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10/26/2021

North Carolina

 











Thomas Cole painting

Hudson River School 

North Carolina

e Home Ownership Equity Protection Act (HOEPA), a High-Cost Home Loan on a first mortgage occurs when the APR calculation at settlement, plus any points or bona fide discount points exceed the yield on US Treasury securities having a comparable maturity period by more than:

Who can apply for a Reverse Mortgage Loan?

 

Any person 55 years of age or older who occupies and owns an interest in residential real property

Anyone that owns property

Any person 62 years of age or older who occupies and owns an interest in residential real propertyYou correctly checked this.

Any person 60 years of age or older who occupies and owns an interest in residential real property

Any person 62 years of age or older who occupies and owns, in fee simple individually, or with another borrower as tenants by the entireties or as joint tenants with the right of survivorship, an interest in residential real property can apply for a reverse mortgage loan.



An agreement by the lender and the borrower that, in addition to the principal and any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may collect an additional amount equal to a percentage of the increase in the value of the property from the date of origination of the loan to the date of loan repayment is referred to as

 

Shared value

Amortization

Shared depreciation

Shared appreciationYou should have checked this.

The expression ‘shared appreciation’ refers to an agreement by the lender and the borrower that, in addition to the principal and any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may collect an additional amount equal to a percentage of the increase in the value of the property from the date of origination of the loan to the date of loan repayment.



The names of all persons satisfying counselor training requirements will be forwarded to the Commissioner by the:

 

Department of Housing and Urban Development

North Carolina Housing Finance AgencyYou correctly checked this.

HUD Office of Housing Counseling

North Carolina Banking Commission

The North Carolina Housing Finance Agency shall adopt rules governing the training of counselors and necessary standards for counselor training and shall establish reasonable fees for training. The North Carolina Housing Finance Agency shall forward the names of all persons satisfying counselor training requirements to the Commissioner. The Commissioner shall maintain a list of counselors who have satisfied training requirements and shall periodically provide an up-to-date copy of the list to all authorized lenders. The Commissioner shall provide to all counselors who have satisfied training requirements information provided to the Commissioner by authorized lenders under G.S. 53‑265 (1991, c. 546, s. 1; 1995, c. 115, s. 1.).


A reverse mortgage loan becomes due and the borrower mortgaged 100% of the full value of the house. The reverse mortgage balance is $150,000 and the house is sold for $125,000. The borrower therefore owes:

 

$25,000

$12,500

$125,000You should have checked this.

$150,000

When a reverse mortgage loan becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house then the amount owed by the borrower will not be greater than (i) the fair market value of the house, minus sale costs, or (ii) the outstanding balance of the loan, whichever amount is less. If the borrower mortgaged less than one hundred percent (100%) of the full value of the house, the amount owed by the borrower will not be greater than (i) the outstanding balance of the loan, or (ii) the percentage of the fair market value, minus sale costs, as provided in the contract, whichever amount is less.


n agreement by the lender and the borrower that, in addition to the principal and any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may collect an additional amount equal to a percentage of the value of the property at the time of loan repayment is known as:

 

Shared valueYou should have checked this.

Amortization

Shared depreciation

Shared appreciation

The expression ‘shared value’ refers to an agreement by the lender and the borrower that, in addition to the principal and any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may collect an additional amount equal to a percentage of the value of the property at the time of loan repayment.



A reverse mortgage loan becomes due and the borrower mortgaged 100% of the full value of the house. The reverse mortgage balance is $150,000 and the house is sold for $125,000. The borrower therefore owes:

 

$125,000You correctly checked this.

$150,000

$12,500

$25,000

When a reverse mortgage loan becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house then the amount owed by the borrower will not be greater than (i) the fair market value of the house, minus sale costs, or (ii) the outstanding balance of the loan, whichever amount is less. If the borrower mortgaged less than one hundred percent (100%) of the full value of the house, the amount owed by the borrower will not be greater than (i) the outstanding balance of the loan, or (ii) the percentage of the fair market value, minus sale costs, as provided in the contract, whichever amount is less.



Under G.S. §53-269, the Commissioner is required to maintain a list of counselors who have satisfied training requirements and to provide an up-to-date copy of the list to all authorized lenders:

 

Every 6 months

PeriodicallyYou should have checked this.

