Uniform State Content

The State Regulatory Authority may impose penalties for each violation up to, and not exceeding:

$25,000

Applicants may retake the exam a total of three (3) times with each retake attempt occurring at least how long after the preceding exam?

30 days

What is the minimum passing score of the National Test?

75%

The SAFE Act is the

Secure and Fair Enforcement Act for Mortgage Licensing Act of 2008, known for short as Secure and Fair Enforcement.

Which of the following would NOT be considered a Federal Banking Agency? -Comptroller of the Currency -Board of Governors of the Federal Reserve System -Federal Bureau of Investigation -National Credit Union Administration

The FBI is a federal law enforcement agency.

All of the following are considered a Federal Banking Agency EXCEPT: -The Board of Governors of the Federal Reserve System. -The Comptroller of the Currency. -The FDIC. -The NMLS.

The NMLS

When was the Housing and Economic Recovery Act signed into law?

-2008 The Housing and Economic Recovery Act of 2008 was designed primarily to address the subprime mortgage crisis and was passed in 2008.

In order to renew your license, you must annually complete which of the minimum requirements pertaining to Continuing Education: -3 hours of Federal Law, 2 hours of Ethics, 2 hours of non-traditional and 1 Elective -2 hours of Federal Law, 2 hours of Ethics, 2 hours of non-traditional and 2 Electives -3 hours of Federal Law, 2 hours of Ethics, 1 hours of non-traditional and 2 Electives -2 hours of Federal Law, 3 hours of Ethics, 2 hours of non-traditional and 1 Elective

-3 hours of Federal Law, 2 hours of Ethics, 2 hours of non-traditional and 1 Elective The SAFE Act requires a minimum of 8 hours of continuing education yearly, these 8 hours must include 3 hours of federal law, 2 hours of ethics, 2 hours of non-traditional and 1 hour of elective content. States can add to this requirement as they see fit.

After failing three (3) exams, an applicant must wait how long before taking the exam again?

-6 months The SAFE Act allows an applicant to take the National Test 3 times 30 days a part. After the third failure, the applicant must wait 6 months to challenge the exam again.

Which of the following is NOT true of a loan originator? -A loan originator takes a residential mortgage loan application. -A loan originator performs purely administrative tasks. -A loan originator offers or negotiates terms of a residential mortgage loan for compensation or gain. -A loan originator assists in the financing of real property.

-A loan originator performs purely administrative tasks. A loan originator does not only do administrative tasks; they are licensed because they discuss loans and terms of a mortgage transaction. Processors and underwriters perform purely administrative tasks.

A Mortgage Banker is: -A person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans with its own funds in the primary market for consideration. -A person who engages in the mortgage loan business by directly or indirectly negotiating or placing mortgage loans for others in the primary market for consideration. -A person who only performs real estate brokerage activities unless the person is compensated by a lender, a mortgage broker, or other loan originator, -A contract MLO who works outside of the office and is not sponsored.

-A person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans with its own funds in the primary market for consideration. A mortgage banker, also known as a mortgage lender, funds and closes their own loans with their own funds.

To hold an active license, an MLO must: -Be sponsored by a licensed entity -Pay a $500 fee -Also be licensed as a broker -Complete 60 hours of pre-licensing education

-Be sponsored by a licensed entity To hold an active license, an MLO is required to be sponsored by a licensed entity who supervises them.

Which of the following is considered an interpretation of a Statute? -Statute -Rule -Bill -Legislator

-Rule A rule is an interpretation of a law or statute that can help clarify the requirements of the statute.

Which of the following is NOT true of a unique identifier? -A unique identifier is a number -A unique identifier is assigned by protocols established by the NMLSR. -A unique identifier allows for the electronic tracking of loan originators for the sole use of Federal banking agencies. -A unique identifier can be used to access employment history of and the publicly adjudicated disciplinary and enforcement actions against loan originators.

