Compliance

  1. Under what chapter lists; compliance, prohibited conduct & practices?
    494
  2. Which 3 person/entity is allowed to receive payment of a fee or commission related to a mortgage loan transaction?
    • A mortgage broker
    • A mortgage lender
    • A person exempt from licensure under the law.
  3. If, in a mortgage transaction, a licensee has a conflict of interest, the licensee is required to provide the following disclosures, in writing, to the borrower?
    • The nature of the relationship, ownership, or financial interest betewen the provider of products, services or business, and the licensee makeing the referral.
    • The estimated charge or range of charge generally made by such a provider
    • The financial benefit to the licensee as a result of the conflict.
    • That alternative sources may be chosen by the borrower.
  4. A licensee has a conflict of interest if?
    • The licensee or the licensee's relative provides the borrower with additional products or services.
    • The licensee or their relative or a holding company owns, controls, or holds with power to vote, or holds proxies representing, 10% or more of any class of equity securities or other beneficial interest in both the licensee and the person providing the additional products or services.
    • One or more persons, or a relative, sits as an officer or director for bot the licensee and the person providing the additional products or services, or just for the person providing the additional products or services.
  5. What course section imposes specific Florida Law requirements on licensees ranging from administrative notification requirements to ethical conduct codes when making a mortgage?
    Personal Information Updates and Required Notifications
  6. Mortgage brokers are required to maintain a file for each mortgage transaction, what must this file maintain?
    • Mortgage broker agreement
    • Copy of signed closing statement or documentation of denial or cancellation of the morgage loan application.
    • A copy of the good faith estimate of costs.
  7. What supporting documents must be maintained by the licensee (Mortgage Broker) on behalf of the client?
    • All expenses or fees paid by the licensee on behalf of the client, indicating the amount and date paid.
    • A cancelled check maintained in a seperate file must be considered proof of payment of fees and expenses.
  8. If the mortgage broker issues a written commitment for the loan on behalf of the lender, then the following must be maintained in the file?
    • A copy of the written commitment issued by the mortgage broker.
    • A copy of the written commitment provided by the lender.
  9. If the mortgage broker issues to the client a written lock-in for the loan on behalf of the lender, then the following must be maintained in the file?
    • A copy fo the written lock-in issued by the mortgage broker; and
    • A copy of the written lock-in provided by the lender.
  10. If the loan is funded by a non-institutional investor, then the file must also include the following?
    • A copy of the appraisal or opinion of value of the mortgage property and a signed and dated acknowledgment by the non-institutional investor of receipt of the appraisal or opinion of value or a copy or a waiver of the appraisal dated and executed by the non-institutional investor.
    • A receipt that the non-institutional investor has been furnished with title insurance or a legal opinion of title, or written waiver.
    • On a Jr. Mortgage, documentation that the non-institutional lender has been given balance owed and status of the liens that will be superior to the lein being funded by the non-institutional investor.
    • A signed and dated acknowledgment by the non-institutional investor of receipt of the recorded mortgage or other instrument securing a note or assignment.
    • If applicable, documentation that said licensee has disclosed that it is acting (directly or indirectly) as a borrower or principal in that transaction.
  11. What must be maintained in the journal of mortgage brokerage transactions?
    • Name of applicant
    • Date application applied for the mortgage loan
    • Name of Lender if applicable
    • Disposition of the mortgage loan application - the result of the transaction. The disposition of the case must be categorized as one of the following:
    • Loan funded
    • Loan denied
    • Application withdrawn
    • Other w/explanation
  12. The transaction journal must be maintained where?
    In the principal office or in each branch office where the mortgage brokerage transactions are originated.
