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Flashcards in UNIFORM STATE CONTENT Deck (51)
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1

Course hours, approved by the NMLS, that must be completed prior to submitting a renewal application for a mortgage loan originator license through the NMLS.

Continuing Education

2

As set forth by the SAFE Act, this term is defined as any mortgage product other than a 30-year fixed-rate mortgage.

Nontraditional Mortgage Product

3

A lawsuit in which one person sues another for compensation.

Civil Litigation

4

Institutions with large sums of stable, long-term investment capital, looking for high return investments (such as long-term commercial real estate projects); investors in secondary mortgage markets.

Insurance Companies

5

A licensed mortgage loan originator who is in charge of and responsible for the operation of the branch office of a mortgage broker or mortgage lender.

Branch Manager

6

One (1) or more natural persons, corporations, partnerships, "of incorporation, bylaws, rules of an association, or an amendment thereto.

Person

7

As set forth by the SAFE Act, this term is defined as the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan and the communication with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms.

Clerical or Support Duties

8

As set forth by Regulation H, this term is defined as the independent federal agency authorized by the Farm Credit Act of 1971 that examines and regulates the Farm Credit System.

Farm Credit Administration

9

As set forth by the SAFE Act, this term is defined as an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.

Loan Originator

10

As set forth by the SAFE Act, this term is defined as any activity that involves offering or providing real estate brokerage services to the public including:(1) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;(2) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;(3) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);(4) Engaging in any activity for which a person engaged in the activity is required to be registered as a real estate agent or real estate broker under any applicable law; and (5) Offering to engage in any activity, or act in any capacity, described in paragraphs (1),(2),(3),or(4) of this definition.

Real Estate Brokerage Activities

11

As set forth by the SAFE Act, this term is defined as any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

State

12

As set forth by Regulation H, this term is defined as when an individual receives a residential mortgage loan application for the purpose of facilitating a decision whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower (or to accept the terms offered by a borrower or prospective borrower in response to a solicitation), whether the application is received directly or indirectly from the borrower or prospective borrower.

Takes a Residential Mortgage Loan Application

13

The ongoing relationship between a borrower and the entity that accepts the borrower's payments, pays taxes and insurance (if escrowed), and is the entity that the borrower works with in the event of loan default.

Mortgage Servicing

14

As set forth by state model language for implementation of the SAFE Act, this term is defined as any real property located in [state], upon which is constructed or intended to be constructed a dwelling.

Residential Real Estate

15

As defined by the NMLS, this business activity is defined as purchasing closed mortgages (that are not currently in default) with the intent to service or resell to others.

Mortgage Loan Purchasing

16

As defined by the NMLS, this business activity is defined as acting as a lender or creditor by offering to provide funds to a borrower for a mortgage loan that has subordinate rights to a first mortgage.

Second Mortgage Lending

17

As defined by the NMLS, this term is typically used to signify the individual that represents a company and may be required to meet specific requirements. States may also refer to this individual as the "Qualified Person in Charge (QPIC)" or "Managing Principal."

Qualified Individual

18

Party who, for a fee, originates loans on behalf of lenders but does not service such loans.

Mortgage Broker

19

A security instrument that creates a voluntary lien on real property to secure repayment of a debt.

Mortgage

20

Lenders who loan money for commercial real estate projects.

Commercial Real Estate Lenders

21

A term used to describe institutions that function either as intermediaries between borrowers and lenders (mortgage broker) or as lenders (mortgage lender).

Mortgage Companies

22

Financial institutions that specialize in making higher-risk loans at higher interest rates.

Finance Companies

23

As defined by Regulation Z, which implements TILA, dwelling means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.

Dwelling

24

As set forth by Regulation H, this term is defined as the national association of executives and employees of the various states who are charged with the responsibility for administration and regulation of residential mortgage lending, servicing, and brokering.

American Association of Residential Mortgage Regulators

25

As set forth by Regulation H, this term is defined as an individual whose manner and means of performance of work are subject to the right of control of, or are controlled by, a person and whose compensation for federal income tax purposes is reported, or required to be reported, on a W-2 form issued by the controlling person.

Employee

26

As set forth by the SAFE Act, this term is defined as 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 or Underwriter

27

As set forth by Regulation H, this term is defined as all residential mortgage loan-related activities from the taking of a residential mortgage loan application through the completion of all required loan closing documents and funding of the residential mortgage loan.

Origination of a Residential Mortgage Loan

28

As set forth by the SAFE Act, this term is defined as any individual who meets the definition of loan originator and is an employee of a depository institution, a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the Farm Credit Administration; and is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry.

