Your License Flashcards
Why was safe act created
To improve consumer treatment and require license requirements for MLO’s
Safe act is also known as
Title V of HERA
What is the database for mortgage industry called
NMLS
Who created the NMLS
CSBS
AARMR
Who regulates the NMLS
CFPB
Who acts as a single voice to congress for state banks and state regulators
CSBS
Who promotes exchange of information between states for mortgage lending, servicing and brokering
AARMR
What act includes regulations G & H
Safe act
Regulation G applies to
Depository institutions
Regulation H applies to
Non depository institutions
What 5 requirements do MLO’s need to complete before being registered
10 years work/ personal history
Fingerprint
Credit check
Complete MU4
Pay registration/ NMLS fees
What are 3 additional requirements MLO’s need to obtain their license
Complete federal education
Pass safe exam 75%
Complete additional state specific required education
What is the MU1 form known as
Institution form
What is the MU2 form known as
Responsible party form
What is the MU3 known as
Branch form
What is the MU4 form known as
Individual form
3 people required to be licensed
MLO’s at non depository
Independent contractors ( acting as UW or processors)
Mortgage brokers
How many hours out of 20 for federal law
3
How many hours out of 20 for ethics
3
How many hours out of 20 for non traditional mortgages
2
How many hours out of 20 for electives (undefined education)
12
How to remember 20 hour breakdown
FENE 3 3 2 12
Fed 3
Ethics 3
Non trad 2
Electives 12
What test must MLO’s pass to get licensed
SAFE mortgage loan originator test (80-3)
What percentage of questions are under MLO
27%
What percentage of questions are under federal law
24%
What percentage of questions are under general mortgage knowledge
20%
What percentage of questions are under ethics
18%
What percentage of questions are under uniform state content
11%
Memory trick for question percentages
My freaky grandma eats underwear
Temporary authority requirements
Employed by a state licensed company in the application state
And
Registered as MLO continuously during year before application
OR
Licensed as an MLO continuously 30 days before application
Application for temporary authority is closed after how many days if incomplete
120 days
A qualified employer-established plan to which employees may make salary deferral (salary reduction) contributions on a post-tax and/or pre-tax basis.
401(k) plan
Allows an employee to make contributions from his income into a retirement plan. The contributions are deducted from the employee’s income, and as a result, the contributions and related benefits are not taxed until the employee withdraws them from the plan.
403(b) Tax Sheltered Annuity