Once a year.

Every 3 months

Under G.S. §53-269, the Commissioner is required to maintain a list of counselors who have satisfied training requirements and to provide periodically an up-to-date copy of the list to all authorized lenders.



When a loan servicer ceases operations, they must complete IRS form:

 

982

W-9

1098You correctly checked this.

4506

When a loan servicer ceases operations, they must among other things notify the NCCOB of their intent to cease operations, provide information on the new servicer (name, address and contact information), provide confirmation that the new servicer is licensed to service loans in North Carolina, identify the types of loans being transferred (fixed rate, adjustable rate, etc.), provide confirmation that written consent has been received from all investors for the transfer of servicing and complete IRS Form 1098 which details the amount of interest and mortgage-related expenses paid on a mortgage during the tax year.

S


An agreement by the lender and the borrower that, in addition to the principal and any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may collect an additional amount equal to a percentage of the increase in the value of the property from the date of origination of the loan to the date of loan repayment is referred to as

 

Shared appreciationYou should have checked this.

Shared depreciation

Shared value

Amortization



Engaging in the mortgage business as defined by G.S. §53‑244.030(11) or acting as a mortgage loan originator without a license as required by the provisions of G.S. 53‑244.040 is a:

 

Class-2 misdemeanor

Class-1 misdemeanor

Class-4 misdemeanor

Class-3 misdemeanorYou correctly checked this.

Engaging in the mortgage business as defined by G.S. 53‑244.030(11) or acting as a mortgage loan originator without a license as required by the provisions of G.S. 53‑244.040 is a Class-3 misdemeanor. Each transaction involving unlicensed activity is a separate offense. (2009‑374, s. 2.)


For violation of NC state or Federal Law, disciplinary action does not include:

 

A minimum 10 year jail sentenceYou correctly checked this.

Suspension or revocation of license

Deletion from the mortgage broker roll

Payment of restitution to wronged borrowers

For violation of NC or Federal law, disciplinary action may include temporary or permanent deletion from the mortgage broker roll, suspension or revocation of a mortgage banking/mortgage loan originator license and the order of the licensee to pay restitution for each violation.



Licenses may be suspended or revoked for a variety of reasons. Select the answer that is not grounds for disciplinary action.

 

Fraud or bribery in securing a registration or license

Performing origination duties in an honest, fair and reasonable mannerYou correctly checked this.

Conviction of any crime which would have a bearing on the fitness or ability of a registrant or licensee to conduct its business

A pattern of conduct indicating incompetence or untrustworthiness

Performing origination duties in an honest, fair and reasonable manner would not be grounds for any disciplinary action. Licensees that are deemed to be involved in any criminal or "shady" activities may have their license suspended or revoked by the Commissioner.



Under NC Gen Stat § 53-244.116, the Commissioner may impose a civil penalty for any violation of or failure to comply with the Secure and Fair Enforcement Mortgage Licensing Act. However, for each violation the civil penalty may not exceed:

 

$10,000

$25,000You correctly checked this.

$15,000

$20,000

Under NC Gen Stat § 53-244.116, the Commissioner may, among other things, impose a civil penalty for any violation of or failure to comply with The Secure and Fair Enforcement Mortgage Licensing Act. However, for each violation the civil penalty may not exceed $25,000 for each violation of or failure to comply with this Article. Each violation of or failure to comply with this Article will be a separate and distinct violation.


The Commissioner may refuse to issue a license in ALL the following circumstances EXCEPT if:

 

It is deemed to be in the public interest

The application contained misleading information

The applicant was refused licensing from another state 6 years agoYou correctly checked this.

The application contained falsified information

Suspension, revoking or refusing to issue or renew a license is determined by the NC Commissioner of Banking if it is deemed to be in the public interest, or if the application contained misleading or falsified information and if the applicant has had suspension, revoked or refused licensing from another state within the past five years.

 

Florida Mortgage

FLORIDA mortgage questions and answers


Hanging succulents





 What is NOT a reason for denying licensure to an applicant.

 

Pending felony criminal prosecution involving fraud

Poor financial responsibility and character

Committed previous violation involving breach of trust

Insufficient credit history informationYou correctly checked this.

