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AT MLO Final
| Question | Answer |
|---|---|
| The TRID rule became effective on: | October 3, 2015 |
| A property is valued at $250,000. There is a first mortgage and a second mortgage with a 80% CLTV. The second mortgage is 10% of the property value. What is the amount of the FIRST mortgage? | $175,000 CLTV = Value X 80% = 200,000 second mortgage = value X 10% = $25,000 First mortgage = 200,000 $ 25,000 = $175,000 |
| Which of the following transactions is NOT covered by HMDA? 1. A prequalification on a primary residence purchase 2. A home improvement loan 3. A refinance transaction 4. A single family home purchase | 1. A prequalification on a primary residence purchase. Only completed applications and preapprovals where income and assets have been verified are reported to HMDA |
| Which of the following fees do not protect the homeowner against loss from property damage? 1. Hazard insurance 2. Fire insurance 3. Mortgage insurance 4. Property insurance | 3. Mortgage insurance. Mortgage insurance protects the lender against a borrowers default. Fire, hazard and property insurance all protect the homeowner against loss from property damage |
| The following are the NMLS prelicense requirements for state licensed loan originators, EXCEPT: 1. Complete 8 hours of prelicense education Correct Answer 2. Complete 8 hours of core education 3. Pass a national exam 4. Background check | 1. Complete 8 hours of prelicense education. The NMLS requirement is 20 hours of prelicense education including 8 hours of core education, a background check and pass a national and state exam |
| The following is not one of the three major credit bureaus: 1. Equifax 2. Transperian 3. Trans Union 4. Experian | 2. Transperian. The three major credit bureaus are Trans Union, Equifax and Experian |
| The FCRA was extended in 2003 by the following: 1. The Equal Credit Opportunity Act 2. The Federal Reserve 3. The Federal Trade Commission 4. The Fair and Accurate Credit Transaction Act Correct Answer | 4. The Fair and Accurate Credit Transaction Act Correct Answer. The Fair and Accurate Credit Transaction Act (FACTA) also introduced identity theft prevention and detection requirements. |
| John is currently licensed in a state that will participate in the UST program. He became licensed before the UST program began and has never taken another test. | If John wants to originate in another state that is part of the UST he will need to take the entire 125 question test. |
| What is the potential penalty for mortgage fraud? | 30 years in prision and $1,000,000 fine |
| What federal agency is charged with the responsibility of protecting consumers from deceptive and unfair practices? | Consumer Financial Protection Bureau |
| The SAFE ACT is an acronym for: | Secure and Fair Enforcement for Mortgage Licensing Act. The SAFE Act is title V of the Housing and Economic Recovery Act (HERA). It is the Secure and Fair Enforcement, not Safe and Fair Enforcement. |
| What is a High Cost Loan? | High cost loans are loans that exceed the HOEPA APR and points and fees threshold and are subject to the provisions of TILA section 1026.32 which are the regulations for "High Cost Loans". |
| ECOA is to Regulation B as RESPA is to: | Regulation X. Regulation B is the Equal Credit Opportunity Act, ECOA. |
| Document of the actual charges a buyer and seller pays at settlement? | Closing Disclosure. The Closing Disclosure contains actual fees and the Loan Estiamte contains estimated fees. |
| If a lender collects $8,000 in interest in a year on a $150,000 loan, what is the interest rate? | 5.33%. Formula=(interest/loan amount) X 100 = (8000/150,000)X100 = 5,33% |
| The Home Mortgage Disclosure Act (HMDA) is implemented by: | The Consumer Financial Protection Bureau. HMDA is regulation C |
| Which two items does a lender add together to establish the fully indexed interest rate for an adjustable rate mortgage (ARM)? | Index and margin. The index changes based on market conditions and the margin is the lenders profit and remains fixed during the life of the loan |
| Correct for high cost mortgages? HOEPA threshold: 1. Points and fees is 8% on loans over $20k. 2. First lien exceeds the APOR by 1.5%. 3. Second lien exceeds the APOR by 6.5%. 4. First lien exceeds the APOR by more than 6.5% with a loan amount of $100k. | The HOEPA threshold for a first lien exceeds the APOR by more than 6.5% with a loan amount of $100,000 |
| What term describes the process of protecting an applicant's locked interest rate before it expires? | Lock Extension. |
