licensed mortgage loan originators pass a national licensing exam as a condition to be granted a license?

A

SAFE Act

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22
Q

The SAFE Act sets forth that _______ access to information or material relating to the employment history and disciplinary actions imposed on licensed mortgage loan originators.

A

There must be public

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23
Q

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 requires all mortgage loan originators originating residential loans to be licensed or registered with the

A

Nationwide Mortgage Licensing System and Registry

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24
Q

The temporary authority to act as a state-licensed MLO will expire ____ calendar days after the date the applicant was issued a temporary license.

A

120

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25
Q

The Secure and Fair Enforcement for Mortgage Licensing Act is designed to

A

Enhance consumer protection and reduce fraud through MLO licensing

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26
Q

The state entity responsible for mortgage lender licensing has received a customer complaint about XYZ Mortgage Company. For the purpose of investigating this complaint or any other complaints arising under the SAFE Act, the state licensing agency may investigate the licensee

A

At any time

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27
Q

What entity is responsible for enforcement of the SAFE Act at the federal level, including the authority to examine the records of a state-licensed MLO to investigate compliance with the SAFE Act?

A

Consumer Financial Protection Bureau

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28
Q

The SAFE Act sets forth that the CFPB may impose a civil penalty on a state-licensed MLO if the Director finds, after notice and opportunity for hearing, that the MLO violated any requirement of the SAFE Act. The maximum amount of penalty for each violation of the Act is _____. Annually, as required by federal law, the CFPB adjusts this penalty amount for inflation.

A

$25,000

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29
Q

The _____ Registry is the national database that tracks mortgage industry licensees and their licenses

A

NMLS

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30
Q

Each state must set forth license law that complies with SAFE Act’s continuing education requirements, including the requirement that MLO licensees complete how many total hours of education each calendar year?

A

8

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31
Q

Bernice is a state-licensed MLO in her state of residence. She must complete a minimum of 8 hours of continuing education to renew her license each year before December 31. The state has the authority to mandate that ___ hour(s) of the 8 hours be on either a state-specific topic or an elective topic.

A

1

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32
Q

As set forth by the SAFE Act, all persons originating mortgage loans must

A

Obtain a unique identifier through the NMLS

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33
Q

As set forth by the SAFE Act, the license law of each state must provide the state with the authority to oversee and regulate all the following aspects of MLO licensing EXCEPT the

A

Approval of continuing education courses

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34
Q

Which service is NOT typically conducted by the state regulatory authority?

A

Creates loan products to meet a variety of consumer needs

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35
Q

A mortgage banker and/or mortgage lender is

A

Any person who directly originates, acquires, or provides mortgage loans

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36
Q

As defined and used throughout license law, the term “individual” refers to a

A

Natural person

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37
Q

According to the Truth in Lending Act definition, which is considered a dwelling?

A

a duplex

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38
Q

As set forth by the SAFE Act, _____ is defined as any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a residential structure or mobile home that contains one-to four-family housing units.

A

Residential mortgage loan

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39
Q

A loan processor refers to any person who

A

Performs certain administrative or clerical duties related to mortgage loans

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40
Q

As required by the SAFE Act, what DOES need to be included in a state’s system of supervision and enforcement of the SAFE Act?

A

Authority to subpoena witnesses and documents

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41
Q

Of these, which is considered a residential mortgage loan?

A

A loan for one to four family owner occupied property

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42
Q

As set forth in the SAFE Act, a state’s regulatory entity has the authority to require a licensee to satisfy a requirement specific to any of the following EXCEPT a

A

Loan origination funding amount

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43
Q

All of these are duties granted to a state regulatory authority under the SAFE Act EXCEPT for the duty to

A

Approve pre licensing and continuing education course offerings and course providers

44
Q

As defined and used throughout license law, the term “immediate family member” does NOT include

A

Aunts, uncles, and cousins

45
Q

Brenda earns a salary as well as a commission for every residential mortgage loan application she takes for her employer, a state-registered mortgage broker. Brenda must be a state

A

Licensed mortgage loan originator

46
Q

The SAFE Act sets forth that states must establish minimum standards for the licensing and registration of state-licensed MLOs. Which of the following does NOT reflect a minimum standard that must be established for state MLO licensing?

A

The applicant must never have been convicted of a felony of any kind

47
Q

Who is NOT “taking” a loan application?

A

Rita describes for a borrower the loan application process without any discussion of specific loan products

48
Q

The SAFE Act sets forth that states must establish minimum standards for the licensing and registration of state-licensed MLOs. One minimum standard that must be set forth in state MLO license law is that applicants must furnish

A

An independent credit report obtained from a consumer reporting agency

49
Q

Who IS “taking” a loan application?

