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WHAT IS A registered LOAN originator
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WHAT ARE EXAMPLES OF AN individual WHO IS OFFEREING OR NEGOTIATING THE TERMS OF A LOAN
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| Question | Answer |
|---|---|
| WHAT IS A registered LOAN originator | a loan originator who is registered w NMLSr , employed by a depository inst. generally doesn't need to be licensed |
| WHAT ARE EXAMPLES OF AN individual WHO IS OFFEREING OR NEGOTIATING THE TERMS OF A LOAN | MLO |
| IN ORDER TO AVOID A CFPB INTERVENTION THE ENITY THAT HAS THE authority OVER MLO MUST MEET WHAT STANDARDS | has the authorization to ENFORCE state licensing law all state-licensed MLO register w /nmls-r |
| WHAT IS A STATE LICENSED LOAN ORGINATOR | is a LO who is licensed by their state, registered w NMLS-r and isn't employed by a depository institution or inst regulated by farm credit assoc |
| WHAT IS THE AMERCIAN ASSOCIATION OF RESIDENTAL MORTGAGE REGULATORS (AARMR) | national association of individuals who are charged w/ administering + regulating various aspects of residual mortgage lending / played maker role Information of NMLSr & in drafting the model licensing law |
| WHAT IS A LOAN ORiGINATOR | someone who takes residental mortgages loan apps and offers or negotiates terms of the loan in exchange for compensation |
| WHAT IS CONSIDERED TAKIN AN APP | if you receive an app directly from borrower if you are entering the application info into automated system |
| WHAT IS A UNIQUE identifier | A NUMBER signed to a LO by NMLSr in order to id person or track in mortgage lending |
| WHAT IS THE CONFERENCE OF STATE BANK SUPERVISORS (CSBS) | national organization of state bank supervisors who are in charge w/ ensuring that state banking institutions adhere to certain standards |
| IF A FORMERLY LICENSED PERSON WANTS TO BECOME LICENSED AGAIN WHAT MUST THEY DO | complete "late CE" course |
| WHAT MUST MLO APPPLICANTS SUBMIT TO NMLS-R IN ORDER TO OBTAIN A LICENSE (3) | identity, finger prints go through a series of background and credit checks |
| what is a RESIDENTIAL mortgage loan | a loan for personal family or household use secured by a mortgage |
| MLO WHO COMMITS A LICENSING VILOATION OR ENGAGES IN PROHIBITED ACTIVITY CAN BE FINED HOW MUCH PER OFFENSE | 25k |
| HOW OFTEN MUST A MLO RENEW THEIR LICENSING | once a year |
| WHAT IS FRAUD FOR PROPERTY | (more likely perpetuated by borrowers ) -this a willful misrepresentation of material fact on a loan app w/ the intent of gaining property |
| WHAT IS A NONTRADITIONAL MORTGAGE PRODUCT | any mortgage product that's not a 30 yr fixed |
| per the MODEL LAW FROM CSBS (conference of state bank supervisors) & AARMR (American assoc of Residential Mortgage Regulators) WHAT activities ARE MLO NOT ALLOWED TO ENGAGE IN (2) | -attempting to defraud borrower -failing to comply w. fed or state laws etc |
| WHAT ARE GROUNDS FOR DENYING A LICENSE FOR “CREDIT” PURPOSE (4) | current outstanding judgements (other than medical) tax liens or other government liens foreclosure within past 3 years pattern of seriously delinquent acts over past 3 years |
| WHAT DOES THE FAIR LENDING LAW EXPECT WHEN THEY SAY ALL APPLICANTS HAVE EQUAL ACCESS TO CREDIT | similar situated applicants receive similar loan terms w/o regard to protected class status |
| WHAT IS THE DIFFERENCE BETWEEN FRAUD AND NEGLIGENCE | INTENT/fraud: knowledge of actions to deceive NEGLIGENCE/ didn't know unintentional misrepresentation |
| WHAT IS THE punishment FOR MORTGAGE FRAUD | FINE UP TO $1 MILLION AND 30 YERS IN PRISON PER COUNT |
| WHAT IS A FIDUCIARY RELATIONSHIP | you must put the well being of client ahead of your own |
| IF EXAM FAILED HOW MANY TIMES CAN YOU RETAKE | 3 times 30 day gap after 3rd time wait 6 months |
| WHAT IS UDAAP | UNFAIR DECEPTIVE or ABUSIVE ACT or practices |
| WHAT ARE THE TWO TYPES OF MORTGAGE FRAUD | farud for property & fraud for profit |
| WHAT IS AN APPLICATION | is a request for a residental mortgage loan that includes borrower related info that lenders use when considering request |
| WHAT IS MISREPRESENTATION | a characteristic of mortgage fraud & negligence this involves a misstatement or ommission of a 'MATERIAL" fact on a loan app DONE BY BORROWERS |