-A unique identifier allows for the electronic tracking of loan originators for the sole use of Federal banking agencies. A unique identifier is a number assigned to each MLO, it is assigned by the NMLS and can be used for tracking an MLOs licenses, it can also help a consumer look up an MLO in Consumer Access. The unique identifier is not used solely for tracking an MLOs activities, though it can be used in that way because it appears on all loan applications.

An example of prohibited conduct is: -Having the license number and NMLS number on advertising -Accepting fees from a consumer in the Loan Originator's own name. -Accepting fees in the name of the Loan Originator's employer. -Accepting fees payable to 3rd party providers.

-Accepting fees from a consumer in the Loan Originator's own name. An MLO cannot collect fees in their own name, they only collect fees in the name of the lender or broker that they work for.

Which of the following could be classified as real estate brokerage activity? -Providing privacy and anonymity between parties interested in purchasing, selling or leasing property. -Working with an un-licensed person when the law requires that person to be registered or licensed. -Negotiating financing terms on behalf of any party relating to the sale of property. -Acting as a real estate agent or real estate broker for a buyer of a real property.

-Acting as a real estate agent or real estate broker for a buyer of a real property. A real estate agent helps a buyer find a property or seller sell a property.

All the following would be considered to be performing clerical or support duties EXCEPT: -A loan processor -An underwriter -An MLO -An appraiser

-An MLO Loan processors, underwriters and appraisers are not required to be licensed as MLOs as long as they only complete clerical or support duties. Appraisers do have to be licensed in their state to be an appraiser.

Which of the following is true about reinstatement? -The MLO can continue to act as an MLO while awaiting reinstatement -The MLO can continue to act as an MLO while awaiting reinstatement -MLOs cannot make up a CE deficiency during reinstatement -An MLO cannot act as an MLO while awaiting reinstatement

-An MLO cannot act as an MLO while awaiting reinstatement During reinstatement, an MLO is unlicensed and therefore cannot act as an MLO until their license is reinstated.

A Mortgage Lender shall maintain capital of not less than $______ per licensed location: -$100,000 -$200,000 -$300,000 -An amount determined by the state Regulatory Authority that reflects the dollar amount of loans originated

-An amount determined by the state Regulatory Authority that reflects the dollar amount of loans originated Surety Bond and Net Worth requirements are outlined by the state regulatory authority at their discretion. The SAFE Act does not outline a minimum requirement.

A state-licensed loan originator means any individual who is all of the following EXCEPT: -A loan originator. -An employee of a depository institution. -Not an emplooyee of a subsidiary that is regulated by the Farm Credit Administration. -Licensed by a state as a loan originator with a unique identifier from the NMLSR.

-An employee of a depository institution. An MLO who works for a depository institution is called a registered MLO not a state-licensed or licensed MLO.

Out of the following options, who will need an MLO license? -Underwriters not involved in offering or negotiating loans -Processors not involved in offering or negotiating loans -An individual working for a mortgage company who is not performing origination activity -An independent contractor who acts as a loan processor or underwriter for residential real estate.

-An independent contractor who acts as a loan processor or underwriter for residential real estate. An independent contractor processor or underwriter is required to be licensed as an MLO.

Which of the following is required to be licensed? -An individual who negotiates a loan that serves as the individual's residence -A staff loan processor or underwriter (Not Contracted) -Any person solely involved in timeshare plans. -An individual who negotiates a mortgage loan for another for compensation

-An individual who negotiates a mortgage loan for another for compensation An MLO is required to be licensed, an MLO negotiates rates and terms on a loan for compensation. There are exemptions like non-independent contractor processors and underwriters, people who deal with timeshares and someone refinancing their own home.

A loan originator is: -A person who only performs real estate brokerage activities and is not compensated by a lender, a mortgage broker, or other loan originator. -A person or entity solely involved in extensions of credit relating to timeshare plans. -An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain. -A person who only handles clerical or data entry functions.

