ORIENTATION: Review of Nevada Mortgage Law*

Upon completion of an examination, what is the highest rating an examiner would designate for demonstration of the highest degree of compliance?

1

Jack McCoy is a licensed attorney who is negotiating the terms of a residential mortgage loan on behalf of a client in the regular course of his law practice. Because he is not licensed as a mortgage loan originator, Jack:

May need to obtain a certificate of exemption from the Commissioner

________________ have a fiduciary obligation to clients.

Mortgage companies and mortgage loan originators

Based on the description of April's job responsibilities, including meeting with potential borrowers to help them complete loan applications, she is being hired as a:

Mortgage loan originator

The two types of mortgage licenses available in Nevada are:

Mortgage loan originator and mortgage company

In relation to the provisions of law pertaining to foreclosure rescue and loan modification, a covered service is defined to include all of the following, EXCEPT:

Negotiating mortgage loan termsprote

If Dan decided to accept the full-time position at the bank, he would have needed to do which of the following to engage in mortgage business?

Obtain a unique identifier

An applicant for a mortgage loan originator license must do all of the following, except:

Obtain his/her own surety bond

Which of the following is NOT true regarding a certificate of exemption?

Only mortgage loan originators must apply for a certificate of exemption

In order to obtain a mortgage loan originator license, an applicant must:

Pass a licensing exam

Which of the following is NOT a requirement for a mortgage loan originator's license renewal?

Pass a written exam

What is the term for interest paid to the lender that is in excess of the amount being obtained from the insured depository financial institution?

Premium interest

Which of the following is required prior to the Commissioner issuing a mortgage loan originator license?

Purchase of a minimum surety bond of $50,000 if the agent is a mortgage company

If a mortgage company fails to maintain his/her business records, or to make and file monthly reports with the Commissioner, and fails to remedy the violation within ___ business days after being ordered by the Commissioner to do so, the Commissioner will impose discipline.

20

If a mortgage company fails to maintain its business records, or to make and file monthly reports with the Commissioner, and fails to remedy the violation within ___ business days after being ordered by the Commissioner to do so, the Commissioner will impose discipline.

20

A mortgage loan originator who is grossly negligent in performing an act requiring a mortgage loan originator license will be subject to an administrative fine of up to:

25,000

An individual seeking a mortgage loan originator license in Nevada must complete at least _____ hours of NMLS-approved course instruction.

30

A person can challenge information the Division has relayed to the NMLS by making a written request to the Commissioner, after which the Commissioner will make a final decision within:

30 days

When a mortgage company acts as a substitute trustee in a deed of trust to reconvey title to the trustor, the company must receive a statement from each beneficial owner, which must be executed ____ days before execution of the deed of reconveyance.

45

A surety can cancel a bond by giving ___ days' notice to the Commissioner by certified mail.

60

Nevada law imposes additional penalties for committing certain crimes against vulnerable adults and any person ___ years of age or older.

60

A mortgage loan originator applicant must pass a written test developed and administered by the NMLS with a score of at least:

75%

A licensee must submit to the Commissioner an annual financial statement within ____ days of the last day of the fiscal year.

90

A mortgage loan originator is required to wait _______ to retest after failing a third attempt on a licensing exam.

A minimum of six months

In Nevada, which of the following individuals is exempt from licensing laws?

A mortgage loan originator doing a loan for family members, including parents, grandparents, brothers, and cousins

Which of the following accurately describes Nevada's rule regarding dual capacity?

A mortgage loan originator who is also a real estate licensee may act as both in the same transaction if a dual capacity disclosure is provided

All of the following must be provided prior to a mortgage loan originator's license renewal, except:

List of all loans originated in the previous year

Which of the following statements is appropriate for a mortgage loan originator to make to a property appraiser?

"I look forward to working with you again in the future."

Which of the following statements is appropriate for a mortgage loan originator to make to a property appraiser? The Commissioner may refuse to renew the license of a mortgage loan originator for any of the following reasons, except: Under Nevada law, _______________ is used to indemnify consumers harmed in pursuing a mortgage loan in Nevada. If a mortgage company fails to maintain its business records, or to make and file monthly reports with the Commissioner, and fails to remedy the violation within ___ business days after being ordered by the Commissioner to do so, the Commissioner will impose discipline. The Commissioner is authorized to do all of the following, except: In Nevada, a license to originate is not necessary in any of the following scenarios, except: _____________________ has primary jurisdiction for enforcement of the mortgage laws. A mortgage company in Nevada must have a minimum surety bond of at least: The Commissioner will deny an initial application for a license as a mortgage company if the applicant: According to the Nevada mortgage laws, mortgage loan originators must meet all of the following requirements prior to being licensed, except: Though the Commissioner must give notice and an opportunity for hearing before imposing a disciplinary order on a licensee, he or she can issue ____________________ and take other emergency action necessary to maintain public health, safety or welfare. If a licensee is found to have violated Nevada law, a maximum fine of ___________ per violation may be assessed by the Commissioner of the Division of Mortgage Lending. A pattern of mortgage lending fraud means _______ violation(s) committed in _____ or more mortgage lending transactions, which are interrelated by distinguishing characteristics. In suspending a license, the Commissioner will: A mortgage company does not have to obtain a written appraisal of the real property if it obtains a ______________ from each investor in the mortgage loan. According to Nevada law, if a borrower fails to specify within the requisite timeframe what should be done with excess funds in a trust account: Renewing a mortgage loan originator license is the responsibility of: All but which of the following disclosures of criminal, civil, and financial background information would be considered relevant when a licensing decision is made?