| How can the servicer handle a shortage in a borrower’s escrow account greater than one month in escrow? | The servicer may allow the borrower to pay the shortage in equal payments over the next 12 months |
| The process where the lender holds legal title and the borrower holds equitable title is: | Title theory. |
| The booklet entitled Consumer Handbook on Adjustable Rate Mortgages(CHARM) must be: | Provided at the time of application or within 3 business days of receiving the application when there is an adjustable rate loan. This is a conditional disclosure. Only required if there is an ARM loan. |
| FCRA was created to provide consumer protections, but not: 1. Extended permanently in 2003. 2. Regulations for consumer reporting agencies. 3. Collections remain on the credit report for 10 yrs. 4. Requires an adverse summary for a credit denial. | 3. Collections remain on the credit report for 10 yrs. Collections remain on the credit report for 7 years and bankruptcies remain on the report for 10 years |
| ____________ are a framework of practices commonly accepted in society. | Ethics. |
| The Ability to Repay rule, ATR, primarily relates to | Capacity. Capacity addresses the ability to repay. |
| The passing percentage for the SAFE Mortgage Licensing Act comprehensive national exam is: | 75%. The SAFE Act national exam includes 125 questions, only 115 are scored. The time allowed for the actual exam portion is 190 minutes. |
| Which is correct relating to HMDA? 1. Reports on the age of the applicant 2. Reports include the credit score 3. Reports on the employment history of the applicant 4. Reports information on the applicants race, ethnicity, sex and income | HMDA reports information on the applicants race, ethnicity, sex and income |
| What is not a disclosure requirement for companies advertising and communication with customers relating to MARS? | Tell consumers to stop paying their mortgage. |
| Which fee is charged to payoff an existing loan at settlement? 1. Assumption fee 2. Wire transfer fee 3. Documentation preparation fee 4. Tax related service fee | 2. Wire transfer fee |
| Identify the entity that insures loans: 1, Secondary Market 2. Freddie Mac 3. Federal Housing Administration 4. Fannie Mae | 3. Federal Housing Administration. FHA insures loans against a borrowers default. The lenders will receive 100% of their loss. FHA collects an up front mortgage insurance premium UFMIP and an annual mortgage insurance premium. |
| Which is correct relating to a state recovery fund program: 1. Is managed by a surety company 2. Provides the same protections as a surety bond 3. Based on a public vote 4. Relieves MLOs from any liability for their actions | 2. A state fund provides the same protections as a surety bond. There are three options for protecting consumers against harm caused by the mortgage industry. Surety bond, net worth and state recovery fund. They all provide protections to the consumer. |
| A servicer that transfers a loan must notify the borrower: 1. Within 60 days after the transfer 2. Within 15 days after the transfer 3. Within 15 days prior to the transfer 4. Within 30 days after the transfer | 3. Within 15 days prior to the transfer. |
| Income is $21.50 hr, works 40 hours a week, paid semimonthly. MLO calculated the PI payment at $755 and monthly escrow is $135. Monthly debts are: car payment $289, credit card $49, cell bill $63, and utilities $102. What is the DTI ratio? | (hourly rate * 52)/12 = $3726.67. House is principal + interest + monthly escrow = $890. Exclude the cell and utilities. Total debts = housing payment + CC + auto = 1228. The DTI = total debts,$1,228/ gross monthly income, $3,726.67 = 32.95% |
| Purchasing a home, but not yet sold house. It is currently under contract with a prospective buyer. Once home sells, the applicant will have enough equity from the sale for her down payment. How should the funds be listed on the application? | Equity from pending sale. The sale is still pending until it closes. |
| Which is NOT an example of nontraditional? 1. 30 year ARM where adjustment period is one year 2. Amortized over 360 months and due in 360 months and principal and interest payments never change 3. Interest-only mortgages 4. Flexible ARM | A mortgage that is amortized over 360 months and due in 360 months and the principal and interest payments never change |
| A HELOC would generally be categorized as: 1. A fixed rate loan 2. A closed end loan 3. A fixed term loan 4. An open end loan | 4. An open end loan. There are closed end HELOC loans, however, a HELOC is generally considered an open end loan with the ability to pay down the debt and reuse the credit line without refinancing |