-An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain. A mortgage loan originator or MLO is an individual who for compensation or gain or in the expectation of compensation or gain; takes a residential mortgage loan application; or offers or negotiates terms of a residential mortgage loan.

An individual is looking to obtain a mortgage loan originator license, should be aware that they cannot obtain a licensee if which of the following appears on their credit report: -A medical collection -A foreclosure from 10 years -A bankruptcy -An open tax lien

-An open tax lien An applicant is required to show financial responsibility. Things that can call into question an applicant's financial responsibility include current outstanding judgments (except medical ones), current outstanding tax liens, foreclosures within the past 3 years, and a pattern of seriously delinquent accounts in the past 3 years.

The NMLS is responsible for all the following EXCEPT: -Assigning the unique identifier -Collecting licensing fees -Housing licensing information like the education record -Approving or denying license applications

-Approving or denying license applications The NMLS is a licensing database that helps the states communicate with licensees and applicants. They do not deny or approve a license application, the individual states regulatory authorities do that. They do collect things like licensing fees and house a licensee's education record. They also assign the licensees unique identifier (NMLS ID#).

The penalties issued by the State Regulatory Authority are levy ____ penalties on mortgage loan originators. -Civil -Criminal -Contractual -Continual

-Civil State regulatory authorities can levy civil penalties. They can also refer an individual or licensee to the Attorney General in their state for criminal prosecution, but they themselves do not levy criminal penalties.

A person operating without a license is subject to: -Imprisonment -Civil money penalties -Criminal court proceedings -NMLS disciplinary actions

-Civil money penalties Under the SAFE Act, a licensee is subject to civil penalties for all prohibits acts including unlicensed activities. There can be additional penalties per state law for unlicensed activities.

Which of the following are powers/duties of State Regulatory Authorities? -Arrest and imprison -Conduct examinations of licensee's books and records -Prevent a licensee from taking Continuing Education classes -Create new laws regulating mortgage professionals in their state

-Conduct examinations of licensee's books and records State regulatory authority has a broad responsibility to protect the consumers in that state, this includes things like conducting examinations of a borrower's books and records. They do not have the authority to arrest or imprison a licensee for a violation or prevent a licensee from taking a continuing education class. They also can only enforce the law, they do not create it.

A loan originator who applies to be licensed again after expiration must complete: -Continuing Education in the last year in which they were licensed -Pre-Licensing -The same course used the previous year -Both Pre-Licensing and Continuing Education combined

-Continuing Education in the last year in which they were licensed If an MLO becomes unlicensed and they wish to re-enter the industry they are required to prove that they have or take continuing education for the last year in which they held a license.

The Unique Identifier, issued by NMLS, of any person originating a residential mortgage loan shall be clearly shown on all of the following except: -Emails. -Advertisements. -Business cards. -Websites.

-Emails The MLOs unique identifier must be included on all advertisements and the loan application.

Under the following circumstances, which of the following would still allow an applicant eligibility for a MLO license? -If the applicant pled 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. -If the applicants license was revoked anywhere in the country. you can no longer get a license in any other state. The only exception to this rule is if the revocation was formally vacated. -Expunged or pardoned convictions -If an applicant has a felony regarding fraud, or theft.

-Expunged or pardoned convictions Convictions that are pardoned or expunged are not considered crimes.

What information must an applicant furnish to the NMLSR in order to verify their identity? -Just Fingerprints -Only a personal history and experience -Simply an authorization for the System to obtain a credit report -Fingerprints, a personal history and experience and an authorization for the System to obtain a credit report

-Fingerprints, a personal history and experience and an authorization for the System to obtain a credit report Fingerprints, their personal experience and history as well as authorization for a credit report are required pieces of the application process.

Harvey left the mortgage industry for 7 years, he decided to become a real estate agent. The market is now booming and Harvey wants to pick up his MLO license again, which of the following is true? -He has to retake his pre-licensing education -He has to retake the National Test -He has to take 7 years of continuing education -He has to provide additional surety bond information

-He has to retake the National Test If an MLO leaves the business for more than five (5) years, they have to retake the exam. This requirement does not apply to MLOs, who go from being a licensed MLO to a registered MLO.