  13. The transaction journal must be update within how many days?
    7 days
  14. What must be maintained in a file for each mortgage transaction for a Mortgage Lender, and who requires these?
    • A copy of the good faith estimate
    • The original morgage loan application
    • Copy of the closing statement or documentation demonstrating that the mortgage loan application was cancelled or denied
    • Copy of any written lock-in agreement
    • Copy of any written commitiment
    • Copy of written disclosures of any conflict of interest
  15. What supporting document must be maintained by the Mortgage Lender on behalf of the client?
    • All expenses or fees paid by the mortgage lender
    • Must indicate name & address of the person paid, the amount and date of payment, and a description of the products or servies purchased.
    • Invoices from third parties involving multiple loans, maintained in a central file, need not be copied and placed in each individual loan file.
    • A cancelled check maintained in a seperate file is considered proof of payment of fees and expenses.
  16. If the mortgage lender sells a mortgage to a non-institutional investor, then each file must contain the following:
    • A copy of the appraisal or opinion of value of the mortgage property and a signed and dated acknowledgement of receipt of same by the non-institutional investor; or copy of a waiver of the appraisal or opinion of value dated and executed by the non-institutional investor.
    • A receipt acknowledging that the non-institutional investor has been furnished with mortgagee's title insurance, or legal opinion of title by an attorney licensed in FL or a written waiver.
    • On a Jr. Mortgage, a copy of the statement furnished to the non-institutinal investor showing the balance owed and the status of the liens that will be superior to the liens being recorded in the favor of the non-institutional investor in this loan transaction.
    • A signed and dated acknowledgement by the non-institutional investor of receipt of the recorded mortgage or other instrument securing a note or assignment, or a signed acknowledgement by the licensee attesting that the aforementioned documentation was delivered to the non-institutional investor.
    • A copy of the original note evidencing proper endorsement of the note by the lender to the non-institutional investor.
  17. A mortgage lender which services a mortgage loan for a non-institutional investor must enter into what?
    A written servicing agreement with the non-institutional investor, prior to servicing the loan.
  18. What is a Master Servicing Agreement
    A written servicing agreement between the mortgage lender who is servicing a mortgage loan for a non-institutional investor. This agreement may be maintained in one central location, does not have to be in each file.
  19. If the lender makes a material (substantial)change to the loan that had been offered to the borrower, the licensee has certain responsibilities under the law........notice requirements are?
    • Licensee is required to notify the borrower of any material changes in the terms of a mortgage loan previously offered to the borrower.
    • The Licensee must make this notification w/ in three business days after being made aware of such changes by the lender but not less than three days before signing of the settlement or closing statement.
    • The Licensee bears the burden of providing such notification was provided and accepted by the borrower.
  20. What is an institutional investor?
    • State or National Bank
    • State or Federal Savings and Loan association or savings bank
    • Real Estate Investment Trust
    • Insurance Company
    • Real Estate Company
    • Accredited Investor or other business entity that invests in mortgage loans, including a secondary mortgage market institution including w/ out limitation, the Federal national Morgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Government National Mortgage Association (Ginnie MAe)
    • Investment Bankers, and any subsidiary of those entities.
  21. When a loan originator is arranging a mortgage loan for a non-institutional investor, the licensee must?
    • Provide an opinion of value from an appraiser stating the value of the security property unless the opinion is waived in writing.
    • Provide an original or a copy of a mortgagee's title insurance policy or an opinion of title by an attorney.
    • If the loan is not a first mortgage, a statement showing the balance owed by the mortgagor on any existing mortgages prior to this investment and the status of such existing mortgages must be provided.
    • Provide a disclosure if the licensee is direcctly or indirectly acting as a borrower or principal in the transaction.
  22. When should the opinion of value from an appraiser be done?
    • Before any payment of money has been made.
    • The opinion must state the value of the property as it exists on the date of opinion.
    • If any relationship exists btween the mortgage broker and the appraiser, that relationship must be disclosed to the investor.
  23. When Brokering loans to Non-Institutional Investors each mortgage and assignment must be recoreded as soon as practical but no later than how many business days after the date of closing?
