State Mortgage exam

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  1. A person applying for the issuance of a license or a renewal of a license under this chapter.
  2. a person who has applied for or obtained a residential mortgage loan from or through a licensed MLO or MLOC or from a person required to be licensed as a MLO or MLOC under this chapter.
  3. Any location, seperate from the principal place of business of the MLOC that is identified by any means to the public or customers asa a location at which the licensee holds itself out as a MLOC.
    Branch office
  4. 1) The receipt, collection, distribution and analysis of info for the processing or UW of a residential mortgage loan.
    2) Communication with a borrower to obtain the info necessary for the processing or UW of a loan, to the extent the communication does not include offering or negotiating loan rates or terms or counseling borrowers.
    Clerical or support duties
  5. The Commissioner
    The commissioner of Financial Institutions
  6. The power, either directly or indirectly, to direct management or policies of a company, whether through ownership of securities, by contract, or otherwise.
  7. An individual who directly or indirectly exercises control over a licensee or applicant
    Control Person
  8. Division of Financial Institutions of the department of commerce and consumer affairs.
  9. An individual who is:
    1) Hired to provide a service for a licensee on a regular basis in exchange for compensation and who does not provide these services as part of the individual's independent business.
    2) Subject to tax withholding, the Federal Contributions Act, and other lawful deductions by the licensee as a condition of employment.
    3) Subject to the right of the licensee to direct and control the actions of the individual.
  10. Any person, including an insured depository institution, who is required to be licensed by any other state or federal law but is not required to be licensed under this chapter, and has the obligation to register with the Nationwide Mortgage Licensing System because one or more of the person's employees emgage in the business of a mortgage loan originator.
    Exempt registered mortgage loan originator company
  11. An individual who:
    1) Meets the definition of MLO and is an employee of:
    A) An insured depository institution.
    B) A Subsidiary that is:
    (a) Owned and controlled by an insured depository institution
    (b) Regulated by a federal banking agency
    C) An institution regulated by the Farm Credit Administration
    2) Is registered witht and maintains a unique identifier through, the NMLS but is not required to be licensed under this chapter
    Exempt registered MLO
  12. The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.
    Federal Banking Agencies
  13. A spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, stepsibling, and equivalent adoptive relationships
    Immediate family member
  14. Any person who has a contractual arrangement to perform mortgage loan origination, underwriting, or loan processing services to a licensee, but is not an employee of a licensee
    Independent Contractor
  15. A natural person
  16. 12 United States Code section 1813(c)(2), provided that it also include any credit union
    Insured depository institution
  17. A MLO, MLOC or a person who is required to be licensed under this chapter. Licensee does not include an exempt MLO or exempt MLOC as defined by this section.
  18. An individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under this chapter.
    Loan processor or underwriter
  19. 1)An individual who for compensation or gain or in the expectation of compensation or gain:
    A) Takes a residential mortgage loan application, or
    B) Offers or negotiates terms of a residential mortgage loan
    2) Includes an independent contractor as defined in this section.
    Mortgage Loan Originator
  20. 1) An individual not exempt under section 454F-2 who engages in the business of a mortgage loan originator as a sole proprietorship.
    2) A person not exempt under section 454F-2 who employs or uses the exclusive services of one or more mortgage loan originators licensed or required to be licensed under this chapter.
    Mortgage Loan Originator Company
  21. A mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of MLO, MLOC, exempt registered MLO, and exempt registered MLOC as defined by this chapter.
    NMLS - Nationwide Mortgage Licensing System
  22. Any mortgage product other than a 30 year fixed rate residential mortgage laon where the interest rate is fixed for the 30 year term.
    Nontraditional mortgage product
  23. An individual, sole proprietorship, partnership, corporation, limited liability company, limited liability partnership, or other association of individuals, however organized.
  24. 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) Bring 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 is required to be registered or licensed as a real estate agent or real estate broker by the State
    5) Offering to engage in any activity, or act in any capacity, described in paragraphs (1),(2),(3) or(4)
    Real Estate Brokerage Activity
  25. 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(v) of the Truth in Lending Act, 15 United States Code section 1602 or residential real estate.