Pre-Licensing Education expires: -In 3 years if the applicant fails to acquire a valid state license or federal registration as a mortgage loan originator within three (3) years from the date of taking the 20 hours -In 5 years if the licensee becomes inactive -In 10 years -In 2 years if the applicant becomes a registered MLO

-In 3 years if the applicant fails to acquire a valid state license or federal registration as a mortgage loan originator within three (3) years from the date of taking the 20 hours Per the policy, an individual who completed twenty (20) hours of Pre- Licensure education must retake twenty (20) hours of pre-licensure education to be eligible for a license if they fail to acquire a valid state license or federal registration as a mortgage loan originator within three (3) years from the date of taking the 20 hours; or fail to acquire a valid state license or federal registration as a mortgage loan originator within three (3) years from the last date of licensure or registration as a mortgage loan originator or are licensed in a state where the 20-hour course has to be retaken if the MLO has not taken it in the last three years.

Which of the following are NOT powers/duties of the Regulatory Authority? -Conduct Investigations -Issue Warrants -Conduct examinations of licensee's books and records -Issue Fees and Penalties

-Issue Warrants State Regulatory Authorities have the right to levy civil and administrative penalties but have no powers to levy criminal penalties, including things like issuing warrants and filing criminal charges. They can pass along information to the Attorney General who does have the power to do those things.

The Regulatory Authority may do any of the following if an applicant fails to meet requirements for receiving a license except: -Deny a license. -Issue a license. -Suspend a license. -Revoke a license.

-Issue a license. If the applicant does not meet all the requirements for licensure then the Regulatory Authority cannot legally issue a license.

The SAFE Mortgage Licensing Act is designed to do all of the following EXCEPT: -Increase integrity in the residential mortgage loan market. -Enhance consumer protections. -Reduce fraud. -License all Mortgage Loan Originators.

-License all Mortgage Loan Originators. The SAFE Act outlined the licensing requirements for MLOs. Each state is responsible for licensing MLOs in their state under those requirements.

The SAFE Act outlines all of the following EXCEPT: -Pre-licensing education requirements -Testing requirements -Continuing education requirements -Loan Originator Compensation requirements

-Loan Originator Compensation requirements LO Comp is a rule under Reg Z.

Provide the term for the following definition: "an individual who performs clerical or support duties at the direction of and subject to the supervision and instruction of a state-licensed loan originator or a registered loan originator." -Loan Processor -Real Estate Broker -Mortgage Loan Originator -Independent Contractor

-Loan Processor A loan processor performs only clerical or support duties.

Once a loan is originated by the mortgage broker or loan officer, the corresponding paperwork is sent along to a: -Broker -Mortgage Loan Originator -Loan Processor -Mortgage Lender

-Loan processor A loan processor is the individual in the transaction that collects more data after application. The loan processor will do things like collect verifications like VODs, VOEs and VOMs. They also order third party services like appraisals and title work. They collect all this information to have the most complete file for the underwriter and to provide the underwriter with additional things if they ask.

All of the following must be deposited into trust accounts EXCEPT: -Application Fees -Rate-lock Commitment Fees -MLO Commission Checks -Prepaid Attorney Charges

-MLO Commission Checks Any fees paid in advance of closing by the borrower must be paid to an escrow or trust account. MLO's are paid their commission by their employer just like a regular paycheck, the borrower does not pay the MLO's commission, their employer does.

All of the following would call into question an applicant's financial responsibility except: -Medical collection -An open judgement -A tax lien -A foreclosure 2 years ago

-Medical collection Medical collections or judgements are not considered in relation to financial responsibility.

