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  1. Under HI state law what chapter is the SAFE Act under & what Act is its amendment under?
    • Chapter 454F
    • Act 84 (admendments to Ch 454F)
  2. What does does the SAFE Mtg Lic Act require states to do?
    To have a clear system of regulation that complies w/the federal law in place to regulate the residential mtg industry or face federal takeover
  3. What does SAFE stand for
    Secure And Fair Enforcement
  4. What is another name of Act 84?
    S.B. No 2603
  5. What does NMLS stand for?
    Nationwide Mortgage Licensing System
  6. Who needs to be registered w/the NMLS?
    All mtg loan originators & companies
  7. According to Chapter 91 of 454F-B what shall the DFI commissioner establish?
    A procedure for the secondary review of each applicant that failed to meet the criteria for licensure.
  8. What is the Mtg Loan Recovery Fund for?
    Any person aggrieved by an act, representation, transaction, or conduct of a licensee involving fraud, misrepresentation, or deceit may recover $ by order of the circuit or district court.
  9. What is the maximum a person can receive from the Mtg Loan Recovery Fund?
    Not more then $25k per transaction, including court costs & other fees
  10. Who pays & what amount are paid into the Mtg Loan Recovery Fund?
    • Principle Office $300
    • Branch Office $250
    • Mtg Loan Originator $200
  11. Upon application for renewal of a license who pays & what amounts do they pay?
    • Principle Office $200
    • Branch Office $100
    • Mtg Loan Originator $100
  12. Is your fee refundable upon a denial of a license renewal?
  13. According to Ch 91 the commissioner may adjust or cease renewal fees if the Mtg Loan Recovery Fund attains what funding level?
  14. Can the commissioner adjust fees to a reasonable level to obtain a funding level of $750k?
  15. What can the commissioner or designee expend Mtg Loan Recovery Fund monies on?
    • Legal Counsel
    • Public Accountant to manage the fund
    • Employ personnel to manage the fund
    • Retain a consultant to recover & collect any payments not paid
  16. Can the the commissioner adjust fees if the Mtg Loan Recovery Fund falls below $260k after the 1st 4 yrs of it being established?
    No: It must fall below $250k only after the 1st 5 yrs of it being established.
  17. What does DFI stand for?
    Division of Financial Institutions
  18. Who supervises & regulates all state-chartered & state-licensed financial institutions in the state of Hawaii, all escrow depositories, & all $ transmitters?
    Division of Financial Institutions (DFI)
  19. What is the 2 branches of DFI?
    • Examination Branch
    • Licensing & Regulatory Analysis Branch
  20. What is the (DFI) Examination Branch responsible for?
    • On-site examinations of Financial Institutions
    • Escrow Depositories
  21. What is (DFI) Licensing & Regulatory Analysis Branch responsible for?
    • Licensing activities
    • Regulatory approvals
    • Off-site monitoring program
  22. The purpose of Senate Bill Act 084 is to

    a) be in compliance with act 454
    b) allow the state to continue to work toward meeting its obligations under the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008
    c) allow the state to continue to work toward meeting its obligations under the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2010
    d) pass general mortgage doctirine # 454
  23. Act 32

    a) was a necessary step in meeting the mandates of the SAFE act
    b) was passed in early 2009
    c) established a compliance resolution fund
    d) all of the above
  24. True or False: Act 84 amended Chapter 412 by adding a new sections stating NonDepository financial loan
    services companies must register with the NMLS system only if any employee acts as a mortgage loan originator.
  25. What would be considered grounds for having you Mortgage Loan Originator license revoked?

    a) Denying a loan based on insufficient income b) Denying a loan based on a borrowers race
    c) Denying a loan based on a lack of equity based on the appraisal
    d) Denying a loan based an applicant not being of legal age to sign a contract
  26. What would be grounds for revoking a Mortgage Loan Originator license?

    a) Doing loans out-of-state
    b) Holding active licenses for both Insurance and Mortgage Loan Origination
    c) Purchasing a primary residence out-of-state
    d) Not completing the required Continuing Education hours
  27. The entitiy responsible for the supervision and oversight of Mortgage Loan Originators/ Companies is?

    a) Professional and vocational Licensing Division
    b) The governor
    c) The Division of Financial Institutions
    d) The Commissioner
  28. Which of the following is not correct?