A

Ellen responds to a borrower’s request for a different rate or fees by presenting the borrower with a revised loan offer

50
Q

All of these activities are examples of offering or negotiating the terms of a loan EXCEPT

A

Making an underwriting decision about whether the borrower or prospective borrower qualifies for a loan

51
Q

As defined by the SAFE Act, which IS an example of “offering or negotiating the terms of a loan”?

A

Communicating directly or indirectly with a borrower in order to reach a mutual understanding about prospective residential mortgage loan terms

52
Q

Which of the following is a task that requires an MLO license to be legally performed?

A

Counsel consumers about available residential mortgage loan rates or terms

53
Q

When can a mortgage lender employ an individual who is NOT state-licensed or state-registered to fulfill the duties of a mortgage loan originator for its company?

A

Under no circumstances

54
Q

Doris performs only clerical duties for a licensed mortgage broker putting together loan packages. She is most likely a loan _________ from needing to be licensed as an MLO.

A

Processor that is exempt

55
Q

Who IS exempt from licensing under the SAFE Act?

A

Juan, who negotiates the terms of a residential mortgage loan on behalf of his sister

56
Q

Which license type may NOT be issued to a corporation?

A

Mortgage loan originator

57
Q

Wayne has been hired by Reasonable Mortgage Company to collect or receive payments of principal, interest, and escrow due to the note holder for residential mortgage loans. Wayne’s job is

A

An individual loan servicer that does not require licensing

58
Q

Model state law sets forth minimum qualifications for a state to issue an applicant an MLO license, including that the MLO needs to have demonstrated financial responsibility. Though state law may differ, model state law sets forth that an individual has not shown financial responsibility when there is a foreclosure within the past

A

3 years

59
Q

Fingerprint images are required of every applicant as part of an initial MLO application in order to

A

Conduct a criminal background check

60
Q

What topic is NOT required as part of the 20 hours of a mortgage loan originator applicant’s pre-licensing education?

A

Real estate concepts

61
Q

A minimum of how many hours of approved pre-licensing education is required by the SAFE Act for state-licensed mortgage loan originators?

A

20

62
Q

Who is NOT exempt from the MLO license and registration requirements as set forth by the SAFE Act?

A

Ben, who refers or steers a prospective borrower to a particular lender or set of residential mortgage loan terms with respect to his work duties

63
Q

To be qualified for a license, an MLO license applicant must NOT have been convicted of a felony during the ______-year period immediately preceding the date of application for the license.

A

7

64
Q

A state-licensed mortgage broker has maintained one principal location for eight years. The broker now wants to expand by opening another full-service brokerage office in another area of the same state. A mortgage _____is required for this expansion.

A

Broker branch office license

65
Q

_____ is a minimum standard requirement for obtaining an MLO license with an active status.

A

Sponsorship

66
Q

As set forth by the SAFE Act, what term is defined as an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain?

A

Mortgage loan originator

67
Q

If an MLO license applicant fails the qualified SAFE MLO pre-licensing test three consecutive times, he will need to wait at least how long before taking the test again?

A

6 months

68
Q

To pass the qualified SAFE MLO pre-licensing test, an MLO license applicant must achieve a minimum test score of

A

75%

69
Q

____ is defined by the NMLS as a company’s indication that an individual MLO will conduct business under a specific license/registration for the company.

A

Sponsorship

70
Q

An MLO license applicant must NOT have been convicted of a felony ______ if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering.

A

At any time

71
Q

To achieve a score of 75%, license applicant Coleman may retake the qualified pre-licensing test ____ consecutive times with each consecutive test not occurring less than 30 days after the preceding test.

A

3

72
Q

Which statement is FALSE as it relates to minimum standards for pre-licensing education and testing that must be met to obtain an MLO license?

A

If the test is failed 3 consecutive tests, the applicant must wait one year before taking the test again

73
Q

If a licensed mortgage loan originator is convicted of a felony, the _____ is responsible for reporting this information to the NMLS.

A

Mortgage loan originator

74
Q

When Bart’s sponsorship terminates, his mortgage loan originator license is given what status?

A

Inactive

75
Q

Maureen, a licensed MLO, retakes the same 2-hour online course on the topic of nontraditional mortgage products that she took the previous year. She cannot count the 2 hours of education toward her continuing education requirements for license renewal this year because

A

She cannot receive credit for the same course taken in the same or successive years

76
Q

The SAFE Act sets forth that to perform defined duties as an MLO in multiple states Jeff must meet national license requirements

A

And state license requirements for each state for which he conducts loan origination activities

77
Q

A licensed MLO may credit a 2-hour online course in ethics toward his continuing education renewal requirement

A

Once in the same calendar year in which the course is taken

78
Q

Every state-licensed MLO (in any approved status) is required to complete at least _____ of NMLS-approved education annually.

