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SAFE MLO Exam > Uniform State Content (Idaho) > Flashcards

Uniform State Content (Idaho) Flashcards

1
Q

Mortgage professionals are supervised by which Bureau within the department of finance?

A. Securities bureau

B. Financial institutions bureau

C. Consumer finance bureau

D. Supporting services bureau

A

C. Consumer finance bureau

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2
Q

Pursuant to Idaho Law, a QPIC must be designated for the licensee’s principal business location only

True or False

A

False. A QPIC must be designated for EACH licensed business location of a licensee

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3
Q

Sarah is having a difficult time making her mortgage payment. She applies to an Idaho lender to have her loan restructured. What is this kind of application called?

A. Mortgage modification

B. Reverse mortgage

C. Loan flipping

D. Conditional refinance

A

A. Mortgage modification

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4
Q

Within how many business days must a licensee provide consumers with the TILA, Regulation X, RESPA, interest rate/term, and prepayment penalty disclosures?

A. 1
B. 2
C. 3
D. 5

A

C. 3 business days

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5
Q

At what point may a person who’s license has been revoked due to fees paid out from the Fund on their behalf be considered for re issuance?

A

When they have repaid in full, with interest, the amount that the Fund paid out on their behalf in fees.

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6
Q

What is the maximum payment from the Fund against any one license?

A. $175,000
B. $250,000
C. $125,000
D. $225,000

A

B. $250,000

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7
Q

Which Federal rule specifies that a licensee may not receive any fees until the consumer and the consumer’s lender or loan servicer have executed a written agreement incorporating the offer of mortgage assistance relief that the provider has negotiated with the lender or servicer?

A. The mortgage loan modification act

B. The equal credit opportunity act

C. The mortgage assistance relief services

D. The fair credit reporting act

A

C. The mortgage assistance relief services

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8
Q

Within how many years will the Director deny licensing due to a felony traffic violation?

A. In a three-year period
B. At any time
C. In a seven-year period
D. In a five-year period

A

C. In a seven-year period

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9
Q

A licensee is permitted to collect a commitment fee upon approval of a residential mortgage loan

True or False

A

True

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10
Q

The Director may impose a civil penalty in an amount up to _____ per violation of the Residential Mortgage Practices Act?

A. $50,000
B. $5,000
C. $15,000
D. $25,000

A

D. $25,000

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11
Q

Within how many days of hiring or firing an MLO must an entity alert the NMLS?

A. 60
B. 30
C. 90
D. 5

A

B. 30 days.

Fact: Records of employment must be kept by the entity that terminates an MLO for three years.

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12
Q

How many years must records be kept after close?

A. 1
B. 2
C. 3
D. 5

A

C. 3 Years

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13
Q

Which act is responsible for requiring that appraisals be furnished to borrowers?

A. RESPA
B. HOEPA
C. TILA
D. ECOA

A

D. ECOA

Fact: For closed-end loans, reports must be delivered promptly upon completion or three business days before consummation, whichever is earliest.

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14
Q

If the licensee fails to obtain a residential mortgage loan for a borrower, within how many business days are they required to provide a copy of the appraisal to the borrower & any other party they request in writing be designated?

A. 60
B. 30
C. 3
D. 15

A

C. 3 business days

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15
Q

Within how many business days must a licensee send, by first class mail, a lock-in agreement to a borrower?

A. 3
B. 1
C. 5
D. 10

A

A. 3

Fact: This also applies to the confirmation of the terms of a loan modification, upon receiving notice from the lender.

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16
Q

What are the 8 annual hours of continuing education composed of?

A

3 hours of Federal Law & Regulation
2 hours of Ethics
2 hours of Nontraditional mortgage products
1 hour of Idaho specific content

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17
Q

When may the Director reinstate an expired license immediately following expiration, if the licensee submits a renewal application, renewal fees, & a reinstatement fee?

A

Between Jan 1 & Feb 28

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18
Q

The Department requires applicants to furnish personal history & experience in the form of an independent credit report, information related to administrative, civil, and criminal findings by a governmental jurisdiction. What other background item is required?

A

Fingerprints

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19
Q

Within how many years can the Director reactivate an MLO license without the need for retesting?

A. 3
B. 2
C. 7
D. 5

A

D. 5 Years

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20
Q

The Director may deny a license if a felony has been committed within how many years?

