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17 Cards in this Set
- Front
- Back
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When would a license be suspended without a hearing?
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If a request for a hearing is never made by the licensee. Under most circumstances, a licensee has the right to request a hearing.
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Where can a surety bond be obtained?
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From an insurance company licensed to do business in the state the bond is issued.
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If a loan originator works in a state that requires a surety bond, in what amount must the bond be maintained?
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It must be maintained in an amount that reflects the dollar value of loans originated annually.
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What information of a licensed loan originator is made available to the public by NMLS?
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All information about disciplinary and enforcement action taken against the licensee, and employment history.
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Who is responsible for determining financial responsibility requirements for state-licensed originators/lenders/brokers?
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The state regulator
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Under the SAFE Act, what does the term "person" refer to?
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A natural person, corporation, company, partnership, or association.
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Who is responsible for determining whether or not to issue a license approval?
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The Commissioner or state regulator.
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What is a prepaid finance charge?
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Any finance charge paid separately, in cash or by check, during a loan transaction. Directly paid by the borrower.
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What must also be disclosed in an ad that contains a trigger term?
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The APR, terms of repayment, and the amount/percentage of the down payment.
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When is it permitted to function as a mortgage loan originator without a license?
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When an individual is employed by a federal, state, or local government agency or housing finance agency.
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When should the MU4 form be ammended with the NMLS when there is a change that renders the form inaccurate? (ex: change of address)
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The form must be ammended with the NMLS as soon as the change takes place.
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When is a processor or underwriter required to be licensed as a loan originator?
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When he/she works as an independent contractor.
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Which act and regulation sets forth the requirements regarding mortgage advertising?
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Truth in Lending Act and Regulation Z
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Who/what entity is responsible for determining whether or not to issue a a license approval?
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The Commsissioner/state regulator
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Can you take the same, NMLS-approved continuing education course every year to meet the 8 hour requirement?
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No. You cannot take the same course 2 years in a row to meet the requirement.
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What's the difference between a state-licensed loan originator and a registered loan originator?
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A registered loan originator is an employee of a depository institution (i.e. bank or credit union), a subsidiary owned by a depository institution, or an institution regulated by the Farm Credit Administration. A state-licensed originator is not.
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Which state department is required to provide access to an applicant's criminal history when a background check is being conducted?
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The Attorney General.
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