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Missouri State Test > Missouri Compliance > Flashcards

Missouri Compliance Flashcards

1
Q

Besides what falls under ECOA, what else does Missouri law account for in terms of discrimination?

A

Illegal to deny a residential real estate loan because of national origin of persons living in the vicinity of the residential real estate; additionally, one cannot deny a loan based on the specific geographic location of the real estate or the age

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2
Q

“Adequate staffing”

A

At least one supervised mortgage loan originator plus such staff as needed to administer all necessary tasks

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3
Q

What must be included in a rate-lock fee?

A
  1. The expiration date of the fee agreement
  2. The amount of the loan
  3. The maximum interest rate and maximum points
  4. The term of the loan
  5. The lender is able to perform under the terms
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4
Q

When can a rate-lock fee not be refunded?

A
  1. The borrower withdrew the application
  2. The borrower made a material misrepresentation in the application
  3. The borrower failed to provide necessary docs after docs were timely requested
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5
Q

When can brokers not charge a fee for a rate-lock fee agreement?

A

When the broker is not a lender

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6
Q

What is the interest rate that creditors can receive when no other rate is agreed upon?

A

9% per year

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7
Q

What is the max interest rate that can be agreed on and charged in a loan transaction?

A

10% per year

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8
Q

When will the Director determine the market rate for the next quarter?

A

On or before the 20th day of the last month of each calendar quarter

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9
Q

In lieu of the rate of interest provisions, what can parties agree upon?

A

In writing, to a fee of $10 on any loan

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10
Q

PArties may agree in writing to any rate of interest, fees, or other terms in relation to what?

A
  1. A loan to a corporation, LLC, etc
  2. Business loan of $5k or more
  3. Real estate loan secured for ag. purposes
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11
Q

When does charging prepayment penalties become prohibited?

A

After the first five years of the loan

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12
Q

What is the threshold for prepayment penalties?

A

It cannot exceed 2% of the balance at the time of prepayment

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13
Q

In regards to points, lenders are prohibited from charging or receiving what?

A

Any points or other fees beyond insurance, a 1% origination fee, and bona fide third-party expenses paid to a non-affiliated entity for services provided

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14
Q

What may lenders charge a fee for when it comes to loans for construction, repair, or improvement of a residential real estate property??

A

1% for inspection and disbursement of loan proceeds to third parties

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15
Q

If a borrower is charged any points and fees in excess, what are they entitled to recover? What is the statue of limitations for such an action?

A

Recover twice the amount paid, plus costs of the suit and reasonable attorney’s fees; five years from the date of the excess payment

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16
Q

If a loan broker collects advance fees, what is the violation considered?

A

A Class A misdemeanor

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17
Q

When shall a notice of default be sent to a borrower?

A

When the borrower has been in default for ten days and they have not voluntarily surrendered possession of the collateral

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18
Q

What must be included on a Notice of Default?

A
  1. Name, address, and telephone number of lender
  2. Brief ID of the transaction
  3. Right to cure the default
  4. Amount of payment
  5. Date due to cure the default
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19
Q

If an escrow account is used, how quickly from receipt of funds must they be placed?

A

Within five days

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20
Q

If an escrow account is used, funds must be placed with whom?

A
  1. A title insurer or agency
  2. An unaffiliated depository institution
  3. A licensed attorney
21
Q

What are the default provisions regarding security interest

  • for a loan?
  • for a credit transaction?
A

No security interest my be taken or acquired as security for a loan if the amount financed is less than $500; No security interest may be taken or acquired in goods as security for a credit transaction if the principal amount is less than $150

22
Q

When, after a default, is a lender able to accelerate maturity of the unpaid balance, take possession of, or enforce security interest?

A

At least 20 days after the borrower is given a notice of the right to cure

23
Q

If a borrower decides to cure the default, what do they pay?

A

The full amount of all unpaid sums to the lender plus any delinquency or deferral charges

24
Q

When may a lender accelerate maturity of a loan and enforce the security interest after default?