A. 3
B. 7
C. 10
D. 5

A

B. 10 years.

Fact: If a felony involves fraud, the denial is at any point.

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21
Q

The Federal SAFE act & Idaho’s Department require 20 hours of pre-licensing education. How does that look, broken down into sections?

A
  1. 10 hours of GENERAL ELECTIVES
  2. 3 hours of ETHICS
  3. 3 hours of FEDERAL LAW & REGULATION
  4. 2 hours of NONTRADITIONAL MORTGAGE PRODUCTS
  5. 2 hours of IDAHO SPECIFIC LAWS & REGULATION
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22
Q

The Director may adjust fees of the mortgage recovery fund to maintain what balance?

A. $1,000,000
B. $1,500,000
C. $2,000,000
D. $2,500,000

A

B. $1,500,000

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23
Q

Offering to negotiate the terms of a residential mortgage loan for a family member requires that one be an MLO

True or False

A

False

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24
Q

What does IRMPA stand for, and what is it’s purpose?

A

The Idaho Residential Mortgage Protection Act. It is the state of Idaho’s licensing law for the regulation of mortgage professionals.

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25
Q

Which entities are NOT considered Mortgage brokers/lenders?

A
  • Agencies of the united states
  • State-regulated depository institutions
  • Attorneys
  • Trust companies
  • Persons making 5 or fewer loans per year
  • Regulated lenders
  • Employers lending to employees
  • Clerical or administrative persons
  • Wholesale lenders
  • Accountants
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26
Q

How many business days does a sponsoring entity have to remove sponsorship of an MLO when terminated?

A. 3
B. 15
C. 10
D. 5

A

D. 5 business days

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27
Q

Which entities are NOT considered Mortgage brokers/lenders?

A
  • Agencies of the united states
  • State-regulated depository institutions
  • Attorneys
  • Trust companies
  • Persons making 5 or fewer loans per year
  • Regulated lenders
  • Employers lending to employees
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28
Q

Within how many business days must a branch manager be designated, authorization for release of their credit report be granted, & explanations for any yes responses be provided on the Branch Form Application?

A. 3
B. 5
C. 15
D. 30

A

B. 5 days

29
Q

What uniform state requirements does the SAFE act require of state-regulated mortgage professionals?

A
  1. 20 hours of pre-licensing education
  2. 8 hours of annual continuing education
  3. Criminal background checks
  4. Pre-licensing testing
  5. Surety bond & net worth requirements
  6. Assignment of an NMLS ID
30
Q

Which federal rule specifies that a licensee may not receive any fees until the consumer and the consumer’s lender or loan servicer have executed a written agreement incorporating the offer of mortgage assistance relief that the provider has negotiated with the lender or servicer?

A. The mortgage loan modification act
B. The equal credit opportunity act
C. The mortgage assistance relief services
D. The fair credit reporting act

A

C. The mortgage assistance relief services

31
Q

Upon receipt of a residential mortgage loan application, what must a licensee provide a borrower prior to receiving any funds?

A

A licensee information disclosure

32
Q

What is the maximum payment from the Fund against any one license?

A. $175,000
B. $250,000
C. $125,000
D. $225,000

A

B. $250,000

33
Q

At what point may a person who’s license has been revoked due to payout from the Fund be considered for re-issuance?

A

Once they have repaid in full, with interest, the amount that the Fund paid out to cover them

34
Q

Within how many days must a licensee provide consumer with the TILA, Regulation Z, Regulation X, RESPA, interest rate/term, and prepayment penalty disclosures?

A. 1
B. 2
C. 3
D. 5

A

C. 3 business days

35
Q

Licensees may not require borrowers or those seeking loan modifications to pay any fees prior to closing.

True or False

A

True. The federal mortgage assistance relief services rule specifies this

Fact: HOWEVER, items such as applications, rate-locks, commitment fees upon approval, flood insurance certifications, property inspections, title insurance commitments, lien searches, and appraisals can be charged to the borrower.

36
Q

The Director may issue an order to cease and desist as well as implement how much in fees?

A. $3,500/$7,500
B. $2,500/$5,000
C. $5,000/$7,000
D. $5,000/$10,000

A

D. $5,000 and up to three years imprisonment, up to five years imprisonment if the fee is $10,000

37
Q

What act was enacted in 2005 and allows states to better address fraud committed against financial institutions & their customers?