    30 days
  24. Does the mortgage broker have control of money from a non-institutional investor?
    NO
  25. Can a licensee receive a mortgage brokerage fee upon the closing of the morgage loan funded by the non-institutional investor?
    Yes
  26. If a title insurance policy is issued from broker to non-institutional investors, it must?
    • Insure the non-institutional investor against the "un-marketability" of the mortgagee's interest in the property.
    • Specify any superior liens that exist against the property.
  27. If an opinion of title is issued by an attorney licensed to practice law in the state, the opinion must?
    • Include a statement as to the marketability of the title to the property described in the mortgage
    • Specify the priority of the mortgage being closed.
  28. If the title insurance policy or opinion of title in not available at the time of purchase, the licensee must?
    • Provide a binder of the title insurance or conditional opinion of title which includes; 1)any conditions or requirements needed to be corrected prior to the issuance of the final thitle policy or opinion of title. 2)Information concerning the previously specified requirements.
    • Any conditions must be eliminated or waived in writing by the investor prior to delivery to the non-institutional investor.
    • The policy or opinion, or a copy, must be delivered to the investor within a reasonable period of time, not exceeing six months, after closing.
  29. Brokers are required to designate who & what?
    A principal loan originator for the mortgage broker business and a branch manger for each branch office.
  30. What is the principal loan originator purpose?
    Exercises supervision and control over the licensee's business.
  31. What is the Branch Managers purpose?
    Have control and supervision of the individual branh offices.
  32. In order to serve as a principal loan originator an individual must have been licensed as what and for how long?
    Loan Originator for at least one year prior to designation.
  33. Branch Managers are required to hold what license?
    Loan Originator License
  34. The mortgage lender is required to submit a copy of the financial audit report within how many days?
    120 days after the end of the licensee's fiscal year.
  35. If the licensee (mortgage lender) changes its fiscal year, the licensee must file a report within?
    18 months after the perviously submitted report.
  36. Broker fee on a mortgage loan of $1,000 or less?
    $250
  37. Broker fee on a mortgage loan exceeding $1,000 and not exceeding $2,000?
    $250 for the first $1,000, $10 for each additional $100 of the mortgage.
  38. Broker fee on a mortgage loan exceeding $2,000 and not exceeding $5,000?
    $350 for the first $2,000, plus $10 for each additional $100 for the mortgage loan.
  39. Broker fee on a mortgage loan exceeding $5,000?
    $250, plus 10% of the entire mortgage loan.
  40. What is included in determining the loan origination fee?
    • Arranging for a conditional mortgage loan commitment between a borrower and lender
    • Taking an application, assembling information and preparing all paperwork and documentation necessary for a conditional mortgage loan commitment.
    • Reviewing, analyzing, and evaluating a borrower's financial statements, income, and credit history.
    • Incidential services utilized in arranging for a procuring and conditinal loan commitment, such as, courier services, express mailings, and long distance telephone charges.
    • Premiums and other charges for insurance written in connection with a loan, except as provided in subparagraph.
  41. How long after the publication of a notice by the Office of Financial Regulation does a person have to request a hearing?
    21 days
  42. The Financial Services Commission is coprimised of?
    • Agriculture Commissioner
    • The Attorney General
    • The Governor
  43. A valid penatly for a license violation in the state of Florida is?
    • Suspension of a license
    • Issuance of a reprimand
    • Revocation of a license
  44. A fee may only be charge on a loan modification if:
    The modification results in a material benefit to the borrower.
  45. The written mortgage broker agreement must be executed when?
    Within three business days after the application is accepted.
  46. Paul Bunyan has decided to open a mortgage brokerage firm, which he will operate on his own as a sole proprietorship. He plans to employ his girlfriend, Lucette, as a fulltime employee to process the loan applications that he solicits, negotiates, and originates. Which of the following statements is accurate concerning the licensing requirements that Paul must satisfy in order to operate in compliance with the law:
    Both Paul and Lucette need mortgage loan originator licenses and Paul must be designated as the principal loan originator.
