1. What did congress create and in what year?
    • the secure and fair enforcement for mortgage licensing act
    • in 2008 (safe act)
  2. Why was the SAFE Act created?
    To insure the uniform regulation of mortgage loan originators in every state.
  3. When the mortgage and housing markets fell apart in 2007, what did congress do?
    Created HERA
  4. What is HERA and what year?
    The Housing and Economic Recovery Act of 2008
  5. What did HERA focus on?
    Subprime lending
  6. Where is the SAFE Act?
    Inside of HERA’s Title V
  7. When was the deadline for creating a licensing program for the SAFE Act?
    July 31, 2009
  8. What does HUD stand for?
    The Department of Housing and Urban Development
  9. Who wrote the model law for the SAFE Act?
    The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)
  10. Who approved the SAFE Act?
  11. What does the model legislation of the SAFE Act reflect?
    The Minimum licensing standards
  12. Who wrote the implementing regulations for the SAFE Act?
  13. What regulations go with the SAFE Act?
    Regulation H and G
  14. Regulation
    • The SAFE Act,
    • 1. standards that state licensing systems and
    • loan originators are required to meet.
    • 2. responsibility of monitoring states’
    • compliance.
    • 3. The authority to establish licensing systems in states that don’t have a program.
  15. What did the Dodd-Frank Act do and in what year?
    2010, transferred SAFE to the Consumer Financial Protection Bureau
  16. Who
    runs the SAFE Act?
    It was originally run by HUD but is now run by CFPB
  17. What does CFPB stand for?
    Consumer Financial Protection Bureau
  18. What is the purpose of the SAFE Act?
    • Minimum uniform standards for licensing and require state participation in the NMLS
    • database
  19. What are state regulators allowed to check, and what aren’t they?
    • Background check, fingerprints, credit history, records. Not allowed to check for a
    • degree/education.
  20. In an investigation, what is the state authorized to do?
    • Administer oaths/affirmations, subpoena witnesses, require production of documents,
    • control access to any documents.
  21. Licensee’s
    under investigation may?
    Have access to documents in order to conduct regular business affairs, unless there are reasonable ground to believe that the records may be altered or destroyed.
  22. Can private or confidential information be provided to the NMLS?
  23. After
    private or confidential information is provided to the NMLS what happens?
    It’s still private and confidential
  24. Can confidential information provided to the NMLS be used against you in court?
  25. What does NMLS stand for?
    The Nationwide Mortgage (Multistate) Licensing System and Registry
  26. Who developed and maintains the NMLS?
    The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR)
  27. What is the difference between an individual and a person?
    A person can be any kind of company or individual
  28. Loan
    Processor or underwriters do what?
    Perform clerical and support duties
  29. Registered loan originator is an individual who?
    Is an employee of a depository institution
  30. Employee?
    Manner and means of performance of work are subject to the right of control of, or are controlled by, a person
  31. Everyone’s NMLS is?
    A Unique Identifier
  32. The purpose of the SAFE Act of 2008 was to enhance ___ protection and reduce ____?
    Consumer and reduce fraud
  33. A ___ is an individual who, for compensation or gain, takes a residential mortgage loan application?
    Loan Originator
  34. The receipt, collection, distribution, and analysis of information common for the
    processing and underwriting of a residential mortgage loan are what kind of
    Clerical and support
  35. Assigned by protocols established by the NMLS?
    Unique Identifier
  36. What is an independent contractor?
    An individual who performs his/her duties other than at the direction of and subject to the supervision and instructions of an individual who is licensed and registered as required under the SAFE Act or is exempt from licensing
  37. A state is not required to license the following?
    Loan processor or underwriter, registered loan originator working for a bank, real estate brokers, timeshare
  38. Who must provide access to all criminal history information
    to officials?
    The Attorney General
  39. How many hours of pre-licensing education and what kind?
    20 hours, 3 hours of federal law and regulations, 3 hours of ethics, 2 hours of nontraditional mortgage products
  40. Test taking rules?
    • Needs a 75, must wait at least 30 days between each attempt, must wait 6 months or
    • 180 days after 3rd failure
  41. A licensed originator who fails to maintain a valid license must retake the test
    after how long?