    a) The surrender of a Mortgage Originator license, does not protect the licensee from liability for acts committed prior to the surrender
    b) The expiration of a Mortgage Originators license will not protect the licensee from any preexisting contract between the licensee and the borrower
    c) The surrender of a Mortgage Originators license will not protect the licensee from a proceeding to revoke a license.
    d) The surrender of a Mortgage Originators license releases you from liability
  29. Who is required to have a Mortgage Loan Originator license?

    a) A person selling Timeshares
    b) An attorney helping a client as an ancillary matter
    c) A contract processor
    d) A person doing commercial loans
  30. Pre-Licensing Education is required to be taken how often:

    a) Every license renewal
    b) Every 2 years
    c) Only once
    d) When your license expires
  31. Which of the following are exempt from a Mortgage Loan Originator License?

    a) Out-of-State Loan Originator
    b) Owner selling their personal property
    c) Processor who discusses rates
    d) Realtor, paid by a mortgage lender
  32. How much notice is required to be given to the Commissioner before a branch office can be closed?

    a) No notice is required
    b) 30 days
    c) Current loan applicants only need to be notified
    d) 60 days
  33. A licensed loan originator must retake the exam if they fail to maintain a valid license for how many years?

    a) 1 year
    b) 2 years
    c) 3 years
    d) 5 years
  34. The Mortgage Originator Application process includes all of the following except:

    a) Fingerpirnts
    b) Tax Returns
    c) Credit Report
    d) Background Check
  35. What is the amount of the Mortgage Loan Recovery Fund renewal fee?

    a) $50
    b) $75
    c) $100
    d) $250
  36. What would be an allowable reason to delay a closing?

    a) The mortgage Loan Originator quit the Mortgage broker
    b) The hospitalizaation of a family member of the Mortgage Loan Originator
    c) The borrowers are out-of-town
    d) The Mortgage Loan Originator double-booked the closing
  37. Which answer best describes a Non-Traditional Mortgage Product?

    a) Jumbo fixed for 30 years
    b) Longest term fixed FHA/VA
    c) Interest Only
    d) 30-yr fixed Conventional Conforming
  38. Select the most correct definition of a Residential Mortgage Loan:

    a) 6-Plex
    b) Mobile Home on a fixed foundation
    c) New Home Construction
    d) 1-4 Units
  39. If you fail the exam a second time, how long must you wait before you can re-take the exam?

    a) 1 day
    b) 7 days
    c) 15 days
    d) 30 days
  40. Which of the following is NOT true?

    a) NMLS is responsible to keep licensee info updated
    b) A mortgage loan originator can only work for one company at any time
    c) An application is "filed" only after all information and fees required have been received by the Commissioner
    d) All licensees shall pay a Mortgage Loan Recovery Fund fee
  41. What would not be grounds to cause a loan originator to have their license revoked?

    a) Charging for the actual cost of a Title Commitment
    b) Charging a $10 administration fee to the cost of an appraisal
    c) Charging a $20 for a $15 credit report
    d) Charging a flat add-on fee above the cost of an inspection
  42. If a borrower writes a check to pay for a credit reprot to whom is the check made out to?

    a) The Mortgage Loan Originator
    b) The Mortgage Broker
    c) The Mortgage Lender
    d) The check can be left blank and filled in later
  43. Which is not one of the duties of the Commissioner:

    a) The Commissioner may, reinstate a license, terminate, suspension, or grant a new license
    b) Criminally Prosecute a Licensee
    c) The Commissioner can charge an hourly fee of $40, charged to the licensee during an investigation or examination
    d) The Commissioner can suspend a license application for being incomplete
  44. All of the following are correct except:

    a) The Commissioner may conduct examinations of any licenses
    b) The Commissioner may at any time investigate the books and records of any licensesee
    c) The Commissioner shall have free and reasonable access to the offices, books and records of the licensee
    d) The Commissioner may investigate a Licensees personal checking account
  45. The Unique Identifier must be displayed on all of the following except?

    a) Business Cards
    b) Loan Applications
    c) Advertising
    d) E-mail Correspondence
  46. What could a Mortgage Loan Originator say to an appraiser and risk having their license revoked?