| The Alternative Mortgage Transaction Parity Act (AMPTA) preempted state laws EXCEPT: 1. Limiting loans to fixed rate products only 2. Balloon payments 3. Adjustable rate products 4. No limit on prepayment penalties | 1. Limiting loans to fixed rate products only |
| The National Credit Score Disclosure Form provides: | Credit scores and the reasons for the score are required disclosures. |
| According to ECOA codes,an “A” means: | An individual is an authorized user of an account |
| Under Section 8 RESPA, a payment is considered: | Equal to receiving or giving any thing of value. Does nor require the transfer of money to be considered anything of value |
| Illegal property flipping is: | A property is refinanced or resold immediately after purchase for an artificially inflated price |
| Who is responsible for the creation and maintenance of the NMLSR? | CSBS, AARMR. 1008.23 The Conference of State Bank Supervisors and the Association of Residential Mortgage Regulators are organizations recruited to create and maintain the NMLS&R |
| Under SAFE Act definitions, which is a nontraditional mortgage: 1. 30 year fixed rate with a par interest rate 2. 15 year fixed rate 3. 30 year fixed rate 4. 30 year refinance on a primary residence where the P&I never change | 2. A 15 year fixed rate mortgage. SAFE Act defines non traditional any product other than a 30 year fixed rate mortgage |
| Title V of HERA and Regulation H are known as all of the following Except: 1. S.A.F.E. Act 2. Secure and Fair Enforcement for Mortgage Licensing Act 3. Safe and Fair Enforcement for Mortgage Licensing Act 4. The Act | 3. Safe and Fair Enforcement for Mortgage Licensing Act |
| What is the process when a thirdparty originator closes a loan in their own name with funds from others and shortly after assigns the loan? | Table funding means using the funding lenders funds to close a loan in another entity name and then that entity transfers the loan to the funding lender. |
| TRID covers the following transactions except: 1. Vacant land 2. Business purpose loans 3. Closed end loans 4. Construction loans | 2. Business purpose loans. TRID only covers loans for personal family and household reasons |
| If the fully indexed rate is 5.375 percent and the margin is 2.5 percent, what is the index? | 2.875. The fully indexed rate is the combination of the margin and the index. If the rate and the margin are known, then subtract the margin from the rate to get the index. |
| MLO information maintained by the NMLS would not be available to the public? 1. Home Address 2. Unique Identifier Number 3. Publically adjudicated disciplinary actions 4. Employment information | #1. Employment information, enforcement actions and the unique ID number are available to the public. Non public information like ss#, address and account numbers are not available to the public Federal Law |
| Regulation Z implements the Federal TruthinLending Act (TILA) under the authority of which federal agency? | The Consumer Financial Protection. CFPB took control from the Federal Reserve on July 21, 2011, the transfer date mandated by the Dodd Frank Act |
| Fraud for housing or fraud for property is one of the two major divisions of fraud in the mortgage industry. What is the other? 1. Fraud for lenders 2. Fraud by mortgage brokers 3. Fraud for profit 4. Fraud for greed | Fraud for profit is fraud committed by mortgage professionals. |
| The HUD1 has now been integrated into the________________ under TRID: | Closing Disclosure. The HUD1 and the final TILA disclosure have been integrated into the Closing Disclosure |
| This fee is charged to protect the lender and the purchaser from claims that predate the closing of the loan: 1. Processing fee 2. Title insurance Correct Answer 3. Recording fee 4. Mortgage broker fee | Title insurance is mandatory for the lender, paid by the borrower. It is optional for the borrower. |
| What is the item that protects the homeowner against damage claims from acts in the past? | Owner’s title insurance policy |
| Which of the following is not covered under TRID? 1. Raw land 2. 30 Acres of land 3. Construction loan 4. HELOC | 4. HELOC |
| Correct to rebuttable presumption: 1. QM loans that are HPMLs are protected under the Safe Harbour 2. Addresses loans that do not exceed the APOR threshold 3. Protect the lender if the loan is a QM loan 4. Consumer can challenge the lender in court | The consumer can challenge the lender in court . Rebuttable presumption is a QM with HPML because the consumer has the right to challenge the lender in court. |