    5 years
  42. Mortgage loan originators must be covered by what?
    A Surety bond
  43. The penal sum of the surety bond must be?
    Maintained in an amount that reflects the dollar amount of loans originated.
  44. Some states require originators to have a?
    minimum net worth or pay into a state fund
  45. Grounds for denying a license?
    Felony in the last 7 years or fraud/money laundering EVER
  46. Not financially responsible?
    • 1. Outstanding judgments
    • 2. tax liens
    • 3. foreclosures or delinquent accounts within past 3 years.
    • 4. Medical bills don’t count
  47. In order to meet annual continuing education requirements a state-licensed loan
    originator must complete?
    • 8 hours of NMLS-reviewed and approved coursework.
    • 3 hours federal law and regulations, 
    • 3 hours of ethics,
    • 2 hours of nontraditional mortgage products.
  48. An originator may only receive credit for a course in?
    The year the course is taken
  49. Continuing education requirements - originators may not?
    Take the same approved course in successive years
  50. Continuing education – for every _ taught will receive _ hours credit?
    One hour taught = 2 hours credit
  51. An individual who was previously licensed and is applying to be licensed again
    must have?
    • Completed all continuing education requirements for the year
    • in which their license was last held.
  52. In order to renew a license?
    Pay $, meet minimum standards, satisfy education requirements
  53. Regulation G?
    • Title 12 Chapter X, SAFE ACT registration system for those individuals acting as originators by
    • 1. Depository institutions,
    • 2.Subsidiaries
    • 3. Farm Credit Administration
  54. The state legislation provides that the maximum amount of penalty is?
    25000 for each act
  55. Advertisements are covered under what act and reg?
    • TILA
    • Reg Z
  56. Tila’s reg?
    Reg Z
  57. essentials of a kickback
    • A Fee or Thing of Value
    • An Agreement or Understanding
    • and A Referral
  58. PENCIL?
    Property Address, Estimate of Value, Name of Customer, Credit (borrower’s social to obtain credit), income, loan amount requested
  59. Can PENCIL be untriggered?
  60. Only fee allowed to be collected prior to application?
    Third-party credit report fee
  61. When must an initial LE be provided?
    Within 3 business days of the completed application date
  62. A subsequent LE, due to a valid change in circumstance must be provided?
    Within three business days of the change in circumstance.
  63. Failure
    to re-disclose an LE within the 3 day window does what?
    Forfeits your ability to use the changed circumstance as a fee increase justification
  64. An LE must be provided to the customer within how long of what?
    3 business days of the Lock Date.
  65. The earliest consummation date must remain the later of?
    Four business days after consumer receives last LE or 7 business days after delivery of initial LE
  66. Can an LE be provided on the same day or after a CD has been provided to the
  67. Fees are subject to 10% cumulative tolerance if?
    • It’s a recording fee, a third-party service (in which the
    • charge isn’t paid to a creditor or affiliate, or the consumer is permitted to shop for the 3rd party provider), or the consumer selects the
    • provider
  68. You are disclosing initial disclosures for a
    borrower that is refinancing their condominium unit. When a request is
    submitted for a completed Condo Questionnaire, the Home Owner's Association
    charges a fee of $150. Looking at your initially disclosed LE, you realize that
    you did not include this fee. What section of the LE should this fee be
    added to?
    You cannot charge the customer for this fee.
  69. A borrower email or signed word doc request must be dated within what time frame for a Change of Circumstance request?
    • Three business days before the Change of
    • Circumstance request.
  70. What must be received by the consumer(s) no later than three (3) business days prior to closing.
    The Closing disclosure
  71. A corrected CD will
    require a new three day waiting period prior to loan consummation if
    • 1. annual percentage ate varies more than .125% than previously disclosed APR,
    • 2. loan product is hanged, or
    • 3. a prepayment penalty is added
  72. The final rule requires that the consumer receive the (CD) Closing Disclosure no later than ___ business days before _____.
    3, consummation
  73. The Loan Estimate must be delivered or placed in the mail not more than ____ business days after receipt of an ____ and not less than ____ business days before
    _____ of the transaction.
    • three, application
    • seven consummation
  74. How long is the offer period if the customer is moving forward with the loan
    10 days
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