A depository institution is a financial institution in the United States that is legally allowed to accept monetary deposits from consumers. What institution is not approved for deposits under federal law? -Credit Unions -Commercial Banks -Mortgage Broker -Pay Day Lender

-Mortgage Broker A Mortgage Broker is not a depository institution; they cannot accept monetary deposits

Give the job title for the following definition: One who "assists a consumer in obtaining or applying to obtain a residential mortgage loan." -Loan Processor or Underwriter -Real Estate Broker -Mortgage Loan Originator -Independent Contractor

-Mortgage Loan Originator An MLO is generally responsible for helping a borrower find and apply for a mortgage loan.

The Regulatory Authority may do all of the following except: -Establish licensing rules and regulations. -Issue, revoke, deny, suspend, and condition licenses. -Audit, investigate, and conduct enforcement actions necessary to carrying out the SAFE Act Audit, investigate, and conduct enforcement actions necessary to carry out the SAFE Act. -Pass legislature to make things safer for the consumers in their state.

-Pass legislature to make things safer for the consumers in their state. State Regulatory Authorities cannot pass laws; they are not the state legislature. They can issue rules to enforce the laws.

The Regulatory Authority shall have free and reasonable access to all of the following except: -Books and Records. -Records, hard copy, and electronic files. -Personal credit report. -Personal checking account information.

-Personal checking account information. Regulatory authorities will not have access to a licensees personal checking account information. Licensees are required to give access to all books, accounts and records and submit to criminal background and credit report checks.

Background checks performed by the State Regulatory Authority cannot include: -fingerprints. -state, national, and international criminal history. -Personal history and experience. -Personal checking account information.

-Personal checking account information. The regulatory authority does not look at a borrower's personal finances aside from what appears on their credit report.

The Nationwide Mortgage Licensing System and Registry accomplishes all of the following except: -Provides uniform license applications and reporting requirements for State-licensed loan originators. -Provides a comprehensive licensing and supervisory database as well as provides increased accountability and tracking of loan originators. -Enhances consumer protections and supports anti-fraud measures including the collection and disbursement of consumer complaints on behalf of State and Federal mortgage regulators. -Provides tracking of the number of loans each mortgage loan originator writes, including loan amounts and types.

-Provides tracking of the number of loans each mortgage loan originator writes, including loan amounts and types. The NMLS tracks licensing and enforcement data but does not track an MLOs loan production.

Which of the following would NOT be considered an administrative or clerical task? -Receiving borrower information -Processing loan applications -Distributing information for processing or underwriting a loan -Putting together 3 loan options for a borrower and discussing those options including discussing payments and terms of the loan

-Putting together 3 loan options for a borrower and discussing those options including discussing payments and terms of the loan This is something only an MLO can do and would not be considered a clerical or support duty.

The SAFE Act is designed to do all of the following except: -Reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators. -Establish and maintain a nationwide mortgage licensing system and registry -Reduce fraud by creating an enforcement agency that prosecutes unethical activity -Provide consumers with easily accessible information, offered at no charge, through electronic media, including the Internet

-Reduce fraud by creating an enforcement agency that prosecutes unethical activity The SAFE Act implemented the NMLS and standardized minimum requirements for licensure for MLOs over all 50 states. This would help increase the integrity of the industry as a whole, enhance consumer protection and reduce fraud by limiting who can and cannot be an MLO.

The following definition describes which of the following: Any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate upon which it is constructed, or intended to be constructed, a dwelling. -Residential Mortgage Loan -Residential Real Estate -Nontraditional Home -Construction Loan

-Residential Mortgage Loan A residential mortgage loan is any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate upon which it is constructed, or intended to be constructed, a dwelling.

If a licensee takes continuing education course #2222 in one year, the licensee cannot take course #2222 in the following year, this rule is called: -Temporary Authority -Successive Year Rule -Continuing Education Integrity Rule -The Same Year Rule

-Successive Year Rule An MLO cannot take the same continuing education course in successive years. This rule is called the successive year rule.