"It won't help your career if people think you can't work with guidelines." Failure to satisfy the continuing education requirement A Mortgage Insurance Premium 30 3 Adopt regulations to enable and carry out the mortgage laws A licensed attorney negotiating on behalf a client as an ordinary representation A mortgage loan originator employed by a federally regulated bank The Commissioner Was convicted of a misdemeanor traffic violation Proof of employment Completion of education requirements A writ of possession A criminal penalty $50,000 Only one; at least five Hold a hearing within 90 days after receiving a request Power of attorney The mortgage company must notify the borrower that he or she has three business days to decide before the funds are claimed by the licensee The mortgage loan originator and the mortgage company A bonding company denying, pay out, or revoking

The Commissioner can fine an unlicensed person who acts as or provides the services of a mortgage company or mortgage loan originator up to:

$50,000 for each violation

A _______ is a person who makes any solicitation, representation, or offer to a homeowner to perform for compensation any act that the person represents will adjust the terms of a mortgage loan in a manner not provided for in the original mortgage loan.

Loan modification consultant

Which of the following is prohibited?

Advertising a loan product with no intent to sell the product as advertised

The Commissioner is authorized to do all of the following, except:

Amend federal mortgage lending laws

Upon finding a violation has been committed, the Commissioner can order any of the following disciplinary actions, except: 1. A mortgage company does not have to obtain a written appraisal of the real property if he/she obtains a ______________ from each investor in the mortgage loan. Though the Commissioner must give notice and an opportunity for a hearing before imposing a disciplinary order on a licensee, he or she can issue a ___________ and take other emergency action necessary to maintain public health, safety, or welfare. Ethan fails to uphold his fiduciary obligation by: A mortgage loan originator applicant must pass a written test developed and administered by the NMLS with a score of at least: ________________ have a fiduciary obligation to clients. An applicant for a mortgage loan originator license must do all of the following, except: Which of the following makes licensing decisions in Nevada? A mortgage loan originator or mortgage company must be covered by a: Jack McCoy is a licensed attorney who is negotiating the terms of a residential mortgage loan on behalf of a client in the regular course of his law practice. Because he is not licensed as a mortgage loan originator, Jack: The Commissioner is authorized to do all of the following, except: Nevada mortgage loan originators are required annually to obtain how many hours of ethics within the continuing education requirement? Mortgage loan originator Izzy Goodenough is taking a loan application from borrower Anita Lone. Anita was recently required to take a 10% wage decrease at her job, so Izzy suggests that Anita submit her older paystubs and smudge the dates on them. Which of the following is true? How many hours of Nevada law are required prior to licensure for a mortgage loan originator?

An order to cease and desist from the violation Power of attorney Writ of possession Refusing to extend credit to the Graingers based on a protected characteristic Charging a fee for his efforts to obtain a loan for the Graingers 85 Mortgage services Pay fees to the Commissioner and NMLS The Director of the CFPB The NMLS Fidelity bond Must have all of the parties to the loan sign a disclosure acknowledging his status Deny, suspend, revoke, or decline to renew a license Conduct investigations to determine whether violations have occurred Adopt regulations to enable and carry out the mortgage laws Five Three Anita would bear sole responsibility for the misleading information, because she is the one providing itIzzy's conduct would be prohibited only if he instructed Anita to submit the misleading paystubs, instead of just suggesting it Three

The Commissioner can impose an administrative fine of up to $25,000 against a licensed mortgage loan originator, or suspend or revoke a loan originator's license for any of the following conduct, except:

Asking an appraiser to correct clerical errors found in an appraisal

The Commissioner can impose an administrative fine of up to $25,000 against a licensed mortgage loan originator, or suspend or revoke a loan originator's license, for any of the following conduct, except:

Asking an appraiser to correct clerical errors found in an appraisal

A mortgage company must report any material change in its control persons to the Commissioner:

At least 30 days before the change

Based on the description of Floyd's job responsibilities, including answering phones and taking care of clerical tasks, he is being hired as a:

Loan processor or underwriter

Whose license(s) must be displayed in the Double E Home Loans office?

Both Edmund's and Ethan's

When applying for a license, a mortgage company applicant must file a(n) ________ Form, and a mortgage loan originator applicant must file a(n) ________ Form.

Company; Individual

The Commissioner must consider all of the following with regard to a licensee's financial responsibility, except:

Completion of pre-licensing education

Ethan fails to uphold his fiduciary obligation by:

Conducting a mortgage transaction not in the Graingers' best interest

Under Nevada law, the Commissioner has the authority to do all but which of the following?

