Uniform State Test Material Flashcards
Safe Act
Secure and Fair enforcement for mortgage licensing act of 2008
- Requires licensing of all mortgage lenders, brokers and mlo’s that work for them
-Regulated by CFPB
Violation of safe act
Originating loans without registering or licensing is a violation
- Penalty per violation is 34,401
What is it that all MLO’s must have?
A unique identifier # issues from the NMLS , this number must be on all advertisement , used in communication with customers and business cards as a form of advertisement
What type of MLO must be licensed
An MLO of a non-depository firm that arranges mortgages for clients
What do mortgage lenders do
Make loan
What do mortgage brokers do
Arrange loans
What defines a mortgage broker
An intermediary between a borrower and the actual lender
Min for every state
- 3 hrs fed law
- 3 hours ethics/fraud
2 hrs nontraditional mortgage products
12 hours electives
8 Hour of CE
- 3 hrs fed law
= 2 hrs ethics/ fraud
2 hrs nontraditional
1 hour elective
When do licenses expire?
Dec 31st every year
Pre reqs for Individual MLO License
Background checks:
- No felony in last 7
No felony every if fraud , dishonest , money laundering , insider trading , breach of trust
- Most show financial responsibility
- Pass test
How long is the waiting period who seeks to license as an MLO if a prior felony was pardoned?
No waiting period
When can you retake exam if you fail?
Wait 30 days in between each failed attempt and wait 6 months after 3rd failed one
What is NMLS
Nationwide mortgage licensing system/registry
-Created and owned by the State Regulatory registry an llc of csbs and aarmr
-Does no approve or deny apps only process them for the states
Who approves or denies the application
The state has all licensing and disciplinary authority