A

When a borrower voluntarily surrenders possession of the property

25
Q

After how long may a lender take steps to enforce a security interest

A

Until at least 30 days after notice is given to the borrower of his or her right to cure

26
Q

What is true of reverse mortgages?

A

They may not contain prepayment penalties

27
Q

What is the max origination fee on a reverse mortgage?

A

Not more than 2% of the principal

28
Q

After how many days of temporary absences will cause a reverse mortgage loan to become due and payable?

A

Past 60 days

29
Q

Payments made to a borrower from a reverse mortgage loan are treated as what? Payments not yet disbursed are treated as what?

A

Proceeds from a loan; home equity

30
Q

Federal law requires that borrowers must receive counseling for a reverse mortgage. What does Missouri law say?

A

They do not require counseling, but they must provide a statement recommending counseling

31
Q

What may a lender ask an appraiser (three things)?

A
  1. Consider additional property info
  2. Provide further detail or explanation for the value conclusion
  3. Correct errors
32
Q

For a second mortgage, what are lenders not permitted to do when making this type of loan?

A

They cannot make a second mortgage loan in an initial principal amount of less than $2,500

33
Q

When do the terms begin on a second mortgage loan?

A

The date the loan is made

34
Q

How are months/days counted for a second mortgage?

A

A day is counted as 1/30 of a month and 1/360 of a year

35
Q

When is the first installment payable for a second mortgage?

A

Can happen at any time within one month and 15 days of the date of the loan

36
Q

What can the rate be for a second mortgage?

A

It may be any rate agreed to between the parties

37
Q

Besides interest, what other charges may be collection in connection with a second mortgage loan?

A
  1. Fees and charges paid to public officials
  2. Taxes
  3. Bona fide closing costs to third parties
  4. Insurance charges
  5. Nonrefundable origination fee
38
Q

What is the max percent for an origination fee in regards to second mortgage loans?

A

No more than 5% of the principal

39
Q

When may a default charge be collected for a second mortgage loan?

A

May be collected on any payment not paid in full within 15 days of its due date

40
Q

What can the default charge be on a second mortgage lo;an?

A

May be equal to 5% of the amount owed or $15, whichever is greater – up to $50

41
Q

When a default charge is authorized, what is the max..

  • handling fee?
  • attorney fees?
A
  • No more than $25

- No more than 15% of the amount due

42
Q

When a prepayment penalty is allowed, what is the max percent it can be?

A

It cannot exceed 2% of the balance owed at the time of prepayment

43
Q

Anyone who violates the prohibitions set forth for second mortgages is guilty of what?

A

A Class A misdemeanor - fine up to $1k and/or a prison sentence of up to one year

44
Q

What was the Statement on Subprime Mortgage Lending designed to do?

A

Designed to promote best practices for making subprime loans. Its purpose was to create a lending environment in which consumers take on high-risk mortgages only with a full understanding of the terms of the loan and the risks associated with them

45
Q

What is a subprime borrower?

A

One with a troubled credit history

46
Q

What are examples of predatory lending?

A
  1. Making loans based on the foreclosure value vs. ATR
  2. Inducing a borrower to repeatedly refinance in order to charge high points and fees
  3. Engaging in fraud or deception to conceal the true nature of the mortgage obligations
47
Q

What is the purpose of the Guidance on Nontraditional Mortgage Product Risks?

A

Aimed at promoting best practices for making nontraditional mortgage loans; protect consumers from taking on high-risk nontraditional mortgages without fully understanding the terms

48
Q

How many classes of real estate appraisal licensure are there? What are they?

A

6 classes

  • state-licensed appraiser trainee
  • state-licensed real estate appraiser
  • state-certified residential appraiser trainee
  • state-certified residential real estate appraiser
  • state-certified general appraiser trainee
  • state-certified general real estate appraiser
49
Q

How long must appraiser maintain original copies of contracts and reports?

A

For five years

Missouri State Test (7 decks)

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