  47. If, in a mortgage transaction, a licensee has a conflict of interest, the licensee is required to provide all of the following:
    • The estimated charge or range of charge generally made by such a provider
    • The alternative sources may be chosed to borrrower
    • The nature of the relationship, ownership, or financialinterest between the provider of products, services or business, and the licensee making the referral.
  48. Florida law requires licensees to initiate entires in the Mortgage Brokerage and Lending Transaction Journal within how many days from the date the brokerage transaction is entered into?
    Seven business days
  49. Any person applying for a loan originator's license in Florida must complete how many hours of pre-licensing education?
    20 hours
  50. What is the maximum administrative fine that can be assessed for each seperate offense for license violations of Chapter 494?
    $25,000
  51. If a mortgage lender fails to meet the net worth requirements, his or her license will be suspended for up to how many days?
    120 days
  52. While conducting an investigation the Office may perform all of the following?
    • Administer oaths
    • Force the production of books and records
    • Compel the attendance of a witness
  53. Which Florida law oulines the hearing process for Florida's administrative agencies?
    Chapter 120
  54. Under Florida law, the Commission is required to adopt all of the following rules as they relate to criminal activity?
    • A 15 year disqualifying period for felonies involving moral turpitude
    • A 7 year disqualifying period for all other felonies other than those involving fraud or dishonesty
    • Permanent bars for felonies involving fraud, dishonesty, breach or trust, or money laundering.
  55. Any investor other than an institutional investor is known as a?
    non-institutional investor
  56. The licensee fails to maintain the necessary files and docutments so that an audit trail of all mortgage transactions can be provided, it will result in what penalty?
    A fine of $1,000 and six-month license suspension
  57. How long must a record of advertisements be maintained in Florida?
    Two years from date of publication or broadcast
  58. A mortgage broker who creates a contract to receive a mortgage broker fee upon receipt of commitment must disclose all of the following terms to the borrower:
    • Initial note rate (for adjustable rate mortgages)
    • Potential for negative amorization
    • Gross loan amount.
  59. Material limitations in advertising included all of the following:
    • That a higher rate or points could be required
    • That restrictions as to the maximum principal amount of the loan
    • The percentage of down payment required
  60. Which Florida law prohibits a lender from requiring an applicant to take a mortgage protection insurance through any particular agent or company?
    Anit-Coercion law
  61. If a licensee violates Florida law pertaining to loan modifications, the borrower may bring an action against the broker and may potentially recover which of the following?
    Actual damages and attorney's fees.
  62. Which of the following documents identifies recipient of all payments charged to the borrower?
    Good Faith Estimate
  63. Are loan processors restricted to working for a single broker or lender?
    No
  64. Are loan processor prohibited from offering or negotiating loan terms to consumers?
    Yes
  65. Are loan processors required to maintain a loan originator license?
    Yes
  66. If a licensee fails to maintain the necessary files and documents so that an audit trail of all mortgage transactions can be provided, it will result in what penalty?
    A fine of $1,000 and 6 month license suspension
  67. Who is responsible for the licensing and regulation of the non-depository financial services industries?
    Division of Finance
  68. Which of the following agencies is responsible for monitoring and regulating mortgage professionals in Florida?
    Division of Finance
  69. A mortgage loan originator application who fails to pass the pre-licensing examination after three re-test will be able to retake when?