    Residential Mortgage Loan or Residential Mortgage Transaction
  26. Any real property located in the State, upon which a dwelling is constructed or intended to be constructed.
    Residential real estate
  27. Receipt of a request or of a response to a solicitation of an offer from a borrower, either directly or indirectly, for the purpose of deciding whether or not to extend an offer of a loan to the borrower. Taking a residential mortgage loan application does not include mere physical handling or transmission of a form.
    Taking a residential mortgage loan application
  28. A number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System.
    Unique Identifier
  29. Effective January 1, 2011, a person, unless specifically exempted from this chapter,1) shall not engage in the business of a MLO or MLOC with respect to any dwelling located in this State without first obtaining & maintaining annually, a license under this chapter.2) Each licensed MLO or MLOC shall register with and maintain a valid unique identifier issued by the NMLS & 3) shall submit to the NMLS any reports that shall be in a form and contain information as the NMLS may require.
    454F-3 Requirement of Licensure
  30. A mortgage broker or mortgage solicitor who holds a license under chapter 454 that is valid as of December 31, 2010 & who creates a record & obtains a unique identifying number in the NMLS by November 30, 2010 shall be determined to be in compliance with the licensing provisions of this chapter until the commissioner makes a final determination on the issuance or denial of the individual's license.
    454F-3 Requirement of licensure
  31. An independent contractor shall not engage in the activities of a loan processor or underwriter without a license pursuant to section 454F-4. Each independent contractor licensed as a MLO shall obtain & maintain a valid unique identifier issued by the NMLS. An independent contractor who is not an exclusive agent of a MLOC, in addition to obtaining a license as a MLO, shall obtain a license as a MLOC.
    454F-3 Requirement of licensure
  32. A loan processor or underwriter who does not represent to the public, through advertising or other means of communication or providing information, including through business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a MLO, who does not advertise that the individual can or will perform any of the activities of a MLO and who does not engage in the activities of a MLO shall not be required to be licensed under this chapter.
    454F-3 Requirement of licensure
  33. Upon obtaining a licensing determination under this chaper, an applicant's license issued under chapter 454 shall automatically terminate.
    454F-3 Requirement of licensure
  34. If this section or any provision of this section conflicts at any time with any federal law, then the federal law shall prevail and this section or the relevant provisions of this section shall become ineffective and invalid. The ineffectiveness or invalidity of this section or any of its provisions shall not affect any other provisions or applications of this chapter which shall be given effect without the invalid provision or application, and to this end, the provisions of this section are severable.
    454F-3 Requirement of licensure
  35. 1) Applicants for a license shall apply in a form as prescribed by the NMLS or by the commissioner.
    2) To fulfill the purposes of this chapter, the commissioner shall establish relationships or contracts with the NMLS or other entities designated by the NMLS to collect & maintain records & process transaction fees or other fees related to licensees or other persons subject to this chapter.
    454F-4 License and registration; application; issuance
  36. 3) For the purpose and the extent necessary to participate in the NMLS, the commissioner may waive or modify, in whole or in part, by rule or order, any or all of the requirements of this chapter and establish new requirements as reasonably necessary to participate in the NMLS.
    4) In connection with an application for a license under this chapter, the applicant, at a minimum, shall furnish to the commissioner and the NMLS information concerning the applicant's identity, including:
    A) Fingerprints of the applicant and, in the case of an applicant that is not an individual, each of the applicant's control persons, executive officers, directors, of Investigation, and any governmental agency or entity authorized to receive the fingerprints for a state, national, and international criminal history background check &
    B) Personal history and experience of the applicant and, in the case of an applicant that is not an individual, each of the applicant's control persons, executive officers, directors, general partners, and managing members in a form submissin of authorization for the MNLS and the commissioner to obtain:
    a) An independent credit report
    b) Information related to any administrative, civil, or criminal findings by any governmental jurisdiction.
    454F-4 License and registration; application; issuance
  37. 5) The commissioner may use the NMLS as an agent for requesting information from and distributing information to the Dept of Justice or any governmental agency.