Registered Loan Originator

29

As set forth by the SAFE Act, this term is defined as a number or other identifier that (i)permanently identifies a loan originator; (ii)is assigned by protocols established by the NMLSR and the CFPB to facilitate electronic tracking of loan originators and uniform identification of, and public access to, the employment history of and the publicly adjudicated disciplinary and enforcement actions against loan originators; and (iii) shall not be used for purposes other than those set forth under this chapter.

Unique Identifier

30

The entity that collects monthly mortgage payments; pays taxes, insurance, and other items as they come due; and notifies the borrower of late payments.

Mortgage Servicer

31

Course hours, approved by the NMLS, that must be completed prior to submitting an initial application for a mortgage loan originator license through the NMLS.

Pre-licensing Education

32

As defined by the NMLS, this business activity is defined as providing the service of bringing borrowers and lenders together and assisting in negotiating a mortgage loan that gives the mortgagee a security right over all other mortgages of the mortgaged property.

First Mortgage Brokering

33

As defined by the NMLS, this business activity is defined as acting as a lender for a loan secured by a lien on residential real estate in which the homeowner is not required to make payments on the loan until a specific event occurs (e.g. homeowner ceases to reside in the property).

Reverse Mortgage Lending

34

As defined by the NMLS, this business activity is defined as underwriting a mortgage loan application and supporting documentation for an application your company did not take from the borrower nor are funding.

Third Party Mortgage Loan Underwriting

35

Financial institutions that are a type of cooperative organization where members share something in common (e.g. an employer), pool their deposits together, pay members better interest rates, and loan money to fellow members.

Credit Unions

36

The body of law concerned with the rights and liabilities of one individual in relation to another; includes contract, tort, and property law. COMPARE: Criminal Law.

Civil Law

37

When a government body seeks financial compensation for damages.

Civil Penalties

38

Financial institutions that provide a variety of financial services.

Commercial Banks

39

Report completed by companies that hold a state license or state registration through NMLS that collects application, closed loan, individual MLO, line of credit, servicing, and repurchase information by state and collects financial information at the company level.

Mortgage Call Report

40

As set forth by the SAFE Act, this term is defined as the receipt, collection, and distribution of information common for the processing or underwriting of a loan in the residential mortgage industry and the communication with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan.

Administrative or Clerical Tasks

41

As set forth by Regulation H, this term is defined as the national organization composed of state bank supervisors dedicated to maintaining the state banking system and state regulation of financial services in accordance with the CSBS statement of principles described at www.csbs.org.

Conference of State Bank Supervisors

42

As set forth by the SAFE Act, this term is defined as the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.

Federal Banking Agency

43

As set forth by the SAFE Act, this term is defined as the mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the state licensing and registration of state-licensed mortgage loan originators and the registration of mortgage loan originators pursuant to 12 U.S.C. 5107.

Nationwide Mortgage Licensing System and Registry

44

As set forth by the SAFE Act, this term is defined as 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 (as defined in section 103(w) of the Truth in Lending Act) or residential real estate upon which is constructed or intended to be constructed a dwelling (as so defined).

Residential Mortgage Loan

45

As set forth by the SAFE Act, this term is defined as any individual who is a loan originator and is not an employee of (i)a depository institution; (ii)a subsidiary that is owned and controlled by a depository institution and regulated by a Federal banking agency; or (iii)an institution regulated by the Farm Credit Administration; and is licensed by a state or by the Director under section 5107 of this title and registered as a loan originator with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

State-Licensed Loan Originator

46

Party who originates, sells, and services mortgage loans and usually acts as the originator and servicer of loans on behalf of large investors, such as insurance companies, pension plans, or Fannie Mae. This organization may also be known as a Mortgage Banker.

Mortgage Lender

47

A key element of the Housing and Economic Recovery Act of 2008 (HERA) designed to enhance consumer protection and reduce fraud by requiring states to establish minimum standards for the licensing and registration of mortgage loan originators.

Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act

48

As defined by the NMLS, this business activity is defined as acting as a lender or creditor by offering to provide funds to a borrower for a mortgage loan that gives the mortgagee a security right over all other mortgages of the mortgaged property.

First Mortgage Lending

49

As defined by the NMLS, this business activity is defined as providing the service of bringing borrowers and lenders together and assisting in negotiating a mortgage loan that has subordinate rights to a first mortgage.

Second Mortgage Brokering

50

As defined by the NMLS, this business activity is defined as completing the mortgage loan application and supporting documentation for underwriting for an application your company did not take from the borrower.

Third Party Mortgage Loan Processing

51

As defined by the NMLS, this term is used as a company's indication that the individual will conduct business under a specific license/registration for the company.

Sponsorship