Uniform State Content Flashcards
The NMLS and SAFE Act was established by
CSBS and AARMR
CSBS and AARMR wrote:
HERA > SAFE Act > NMLS
who is responsible for determining whether to issue a license approval?
State Regulator (commissioner, director, super intendent)
Under the SAFE Act, a MLO must submit to the NMLS:
Reports of conditions (annually)
The administrative authority of the Commissioner includes: (3)
- Promulgate rules or regulations implementing the SAFE Act
- Administer, interpret and enforce the SAFE act
- Carry out the intentions of the Legislature
What can the Commissioner not do? (2)
- Waive education requirements
- Sentence violators of the SAFE Act to appropriate prison terms
who is responsible for renewing the loan originator’s license?
the loan originator
Investigations conducted by state licensing authorities may included all the following: (3)
- Interviews with employees of an entity
- Examination of mortgage applications
- Scheduling a review of advertising examples used by the licensee
What is the max $$$ a state regulator may charge an MLO or sponsor for civil penalties, per violation?
$25,000
State background checks for: (3)
- Criminal history- fingerprints
- Civil or Administrative records
- Credit
(Education requirements not mandatory- college, high school)
Information submitted to NMLS is considered private and confidential, Except when (3)
- Being shared with state and federal officials involved in mortgage industry
- Subpoenaed in any civil action or administrative process
- It is regarding employment history or disciplinary actions taken against a MLO
Those Exempt from being licensed include (9)
- W2d loan processors and underwriters
- Registered MLOs
- Real estate brokers, unless compensated by MLO or lender
- individuals extending credit for Timeshares
- Individual that negotiates on behalf of immediate family member
- negotiating terms of loan secured by his dwelling
- Attorneys, unless compensated by MLO or lender
- Employees of federal, state or local government agency
- employee of bona fide nonprofit making loans favorable to borrower
MLO Financial requirements (3)
- Surety Bond (sponsor), in DOLLAR AMOUNT of loan originations (used to pay restitutions)
- Net Worth- determined by Dollar amount of loan originations
- State Fund- Some states require IN LIEU of Surety bond or Net Worth
Licensed MLOs must not have any foreclosures or other serious delinquent accounts within the past
3 years
Registered MLOs waiting to be approved for a state license can be granted temporary license for
up to 120 days
-need to be registered MLO at least 1 year
