Connecticut Mortgage License Exam

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  1. Connecticut Department of Banking
    A state government agency responsible for the regulation of financial institutions and related entities. Mission is to protect consumers
  2. The Department contains 3 separate divisions:
    • 1. Consumer Credit Division
    • 2.¬†Financial Institutions Division
    • 3.¬†Securities and Investment Division
  3. Mortgage industry falls under the supervision of the ____________________ Division.
    Consumer Credit Division
  4. The Commissioner is the ________ of the Department and is appointed by the ___________.
    Head, Governor
  5. The four main laws governing the Connecticut mortgage industry and professionals are:
    • 1. Section 36a: Connecticut Banking Law
    • 2. Section 49: Mortgages and Liens
    • 3. Section 20: Professional & Occupational Licensing, Certification, Title Protection
    • 4. Section 4: Managment of State Agencies
  6. Advance Fee:
    Any money paid to a mortgage lender, corresopondent lender, or broker prior to closing.
  7. Branch office:
    A location other than the main office at which any person on behalf of a licensee acts as a mortgage lender, correspondent lender, or broker.
  8. Control person:
    • An individual that exercises control over another person
    • -a director, general partner, or E.O.
    • -has the right to vote or sell 10%
    • -managing member of LLC
    • -partnership, has the right to receive upon dissolution or has contributed 10% or more of capital
  9. Immediate famiily member:
    Spouse, child, sibling, parent, grandparent or grandchild and includes stepparents, stepchildren, stepsiblings, and adoptive relationships.
  10. Individual:
    A natural person.
  11. Main office:
    The main address designated on the licensing application.
  12. Person:
    A natural person, corporation, company, LLC, partnership, or association.
  13. Real estate brokerage activity:
    Any activity that involves offering or providing real estate brokerage services to the public.
  14. Mortgage broker:
    A person who for compensation or gain accepts mortgage applications from clients and submits them to mortgage lenders so they can provide a mortgage.
  15. Mortgage correspondent lender:
    • A person engaged in the bus. of making residential mortgage loans in the person's own name where the loans are not held by such person for more than 90 days and are funded by another person.
  16. Mortgage lender:
    A person engaged in the business of making residential mortgage loans in such person's own name utilizing such person's own funds or by funding loans through a warehouse agreement, table funding agreement or similar agreement.
  17. If the Commissioner issues a temporary cease and desist order how long does the mortgage professional have to apply to the superior court for an injunction that will allow them to continue business until the hearing is completed?
    5 days
  18. What is the minimum net worth for a mortgage lender?
  19. The Department does not have the right to:
    Criminally prosecute a mortgage professional for violation of the Connecticut Banking Law
  20. What does a mortgage broker have to put on all their advertisments?
    Mortgage broker only, not a mortgage lender or mortgage correspondent lender.
  21. Which Department of Connecticut banking law does mortgage professionals fall under?
    The consumer credit division
  22. Under the CT Banking Law, how many months of financial statements must be filed with a business license application?
  23. A person who willfully and deliberately violates any provision of the banking law for which no other criminal penalty is provided can be fined up to how much per criminal violation?
    $1,000.00 and up to one year in prison.
  24. When can a mortgage loan originator work out of their home?
    As long as they also work out of the office that is the principal place of business listed on the application for licensure.
  25. What must occur when a lender receives a cease and desist order?
    They have to stop working immediately and have 14 days to request a hearing.
  26. What is required on all advertisments from a loan originator?
    The name of the entity they are employed by
  27. A lender may not make, and a broker may not offer, a ____________ to refinance a mortgage unless there is a tangible net benefit to the borrower.
    Nonprime Loan
  28. When making a secondary mortgage loan, a licensed mortgage lender may not impose prepaid finance charges in excess of _____ of the loan principal.
  29. According to the ____________, licensees must comply with the provisions of the ______________.
    Truth-in-Lending Act, CCPA
  30. How often must lenders making high-cost home loans report borrower payment history to a nationally-recognized consumer credit reporting agency?
    At least annually.
  31. Payoff statements must be provided no later than ___________ days after receipt of a written request from a borrower.
    7 business days
  32. An applicant may request, in writing, a full refund of all fees paid to the mortgage lender for a first mortgage loan within 90 days of applying if the applican'ts loan-to-value ratio is:
    80% or less
  33. Within how many days of recepit of a notice of rescission must the creditor return to the borrower any money or property provided?
    20 days
  34. A _____________ attches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement postpones the attachment.
    Security interest.
  35. If a licensee violates the nonprime home loan provisions outlined by the law, any injured borrower may bring a claim in court for up to how long after closing?
    3 years.
  36. An applicant requesting a refund of paid fees may do so no later than how many days after the expiration of the alloted 90- or 120- day period?
    30 days
  37. In a transaction in which the borrower has the right to rescind and does not exercise it, a finance charge may not begin to accrue until _______________ following consummation.
    after midnight of the 3rd business day
  38. A lender that makes a _________ must disclose to the borrower the APR, the amount of monthly or other periodic payment, details of variable rates in such a transaction, and a statement that the borrower is not obligated to complete the agreement simply because he/she signed an application.
    High-cost home loan
  39. Regulatory authority
    Connecticut Department of Banking
  40. Head of Department
    Banking Commissioner
  41. Real estate brokerage activity includes:
    • -Acting as real estate agent or broker for buyer, seller, lessor or lessee of real property
    • -Bringing together parties or negotiating contract related to sale, purchase, lease, rental or exchange of real property
    • -Negotiating portion of contract relating to sale, purchase, lease, rental, or exchange of real property, not including financing a real estate transaction
  42. Registered MLO is an employee of...
    A depository institution, a subsidiary owned and controlled by a depository institution and regulated by a federal agency, or an institution regulated by the Farm Credit Administration.
  43. Residential mortgage loan definition.
    Loan for personal, family, or household use secured by mortgage or deed of trust
  44. Mortgage broker definition
    Takes loan or negotiates term of loan in anticipation of compensation
  45. Correspondent lender definition
    Makes residential loans in own name where loans not held for more than 90 days and funded by another person
  46. Mortgage lender
    Makes residential loans in own name using own funds
  47. Mortgage loan originator
    Individual who takes and negotiates residential mortgage loans in anticipation of compensation
  48. MLOs do not include...
    • -Loan processor or underwriter
    • -Person who only performs real estate brokerage activity
    • -Person involved in extensions of credit relating to timeshare plans
  49. MLOs exempt from licensure
    • -Registered MLO
    • -Employee of exempt institution or subsidiary when acting for institution
    • -Individual who offers loan terms for an immediate family member
    • -Individual who offers loan terms of a dwelling that served as his/her own residence
    • -Attorney who negotiates terms as part of legal services to client
  50. Net worth requirement
    • Lender - $250,000
    • Correspondent lender and broker - $50,000
  51. Experience refers to paid experiencesd in...
    • -Origination, processing, or underwriting of loan
    • -Marketing of mortgage loans in the secondary market
    • -Any other relevant experience as determined by the Commissioner
  52. Minimum surety bond requirement
    Reason for action against bond
  53. Pre-licensing education must include:
    -3 hours federal law and regulations