| Private mortgage insurance automatically terminates, under what circumstances? | Equity in the property reaches 22 percent. The lender is required to automatically terminate PMI when the LTV based on the original value reaches 78% or a 22% equity position |
| Finance charges include all of the following except: 1. Loan origination fee 2. Application fees charged to all applicants 3. Mortgage insurance premiums 4. Underwriting fee | 2. Application fees charged to all applicants. A finance charge is a charge that exist only for the extension of credit. A charge that all applicants pay even if credit is not extended is not a finance charge |
| The initial purpose of AMTPA was: 1. To prevent prepayment penalties 2. To allow adjustable rate products 3. To increase the fees on loans 4. To make fixed rate loans the only alternative | 2. To allow adjustable rate products. The Alternative Mortgage Transaction Act was passed by Congress to allow adjustable rate mortgages in the 80s. This law opened the door to interest only, balloon and ARM mortgages. |
| The three entities that dominate the residential real estate secondary market are: | Fannie Mae, Freddie Mac & Ginnie Mae. Fannie Mae has the largest portfolio of loans on the secondary market |
| Under what conditions would the Bureau be responsible for creating and maintaining a registry for mortgage loan originators? | If the NMLS failed to meet the requirements of the S.A.F.E.Act |
| The national representative credit score range is: | 300 - 850 |
| What are the correct 4 types of QM? 1. General, Temporary, Small Creditor and Balloon 2. Specific, Permanent, Large Creditor and Balloon 3. General, Permanent, Large Creditor and Balloon 4. Specific, Temporary, Small Creditor and Balloon | 1. General, Temporary, Small Creditor and Balloon |
| The loan application under TRID is considered to have been received when the ___ pieces of information have been received: | 6 |
| The S.A.F.E. Act is a part of what Federal Law? Question #2874 | The Housing and Economic Recovery Act. The Housing and Economic Recovery Act, HERA and became also Regulation H under Banks and banking under CFPB. |
| According to the Model State Law at the state level who has the authority to ensure that individuals are licensed and registered through the NMLSR? | The Commissioner |
| Which of the following is NOT an acceptable form of funds a buyer can present at settlement? 1. Bank cashier’s check 2. Wired funds credited to the closing attorney’s escrow account 3. Cash 4 Certified bank check | 3. Cash. |
| What is the fee a borrower pays for receiving a reduced interest rate? 1. Discount fee 2. Underwriting fee 3. Yield spread premium 4. Processing fee | 1. Discount fee. A discount fee allows the borrower to get a reduced interest rate |
| According to TILA and TRID the following change would make the previously disclosed APR inaccurate for a fixed rate loan: a) 1/8th above or below b) 1/8th above c) .125% above d) .250 below | d) .250 below. TRIS and TILA considers a tolerance violation when the APR increases or decreases by more than 1/8th or.125 of 1 percent of a regular loan of the previously disclosed APR |
| What is the Safeguards Rule? | A rule issued by the FTC that requires companies to have measures to keep customer information safe . The Safeguard Rule is issued by the FTC to implement the provisions of GLBA |
| The TILA/RESPA rule mandates that borrowers receive a copy of the Closing Disclosure: | 3 business days prior to consummation. |
| An applicant provided the loan originator false information relating to his employment he would be guilty of: | Fraud for housing . Fraud for housing is generally committed by applicants and family members for the sole purpose of qualifying for a loan |
| A and B purchase an investment property to generate additional income and tax benefits. They have separate families and want any financial benefits from their investment to remain with their designated families upon death. How should the title be held? | Tenants in common |
| If funds are sent to a settlement agent prior to the borrower signing all closing documents, this is an example of: 1. Cash disbursement 2. Wet settlement 3. Dry settlement 4. Escrow settlement | 2. Wet settlement. In a dry settlement state the funds are sent after all funding conditions have been cleared |
| The Financial Crimes Enforcement Network (FINCEN) is most closely associated with the following: 1. Higher Priced Mortgage Loans 2. Home Ownership Equity Protection Act violations 3. Suspicious activity reports 4. RESPA violations | 3. Suspicious activity reports. SARS are required to be reported under the mandatory program required under FINCEN. |
