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29 Cards in this Set
- Front
- Back
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MORTGAGE LOAN ORIGINATOR |
- takes a residential mortgage loan application; and
- offers or negotiates terms of a residential mortgage loan for compensation or gain; |
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State-Licensed Loan Originator
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loan originator, not an employee ofa depository institution ORregulated by a Federal banking agency
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PRE LICENSING EDUCATION |
3 hours of Federal law and regulations;
3 hours of ethics, FRAUD,CONSUMER PROTECTION,FAIR LENDING ISSUES 2 hours nontraditional mortgage product |
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NMLS |
Nationwide Multistate Licensing System & Registry
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Grounds for Denying a License
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judgments , tax liens or other government liens and filings, Foreclosures, delinquent accounts
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License Maintenance
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AT LEAST 8 hours of NMLS reviewed and approvedcoursework.
3 federal law and regulations 2 ethics 2 nontraditional mortgage product |
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License Renewal 3 requirements
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- Continue to meet the minimum standards for license issuance( SURETY BONDS,NET WORTH, financial mismanagement, felony convictions
-CE requirements -renewal fees |
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How much are fines or penalties?
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$25,000 per violation
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Advertising (12 CFR § 1026.24)
TRIGGER TERMS |
-Amount or percentage of any down payment.
- Amount of any payment - Amount of any finance charge |
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Advertising (12 CFR § 1026.24)
Trigger term requirements |
• The amount or percentage of the down payment
• The terms of repayment, which reflect the repayment obligations over the full term of the loan,including any balloon payment • The “annual percentage rate,” using that term, and, if the rate may be increased after consummation,that fact |
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AARMR
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"American Association of Residential Mortgage Regulators" PROMOTES -exchange of information and education concerning the licensing -supervision and regulation of the residential mortgage industry -to ensure the ability of state mortgage regulators to provide effective mortgage supervision TO local financial markets and to protect the rights of consumers. |
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AML
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"Anti-Money Laundering "
help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing |
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APR
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"Annual Percentage Rate"
is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan |
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ARM
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"Adjustable-Rate Mortgage" A variable-rate mortgage, adjustable-rate mortgage, or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets
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BSA
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Bank Secrecy Act
- in 1970 as the first laws to detect and prevent money laundering |
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CC&R
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Covenants, Conditions and Restrictions
-limitations and rules placed on a group of homes by a builder, developer, neighborhood association and / or homeowner association. |
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CE
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Continuing Education
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CFPB
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Consumer Finance Protection Bureau
-A federal agency established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to enforce new consumer financial laws designed to protect consumers from unfair, deceptive or abusive practices. |
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CFR
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Code of Federal Regulations
-is the codification of the general and permanent rules and regulations -CFR is divided into 50 titles that represent broad areas subject to federal regulation. |
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CHARM
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Consumer Handbook on Adjustable Rate Mortgages
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Four purposes of RESPA
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1. Require effective advance disclosure of costs2. Eliminate kickbacks and referral fees3. Limit amount held in escrow or reserve accounts4. Reform record keeping of land title information
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Whether or not the servicing can be transferred on a loan must be disclosed?
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to the borrowerat the time of application or within three days of the application.
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If the servicing is transferred, notice must be given to the borrower no less than?
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15 daysbefore the effective date of the transfer.
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The notice of servicing transfer must include the following information:
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- Effective date of the transfer
- Toll free or collect number for both the transferring servicer and the new servicer. - Name or department of both companies for contact to answer inquiries - The date on which the old servicer will cease accepting payments - Any information regarding mortgage life or disability insurance - A statement advising the borrower that the terms of their loan will not change |
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The purpose of the aggregate escrow analysis :
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is to reduce the amount being held in escrowor reserve accounts (accounts for taxes and insurance)
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Servicers may hold a cushion UP TO HOW MANY MONTHS
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f two months taxes, insurance, and mortgage insurance as applicable
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PERMISSIBLE COMPENSATION "KICKBACKS OR REFERRALS |
A payment to an attorney for services actually rendered;
A payment by a title company to its agent for services actually performed in the issuance of title insurance; A payment by a lender to its duly appointed agent or contractor for services actually performed in the origination, processing, or funding of a loan; A payment to a cooperative brokerage and referral arrangements between real estate agents and real estate brokers; -Normal promotional and education activities that are not conditioned on the referral of business, and do not involve the defraying of expenses that otherwise would be incurred by a person in a position to refer settlement services; and -An employer’s payment to its own employees for any referral activities. |
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What is a Qualified Mortgage?
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A Qualified Mortgage is a category of loans that have certain, more stable features that help make it more likely that you’ll be able to afford your loan
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