    -3 hour ethics

    -2 hours lending standards

    -12 hours elective
  54. Branch managers must have:
    At least 3 years' experience in mortgage industry within five years preceding the date of the application
  55. Lack of financial responsibility
    • -Outstanding judgments
    • -Outstanding tax liens
    • -Foreclosures during 3 years preceding date of application
    • -Pattern of delinquent accounts within past 3 years.
  56. Financial statement must reflect:
    Tangible net worth and should include a balance sheet, income statement, and a statement of cash flow
  57. Continuing education must include:
    • -3 hours federal law and regulation
    • -2 hours ethics
    • -2 hours lending standards
    • -1 hour elective
  58. MLOs must notify NMLS of:
    • -Bankruptcy filing
    • -Criminal indictment
    • -License denial, cease and desist, suspension or revocation
    • -Any action by Attorney General
  59. Licenses valid for:
    1 year
  60. Licenses expire:
    December 31st annually
  61. Annual renewal requirements:
    • -Submit renewal application
    • -Pay renewal fees
    • -Submit proof of continuing education completion
    • -Maintain minimum standards established for obtaining an initial license
  62. Failure to renew results in:
    License expiration
  63. Mortgage call reports consist of:
    • -Residential Mortgage Loan Activity
    • -Financial Condition
  64. Records must be supplied...
    Within 5 business days after request made by Commissioner
  65. Records of each loan must contain:
    • -Disclosures
    • -Role of licensee
    • -Loan history
    • -Purpose of loan
    • -Original or exact copy of note or loan agreement
  66. Records must also contain:
    • -Statement signed by borrower acknowledging receipt of disclosures
    • -Name and address of lender and broker involved
    • -Copy of initial and final loan application
    • -Copy of all information used in evaluating application
  67. Record retention requirement:
    2 years following the final payment or the assignment of the loan.
  68. Trigger Lead:
    Consumer report issued in response to credit application
  69. Deceptive practice may include:
    • -Failure to state solicitor not affiliated with lender/broker with which consumer applied and that solicitation based on personal info about consumer that was purchased from consumer reporting agency
    • -Failure to comply with provisions of FCRA
    • -Using info from trigger lead to solicit consumers inappropriately
  70. MLO may only accept advance fee on behalf of:
    • -Mortgage lender
    • -Mortgage correspondent lender
    • -Mortgage broker
  71. Unique identifier must be displayed:
    Exceed greater or 5% of principal amount or $2,000 on first mortgage loan
  72. Mortgage rate lock-in definition
    Written or electronically transmitted confirmation issued to applicant by lender stating particular rate, number of points, or variable rate at which lender will agree to make loan
  73. Broker may only issue rate lock-in:
    on behalf of lender
  74. Lender can't specify closing date:
    Sooner than 7 calendar days after issuance of commitment
  75. Suspension effective until:
    A permanent order or dismissal.
  76. If temporary order to cease business received:
    Licensee has 5 days to apply to superior court for injunction suspending enforcement
  77. If licensee intends to cease business, it must:
    File a request to surrender the license for each office at which business will be stopped no later than 125 days after ceasing business
  78. Those subject to investigation prohibited from:
    knowingly withholding, abstracting, removing, destroying, or secreting books or records.
  79. Nonprime home loans governored by:
    Creditors' Collection Practices Act
  80. "Best efforts" contracts are:
  81. High-cost home loan disclosures:
    • -APR
    • -Amt of regular or periodic payment
    • -For variable rate transactions, a statement that the interest rate and monthly payment may increase andthe amount of the maximum monthly payment amount
    • -Statement noting the agreement doesn't need to be completed because disclosures have been received
  82. Lender must mail notice within 60 days of:
    The imposition of any delinquency charge or late fee as a result of a late payment on a note, mortgage, or installment sales contract
  83. If violation of mortgage lending laws, Commissioner can:
    • -suspent, revoke, refuse
    • -remove from employment
    • -impose a civil penalty of up to $100,000 for each violation
  84. Payoff statement must be provided