...However, it is a ground for denial of licensure if the applicant: (a)?Has committed any violation specified in this chapter, or is the subject of a pending felony criminal prosecution or a prosecution or an administrative enforcement action, in any jurisdiction, which involves fraud, dishonesty, breach of trust, money laundering, or any other act of moral turpitude. (b)?Has failed to demonstrate the character, general fitness, and financial responsibility necessary to command the confidence of the community and warrant a determination that the applicant will operate honestly, fairly, and efficiently... 3.?The office may not use a credit score or the absence or insufficiency of credit history information to determine character, general fitness, or financial responsibility.



What happens if a license was issued by mistake?

 

The license holder may not re-apply for a period of six months.

The license is valid for 30 days only.

The application fee is returned to the applicant and license is annulled.

The license is annulled.You correctly checked this.

A loan originator license shall be annulled pursuant to s. 120.60 if it was issued by the office by mistake.


Which of the following is NOT considered exempt from licensure?

 

a depository institution

any agency of the Federal Government

A person who performs real estate brokerage activities and is compensated by a mortgage broker or other loan originatorYou correctly checked this.

an attorney licensed in Florida who negotiates mortgage loan terms on behalf of a client

The following are exempt from regulation under this part and parts II and III of this chapter. (a)?Any person operating exclusively as a registered loan originator in accordance with the S.A.F.E. Mortgage Licensing Act of 2008. (b)?A depository institution; subsidiaries that are owned and controlled by a depository institution and regulated by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration, or the Federal Deposit Insurance Corporation; or institutions regulated by the Farm Credit Administration. (c)?The Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; any agency of the Federal Government; any state, county, or municipal government; or any quasi-governmental agency that acts in such capacity under the specific authority of the laws of any state or the United States. (d)?An attorney licensed in this state who negotiates the t



Which of the following are NOT requirements for an applicant applying for a loan originator license?

 

Pass a written test developed by the registry and administered by an approved provider.

Be at least 21 years of age and have a high school diploma or equivalentYou correctly checked this.

Submit applicable fees along with a completed license application

Must complete a 20-hr pre-licensing class approved by the registry

In order to apply for a loan originator license, an applicant must: (a)?Be at least 18 years of age and have a high school diploma or its equivalent. (b)?Complete a 20-hour pre-licensing class approved by the registry. (c)?Pass a written test developed by the registry and administered by a provider approved by the registry. (d)?Submit a completed license application form as prescribed by commission rule. (e)?Submit a nonrefundable application fee of $195, and the $20 nonrefundable fee if required by s. 494.00172. Application fees may not be prorated for partial years of licensure. (f)?Submit fingerprints in accordance with rules adopted by the commission...



Which individual is to operate and have full control and supervision of a mortgage lender business?

 

Branch Manager

Principal Loan OriginatorYou should have checked this.

Mortgage Broker

Mortgage Supervisor

Each mortgage lender business must be operated by a principal loan originator who shall have full charge, control, and supervision of the mortgage lender business.


Which of the following is NOT considered exempt from licensure?

 

a depository institution

any agency of the Federal Government

an attorney licensed in Florida who negotiates mortgage loan terms on behalf of a client

A person who performs real estate brokerage activities and is compensated by a mortgage broker or other loan originatorYou correctly checked this.

The following are exempt from regulation under this part and parts II and III of this chapter. (a)?Any person operating exclusively as a registered loan originator in accordance with the S.A.F.E. Mortgage Licensing Act of 2008. (b)?A depository institution; subsidiaries that are owned and controlled by a depository institution and regulated by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration, or the Federal Deposit Insurance Corporation; or institutions regulated by the Farm Credit Administration. (c)?The Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; any agency of the Federal Government; any state, county, or municipal government; or any quasi-governmental agency that acts in such capacity under the specific authority of the laws of any state or the United States. (d)?An attorney licensed in this state who negotiates the t



Select the BEST response in detailing complete documentation to be used by the Office when reviewing an application for licensure.

 

Completed application form; Documentation that prelicensure class has been completed with acceptable test results; Criminal history report; Credit report; Payment records of license application fee and fingerprint processing fees.You correctly checked this.

Criminal history information; Full disclosure of all mortgages in which applicant was a borrower / co-borrower; Completed application form; Receipts / proof of payment of license application fee.