| WHAT IS FRAUD FOR PROFIT | gaining money through transactions with a willful misrepresentation on loan app (committed by industry professionals) |
| WHAT IS CODE OF ETHICS | a form of company law that clearly articulates company expectations of the people who represent it and penalties for violating the code |
| WHAT DOES THE UDAAP DO | must operate free of practices such as misleading adv. interfering w/ consumer ability to understand transactions or concealing info from consumers causing them to take out loan they cant afford |
| WHAT IS A STATE | any of the US district of Colombia - any territory of US |
| WHAT IS THE PASSING % FOR MLO EXAM | 75% |
| WHAT ARE ADMINISTRATIVE & CLERICAL TASK | the receipt, collection and distribution of the info that is common in processing or underwriting a loan Communication that designed to obtain common info from consumer |
| WHAT IS AN INDEPENDENT CONTRACTOR | someone who performs mortgage-related duties & is not supervised or directed by a licensed or registered loan originator |
| WHEN ARE YOU CONSIDERED TO BE OFFERING OR NEGOTIATING THE TERMS OF A LOAN | presenting terms to brrwr responding to a brwr's request for a different rate or different fees on a pending loan app by providing a revised offer |
| WHAT IS A STATE REGULATORY REGISTRY LLC | is a wholly owned subsidiary of CSBS that runs the NMLSr |
| WHAT IS A LOAN PROCESSOR OR UNDERWRITER | someone who is supervised by a licensed or registered loan originator or support duties - approve loans |
| WHEN OVERSEEING MLO ACTIVITES WHAT REPONSIBILTIES DOES THE STATE AGENCY HOLD (3) | ENFORCING STATE LICENSING LAWS regularly REPORTING LICENSING VIOLATIONS to NMLSr ACCESSING ppl who originate w/o license |
| WHAT POWERS DOES THE SAFE ACT GIVE TO STATE LICENSING AGENCIES | for purpose of investigating the agency can subject originators and their employers to examination meaning they can access any books/records or interview anyone |
| A LOAN originator license IS NOT required for the following individual | some1 doing loan for their own residence etc |
| WHO established NMLS-R (2) | CSBS - conference of state bank supervisors AARMR- American association residential mortgage regulators |
| WHAT ARE CONSIDERED REAL ESTATE SERVICES | bringing parties together who are interested in the sale,pruchase or exchange of real property engaging in any act for which an individual must be licensed or registered as a Rea estate broker under applicable law |
| WHAT ARE GROUNDS FOR DENYING A LICENSE FOR BACKGROUND CHECK purposes (3) | -convicted or pleaded guilty to felony within 7 years -NEVER can be issued if applicant has EVER been convicted/pleaded guilty to felony dealing with fraud dishonesty breach of trust money laundering -if your license revoked in another state |
| IF A STATE CHOOSES NOT TO PARTICIPATE IN NMLSR THEN WHAT | CFPB will establish and maintain similar system for MLOs in that state |
| AT MIN THE 20 HOUR PRE LICENSE COURSE MUST satisfy THE FOLLOWING RULES | 3 HOURS FED LAW 3 HOURS - ETHICS TOPIC ( fraud, consumer protection) 2 HOURS NONTRADITIONAL MORTGAGE PRODUCTS |
| AN INDIVIDUAL WHO PERFORMS REAL ESTATE BROKERAGE activities IS CONSIDERED A LOAN ORGINATOR IF | they are compensated by a lender or mortgage broker for residential loan originator activities |
| FOR THE PURPOSE OF DEFINING A LOAN originator WHAT ACTIONS DO NOT RISE TO THE LEVEL OF "TAKING AN APP" (2) | explaining content of an application and where info should be noted collecting basic info on behalf of lender |
| defining "LOAN ORIGINATOR" what actions Do NOT rise to the level of offering or negotiating loan terms (2) | making an underwriting decision regarding whether brwr qualifies for loan explaining steps brwr must take in order to receive an offer for a loan |
| WHAT SAFEGUARD OPTIONS MUST A COMPANY HAVE IN PLACE IF MLO ERRORS OR MISCONDUCT RESULTS IN NEG FINANCIAL CONSEQUENCES FOR CONSUMERS (3) | require that a loan originator maintains a net worth that is based on the $ amt of their originated loans require that loan originator pay into a state recovery fund require that loan originators maintain a surety bond the value of which based on the $ |
Created by:
cortnick1