Uniform State Content Quiz 4

A State-licensed loan originator has to retake the test if they fail to maintain a valid license for: - 5 years - 3 years - 2 years - 1 year

A licensed MLO has to retake the test if they don't maintain a valid license for 5 or more years. 5 years

AARMR is the national association of executives and employees of the various states who are charged with the responsibility for administration and regulation of residential mortgage lending, servicing, and brokering, and dedicated to the goals described at www.aarmr.org. What does AARMR stand for? - American Association of Residential Mortgage Regulators - American Association of Real Estate Mortgage Regulators - American Academy of Residential Mortgage Regulators - American Association of Registered Mortgage Regulators

AARMR stands for American Association of Residential Mortgage Regulators. American Association of Residential Mortgage Regulators

MLO Sonya customer purposely does NOT tell her that he just co-signed his nephew's auto loan. The credit report shows neither that loan nor a credit inquiry, and so that debt is not considered when the lender pre-approves him for a larger mortgage than he really should have. Do you think Sonya did anything wrong? - Yes, she committed actual fraud - Yes, she committed constructive fraud - Yes, she colluded with her customer - No, she can't be held responsible for her borrower withholding information

An MLO cannot be held responsible if a client withholds material information but the MLO should look for credit inquiries which may raise a red flag. No, she can't be held responsible for her borrower withholding information

Which of the following is not a correct statement in regards to continuing education for a state- licensed loan originator. - Three hours of Federal law and regulations are required - A state-licensed loan originator may take the same approved course in the same or successive years to meet the annual requirements for continuing education. - MLOs must complete 8 hours of NMLS approved education - Two hours of ethics including instruction on fraud, consumer protection and fair lending issues are required.

An MLO cannot take the same course in to satisfy CE in the same or successive year, this is called the Successive Year Rule. A state-licensed loan originator may take the same approved course in the same or successive years to meet the annual requirements for continuing education.

Under the SAFE Act, a mortgage loan originator is an individual who: - only performs real estate brokerage activities and is licensed or registered in accordance with State law. - Does not need to Submit fingerprints to the NMLS for an FBI state and national criminal history background check. - Is not required to renew their license after it has expired. - takes residential mortgage applications and offers and negotiates terms for compensation.

An MLO takes for compensation or gain mortgage applications, they also negotiate terms of a transaction for compensation. takes residential mortgage applications and offers and negotiates terms for compensation.

How long is the waiting period to take the test again after failing 3 consecutive times? - 1 year - 6 months - 4 months - 3 months

An applicant can take the test 3 times 30 days a part, if they fail all 3 times they have to wait 6 months to challenge the test again. 6 months

If an applicant does not initially pass a test, they may retake the test after waiting at least 30 days. How many times may an individual retake a test before having to wait longer than 30 days? - Once - 6 times - 3 times - 4 times per year

An applicant can take the test 3 times 30 days a part, if they fail all 3 times, they have to wait 6 months to challenge the test again. 3 times

Which of the following would make an applicant ineligible for their MLO license? - If the applicant fails the national exam twice. - If the applicant has completed national and state requirements - If the applicant has plead guilty to a misdemeanor. - If the applicant has plead guilty or no contest to, a felony in a domestic, foreign, or military court in the seven years prior to their application for a license.

Felonies of any kind in the past 7 years automatically disqualify someone from licensure. If the applicant has plead guilty or no contest to, a felony in a domestic, foreign, or military court in the seven years prior to their application for a license.

Which one of the following is not required to be licensed? - Any Mortgage Lender making less than five mortgage loans within any 12 consecutive months - Any person who acts as a Mortgage Broker less than 5 times within any 2 consecutive months - Independent loan processor contractors who engage in loan origination activities - An individual negotiating a residential mortgage loan with or on behalf of an immediate family member

If an individual is negotiating their own refinance or purchase or helping a family member do those things then they are not required to be licensed. Every other option is required to be licensed as they are performing MLO activities. An individual negotiating a residential mortgage loan with or on behalf of an immediate family member

Who does Not need to be licensed in the mortgage industry? - An independent contractor who acts as a loan processor or underwriter for residential real estate. - Anyone who engages in the business of a loan originator will need to be licensed. - An individual who negotiates terms of a residential mortgage loan for compensation or gain. - processors, underwriters, and assistants who are not involved in offering or negotiating loans.

Processors, underwriters, and assistants who are not independent contractors are not required to be licensed as MLOs. processors, underwriters, and assistants who are not involved in offering or negotiating loans.

What law requires the term equal housing lender to be used in any advertisement that is broadcast over the airwaves? - HMDA - FHA - FCRA - ECOA

The Fair Housing Act requires that the Equal Housing Opportunity logo be displayed in all printed material and the term equal housing lender must be used when broadcast over the airwaves. FHA

If a loan originator violates or fails to comply with requirements in a temporary cease and desist order, the Regulator may impose a civil penalty of up to how much? - $10,000 - $15,000 - $25,000 - $30,000

The maximum penalty under the SAFE Act is $25,000. $25,000

What percentage of correct answers to questions must be achieved in order to have passed a qualified written test? - 65% - 75% - 80% - 90%

The minimum passing score for the National Test is 75%. 75%

Applicants may retake the exam a total of three (3) times with each retake occurring at least how long after the preceding exam? - thirty (30) days - fifteen (15) days - five (5) days - 180 days

thirty (30) days

Any activity that involves offering or providing real estate brokerage services to the public," could be used to define what activity? - Loan originating activity - Real estate brokerage activity - Loan processing activity - Property appraisal activity

"Any activity that involves offering or providing real estate brokerage services to the public," is part of real estate brokerage activity. Real estate brokerage activity

A state-licensed loan originator may only receive credit for a continuing education course if______. - The CE course is a minimum of 20 hours - The CE course is a minimum of 15 hours. - The CE course is completed within 5 years - The CE course is completed in the year it was taken.