Completed application form; Fingerprint test results; Documentation of community involvement / giving back to the community; Satisfactory completion of the prelicensure class.

Documentation of credit history for past 10 years; Completed application form; Test results of prelicensure class; Recent credit report; License application fee.

An application is considered received for the purposes of s. 120.60 upon the office's receipt of all documentation from the registry, including the completed application form, documentation of completion of the prelicensure class, test results, criminal history information, and independent credit report, as well as the license application fee, the fee required by s. 494.00172, and all applicable fingerprinting processing fees.



Which of the following are NOT requirements for an applicant applying for a loan originator license?

 

Pass a written test developed by the registry and administered by an approved provider.

Must complete a 20-hr prelicensing class approved by the registry

Be at least 21 years of age and have a high school diploma or equivalentYou correctly checked this.

Submit applicable fees along with a completed license application

In order to apply for a loan originator license, an applicant must: (a)?Be at least 18 years of age and have a high school diploma or its equivalent. (b)?Complete a 20-hour prelicensing class approved by the registry. (c)?Pass a written test developed by the registry and administered by a provider approved by the registry. (d)?Submit a completed license application form as prescribed by commission rule. (e)?Submit a nonrefundable application fee of $195, and the $20 nonrefundable fee if required by s. 494.00172. Application fees may not be prorated for partial years of licensure. (f)?Submit fingerprints in accordance with rules adopted by the commission...

Score: 100%

Question 4

Which statement is TRUE regarding fingerprints submitted with an application for a loan originator license?

 

The costs of fingerprint processing, including the cost of retaining the fingerprints, shall be borne by the Financial Services Commission.

The registry is responsible for reviewing the results of the state and federal criminal history checks and determining whether the applicant meets licensure requirements

The office may contract with a third-party vendor to provide live-scan fingerprintingYou correctly checked this.

A federal criminal history background check must be conducted through the CIA.

Submit fingerprints in accordance with rules adopted by the commission: 1.?The fingerprints may be submitted to the registry, the office, or a vendor acting on behalf of the registry or the office. 2.?The office may contract with a third-party vendor to provide live-scan fingerprinting. 3.?A state criminal history background check must be conducted through the Department of Law Enforcement, and a federal criminal history background check must be conducted through the Federal Bureau of Investigation. 4.?All fingerprints submitted to the Department of Law Enforcement must be submitted electronically and entered into the statewide automated biometric identification system established in s. 943.05(2)(b) and available for use in accordance with s. 943.05(2)(g) and (h). The office shall pay an annual fee to the department to participate in the system and inform the department of any person whose fingerprints are no longer required to be retained. 5.?The costs of fingerprint processing.



What is the current renewal fee for a loan originator license in the state of Florida?

 

$250

$100

$200

$150You correctly checked this.

Submit a nonrefundable renewal fee of $150, the $20 nonrefundable fee if required by s. 494.00172, and nonrefundable fees to cover the cost of further fingerprint processing and retention as set forth in commission rule.

Which of the following is the most accurate list of estimated costs to be included in the Loan estimate?

 

Required inspection fees; appraisal fee; costs for environmental clean-up issues; fees for courier services.

Flood hazard determination fee; survey fees; closing fee; pest inspection feeYou correctly checked this.

Real estate tax service fee; charges imposed by the government; borrower's share of costs for disclosures; loan assumption / transfer fee

Attorney's fees; settlement fee; credit report fee; Repair costs for the property before closing.

"The licensee shall provide a Loan estimate of costs for services or products that may be incurred or expended on behalf of the borrower in arranging for the loan. Services or products for which costs shall be estimated...: 1. Appraisal fee...; 2. Inspection fees...; 3. Loan assumption fee and a transfer fee charged to enable the buyer to assume existing loans; 4. Pest inspection fee...; 5. Charges for title insurance..., abstract of title, title search fee, and fees for an attorney's title opinion...; 6. Survey or topography fees charged...; 7. Mortgage guaranty insurance...; 8. Credit report fee; 9. Photograph fees for photographs of the property offered as security... ; 10. Flood hazard determination fee... ; 11. Real estate tax service fee...; 12. Incidental fees, such as, courier services and express mailings if pre-authorized in writing by the borrower; 13. Settlement or closing fee...; 14. Attorney's fees; 15. Charges imposed by ... governments .



