Obtaining and Keeping a License in CA

To best prevent risk associated with licensee non-compliance with real estate-related federal regulations, brokerage firms should do which of the following?

Include a review of related federal legislation in the policies and procedures manual and provide appropriate training.

Brenda is a real estate salesperson. Jim is her sponsoring broker. Brenda is moving to a different area in the state and will no longer be able to work with Jim. Her new sponsoring broker will be Cindy. What must take place for Brenda to transfer her license to Cindy?

Jim must notify the California DRE and give Brenda her license certificate. Brenda and Cindy complete a change application.

MLO

Mortgage Loan Originator

Which agency must real estate licensees go through to gain the MLO endorsement?

Nationwide Mortgage Licensing System and Registry

Which agency issues the MLO endorsement?

Nationwide Mortgage Licensing System and Registry (NMLS&R)

To renew MLO you have to Authorize NMLS&R to pull a credit report

No

To renew MLO you have to Complete 45 hours of continuing education

No

To renew MLO you have to Submit fingerprints

No

Maura is a real estate salesperson who does not have an MLO endorsement. Which of these actions can she perform for her client, who is financing the purchase of a single-family home?

Offer to provide the client with a list of lenders they could consider working with to obtain the loan.

As a managing broker, you're responsible for your associate brokers' actions. Which of the following risk management techniques helps prevent the risk associated with vicarious liability?

Providing training and policies/procedures documentation to staff

Which federal act requires states to pass laws relating to mortgage loan originator (MLO) endorsements?

SAFE act

What must real estate licensees who obtain the MLO endorsement do?

They must complete 20 hours of education, pass an examination, submit fingerprints to NMLS&R, and authorize a credit report pull.

It is the sponsoring broker's duty to properly supervise each salesperson and associate broker under their broker's license.

True

Al is 70 years old and has been licensed in good standing for 30 consecutive years. Is he exempt from taking the continuing education exam to renew license

Yes

To renew MLO you have to Complete eight hours of continuing education

Yes

To renew MLO you have to Submit renewal application and fee annually

Yes

Willard is 70 years old and has been licensed in good standing for 20 consecutive years. Is he exempt from taking the continuing education exam to renew license

Yes

Describe The SAFE Act

to protect consumers and reduce fraud related to mortgage loans.

Al is 70 years old and has held his real estate broker license in good standing for 30 consecutive years. His license is up for renewal soon. How many continuing education hours must he complete?

0

What is the minimum amount of full-time real estate industry experience that an individual must have to qualify for a broker's license?

2 years

Sally just obtained her salesperson license. How long is the license valid?

4 years

When a real estate license is issued in California, how long is that license valid?

4 years

Sally is a real estate salesperson. How many hours of continuing education must she complete before the license expiration date in order to renew it for another four years?

45

How many hours of continuing education must a California licensee complete in order to renew a real estate license?

45 hours

It's up to licensees to make sure they're completing their CE hours. They'll receive a reminder about three months before their license expires, but trying to crunch in all of the hours in this three-month period can be stressful. You can complete CE courses at any time during the four years immediately preceding the license expiration. How many hours of CE do licensees need to complete?

45 hours

How many hours of continuing education must real estate licensees complete each year to renew their MLO endorsement?

8 hours

Jackson holds a real estate broker license with an MLO endorsement. How many hours of continuing education must he complete each year to renew this endorsement?

8 hours

What is vicarious liability as it applies to real estate?

A broker is held responsible for the actions or omissions of the broker's licensees.

Who Needs the MLO Endorsement?

Any real estate professional licensed in California who performs mortgage loan origination activities for one- to four-unit residential properties must obtain the MLO endorsement for their real estate license.

What is the relationship between a policies and procedures manual and the broker's obligation to supervise agents?

Brokers who enforce policies and procedures outlined in an effective PPM have proof of efforts to properly train and supervise agents.

Steve holds a real estate license in Oregon but would also like to perform real estate activities in California. What must he do?

California does not have reciprocity agreements with any other states. Individuals licensed in other states must complete all of the requirements that an unlicensed individual completes.

Jackson holds a real estate broker license with an MLO endorsement. How often must he renew his MLO endorsement?

Every year

Sponsoring brokers are liable for the activities of employees only.

False

Licensees have some flexibility in courses they complete for CE, but there are mandatory topics that must be taken. What are the mandatory topics?

Agency Fair housing Risk management Ethics Trust fund handling

Bradley has a real estate salesperson's license. He's done some traveling recently and missed the deadline to renew his license. It's now 30 days past the expiration date. What must he do to renew his license?

Complete the continuing education requirements and submit a renewal and late fee.

Brokers understand the risk they take on when sponsoring other licensees. Good sponsoring brokers will take actions to ensure they appropriately manage their risk. Which are some actions a sponsoring broker may take?

Establish a standardized set of policies and procedures. Ensure policies and procedures are written and available to all members of the team. Conduct training on the procedures.

Licensees go through the NMLS&R to obtain the MLO endorsement. What are the four requirements for obtaining this endorsement?

Passing score on the combined national/state exam Fingerprint submission Credit report pull authorization 20 hours in pre-licensing courses

What does SAFE Act mean

Secure and Fair Enforcement for Mortgage Licensing Act

If a licensee of the firm violates license law, commits a fair housing violation, or violates a city or state law in connection with their real estate activities, in addition to any sanctions imposed on the licensee, the sponsoring broker may face disciplinary actions.

True