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24 Cards in this Set
- Front
- Back
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In regard to the prohibition on making or arranging for a residential mortgage loan that finances any credit life, credit disability or credit unemployment insurance, insurance premiums calculated and paid on a monthly basis |
Are not considered to be financed by the lender and are permitted. |
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In addition to all other duties required in an agency relationship, a mortgage broker licensee must NOT do all of the following |
Make all possible efforts to secure a loan. |
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The application has been submitted and the underwriting work is underway. At the time of application, Mel indicated to the Studors that, in addition to a fee for a credit report, they would have to deposit an additional $500 as an advance on the loan modification fee. Which of the following is true? |
It is a violation of the Residential Mortgage License Act to collect or charge an advance fee for a loan modification. |
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A licensee may not condition a loan commitment upon the seller's agreement to pay certain charges unless |
FHA-insured or VA-guaranteed residential mortgage loans. |
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A licensee must process and properly credit to a mortgage loan account any payment made by the mortgagor |
On the same calendar date it is received. |
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A party to a hearing may ask the hearing officer to issue a subpoena on its behalf, requiring |
The attendance of a witness at the hearing |
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After a borrower told him she was considering turning to another loan originator, originator Sam Smythe told her she should seriously consider taking the loan he was offering her since it would be much harder for her to obtain a loan if word were to get out that she is "a difficult customer." Which of the following statements is correct? |
Sam's statement is an implied threat and, therefore, a form of prohibited conduct. |
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Upon written notice to a licensee, the Secretary may suspend or revoke a mortgage license if he finds any of the following EXCEPT |
An employee committed a violation of which the licensee has no knowledge. |
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A licensee's ad state "All loan interest rates approved by the State of Illinois!" Such an ad |
Is prohibited by law. |
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A loan fee collected prior to closing |
May be retained by the licensee if any condition of a loan commitment provided by a lender is not met by the borrower. |
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If a licensee receives any notice from a secondary market underwriter that materially affects a loan in process, the licensee |
Must immediately notify the applicant. |
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Rates, points and financing terms which appear in a licensee's ad or solicitation must be |
Available at the time. |
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Any person or entity that engages in mortgage business activities without holding a valid license commits a business offense and may be fined not more than |
$3,000 per violation |
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Prior to the closing of a mortgage loan, a licensee may require a borrower to pay a(n) |
Appraisal fee. |
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In terms of licensee conduct, when an emergency situation exists, the Secretary may immediately |
Suspend a license for up to 180 days, pending investigation. |
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The unique identifier of a residential mortgage loan originator must be clearly shown on all of the following EXCEPT |
E-mails to co-workers |
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Six days before a loan is due to close, a licensee changes its fee requirements, so that the fees payable by the borrower increase by 12%, resulting in an added payment of $120. Under these circumstances |
The licensee is required to notify the borrower of the change within three days. |
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At the time a reverse mortgage loan is made or brokered, a licensee must give to the borrower a separate disclosure regarding |
The effect of a reverse mortgage on the borrower's eligibility for tax deferral. |
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A licensee may not charge a prepayment penalty in a mortgage loan after ____ year/s or the first rate adjustment of a variable-rate loan, whichever is earlier. |
Three |
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A licensee may not require a borrower to obtain property insurance coverage that exceeds the replacement cost of improvements as established by the property insurer |
At All |
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In the averments included in the license application, an applicant states that it will advise the Secretary or NMLS, as applicable, of any changes to the information submitted on its most recent application within ____ of the change. |
30 days |
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The refinance of a mortgage is considered to be the prohibited practice of loan flipping if |
The refinancing results in no tangible benefit to the borrower, and the lender has no reasonable belief in the existence of such a benefit. |
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A licensee may collect a loan fee when a loan does not close if the borrower had signed an agreement disclosing the fee and the loan is consistent with the agreement between the licensee and the borrower, but the borrower did any of the following EXCEPT |
Failed to meet the lender's underwriting standards. |
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A licensee is not liable for a violation of the RMLA if, within 30 days of a loan closing and prior to receiving notice from the borrower of the violation, the licensee makes adjustments to the loan and |
Makes Restitution To The Borrower |
