Federal Laws and Regulations NMLS

Question 1

UST

Answer 1

Uniform State Test of the NMLS Exam establishes minimum standards for who can participate in the mortgage industry and lays guidelines for each state’s participation in the SAFE Act and utilization of the NMLS database.

Question 2

SAFE Act

Answer 2

Secure and Fair Enforcement of Mortgages Act: Title V of HERA (Regulation G).

Question 3

Farm Credit Administration

Answer 3

Exempt from the SAFE Act licensing requirements.

Question 4

NMLS Database Categories

Answer 4

Mortgage Uniform (MU)
MU 1: Business Entities
MU 2: Owners and Officers of those entities 
MU 3: Branch officer and those entities
MU 4:MLO

Question 5

Parties Exempt from SAFE Act Licensing

Answer 5

1. Registered MLOs
2. Employees of a federal or state housing finance agency
3. Employees of NPOs
4. Individuals negotiating on behalf of immediate family members
5. Attorneys
6. W2 employees performing clerical and support duties of a licensed or exempt company

However, contract employees paid on a 1099 must be SAFE Act licensed

Question 6

SAFE Act

Answer 6

Education, training, background checks, financial responsibility

Question 7

Fine Amount for violating SAFE act (ie not licensed, bait and switch etc)

Answer 7

$25,000

Question 8

What must you provide if a borrower asks you for the interest rate?

Answer 8

APR

Question 9

Dodd Frank Wall St Reform and Anti Predatory Lending Act

Answer 9

Title IX addressed the Securities Ratings Agencies

Title X created the CFPB

Title XIV is the Mortgage Reform and Anti Predatory Lending Act

Subtitle A: Mortgage Loan Origination Standards

Subtitle B: Minimum standards for mortgage loans

Subtitle C: increased minimum standards for HOEPA laons

Subtitle D: created Office of Housing Counseling

Subtitle E: addressed Mortgage Servicing

Subtitle F: Appraisal Activities (cannot bribe etc)

Subtitle G: Mortgage Resolution/Modification

Subtitle H: Miscellaneous Provisions

Question 10

What 3 types of loans have mandatory homeowners counseling?

Answer 10

HOEPA
HECM (FHA Reverse Mort)
First time homebuyers that have a neg amort loan

Question 11

ECOA

Answer 11

Anti discrimatory practices towards all demographics.

Make sure EVERYONE has access to credit

Question 12

Redlining

Answer 12

ECOA outlaws redlining: Outlining areas (the hood) that creditors didn’t want to lend to

Question 13

ECOA vs FHA

Answer 13

Fair Housing Act: covers familial status and mental/physical handicaps as protected

ECOA: protects those receiving public assistance income