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NMLS Exam > UNIFORM STATE CONTENT > Flashcards

UNIFORM STATE CONTENT Flashcards

1
Q

SAFE Act Purpose

A

consumer protection, reduce fraud by requiring national minimum standards for mortgage training including prelicensing education and annual continuing education

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2
Q

SAFE Act stands for:

A

Secure and Fair Enforcement for Mortgage Licensing Act

Regulation G

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3
Q

State Mortgage Regulatory Agencies

A

Conference State Bank Supervisors (CSBS)

American Association of Residential Mortgage Regulators (AARMR)

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4
Q

NMLS defined

A

NMLS - Nationwide Multistate Licensing System (“Nationwide Mortgage Licensing System,” NMLS,” or the “System”) is the system of record for non-depository, financial services licensing or registration in participating state agencies, including the District of Columbia and U.S. Territories of Puerto Rico, the U.S. Virgin Islands, and Guam.

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5
Q

When can a Regulatory agency participate in an exam or investigation?

A

They can investigate anyone, anywhere, any time for any reason believed to be in violation of the SAFE Act as well as any other existing regulatory laws applicable.

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6
Q

MLO Unique Identifier

A

The NMLS Unique Identifier is the number permanently assigned by the Nationwide Mortgage Licensing System & Registry (NMLS) for each company, branch, and individual that maintains a single account on NMLS.

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7
Q

MLO Unique Identifier

A

The NMLS Unique Identifier is the number permanently assigned by the Nationwide Mortgage Licensing System & Registry (NMLS) for each company, branch, and individual that maintains a single account on NMLS.

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8
Q

Definition of MLO

A

an individual who
(1) takes a residential mortgage. loan application and (2) offers or negotiates terms of a residential mortgage loan for. compensation or gain.

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9
Q

20 hours of pre-licensing education must include…

A
  • 3 hours federal law and regulation
  • 3 hours ethics
  • 2 hours nontraditional mortgage products
  • 12 hours of electives
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10
Q

Surety bond amount must reflect…

A

The dollar amount of loans originated

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11
Q

Minimum licensing requirements…

A
  • No prior license revocation
  • No felony conviction or guilty/ nolo contendere plea during the 7-year period preceding application date, or at any time if the felony involved fraud, dishonesty, a breach of trust, or money laundering
  • Completion or pre-licensing education
  • Passage of the written test
  • Satisfaction of the surety bond/ net worth/ state fund requirements
  • Demonstration of financial responsibility, character, and general fitness
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12
Q

Minimum hours of continuing education requirement?

A

8 hours

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13
Q

8 hours continuing education must include:

A
  • 3 hours federal law and regulations
  • 2 hour ethics
  • 2 hour nontraditional mortgage products
  • 1 elective
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14
Q

Instructor may receive CE credit at the rate of…

A

2 hours for every 1 hour taught

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15
Q

Trigger terms for advertisement include:

A
  • The amount or percentage of a down payment
  • The number of payments or period of repayment
  • The amount of any payment
  • The amount of any finance charge
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16
Q

All the following would be considered to be performing clerical or support duties

A

A loan processor
An underwriter
An appraiser

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17
Q

What are powers/duties of State Regulatory Authorities?

A

Conduct examinations of licensee’s books and records

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18
Q

The NMLS is responsible for what 3 things?

A
  • Assigning the unique identifier
  • Collecting licensing fees
  • Housing licensing information like the education record
19
Q

The Nationwide Multistate Licensing System and Registry is developed and maintained by which of the following

A

The Conference of State Bank Supervisors (CSBS) and The American Association of Residential Mortgage Regulators (AARMR)

20
Q

The SAFE Act outlines what 3 things?

A
  • Pre-licensing education requirements
  • Testing requirements
  • Continuing education requirements
21
Q

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

A

$25,000

22
Q

A loan originator is:

A

An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.

23
Q

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

A

Once an individual’s license has been revoked, that person is never eligible for a future license.

24
Q

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

An open tax lien

25
Q

The Regulatory Authority shall NOT have free and reasonable access to licensees’:

A
  • personal tax returns

- personal checking account information

26
Q

Who determines continuing education requirements and dates for licensing renewal?

A

The State Regulatory Authority as established under the SAFE Act

27
Q

True or False:

An MLO cannot act as an MLO while awaiting reinstatement

A

TRUE

28
Q

A person operating without a license is subject to:

A

Civil money penalties

29
Q

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?

A

Temporary Authority

30
Q

Surety bonds must be maintained by:

A

all licensees, unless excluded by the Regulatory Authority.

31
Q

What are powers/duties of the Regulatory Authority?

A
  • Conduct Investigations
  • Conduct examinations of licensee’s books and records
  • Issue Fees and Penalties
32
Q

If the Regulatory Authority orders a cease and desist, the order becomes effective:

A

at time the Licensee is served papers.

33
Q

What is considered an interpretation of a Statute.

A

Rule

34
Q

A Mortgage Banker is

A

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.

35
Q

Residential Mortgage Loan is a

A

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.

36
Q

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:

A

Successive Year Rule

37
Q

Is the NMLS a Federal Banking Agency?

A

No

38
Q

NMLS stands for

A

Nationwide Multistate Licensing System and Registry.

39
Q

S.A.F.E. is the short title for what Mortgage Licensing act of 2008?

A

Secure and Fair Enforcement

40
Q

What must be conspicuously disclosed on all advertisements?

A

Your Unique Identifier

41
Q

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?

A

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.

42
Q

Pre-Licensing Education expires:

A

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

43
Q

A loan originator who applies to be licensed again after expiration must complete:

A

Continuing Education in the last year in which they were licensed

44
Q

SAFE Act = Regulation

A

Regulation G

NMLS Exam (13 decks)

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