CE only counts in the year that it is taken and the MLO cannot take the same course in to satisfy CE in the same or successive year. The CE course is completed in the year it was taken.

Which of the following are NOT specifically listed as courses required for continuing education? - 3 hours of federal laws training - 2 hours of ethics - 2 hours of nontraditional mortgage product training - 1 hours of NMLSR history training

Continuing education must include 3 hours of federal law, 2 hours of ethics, 2 hours on nontraditional mortgage products, and 1 hour of electives content. 1 hour of NMLSR history training

Under state law, the state licensing agency has the authority to conduct investigations of any loan originator that is licensed or required to be licensed. No person who is being examined or investigated may knowingly withhold information. This includes all of the following except: - being "gone" during an examination. - removing information. - mutilating or destroying information. - secreting any books or records (including computer records).

Removing information, mutilating or destroying information or secreting any books or records is knowingly withholding information. If an individual is gone during an examination that is not necessarily withholding information, the examiner can always come back at a later date or have a conversation over the phone with that individual. being "gone" during an examination.

The Regulatory Authority may do all of the following if an applicant fails to meet requirements for receiving a license except: - Deny a license or Decline to renew a license - Revoke a license - Charge higher fees for licensure - Suspend a license

The Regulatory Authority has the ability to do something to a licensee's license, including denying, suspending or revoking a license. They cannot require that the individual pay higher fees for maintaining their license just because they are in trouble. Charge higher fees for licensure

In order to meet the annual continuing education requirements, at least how many hours of approved education are required? - 4 hours - 6 hours - 8 hours - 20 hours

The SAFE Act requires 8 hours of continuing education for all MLOs yearly. This is in addition to paying an application fees and ensuring that they maintain the minimum standards for licensure. 8 Hrs

In general, there are two minimum standards for license renewal for State-licensed loan originators. The first is that the loan originator continued to meet the minimum standards for license issuance. What is the other minimum requirement? - To obtain recognition for outstanding practices - To satisfy annual continuing education requirements - To join a group, such as the NAMB or MBAA and maintain good standing - To reduce personal debt and increase personal assets

The SAFE Act requires 8 hours of continuing education for all MLOs yearly. This is in addition to paying an application fees and ensuring that they maintain the minimum standards for licensure. To satisfy annual continuing education requirements

The Regulatory Authority may appoint an examiner to work on behalf of the Regulator in making examinations of loan originator operations. What responsibilities do these examiners typically have? - Examiners may administer oaths and affirmations, make examinations and examination reports. - Examiners have the responsibility of paying assessments to the Secretary in conjunction with carrying out examinations. - Examiners have legal authority to summon loan originators to be present for court appointments. - Examiners have the authority to instigate a cease and desist proceeding if the Secretary is found improperly usurping his or her authority.

The assigned examiners are allowed to act in some capacity like the Regulator this includes making examinations and examination reports and gathering the information for those reports by administering oaths and affirmations for testimony related to the examination. They do not have any legal authority outside of the examination. Examiners may administer oaths and affirmations, make examinations and examination reports.

A unique identifier assigned to each loan originator is used for all of the following reasons EXCEPT: - to facilitate electronic tracking and uniform identification of loan originators. - to allow public access to loan originator licensing information. - to provide personal loan originator information to the general public. - to access information related to the employment history of and the publicly adjudicated disciplinary and enforcement actions against loan originators..

The unique identifier is used to identify specific MLOs. Each one is unique and assigned to an individual MLO. It can be used by the consumer to look up information about an MLOs licensing, public disciplinary action or enforcement actions and employment on NMLS Consumer Access, it also can be used to track the loans that an MLO originates. to provide personal loan originator information to the general public.

MLO Arnold is meeting with a potential borrower. What may Arnold never ask about during the loan application process? - The borrower's marital status - The borrower's sex - The borrower's national origin - The borrower's religion

To be in compliance, Arnold should never ask about a potential borrower's religious affiliation. HMDA requires that an MLO ask the borrower's race, ethnicity and sex as part of government monitoring, the borrower has the right to refuse to disclose that information. Marital status can also be asked about in certain situations. The borrower's religion

Which of these situations would NOT violate ECOA? - Your customer's income information includes public assistance and you ask the borrower if they are sure they want to use it as it won't look good to the underwriter - Your very pregnant customer is sitting at your desk filling out paperwork and you ask the borrower if they think this will be their last child - Your customer's last name looks to be of Asian decent and you ask your borrower, is your name Korean? - While looking at your customer's paystubs you see that there is an automatic payment being made for child support and you ask your borrower if they pay monthly child support

You would not be in violation of ECOA for asking a question that is on the loan application. The other questions, even if asked out of politeness or curiosity, would violate ECOA. While looking at your customer's paystubs you see that there is an automatic payment being made for child support and you ask your borrower if they pay monthly child support