Model State Law

Front 1

Administrative or Clerical Tasks

Back 1

The receipt, collection, and distribution of information common for the processing or underwriting of a loan in the mortgage industry and communication with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan [Reg H].

Hint 1

Individuals who are engaged only in administrative or clerical tasks are exempt from licensing.

Front 2

American Association or Residential Mortgage Regulators (AARMR)

Back 2

The na tional association of executives and employees of thw various states who are charged with the responsibility for administration and regulation if residential mortgage lending, servicing, and brokering, and dedicated to the goals described at www.aarmr.org. [Reg H]

Hint 2

The AARMR plays an important role in recommending state laws regulating the mortgage business.

Front 3

Application

Back 3

A request, in any form, for an offer (or a response to a solicitation of an offer) of residential mortgage loan terms, and the information about the borrower or prospective borrower that is customary or necessary in a decision on whether to make such an offer. [Reg H]

Hint 3

With some exceptions, people who take loan applications need to be either licensed or registered through the NMLS.

Front 4

Clerical or support duties

Back 4

The receipt, collection, distribution, analysis and communication of information common for the processing or underwriting of a residential mortgage loan, to the extent that Such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

Hint 4

Individuals who provide only clerical or support duties are exempt from the definition of a mortgage loan originator and are therefore exempt from licensing or registration requirements.

Front 5

Conference of State Bank Supervisors

Back 5

The national organization composed of atate bank supervisors dedicated to maintaining the state banking system and state regulation of financial services in accordance with the CSBS statement of principles described at www.csba.org. [Reg H]

Hint 5

The CSBS plays an important role in suggesting legislation to the states. It wrote the Model State Law upon which Uniform State Test is based, for instance.

Front 6

Depository Institutions

Back 6

Has the same meaning as in section 3 of the Federal Deposit Insurance Act, and includes any credit union. [MSL]

Hint 6

Depository Institutions are exempt from licensing requirements

Front 7

Federal Banking Agencies

Back 7

The board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Cresit Union Administration, and the Federal Deposit Insurance Corporation.[MSL]

Hint 7

These are the agencies that regulate federally-chartered depository institutions. In some Federal laws it is also part of the definition of depository institutions.

Front 8

Imediate Family member

Back 8

A spouse, child, sibling, parent, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.[MSL]

Hint 8

One of the exemptions from licensing involves those who originate mortgage loans for "immediate family members."

Front 9

Individual

Back 9

A natural person [MSL].

Hint 9

In conversation, the terms "persons" and "individuals" are used interchangeable.

Front 10

Loan Processor or Underwriter

Back 10

Means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing .

Hint 10

Involves ensuring that all the required documentation is obtained and presented in the correct stacking order, while underwriting is involved in analyzing the data and the various ratios to determine whether to recommend to the lender that the loan be approved or not.

Front 11

Mortgage Loan Originator

Back 11

Means an individual who for compensation or gain in the exception of compensation or gain- takes a residential mortgage loan application; or offers or negotiates terms of a residential mortgage loan.

Hint 11

Thos who meet this definition must be either licensed or registered with the NMLS.