    Six months before re-testing
  70. A servicing endorsement authorizes a lender to service a loan for more than how many months?
    4 months
  71. A loan originator applicant may be denied licensure if the Office finds a seriously delinquent account relating to the applican'ts auto loan within the past year? True or False
    True
  72. Under Florida law, the Commission is required to adopt all of the following rules as they relate to criminal activity:
    • 7 year disqualifying periof for all other felonies other than those involving fraud or dishonesty
    • Permanent bars for felonies involving fraud, dishonesty, breach of trust, or money laundering
    • A 15 yr disqualifying period for felonies involving moral turpitude
    • A 5 year disqualifying period for misdemeanors involving fraud, dishonesty or any other act of moral turptide
  73. Equitable right of redemption ends when?
    At the foreclosure sale
  74. A statement by the lender setting forth the terms and conditions upon which the lender is willing to make a particular mortgage loan to a particular borrower is known as?
    Loan commitment
  75. Three degree felony escrow violations may result in?
    A fine up to $5,000 and up to five years in prison
  76. Collection of the nonrefundable fee paid into the Morgage Guaranty Trust Fund continues annually until the fund reaches what amount?
    $5 million
  77. Florida requires that mortgage lender applicants seeking a service endorsement submit documents verifying their net worth is at least?
    $250,000
  78. Who appoints the Director of OFR?
    The Financial Services Commission
  79. Licenses are valid for a period of one year and expire on?
    December 31st of the year issued
  80. According to Florida law, all of the following is required if a mortgage brokerage agreement is to include a nonrefundable application fee?
    • The amount of the application fee must be disclosed
    • The application fee must be reasonably related to the services to be performed
    • The specific services will be performed in consideration for the application fee must be dislcosed
  81. Maximum fees or commissions paid to a licensee must be based on?
    Net proceeds of loan
  82. Who bears the burden of providing that disclosures related to ARMs have been provided to the borrower?
    The licensee
  83. All of the following are divisions of the OFR:
    • Division of Securities
    • Division of Fiance
    • Division of Financial Institutions
  84. According to the federal S.A.F.E. Act. all of the following would be considered a nontraditional mortgage:
    • A reverse Mortgage
    • A 3/1 ARM
    • A 15 yr fixed rate mortgage
  85. A 30 year fixed rate mtg is considered a traditional or non-traditional mtg?
    Traditional
  86. Mortgage brokers are required to maintain a file for each mortgage transaction. The files must be maintained in a?
    Central location and in alphabetical or numerical sequence
  87. In the event of a plea of nolo contendere (no contest) to any felony, the licensee must notify the office within how many days of the plea?
    30 days
  88. The person who supervises, directs, coordinates, and administers all activites of the OFR is the?
    Director
  89. Each mortgage broker business must be operated by a?
    Principal loan originator
  90. Under Florida law, the Commission is required to adopt all of the following rules as they relate to criminal activity:
    • A 15-year disqualifying period for felonies involving moral turpitude.
    • A 7-year disqualifying period for all other felonies other than those involving fraud or dishonesty.
    • Permanent bars for felonies involving fraud, dishonesty, breach of trust, or money laundering.
  91. If a licensee wishes to change the name contained in the initial application, the licensee must file an amendment no later than how many days?
    No later than 30 days after the effective date of change.
  92. A mortgage brokerage business applying for licensure in the state of Floriday is required to carry a surety bond of how much?
    Surety bonds are not required by Florida law
  93. Florida law requires a licensee to keep records of mortgage transactions for how long?
    3 years after the date of original entry
  94. The written mortgage broker agreement must be executed when?
    Within 3 business days after the application is accepted.
  95. What is the Act that requires financial entities to provide customers with a privacy notice, as well as an "opt-out-notice", regarding the customer's personal information?
    Gramm-Leash-Biley Act (GLBA)
  96. What is the primary purpse of the Gramm-Leach-Bliley Act (GLBA)?
    Notice of right to Financial Privacy and right to opt-out of the sharing of personal information
  97. Along with the Fair and Accurate Credit Transactions Act Disposal Rule, What GLB Act provision ensures that customer's information is not handled or maintained carelessly and is disposed of properly?
    GLB Act's Safeguards Rule
Author
chicaevie
ID
44170
Card Set
Compliance
Description
Florida Mortgage State Exam
Updated