An MLO is looking to expand their business into the neighboring state, what provision allows them to practice as an MLO in that state while their license application is being processed? -Temporary Authority -This is never allowed -Their license in their home state allows them exemption in another state -TRID

-Temporary Authority Temporary authority allows for an MLO licensed in another state, to operate in a new state while the license application is processed. Temporary authority can also be used by a registered MLO to transition to a licensed MLO or moving from a financial institution to a non-financial company without having to wait for their license application to be approved (note: they have to be already employed by a state-licensed broker or lender). The MLO has to meet specific criteria to be eligible.

Which of the following is not considered a Federal Banking Agency? -The Consumer Financial Protection Bureau -The Director of the Office of Thrift Supervision -The National Credit Union Administration -The Federal Deposit Insurance Corporation

-The CFPB The CFPB is a federal regulatory authority not a federal banking agency.

The Nationwide Multistate Licensing System and Registry is developed and maintained by which of the following: -The Conference of State Bank Supervisors and the NMLS -The American Association of Residential Mortgage Regulators and the NMLS -The Conference of State Bank Supervisors and The American Association of Residential Mortgage Regulators -The NMLSR

-The Conference of State Bank Supervisors and The American Association of Residential Mortgage Regulators Both the CSBS and AARMR were responsible for the creation of the NMLS.

All advertising of a Mortgage Loan Originator must include which of the following? -A photograph of the Mortgage Loan Originator -The Mortgage Loan Originator's unique identifier -Types of loans the Mortgage Loan Originator makes -A disclaimer from the NMLS

-The Mortgage Loan Originator's unique identifier All MLOs must include their NMLS ID# (unique identifier) on their advertisements.

Who determines continuing education requirements and dates for licensing renewal? -The Governor of the state -The Nationwide Mortgage Licensing System -The National Mortgage Association of Education -The State Regulatory Authority as established under the SAFE Act

-The State Regulatory Authority as established under the SAFE Act Each state can pass its own legislature establishing continuing education requirements, they are required to have at least 8 hours based on the SAFE Act but can add state-specific requirements on top of those 8 hours or as a part of those 8 hours

An applicant could still be eligible for a license under which of the following conditions? -The applicant was previously involved in an act of money laundering ten years prior to their application. -The applicant pled guilty to a felony in a domestic court eight years prior to their application. -The applicant has previously had a loan originator license revoked. -All of these conditions would be grounds for immediate rejection of an application.

-The applicant pled guilty to a felony in a domestic court eight years prior to their application. A felony that is 7 years old or less would disqualify someone from licensure. A felony that involved something like money laundering, fraud or dishonesty would disqualify an individual for life.

Who determines continuing education requirements and dates for license renewal? -The Governor of the state -The Nationwide Mortgage Licensing System -The state Regulatory Authority as established under the SAFE Act -The CSBS

-The state Regulatory Authority as established under the SAFE Act Each state has the authority to add to the requirements under the SAFE Act. They cannot have requirements that are less than what's required under the SAFE Act.

It is permissible to sign a borrower's application or related documents on behalf of or instead of another Mortgage Broker, Lender, or Loan Originator as long as: -That individual has given consent. -The document must be submitted in a timely manner and the individual who needs to sign cannot do so. -There is a note indicating your action. -This action is not permitted.

-This action is not permitted. It is never OK to sign your borrower's name regardless of whether they give you permission to do so. Only someone with a power of attorney can legally sign for someone else.

A licensed loan originator who is an instructor of an approved Continuing Education course may receive credit for the licensed loan originator's own annual Continuing Education requirement at the rate of: -One hour of credit for every one hour taught. -Two hours of credit for every one hour taught. -Three hours of credit for every one hour taught. -Instructors may not receive credit in this way.

-Two hours of credit for every one hour taught. An instructor can receive credit for their own CE at a rate of 2 hours per every 1 hours taught. For example, an instructor teaches one 8 hour continuing education course, they technically would get 16 hours of continuing education for that one class.