A. HOEPA
B. RESPA
C. FFPA
D. CFPB

A

C. FFPA (Financial Fraud Prevention Act)

Fact: The FFPA lends authority to the Department to investigate and bring civil enforcement’s to the table.

38
Q

If it is determined that a licensee has violated IRMPA (Idaho Residential Mortgage Practices Act), how long can the Director suspend their license?

A. 4 weeks
B. 6 weeks
C. 6 months
D. 12 months

A

C. 6 months

39
Q

In a disciplinary action, how much may the Director require a licensee to pay per violation?

A. $10,000
B. $20,000
C. $15,000
D. $25,000

A

D. $25,000

40
Q

Which three examples are exempt from the IRMPA (Idaho Residential Mortgage Practices Act)?

A
  1. Federally/state regulated financial businesses
  2. Agencies of the state/federal government
  3. Individuals who are licensed & regulated under other specific state licensing laws
41
Q

Which 4 items must mortgage brokers/lenders obtain to be licensed?

A
  1. Unique ID
  2. Company license
  3. Branch license (For additional offices)
  4. Register as a regulated lender (In Idaho)
42
Q

In order, which applicants file which documents through the NMLS to receive their license?

A
  1. Companies to apply for & maintain branch licenses
  2. Business entities & sole proprietors
  3. Loan originator (Individual)
43
Q

Licensing rules are identical for brokers & lenders in Idaho.

True or False

A

True

44
Q

What is a nontraditional mortgage product?

A

Any mortgage product other than a 30-year fixed rate mortgage

45
Q

Idaho defines a “mortgage broker” as

A

Any non-exempt organization that performs “mortgage brokering activities”

Fact: This same definition applies to lenders`

46
Q

Under the IRMPA (Idaho Residential Mortgage Practices Act), who is excluded from the definition “mortgage loan originator”, & therefore does not need an MLO license?

A
  1. Loan processors & underwriters (excluding independent contractors)
  2. Real estate brokers
  3. Time share creditors
  4. Government agency employees
  5. Registered mortgage loan originators employed by:
    - A depository institution
    - A subsidiary owned by a depository
    - An institution regulated by the Farm Credit Administration
47
Q

The IRMPA (Idaho Residential Mortgage Practices Act) defines an MLO (Mortgage Loan Originator) as

A

An individual who, for compensation or in the expectation of compensation, takes a residential mortgage loan application, or offers to negotiate terms of a residential mortgage loan

48
Q

In Idaho, mortgage loan originators, lenders, & brokers are regulated by which two state specific acts?

A
  1. IRMPA (Idaho Residential Mortgage Protection Act)

2. The Idaho administrative procedures act

49
Q

The Department is divided into which four major bureaus?

A
  1. The financial institutions bureau
  2. The consumer finance bureau
  3. The securities bureau
  4. The supporting services bureau
50
Q

Who is the Director of The Department in Idaho as of 2020?

A

Patti Perkins

51
Q

The Idaho Department of Finance (The Department) oversees the activities of numerous financial services professionals in the state of Idaho, including the lending activities of mortgage professionals such as MLO’s, mortgage lenders & brokers. The Department is ALSO responsible for oversight of:

A
  1. Banking entities
  2. Collection agencies
  3. Consumer credit organizations
  4. Money transmitters
  5. Securities professionals
52
Q

What is the primary goal of the SAFE act?

A

To ensure that individual mortgage loan originators in every state meet ;minimum educational, financial, & ethical standards prior to obtaining a license

53
Q

What act passed by congress allows for the uniform regulation of mortgage loan originators in every state?

A

SAFE (The Secure & Fair Enforcement for Mortgage Licensing Act of 2008)

54
Q

What is the FFPA, and what does it do?

A

The FFPA (The Financial Fraud Prevention Act) authorizes investigation and enforcement action against persons committing fraud against financial institutions & consumers

55
Q

How many days past due doesn’t the Department want to see in an MLO license applicant?