Decide on jail terms for violations of the law

The Commissioner can impose an administrative fine of up to $25,000 against a licensed company, or up to $10,000 against a mortgage banker, or can suspend or revoke a loan originator's license, for any of the following conduct, except:

Depositing investor funds in an escrow account

The Commissioner can impose an administrative fine of up to $25,000 against a licensed mortgage company, or can suspend or revoke a loan originator's license, for any of the following conduct, except:

Depositing investor funds in an escrow account

Doug is not permitted to assist the client in completing a loan application because:

Doug is not a licensed mortgage loan originator

A mortgage company's license may be revoked:

For withholding information on a license renewal application

In terms of disclosing personal relationships, a relative would NOT include a:

Friend

The Commissioner will deny an initial application for a license as a mortgage company if the applicant is a natural person who:

Has failed to pay child support

A mortgage loan originator is permitted to use an advertisement that resembles a check:

If the advertisement prominently includes the phrase "THIS IS NOT A CHECK" or similar and does not create the appearance that the check is real

A pattern of mortgage lending fraud is punishable by:

Imprisonment for up to 20 years, a fine of up to $50,000, or both

Each business must operate under a single license

In order for a mortgage company to share office space with an affiliated real estate business, all of the following must be true, EXCEPT:

When licensee Bea Holden's license was suspended, her colleague Misty Meanor allowed Bea to use her license number in order to finish an open mortgage loan transaction. This:

Is considered prohibited conduct for both Bea and Misty

In a published advertisement, licensee Emma Connor described a loan product, but failed to mention an income requirement which she knew would probably disqualify many applicants. Her intent was to then offer them a different loan later. Emma's conduct: Which of the following is prohibited? Which of the following is not considered a prohibited act under Nevada's mortgage laws? If a mortgage company fails to maintain his/her business records, or to make and file monthly reports with the Commissioner, and fails to remedy the violation within ___ business days after being ordered by the Commissioner to do so, the Commissioner will impose discipline. When licensee Bea Holden's license was suspended, her colleague Misty Meanor allowed Bea to use her license number in order to finish an open mortgage loan transaction. This: The Commissioner can fine an unlicensed person who acts as or provides the services of a mortgage company or mortgage loan originator up to: Which of the following is not considered a prohibited act under Nevada's mortgage laws?

Is not prohibited, as long as she ultimately finds a loan for the applicantIs not prohibited, since the fact she neglected to mention in the ad is minorIs not prohibited, since the ad contained no false statements Originating a loan for someone other than an immediate family member Obtaining a license through fraud or misrepresentationEngaging in misleading or deceptive advertisingEarning commission or fees from an unlicensed mortgage company 30 3 Is considered prohibited conduct for Bea Is legitimate conduct among colleaguesIs considered prohibited conduct for Misty An aggregate of $50,000 Obtaining a license through fraud or misrepresentation

A mortgage company or mortgage loan originator cannot execute a power of attorney for a private investor unless, among other things, all of the following are true, except:

It allows a licensee to subordinate the priority of a recorded deed of trust

A major violation is one defined by which of the following elements?

It causes substantial loss or harm to any person

The Commissioner has the authority to do all of the following, EXCEPT:

Revoke an individual's license in another state

If the Commissioner determines, after conducting an investigation following a complaint, that there is reasonable cause to believe that a person committed an alleged violation, the Commissioner will:

Schedule a hearing

In accordance with the Nevada mortgage law, mortgage companies are required to:

Supervise the activities of loan originators they employ

A mortgage loan originator or mortgage company must be covered by a:

Surety bond

For a major violation, the Commissioner will:

Suspend or revoke a person's license

Which of the following makes licensing decisions in Nevada?

The Commissioner of the Division of Mortgage Lending

According to Nevada law, if a borrower fails to specify within the requisite time frame what should be done with excess funds in a trust account:

The mortgage company must maintain the excess money in the trust account

According to the Nevada mortgage law, an applicant for a mortgage loan originator license must show proof of experience:

There is no required experience for a mortgage loan originator

Mortgage company licensee Stan Dardlow signs escrow instructions for his client as attorney-in-fact. The instructions direct that funds be paid to the account of Stan's office manager, who is a licensed escrow agent.

This is prohibited conduct, because the Commissioner will not consider the instructions to have been approved by the parties

A mortgage loan originator, under Nevada law, is required to complete ____ hour(s) of federal law as part of annual continuing education.

Three

According to federal law, creditors must notify loan applicants within ________ of receiving an application of their right to receive an appraisal.

Three business days

Nevada mortgage loan originators are required annually to obtain how many hours of ethics within the continuing education requirement?

Two

A qualified employee must have at least:

Two years of verifiable experience in real estate, mortgage, or similar

A __________ is a number or other identifier assigned by the NMLS.

Unique identifier

A mortgage loan originator is prohibited from:

Using bait and switch advertising

Advertising a loan product with no intent to sell the product as advertised

Which of the following is prohibited?

A mortgage company does not have to obtain a written appraisal of the real property if it obtains a ______________ from each investor in the mortgage loan.

Written waiver