    a) "I believe you made an error on the appraisal"
    b) "Do not forget the horse stables in the backyard"
    c) "there was a home that sold around the corner as a For-Sale-By-Owner"
    d) "Do not forget there is a minimum value needed for the appraisal"
  47. A borrower has rescinded the mortgage loan within the allowable days, what should the loan originator do?

    a) Tell the borrower they will be sued for Breach-of-Contract
    b) Tell the borrower they will be reported to the credit bureaus which will damage their credit
    c) Refund only the application fee
    d) Refund all of the borrower's money that was paid to the loan originator
  48. The loan application fee for a Mortgage Loan Originator is?

    a) $100
    b) $200
    c) $300
    d) $500
  49. Hawaii State Testing includes all of the following except?

    a) Ethics
    b) Federal law and regulation pertaining to mortgage origination
    c) SEC Regulations
    d) Consumer Protection
  50. The number of hours required for Pre-Licensing Education is:

    a) 20 hours
    b) 14 hours
    c) 10 hours
    d) 8 hours
  51. The Commisioner may do all of the following except?

    a) Order restitution
    b) Deny a license
    c) Regulate commissions
    d) Require specific Continuing Education courses
  52. Which of the following would not be grounds for license revocation/suspension:

    a) Fill in blanks on the application ata later time
    b) Withhold material information about borrower
    c) Engage in misrepresentation
    d) Notify borrower of changes on the Good Faith Estimate
  53. Which entity funds a loan?

    a) Loan Officer
    b) Mortgage Broker
    c) Escrow Officer
    d) Mortgage Lender
  54. What is the maximum fine that can be issued from the Mortgage Loan Recovery Fund?

    a) $25,000
    b) $50,000
    c) $75,000
    d) $100,000
  55. How many hours of Mortgage Fraud education are required for Pre-licensing?

    a) 1 hour
    b) 2 hours
    c) 3 hours
    d) Mortgage Fraud is not required for Pre-licensing
  56. Which of the following is correct regarding Continuing Education?
    a) CE Course Credit is good for 2 yrs
    b) You can retake the same class course each year for Continuing Education Credit
    c) A licensed mortgage loan originator, who is an instructor, needs to take all 8 hrs of CE just like everyone else
    d) If you re-apply for a Mortgage License, you may have to take additional CE hours
  57. Which of the following needs a Mortgage Loan Originator License?

    a) Attorney
    b) Person originating 1st
    c) Person selling his own home and providing his own financing
    d) Processor
  58. The 8 hours for Pre-Licensing require all of the following except:

    a) Federal Law
    b) Ethics
    c) Federal Banking Law
    d) Fraud
  59. Which of the following are required hours of Pre-Licensing Education?

    a) 3 hours of Federal Law, 2 hours of Ethics, 3 hours of non-traditional mortgage
    b) 3 hours of Federal Law, 3 hours of Ethics, 2 hours of non-traditional mortgage
    c) 2 hours of Federal Law, 3 hours Ethics, 2 hours of non-traditional mortgage
    d) 2 hours of Federal Law, 3 hours of Ethics, 3 hours of non-traditional mortgage
  60. How many hours of Continuing Education are required each year?

    a) 8
    b) 10
    c) 12
    d) 14
  61. The Title of the person who approves and /or issues your mortgage license is?

    a) Governor
    b) Commissioner
    c) Director
    d) Superintendent
  62. Which is not Pre-requisite for a new license application?

    a) 20 hours of Hawaii approved education
    b) Pass the NMLS exam
    c) Pass the Hawaii State Exam
    d) 20 hours of NMLS approved education
  63. All of the following are required for a Mortgage License Application except:

    a) 7 year Previous Background Check
    b) Personal Assets
    c) Financial Responsibility
    d) License Revoked

  64. Which of the following can cause you to be denied a Mortgage Originator License?

    a) Had a mortgage loan originator license revoked 10 years ago
    b) Had a Foreclosure 4yrs ago
    c) Have 2 Medical Judgments
    d) Have 3 Paid Tax liens
  65. All of the following are systems for recordation except?

    a) Regular System
    b) Land Possession System
    c) Dual System
    d) Land Court System
  66. Which of the following is not a requirement for a Mtg Loan Originator Company?

    a) Maintain a Principle Place of business in Hawaii
    b) The company must have FHA approval to do business in Hawaii
    c) Designate a Licensed Manager
    d) Receive approval for opening branch locations
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