    6) The commissioner may use the NMLS as an agent for requesting and distributing information to and from any source directed by the commissioner.
    7) An applicant for a license as a MLOC that is a person other than an individual shall be registered with the business registration division of the department of connerce and consumer affairs to do business in this State before a license pursuant to this chapter shall be granted.
    454F-4 License and registration; application; issuance
  38. The commissioner shall establish, by rule pursuant to chapter 91, a procedure for the secondary review of each application that was determined on initial review to fail to meet the criteria for licensure.
    454F-4.5 Automatic secondary review of license application
  39. The commissioner shall not issue a license pursuant to this chapter unless the commissioner makes at a minimum the following findings:
    1) Has never had a license revoked in any jurisdiction.
    2) Has never been convicted of, or pled guilty or nolo contendere, or been granted a deferred acceptance of a guilty plea under chapter 853 to a felony in a domestic, foreign, or military court:
    a) 7 year period preceding the date of the application for licensing and registration
    b) If the felony involved an act of fraud, dishonesty, breach of trust, or money laundering.
    3) A determination that a person has not shown financial responsibility may be based on:
    a) current outstanding judgements, except judgements solely as a result of medical expenses.
    b) Current outstanding tax liens or other government liens and filings.
    c) Foreclosures within the past 3 years.
    d) A pattern of seriously delinquent accounts within the past 3 years.
    4) Has completed the pre-licensing education.
    5) Pass a written test that meets requirements.
    6) Has met the mortgage loan recovery fund requirement.
    7) Submit authorization to the commissioner to conduct background checks, including fingerprints.
  40. 1) Shall complete at least 20 hours of pre-licensing education approved in accordance with subsection (b) that includes:
    a) 3 hours of federal law and regulations
    b) 3 hours of ethics, that shall include instruction on fraud, consumer protection, and fair lending issues &
    c) 2 hours of training related to lending standards for the nontraditional mortgage product market place.
    2) Courses shall be reviewed and approved by the NMLS.
    3) Approved by NMLS & provided by the employer of the applicant, an entity that is affiliated with the applicant by agency contract, or any subsidiary or affiliate of the employer or entity is acceptable.
    4) In a classroom, online, or by any other means approved by the NMLS.
    5) NMLS approved education shall be accepted as credit towards completion in another state.
    6) Previously licensed must prove to the commissioner the satisfaction of completion of the continuing education requirements for the year in which the license was last held.
    454F-6 Prelicensing and re-licensing; education of MLOs
  41. 1) A MLO must pass a qualified written test developed by the NMLS and administered by a test provider approved by NMLS including:
    a) Ethics
    b) Federal law and regulations pertaining to mortgage origination
    c) State law and rules pertaining to mortgage origination.
    d) Federal and state law, rules and regulations, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.
    2) Nothing in this section shall prohibit a test provider approved by NMLS from providing a test at the location of the employer of the applicant.
    3) The passing score for national and state is 75%
    4) May retake a test 3 consecutive times (30 days between). After failing 3 times, waiting period is 6 months.
    5) Inactive for 5 years, must retake the test
    454F-7 Testing of MLOs
  42. Minimum standards:
    1) Continues to meet the minimum standards for 454F-5
    2) Satisfied the annual CE requirements in 454F-9
    3) Paid all required fees for renewal of the license.
    Failing to meet these requirements (also for MLOC) will have their license renewal expired.
    454F-8 Standards for license renewal
  43. License expired due to failure to meet min standards for renewal may be reinstated if the licensee meets the following:
    1) Licensee applies for reinstatement between Jan. 1 and Feb 28 of the year immediately following exparation.
    2) All CE courses shall be completed between Jan 1 and Feb 28 of the expiration year. No credit from previous year.
    3) Shall pay all applicable licensing, reinstatement, and late fees assessed by the commissioner.
    A licensee that fails to meet the requirements may apply for a new license and shall meet those requirements.
    454F-8.5 Reinstatement of expired licenses
  44. Each year a MLO shall complete at least 8 hours of CE including:
    a) 3 hours of federal law and regulations
    b) 2 hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues
    c) 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.