    upon written request by the borrower
  85. Term agency includes:
    Each state boar, commission, department, or officer authorized by law to make regulations or to determine contested cases
  86. Penalties for violations of TILA
    • Fine up to $5,000
    • Imprisonment for up to one year
  87. Hearing notice must state:
    • -Time, place, nature
    • -Legal authority and jurisdiction under which the hearing is to be held
    • -A reference to the particular statute, regulation, rule, or order involved
    • -maximum penalty that may be imposed
    • -That the person has the right to file a written request for a hearing w/n 14 days of receipt of the notice
  88. A mortgage loan originator can work out of their home:
    As long as their home is the principal place of business on the application for licensure.
  89. What must occur when a lender receives a cease and desist order?
    They have to stop working immediately and have 14 days to request a hearing.
  90. What is required on all advertisements from a loan originator?
    The name of the entity they are employed by.
  91. How long is a mortgage professional required to keep proof of their continuing education once the license is renewed?
    You don't have to retain it once the application is approved.
  92. According to the CT Department of Banking, the minimum net worth for a Broker is?
  93. When can a broker lock in an interest rate in their name?
    At no time
  94. A mortgage broker can work as:
    A broker and a loan originator.
  95. A mortgage lender can also work as:
    A broker and a correspondent lender.
  96. When the Commissioner is considering an application for licensing in CT and the applicant had a preivous felony, how long will that felony count against the applicant?
    7 years
  97. A residential mortgage broker has his or her license suspended. How long do they ahve to request a hearing?
    14 days.
  98. A person engaged in the business of making residential mortgage loans in the person's own name where the loans are not held by such person for more than 90 days and are funded by another person is considered a _____________.
    Correspondent mortgage lender
  99. The advertisment of a "no-point" mortgage loan when points are charged:
    is prohibited
  100. The max prepaid finance charge on a loan amount of $30,000.00 is?

    The max prepaid finance charge is the GREATER of 5% of the loan amount or $2,000.
  101. When is an advanced fee paid on a loan transaction nonrefundable?
    Only when the mortgage company and borrower agree in writing
  102. How often must each lender adopt a loan policy with respect to subprime and nontraditional loans?
    Once a year.
  103. A correspondent mortgage lender is a residential mortgage lender who does not hold any mortgage loans in its portfolio, or service mortgage loans, for:
    more than 90 days
  104. Connecticut law considers a notice sent by the Commmissioner "received" by the licensee on the date of actual receipt or how many days after sending?
  105. For each loan that is made and serviced by a licensee, the licensee is required by Connecticut Banking Law to retain the records of the loan transaction for how long?
    2 years.
  106. When a surety company wishes to cancel a surety bond they are required to notify the Commissioner within _________ days.
  107. The maximum prepaid finance charge for secondary mortgage loans is ____.
  108. Prepaid Finance Charges cannot exceed the greater of 5% of the principal amount of a loan of _____________.
  109. A person who willfully violates any provision of the banking law where no specific monetary fine is mandated cna be charged ____________________ for a Civil Penalty.
  110. The minimum surety bond required by the Connecticut Department of Banking is ____________.
  111. A mortgage broker who accepts an advance fee from a borrower may ___________.
    deposit funds into broker trust account.
  112. Charging more than ___% of the add'l funds borrowed is prohibited if refinancing with the same lender within ______ months.
    5%, 24 months.
  113. The trigger threshold for a non prime secondary morgage is ____% over conventional mortgage rate.
  114. The _____________ governs the interest that can be charged during the right to recind period.
    Consumer Credit Protection Act
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Connecticut Mortgage License Exam
2013-06-16 02:43:01
connecticut license

For mortgage bankers looking to pass their CT state license test
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