| This loan program insures 100% of the loss in the event a borrower defaults: 1. Rural Housing Service (RHS) 2. Fannie Mae 3. Veteran Administration (VA) 4. Federal Housing Administration (FHA) | 4. Federal Housing Administration (FHA). The Federal Housing Administration (FHA), guarantees that the lender will be covered 100 percent for their loss in the event of a borrower defaulting on a FHA loan.VA 25% |
| FHA allows sellers to pay part of a borrowers closing costs and prepaid items. What percent of the sales price can sellers contribute? a) 2 percent b) 3 percent c) 5 percent d) 6 percent | d) 6% |
| Which of the following would be considered misrepresentation of assets? 1. Misrepresented intent to occupy 2. Forged pay stubs 3. Undisclosed second mortgage 4. Failing to disclose a second job | 3. Undisclosed second mortgage. All answers are violations, however, an undisclosed second mortgage is over stating the equity in the property and equity is an asset |
| Which could indicate fraud? 1. Large employer, but check stubs are not pre printed 2. No credit history on credit report 3. Years of schooling consistent with profession 4. Comparable properties are significant distance from the subject | Large employer, but the check stubs are not pre printed. An indication of fraud would be anything that is inconsistent with the norm. The action or activity requires additional due diligence. |
| Held in a second lien position, allows a borrower to pay down the balance and borrower against it again in the future without seeking another approval. What is this? 1. Bridge mortgage 2. Adjustable rate mortgage 3. Second mortgage 4. HELOC | HELOC. Home equity line of credit. Basically a revolving account, also known as an open end account. |
| What is the basis of the UST that ensures that it meets the general requirements of the states? | The UST is primarily based on the Model State Law (MS). The MSL is the Model State Law designed by the CSBS and the AARMR to assist states meet the requirements of the S.A.F.E Act |
| After a loan closes, an entity will collect a borrower’s monthly payments and report the payment history to the credit bureaus. This process is: | Servicing . Servicing includes the process of collecting loan payments, making escrow payment disbursement to the taxing authorities and insurance entities and reporting to the credit bureaus. |
| A VA Appraisal is ordered by the VA, and is referred to as a: | Certificate of reasonable value |
| Mendy lives in Mississippi and was convicted of a DUI felony crime in 2009 that would only be a misdemeanor in all other states. She is applying for a license in New York. What is the impact of the conviction? | She will not be eligible for licensing because the minimum waiting period for a felony conviction has not been realized. A determination of a felony conviction is jurisdiction specific and the elimination period is 7 years for general felonies. |
| In a lien theory state, who holds the title? | Borrower. In a lien theory state the borrower holds both equitable and legal title |
| Not exempt from state licensing as a MLO under the S.A.F.E. Act: 1. Originating loans for a depository institution 2. Only transacts timeshare transactions 3. Originates loans for a community housing agency 4. Independent contractor loan processor | An independent contract processor must be licensed as an MLO. |
| Which of the following is not common to all types of QMs? 1. No negative amortization 2. Points and fees over $100K limited to 3 percent 3. No interest only 4. Maximum loan term 40 years | 4. Maximum loan term 40 years. Maximum loan term 30 years |
| Which document gives an individual the right to represent the physical, legal and financial interest on behalf of a buyer for a real estate settlement transaction? | Specific power of attorney. Specific power of attorney for the transaction is required in a real estate settlement transaction. In most other representations a general power of attorney is adequate |
| When a lender guarantees an interest rate for a fixed period, what is the term that describes this process? | Locking in. Locking in a loan is the process of the lender assuring a rate will be available at some time in the future. The normal period of locking without a fee is between 15 days and 60 days |
| FHA charges an upfront mortgage insurance premium. How long is the MIP refund period? a) 5 yrs b) 2 yrs c) 4 yrs d) 3 yrs | d) 3 yrs. An FHA borrower may receive a refund of the upfront mortgage insurance premium(MIP)when refinancing to a new FHA loan or selling the property within the 3 year period. There is no refund of the VA funding fee. |
