Uniform State Content

Question 1

What power did the SAFE Act give to each state?

Answer 1

Licensing companies and MLOs, as well as to audit, investigate, fine, and suspend if the state feels the consumer is at risk.

Question 2

Why was the NMLS created?

Answer 2

NMLS - Nationwide Multistate Licensing System & Registry.

Created to provide approval for education providers and all courses, as well as to prepare the federal test, provide for background checks, and applying for a license.

Question 3

What report does the SAFE Act collect?

Answer 3

Mortgage Call Report (MCR)

This must be delivered no more than 45 days from teh end of each quarter.

Question 4

Who is the NMLS managed by?

Answer 4

CSBS and AARMR

They are responsible for making sure NMLS is completing the licensing and overseeing of the licensees.

Question 5

Can you work for more than licensee?

Answer 5

No. There is no such thing as a free agent. You cannot work for more than one licensee, including financial institutions.

Question 6

What 5 items must a MLO do in order to be licensed?

Answer 6

1. Take a 20-hour PE class.
2. Pass the test with a 75% score or higher.
3. Complete a background check, including credit.
4. Apply for the license through NMLS. (MU4 form)
5. Be sponsored by a company licensee.

Question 7

What is the 20-hour Pre-Licensing Course made up of?

Answer 7

• 3 hours Federal Law
• 3 hours Ethics
• 2 hours Nontraditional products
• 12 hours electives

Question 8

Renewal. An MLO and company license is for a ______.

Answer 8

Calendar year.

Question 9

What must a MLO do each year to renew their license?

Answer 9

Complete 8 hours of CE and pay renewal fees by December 31st.

Question 10

What happens if you fail to renew your license by December 31st?

Answer 10

The license lapses and the MLO will have to take a Late CE Class and pay any penalties and renewal fees by the date set by each state.

Question 11

What happens if you fail to complete your renewal by the state deadline?

Answer 11

Your license is suspended and it will be up to the state to determine what will be required to get your license back.

Question 12

Who must be licensed?

Answer 12

• ANY person who takes or solicits loan applications, negotiates terms and or fees, and/or expects compensation on the loan, must be licensed; no matter what.
• Any company that is going to originate 1-4 family loans must employ licensed MLOs.
• Commercial and non-owner greater than 4 units is exempt.

Question 13

What are the 3 different MU forms and what are they for?

Answer 13

MU1 - company application
MU2 - branch application
MU4 - MLO application

Question 14

How many days must a company and MLO update accounts if there are any changes with bankruptcy, foreclosure, or any legal issues? What is the fine if you do not?

Answer 14

10 calendar days.

If not updated, the state may suspend or fine the MLO or company.

Question 15

How many days must you deliver an LE within if there is a Changed Circumstance?

Answer 15

3 business days.

Question 16

What is required on all documents that you sign and any advertising materials or trinkets that are handed out?

Answer 16

NMLS number.

also known as a Unique Identifier

Question 17

What is the Consumer Access Website for?

Answer 17

Once you and your company are licensed, they are put on the website so the consumer can search to see if you or the company have any complaints or violations.

Question 18

How many days do you have to comply with a notice of complaint, violation or audit?

What happens if you don’t respond?

Answer 18

30 days.

The state will assume you are guilty and assess penalties as they see fit.

Question 19

What must you do if you are moving companies?

Answer 19

The company you are moving to has to request your NMLS number to be switched to their company NMLS number.