Which of the following is a violation when advertising mortgage loans?

 

Engage in deceptive or misleading advertising regarding mortgage loans, brokering services, or lending servicesYou correctly checked this.

Advertise mortgage loans, including rates and fees which are available to a reasonable number of qualified applicants

Advertise that an applicant shall have access to credit

Advertise a mortgage loan at an expressed interest rate stating that the rate may not be available closing

It is a violation of this chapter for any person to: (a)?Advertise that an applicant shall have unqualified access to credit without disclosing the material limitations on the availability of such credit. Material limitations include, but are not limited to, the percentage of down payment required, that a higher rate or points could be required, or that restrictions on the maximum principal amount of the loan offered could apply. (b)?Advertise a mortgage loan at an expressed interest rate unless the advertisement specifically states that the expressed rate could change or not be available at commitment or closing. (c)?Advertise mortgage loans, including rates, margins, discounts, points, fees, commissions, or other material information, including material limitations on such loans, unless the person is able to make such mortgage loans available to a reasonable number of qualified applicants. (d)?Falsely advertise or misuse names indicating a federal agency pursuant to 18 U.S.C. s. 709.

Score: 100%

Question 3

How long must samples of advertisements be kept for recordkeeping?

 

2 yearsYou correctly checked this.

5 years

1 year

Indefinitely

Each person required to be licensed under this chapter must maintain a record of samples of each of its advertisements, including commercial scripts of each radio or television broadcast, for examination by the office for 2 years after the date of publication or broadcast.



How many years must books, accounts and records be maintained?

 

5 years

6 months

3 years

1 year

All books, accounts, records, documents, and receipts for expenses paid by the licensee on behalf of the borrower, including each closing statement signed by a borrower, shall be preserved and kept available for examination by the office for at least 3 years after the date of original entry.



What is the prerequisite for a principal loan originator before being designated as such?

 

Been a loan originator for at least one year.You correctly checked this.

Completion of prelicensure classes with acceptable results; been a licensed loan originator for at least 3 years and closed 20 mortgage loans during his/her tenure.

Been actively engaged in a mortgage-related business for at least 2 years.

Successfully completed a 1 year apprenticeship with a licensed principal loan originator.

The principal loan originator must have been licensed as a loan originator for at least 1 year before being designated as the principal loan originator, or must demonstrate to the satisfaction of the office that he or she has been actively engaged in a mortgage-related business for at least 1 year before being designated as a principal loan originator.

Score: 100%

Identify which of the following is NOT considered an aggravating factor when considering circumstances to determine appropriate penalties.

 

The following circumstances are considered aggravating factors: 1. If the violation rate is more than 95% when compared to the overall sample size reviewed (sample size must be equal to or greater than 25 transactions and cover a date range of at least 6 months); 2. The potential for harm to the customers or the public is significant; 3. Prior administrative action by the Office against the licensee or an affiliated party of the licensee within the past 5 years; 4. If the licensee's violation was the result of willful misconduct or recklessness; 5. The licensee attempted to conceal the violation or mislead or deceive the Office; or 6. Other control relevant, case-specific circumstances.



What is the charge against a person who unlawfully obtains money and property in excesss of $50,000 affecting five or more victims?

 

Any person who violates any provision of this chapter, in which the total value of money and property unlawfully obtained exceeds $50,000 and there are five or more victims, commits a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.



What may a person who responds to a request for a statement be entitled?

 

Every person who responds to a request or demand by any agency or representative thereof for written data or an oral statement shall be entitled to a transcript or recording of his or her oral statement at no more than cost.



Which of the following actions would the Office NOT likely take with regard to violations?

 

Depending on the severity and repetition of specific violations, the Office may impose an administrative fine, suspension of a person, or revocation of a person or any combination thereof; (b) The Office may impose a cease and desist order, a suspension, or both in conjunction with and in addition to any of the designated sanctions set forth in this rule when appropriate under the circumstances; and, (c) The Office will consider the person's disciplinary history for the past 5 years in determining an appropriate penalty and may impose a more severe penalty when the disciplinary history includes past violations.



Please identify which of the following is NOT a purpose for issuing / serving a subpoena?