| The minimum down payment requirement for a VA purchase for a qualified applicant is: a) Zero b) 3.5% c) 5% d) 10% | a) Zero. VA will guarantee 100 percent financed loans. |
| The most popular FHA loan program is: a) 203b b) 203c c) 203t d) 203k | a) 203b. The 203b is the loan program for purchases and refinances of principle residence |
| NOT correct relating to red flag requirements: 1. Mortgage brokers are exempt 2. Action that may indicate the possibility of identity theft 3. Associated with FACTA 4. FTC published 26 possible red flag items that can be incorporated | 1. Mortgage brokers not exempt. Financial institutions and brokers must develop a plan that IDs and detects warning or red flags that indicate identity theft. The red flag pgm is associated with FACTA and should include 26 red flag items created by FTC |
| Processor had a conversation with a borrower. Which voids exemption from registration and/or licensing? 1. Need additional employment information 2. Tax return is needed to validate income 3. Benefits of locking in a rate 4. Requests an email address | 3. Discusses with the borrower the benefits of locking in a rate. Encouraging a borrower to lock a rate is discussing rates and terms and would require the processor to be registered and or licensed as a MLO |
| Correct relating to credit scores used by Fannie Mae: 1. Lower score of three scores should be used 2. Higher score of three should be used 3. Average score of three scores should be used 4. Middle score of three should be used | 4. Middle score of three should be used. Which is the lower of two scores or the middle of three. If there is more than one applicant the lowest representative score is used. Fannie Mae will not underwrite a loan with only one score |
| The current conforming mortgage limit for a single family residence that is not in a high cost area is: | 417,000. When the loan amount exceeds $417,000 then the loan is considered non conforming or a jumbo loan and not deliverable to Fannie Mae. |
| Which document establishes property measurements and boundaries of real property? | Survey |
| Under Regulation Z, the time that a consumer becomes contractually obligated on a transaction is referred to as: | Consummation. Same as closing and settlement under RESPA. |
| Which of the following would meet the Safe Harbor requirement for a QM? 1. Higher Priced 2. Exceeds the APOR by 2.5% for a second lien mortgage 3. Exceeds the APOR for a first mortgage by more than 1.5% 4. Includes HPML features | A QM that exceeds the APOR by 2.5% for a second lien mortgage. Safe Harbor includes a QM without Higher Priced loan features |
| Churning means: | Excessive selling/lending activity for the purpose of generating fees and commissions. Churning would be considered predatory lending. |
| A borrower has 401k retirement of $27,941. How does a loan officer disclose the value of the assets on the 1003? 1. ($27,941* 60%) = $16,764 2. ($27,941* 50%) = $13,970 3. ($27,941 * 25%) = $6,985 4. ($27,941* 70%) = $19,558 | 1. ($27,941* 60%) = $16,764. Only 60 percent of vested interest in a retirement account may be used as reserves for residential mortgage financing. |
| Which of the following would NOT be a processing function? 1. Ordering a VOE 2. Reviewing the details of the 1003 for accuracy 3. Preparing a loan file for underwriting 4. Quoting interest rates to potential clients | 4. Quoting interest rates to potential clients. A processor is not allowed to take applications or quote rates and terms. |
| The following refinance transactions are transactions that are designed to provide cash back Except: 1. Limited cash-out 2. Rate and term 3. Debt consolidation 4. Cash-out refinance | 2. Rate and term. A rate and term refinance transaction is designed to either reduce the rate or reduce the term |
| PMI is designed to: 1. Protect the lender financing a FHA loan 2. Protect the settlement agent from a private law suit 3. Protect the lender financing a conventional mortgage 4. Protect the borrower in the event of default | 3. Protect the lender financing a conventional mortgage. Private mortgage insurance is designed to protect the conventional mortgage lender. It requires that the borrower provide mortgage insurance in the event that the LTV is more than 80 percent |
| Does the UST offered in a Georgia testing center include details specific to Georgia? 1. Only the portions that are different from the S.A.F.E. Act 2. Yes 3. No 4. Maybe | 3. No. The UST is based on the Model State Law which is a template for states to follow to modify their legislative code/laws to meet the requirements of the S.A.F.E. Act |