It is prohibited to advertise all of the following except: -"immediate closing" -"immediate approval" -VA lender -"instant closing"

-VA lender Advertising that you are a VA lender is acceptable as long as you are actually able to lender VA loans, those other terms could be considered misleading or deceptive which is prohibited.

Which of the following must be conspicuously disclosed on all advertisements? -Business name -Company Website Address -License number -Your Unique Identifier

-Your Unique Identifier An MLO must include their unique identifier on all advertisements and loan applications per the SAFE Act.

Surety bonds must be maintained by: -licensees who will originate less than $7,500,000. -licensees who will originate $7,500,000 to $14,999,999.99. -licensees who will originate $15 Million to $29,999,999.99. -all licensees, unless excluded by the Regulatory Authority.

-all licensees, unless excluded by the Regulatory Authority. The surety bond shows financial responsibility. The surety bond amount and who has to have one is regulated by each State Regulatory Authority.

All of the following are required to be licensed except: -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. -an independent contractors who engage in loan origination activities as a loan processor or underwriter. -an individual negotiating a residential mortgage loan with or on behalf of an immediate family member.

-an individual negotiating a residential mortgage loan with or on behalf of an immediate family member. Under the SAFE Act, individuals negotiating loans on behalf of their immediate family members are exempt from licensure as an MLO.

If the Regulatory Authority orders a cease and desist, the order becomes effective: -at time the Licensee is served papers. -at the time the Regulatory Authority signs the order. -after the Licensee responds to the order. -The Regulatory Authority cannot order a cease and desist.

-at time the Licensee is served papers. Generally, a cease and desist order is effective the moment that the licensee receives it.

A loan originator who applies to be licensed again must: -receive a new unique identifier. -complete the Continuing Education requirements for the last year in which the license was held. -write a letter to the Regulatory Authority requesting a new license. -None of the above.

-complete the Continuing Education requirements for the last year in which the license was held. It is required under the SAFE Act if a licensee becomes unlicensed, they must prove they completed their continuing education requirements for the last year in which they did hold a valid license before applying for a new or renewed license.

Background checks performed by the Regulatory Authority do not include: -a Credit Report. -administrative findings by a governmental agency. -civil, or criminal findings by a governmental agency. -medical findings by a governmental agency.

-medical findings by a governmental agency. Medical records are not something that would come up on a borrower's criminal background or credit report.

All of the following are grounds for the Regulatory Authority to revoke a license except: -material misstatements in an application. -conviction of any crime of moral turpitude. -failure to account for funds received or disbursed. -not completing Continuing Education before Dec 31st.

-not completing Continuing Education before Dec 31st. If a licensee fails to complete their CE before expiration, they do not meet the requirements for renewal and their license will expire.

The Regulatory Authority shall NOT have free and reasonable access to licensees': -books. -records. -offices. -personal tax returns.

-personal tax returns. The state regulatory agency must have access to all books, accounts and records as well as the licensee's offices.

The State Regulatory Authority shall renew a mortgage loan originator's (MLO) license if all of the following are done EXCEPT: -the originator continues to meet the minimum requirements. -the originator paid the fee to renew. -the originator satisfied the Continuing Education. -the MLO retests.

-the MLO retests An MLO only has to take and pass the test once unless they become unlicensed for 5 or more years. MLOs do have to take yearly continuing education, pay yearly renewal fees and maintain the same level of qualifications at renewal as they did at initial licensure.

What does the term "Nontraditional mortgage product" mean?

Any mortgage product that is not a 30-year fixed rate mortgage.

NMLS stands for

Nationwide Multistate Licensing System and Registry.

Background checks performed by the Regulatory Authority include all the following except: -Fingerprints, personal history, and experience. -State, national, and international criminal history. -Marital history. -Administrative, civil, or criminal findings by a governmental agency.

Marital history

How long must an applicant wait to receive a new license if they have previously had their license revoked?

Once an individual's license has been revoked, that person is never eligible for a future license as it is prohibited under the SAFE Act.