    454F-9 Continuing education; mortgage loan originators
  45. 1) A MLO may only receive credit for a CE course in the year in which the course was taken.
    2) May not take the same approved course in the same or successive years to meet the annual requirements for CE.
    3) A licensed MLO who is an approved instructor of an approved CE course may receive CE credit for the course taught. 2 hours credit for 1 hour taught.
    4) CE completed by MLO shall be accepted as credit towards completion
    5) MLO who becomes unlicensed shall complete the CE for the last year the license was active prior to issuance of a new or renewed license.
    6) Fail to meet requirements shall expire license and need to apply for reinstatement.
    454F-9 Continuing education; mortgage loan originators
  46. The commissioner shall require MLO & MLOC to be licensed & registered through the NMLS. He's authorized to participate in the NMLS. He may require:
    1) Background checks of:
    a) Criminal history through fingerprint or other database
    b) Civil or administrative records
    c) Credit history
    d) Any other source deemed necessary by the NMLS
    2) Fees to apply for or renew licenses through NMLS.
    3) Setting or resetting as necessary of license renewal and reporting dates.
    4) Requirements for amending or surrendering a license
    5) Any other activity the commissioner deems necessary to participate in the NMLS.
    454F-10 Authority to require license
  47. 1) Every MLOC licensed under this chapter needs to have a principal place of business in the State and designate a manager.
    2) A MLOC needs to apply & submit applicable fees prior to maintaining a branch office & designate a manager to forsee that branch.
    3) A MLOC cannot relocate any office without prior written approval from the commissioner. Applying for one would include
    a) reasons for relocation
    b) street address of the proposed relocated office
    c) any other info. & a nonrefundable fee.
    4) A MLOC needs to give the commissioner notice of intent to close a branch office at least 30 days prior to closing. Notice shall include:
    a) Intended date of closing
    b) Reason for closing.
    454F-10.5 Authorized places of business; designation of managers; branch offices
  48. A licensee may voluntarily cease activity by delivering a written notice of surrender to the commissioner for approval. Notice shall include:
    1) Plan of cessation of business
    2) Provisions for the transfer or assumption of assets
    3) " "for pending applications or transactions
    4) " "for payment or assumption of liabilities
    5) " " for the disposition of individual MLO licenses
    6) " " for transfer or assumption of all trust, agency, & other fiduciary relationships & accounts
    Commissioner shall approve if:
    1) Satisfied with the plan as set forth by the licensee & 2) No other reason exists to deny the request.
    454F-10.6 Voluntary cessation of operation; surrender of license
  49. A licensee shall submit an application & nonrefundable fee of $500 for a proposed change of control of the licensee. If the commissioner determines that the person or group requesting approval has the competence, experience, character, & general fitness & that the interest of the public will not be jeopardized by the change of control.
    454F-10.7 Change in control of a licensee; fees
  50. The commissioner shall establish a process by rule pursuant to chapter 91 whereby a licensee may challenge information entered into the NMLS by the commissioner.
    454F-11 NMLS; registry information; challenge
  51. The commissioner may:
    1) Deny to renew a license because of violation.
    2) Deny to renew if an applicant fails at any time to meet requirements, withhold information, or make material misstatement in an application to renew or apply.
    3) Order restitution against violators
    4) Impose fines
    5) Issue orders or directives under this chapter
    6) May fine $25,000 for each act
    7) Failure to comply with any directive shall be a separate violation.
    8) Any violation directed toward, targets, or injures an elder, may be additional civil penalty not in excess of $10,000 for each violation + any other fines or penalties assessed.
    454F-12 Enforcement authorities; violations; penalties
  53. Confidentiality of any info provided to NMLS may be shared with all state & federal regulatory officials with mortgage industry oversight authority without the loss of privilege provided by federal or state law.
    The commissioner is authorized to enter into agreements or sharing arrangements with other governmental agencies.
    454F-14 Confidentiality
  54. The commissioner has the authority to conduct investigations. May review, investigate, or examine any licensee or order the person to produce books, accounts, records, files that they have to provide full access to the commissioner. He may take possession or place a person in charge. No person shall remove any info unless given consent. The owner of the docs still have access to them as necessary to conduct ordinary business unless they're at risk of being altered.