| As a general rule, the APR is considered accurate if the variance is not more than __ % above or below the APR previously disclosed: | 1/8th of 1 percent for a regular loan. The APR is considered inaccurate if it is more than 1/8th of 1 percent above or below for a regular loan |
| The primary purposes of the S.A.F.E. Act is to: | Enhance consumer protections and reduce fraud. |
| Which document legally conveys real property in written form from a seller to a buyer? | Warranty deed |
| Under what conditions would a licensed attorney conducting origination activities be required to be licensed under the S.A.F.E. | Receives compensation from a lender or mortgage broker for the origination activities. Attorney is exempt from licensing unless money is received from the lender, broker or MLO. |
| The following entity requires an upfront funding fee for most loan transactions: | VA. VA requires an up front funding fee that is 2.15% of the loan amount for initial use when the down payment is less than 5%. This fee can be financed into the loan and is non refundable. |
| When can a Mortgage Brokerage issue a commitment? | Only when the Lender has issued a commitment. A mortgage broker is not allowed to issue a loan commitment unless unless the lender has issued a commitment. |
| In Florida, residents have to file an application to qualify for a homestead exemption between _________ and __________in each year the exemption is sought. | Jan 1st and March 1st. The window to file for a homestead exemption for the current year is Jan 1st and March 1st |
| According chapter 494 F.S. a person licensed as a loan originator and intends to only process loans must: | Issue to the office a declaration of intent to only process and not originate loans. |
| Under chapter 494 a material change is a change in fees to be charged to a borrower resulting in total fees greater than: | $100. Any change greater than $100 is considered a material change requiring proper disclosure. |
| When can the Office suspend a license without a hearing? | When the office feels there is an immediate threat to the public a license can be suspended without a hearing |
| Which of the following would not be defined as a control person at the ABC Mortgage corporation? 1. Loan Originator with 12 percent ownership 2. Chief compliance officer 3. President 4. Processor | A processor would be an employee and typically not a control person. |
| What is the penalty for operating an unlicensed branch and acting as a MLO without a license? a) No fine just a suspension b) $1000 per day c) $100 per day d) $1000 per day max of $25000 | The penalty for operating an unlicensed branch and acting as a MLO without a license is $1000 per day max of $25000 |
| The Financial Services Commission Members include all of the following except: 1. The Governor 2. President of the Mortgage Brokers Association 3. Attorney General 4. Commissioner of Agriculture Commission. | 2. President of the Mortgage Brokers Association. All members are government positions. The president of the Mortgage Brokers Association is not a government position. |
| Under chapter 494, F.S. to solicit a loan on behalf of a borrower and to negotiate terms and conditions of a mortgage loan on behalf of a lender describes the term: | To act as a mortgage broker. A mortgage broker originates loans but does not lend money. |
| Chapter 494 F.S. All books, accounts, records, documents, and receipts for expenses paid by the licensee on behalf of the borrower, including each closing statement signed by borrower shall be preserved and kept available for examination by Office for: | A minimum of 3 years after the date of original entry. Books and records must be retained for a minimum of 3 years from the date of original entry. Example, the date of the loan application would be the trigger date. |
| What is the minimum amount of education you must have in order to be licensed? | Minimum education is a high school diploma or equivalent and meet the NMLS and state of Florida prelicense |
| Who administers the Mortgage Guaranty Trust Fund under chapter 494 F.S? | The office administers the fund |
| When are you allowed to alter your records if you are about to be investigated? | You are not allowed to alter any records. No alterations of records are allowed when notice of an examination is received |
| Under chapter 494, F.S. a person that advertises a mortgage loan at an expressed interest rate must specifically state that: | Florida extends the standard requirement for mortgage product advertising to include the statement, "That the expressed rate could change or not be available at commitment or closing." |
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