A

8 hours

79
Q

The application for a state mortgage loan originator license is likely to be denied if the applicant

A

Scored only 70% on the National SAFE MLO pre licensing exam

80
Q

A licensed mortgage loan originator must comply with requirements for license renewal

A

Annually by December 31

81
Q

The time period that state-licensed MLO Maureen can submit her application for renewal is from

A

November 1 through December 31

82
Q

According to the SAFE Act, each state must set forth the requirement that a person must be state-licensed as an MLO to legally perform which activity?

A

Assisting a borrower in obtaining a mortgage loan by offering to negotiate terms for a lender

83
Q

The state regulatory authority will most likely deny a mortgage loan originator applicant a license if the applicant has

A

Ever been convicted of a felony involving fraud, dishonesty, breach of trust, or money laundering unless pardoned

84
Q

Which will NOT be counted toward Kyle’s eight hours of National continuing education required by the SAFE Act to renew his loan originator license?

A

State approved 1 hour online course on state specific license law completed in the calendar year

85
Q

Which of these situations require registration as a mortgage broker?

A

A company that offers, for a fee to place mortgage loans for others

86
Q

All of the following documents require the inclusion of a licensee’s assigned NMLS unique identifier EXCEPT

A

A copy of the title report tied to a mortgage loan application

87
Q

Sandy is a licensed MLO and an instructor of NMLS-approved continuing education (CE) courses. She is

A

Eligible to receive credit for annual CE requirements for hours taught

88
Q

The state regulatory authority may refuse to renew MLO Diane’s license if there is a finding that she has

A

Demonstrated unfairness in the transaction of business

89
Q

Avery is a formerly licensed MLO who has failed to maintain a valid license for six years. To become a state-licensed MLO again, she must

A

Retake and pass the qualified SAFE MLO pre licensing exam

90
Q

The SAFE Act requires that the _____ be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements.

A

MLO’s unique identifier

91
Q

States must set minimum standards for MLO license renewal. All of the following are required minimum standards for state license renewal EXCEPT the MLO does NOT need to

A

Pass the annual NMLS renewal exam with a minimum score of 75%

92
Q

Which statement is FALSE as it relates to providing disclosures required on individual or company license application forms submitted through the NMLS?

A

Application disclosure requirements for licensing in all states are the same

93
Q

Which occurrence does NOT require the licensee to file a written report disclosing the occurrence to the NMLS and state regulatory authority?

A

Cooper, a licensed mortgage loan originator is cited for driving with an expired vehicle registration

94
Q

Temporary authority to act as an MLO permits which of the following to originate loans while completing state-specific requirements for licensure?

A

Qualified applicants changing employment from a depository institution to a state licensed mortgage company

95
Q

The state regulatory authority may issue an order suspending the license of a mortgage loan originator if the MLO

A

Fails to provide loan records at the request of a state examiner

96
Q

Of the following, who is granted temporary authority to act as a loan originator while completing any state-specific requirements for licensure?

A

Danny, who is state licensed MLOs seeking MLO licensure in another state

97
Q

A licensed MLO who terminates his affiliation with an employing mortgage broker but wishes to resume working as a mortgage loan originator in the near future may NOT

A

Originate loans during the time he is not affiliated with an employing entity

98
Q

A person needs to submit an MLO license application through the

A

Nationwide Mortgage Licensing System and Registry

99
Q

Which statement is FALSE in respect to providing books and records to a state examiner?

A

A mortgage lender may not maintain books and records at an out of state location

100
Q

Pamela is employed to take residential mortgage loan applications for a federally-chartered bank. To legally do this job, she must be a

A

Registered mortgage loan originator

101
Q

Applicants are required to provide a credit report as part of an initial MLO application primarily so the state regulatory authority can evaluate

A

The overall financial responsibility of the applicant

102
Q

All of the following are requirements for the content of records that must be retained for examination by licensed lender’s activities EXCEPT for

A

Area market trends and competitor analysis

103
Q

______ an MLO is allowed to pay for the advertising of a real estate agent in exchange for referrals.

A

Under no circumstances is

104
Q

Which situation BEST describes the prohibited marketing practice of bait-and-switch?

A

MLO Hermione advertises a “no points” loan to entice borrowers but does not intend to offer it

105
Q

The risk analysis of a mortgage lender must include all liabilities affecting income or assets that will affect the borrower’s ability to fulfill the mortgage payment obligation. When the credit report does not contain a reference for each significant open debt shown on the loan application,

A

The lender must provide separate credit verification

106
Q

Inga is a loan processor that is NOT licensed as an MLO. Which of the following acts is a violation of the SAFE Act?

A

Inga circulates a business card that indicates she provides loan origination services

107
Q

State regulators have the authority to do all of the following EXCEPT

A

Impose a prison sentence for purposeful violations of the SAFE Act that cause consumer harm

California Mortgage (5 decks)

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