    454F-15 Investigations and examination authority
  55. The commissioner may:
    1) Retain attorneys, accountants, or other professionals & specialists, who may be exempt from chapter 76, as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations.
    2) Enter into agreements with other government officials to improve efficiencies by sharing resources or evidence obtained under this section
    3) Use, hire, contract, or employ public or privately available analytical systems, methods or software to examine or investigate the licensee
    4) Accept & rely on examination or investigation reports made by other gov officials, within or without this State 5) Accept audit reports made by an independent certified public accountant
    The hourly examination fee is $40 an hour. The commissioner may charge travel, per diem, mileage, etc. Reason to believe a violation is occuring you may file a complaint with the commissioner setting for the details of violation.
    454F-15 Investigations and examination authority
  56. Each licensee shall submit to the NMLS reports of condition, using the form entitled "REPORT OF CONDITION", which shall be int he form and contain the info as the NMLS may require
    454F-16 Mortgage call reports
  57. You are in violation of this chapter:
    1) Directly or indirectly scheme or defraud any person
    2) Engage in any unfair or deceptive practices
    3) Obtain property by fraud
    4) Collect a "best efforts" fee for not actually completing a transaction
    5) Interest rates & other financing terms must actually be available at the time of advertisement.
    6) Conduct business without a valid license.
    7) Fail to make disclosures as required
    8) False info on a licensing application
    9) Negatively influencing a borrower's judgement or appraiser in connection with a residential loan
    10) Requiring a borrower to obtain more insurance than what the property is worth.
    454F-17 Prohibited practices
  58. MLO $500
    MLOC $900
    branch $250
    Initial application fee
  59. MLO $300
    MLOC $600
    Branch $100
    Annual license renewal fee
  60. Reinstatement fee for MLO, MLOC & branch?
  61. Late fee per day?
  62. Criminal background check
  63. Amendment to information fee?
    • $50 for each:
    • 1) Change of physical location
    • 2) "d/b/a" assignment
    • 3) Change of manager
    • 4) Change of legal name
  64. All fees collected pursuant to section 454F-22 MLO & MLOC fees, must be deposited into the compliance resolution fund and shall be payable through the NMLS
    454F-23 Payment of fees
  65. Any person aggreived by an act, representation, transaction, or conduct of a licensee involving fraud, misrepresentation, or deceit may recover by order of the court of the county the violation occured an amount of not more than $25,000 per transaction.
    454F-41 Mortgage loan recovery fund; use of fund; fees
  66. Principal office $300
    branch office $250
    MLO $200
    Initial application fee for the mortgage loan recovery fund
  67. Principal office $200
    Branch office $100
    MLO $100
    Renewal fee for the mortgage loan recovery fund
  68. When the mortgage loan recovery fund attains a funding level of $750,000 the commissioner may adjust fees generated by renewals or may determine that payments made by renewing licensees shall cease. If the funding level falls below $250,000 after the first 5 years of the establishment of the fund, the commissioner may adjust the fees to a reasonable level for the purpose of attaining a funding level of $750,000
    454F- 41 Mortgage loan recovery fund; use of funds; fees
  69. No action for a judgment that subsequently results in an order for collection from the MLRF shall be commenced later than 6 years from the accrual of the cause of action. The aggrieved person shall notify the commissioner in writing at the time of the commencement of the action and shall submit any info the commissioner pursuant to the rules.
    454F-42 Statue of limitaion; recovery from fund
  70. The court shall proceed upon an application to recover fromt he MLRF in a summary manner and at hearing the aggrieved person shall be required to show:
    1) The person is not a spouse of the judgment debtor or the personal rep of a spouse of the judgment debtor
    2) Complied with all requirements
    3) Obtained a judgment that states the amount of judgment and amount owed on the judgment debt as of the date of application
    4) Made all reasonable searches & inquiries to ascertain whether the judgment debtor is possessed of real or personal property or other assets liable to be sold in satisfaction of the judgment
    454F-42 Statute of limitation; recovery from fund
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State Mortgage exam
State Mortgage Exam
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