A. 30
B. 60
C. 90
D. 120

A

C. 90 days past due

56
Q

Obtaining an exclusive agency agreement with a borrower:

A. Is encouraged under Idaho law as a way of preserving consumer rights
B. Is only lawful when the exclusive agency is made with a mortgage broker
C. Is permitted as long as the agreement is executed with the borrower prior to collecting any fees
D. Is a violation of Idaho statutes pertaining to mortgage business

A

D. It is a violation of Idaho statutes pertaining to mortgage business

57
Q

Besides an application fee and reasonable third-party charges, Idaho mortgage licensees are permitted to collect which of the following charges?

A. A commitment fee and a closing fee
B. A rate-lock fee and a best efforts fee
C. No other charges
D. A commitment fee and a rate-lock fee

A

D. They may collect a commitment fee as well as a rate-lock fee

58
Q

The restructure of a loan is known as a:

A. Reverse mortgage
B. Loan flipping
C. Conditional refinance
D. Mortgage modification

A

D. It is known as Mortgage modification

59
Q

If an individual refuses to comply with a subpoena issued by the Department in conjunction with an investigation of IRMPA (Idaho Residential Mortgage Practices Act) violations, the Director may do which of the following?

A. Apply to the district court to obtain an order of compliance
B. Immediately revoke licensure for the subject of the investigation
C.Immediately suspend licensure for the subject of the investigation
D. Have the individual arrested

A

A. They may apply to the district court to obtain an order of compliance

60
Q

An appraisal servicing fee is an allowable fee to charge a borrower

True or False

A

False. It is not an allowable fee

61
Q

Which act specifically authorizes the Department to investigate and bring civil enforcement actions against persons who commit fraud against financial institutions and their customers?

A. The Idaho Financial Fraud Prevention Act
B. The Idaho SAFE Act
C. The Truth-in-lending Act
D. The Idaho Residential Mortgage Practices Act

A

A. The Idaho Financial Fraud Prevention Act

62
Q

A cousin is considered an immediate family member

True or False

A

False

63
Q

In order to obtain a mortgage lender or mortgage broker license, an applicant must:

A. Complete 20 hours of pre-licensing education
B. Pass a licensing exam
C. Obtain a unique identifier
D. Appoint a qualified person in charge

A

D. They must appoint a QPIC (qualified person in charge)

64
Q

The Licensee Information Disclosure must be provided:

A. Before receipt of any financial information from a borrower
B. At or prior to consummation
C. At or prior to receipt of a completed application
D. Before receipt of any funds from a borrower

A

D. Before the receipt of any funds are received from the borrower, the Licensee Information Disclosure must be provided

65
Q

If the Director is forced to make a payment from the Mortgage Recovery Fund based on a licensee’s violation of Idaho law, the licensee:

A. Will be automatically barred from the mortgage industry
B. Will be automatically suspended
C. May face license revocation
D. Will be charged a $10,000 penalty

A

C. The Licensee may face license revocation in the event that the Director is forced to make a payment from the Fund on their behalf due to Idaho law violation

66
Q

Payment for the costs of an examination or investigation is due:

A. Within 90 days of the completion of an examination or investigation

B. 30 days prior to an examination or investigation

C. 90 days prior to an examination or investigation

D. Within 30 days of the completion of an examination or investigation

A

D. Examination and investigation casts are due within 30 days of the completion of an examination or investigation

67
Q

Individuals or entities licensed under the Idaho Credit Code and regularly engaged in making regulated consumer loans other than those secured by a security interest in real property are:

A. Required to obtain a mortgage lender license

B. Exempt from licensure under IRMPA (The Idaho Residential Mortgage Practices Act)

C. Required to obtain a conditional license

D. Required to obtain an exempt entity registration

A

B. As they do not deal in residential mortgage lending, they are exempt from licensure under IRMPA (The Idaho Residential Mortgage Practices Act)

68
Q

The IRMPA (Idaho Residential Mortgage Practices Act) restricts payments from the Mortgage Recovery Fund. Payments:

A. May only be made with a court order and may not exceed $50,000 per claim

B. May not exceed $1,500,000 per claim

C. Have an aggregate payout amount of $200,000 per licensee

D. Are paid after a decision of the Director and may not exceed $25,000 per claim

A

A. May only be made with a court order and may not exceed $50,000 per claim

69
Q

Payments from the Mortgage Recovery Fund may not exceed __________ against any one licensee

A. $100,000

B. $250,000

C. $200,000

D. $125,000

A

B. $250,000 is the most that can be payed out against any one licensee

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