 

The office may: (a)?Issue and serve subpoenas and subpoenas duces tecum to compel the attendance of witnesses and the production of all books, accounts, records, and other documents and materials relevant to an examination or investigation conducted by the office. The office, or its authorized representative, may administer oaths and affirmations to any person.

What is the timing required for a lender to notify the borrower of his rights regarding placing insurance?

 

When negotiations for a loan begin, and prior to any formal application for loan or the payment of any fees or costs required with the filing of an application, the lender shall notify the borrower of his rights regarding the placing of insurance.



Which of the following is NOT a requirement for a person to receive the homestead exemption?

 

A person who, on January 1, has the legal title or beneficial title in equity to real property in this state and who in good faith makes the property his or her permanent residence or the permanent residence of another or others legally or naturally dependent upon him or her, is entitled to an exemption from all taxation, except for assessments for special benefits, up to the assessed valuation of $25,000 on the residence and contiguous real property...

Score: 100%

Question 3

What must occur before an exemption is granted?

 

Before such exemption may be granted, the deed or instrument shall be recorded in the official records of the county in which the property is located. The property appraiser may request the applicant to provide additional ownership documents to establish title.



Does the Homestead Exemption Law benefit non-homestead property owners?

 

With respect to nonhomestead property, this revision... Limits the assessment increases for specified nonhomestead real property to 10 percent each year.



Who is to sign the Anti-Coercion form?

 

Such notice shall be given to said borrower in the form prescribed by the Director in Rule 69O-124.013, F.A.C., in writing, with a copy of said notice to be signed by the borrower and retained by the lender.


What type of property is applicable for homestead exemption?

 

The exemption provided in this section applies only to those parcels classified and assessed as owner-occupied residential property or only to the portion of property so classified and assessed.



Does the Homestead Exemption Law benefit nonhomestead property owners?

 

With respect to nonhomestead property, this revision... Limits the assessment increases for specified nonhomestead real property to 10 percent each year.



If a corporation owns property to be considered for the homestead exemption, how many years must it lease the land to be operating as a cooperative?

 

A corporation leasing land for a term of 98 years or more for the purpose of maintaining and operating a cooperative thereon shall be deemed the owner for purposes of this exemption.



What must be maintained throughout the process of repairs being completed to the homestead property has been damaged by a natural disaster (which otherwise will constitute abandonment of the property)?

 

After the 3-year period, the expiration, lapse, nonrenewal, or revocation of a building permit issued to the property owner for such repairs or rebuilding also constitutes abandonment of the property as homestead.



Select the correct dollar amount to complete this sentence: The Florida Homestead Law allows homestead property owners to transfer up to $_________ of their Save-Our-Homes benefits to their next homestead.

 

With respect to homestead property, this revision... allows homestead property owners to transfer up to $500,000 of their Save-Our-Homes benefits to their next homestead.


The definition of net worth is:

 

Net worth is defined as assets less liabilities and assets unacceptable to the United States Department of Housing and Urban Development for purposes of complying with 24 CFR 202.5(n).



A person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans with its own funds in the primary market for consideration is a:

 

A person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans with its own funds in the primary market for consideration is known as a Mortgage Lender. A person who engages in the mortgage loan business by directly or indirectly negotiating or placing mortgage loans for others in the primary market for consideration is known as a Mortgage Broker. A Mortgage Loan Correspondent is a person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans in their own name utilizing funds provided by a wholesale table funder or other funding sources and simultaneously assigning the mortgage loans to a wholesale table funder. A Wholesale Table Funder is a licensed mortgage lender who, in the regular course of business, provides funding for the closing of mortgage loans through mortgage loan correspondents and who by assignment obtains title to the mortgage loans.



Pennsylvania's MLA requires the issuance of surety bonds as a condition of a mortgage license. What is a surety bond?

 

A surety bond guarantees the licensee will fulfill an obligation or series of obligations to DOB.



The term discount point refers to:

 

Discount points are fees that are a percentage of the mortgage amount imposed by the lender to lower the rate.  



Any payment of money or other consideration for the referral of a mortgage loan to a lender is called:

 

A Finder's Fee is any payment of money or other consideration for the referral of a mortgage loan to a licensee. An advance fee is any funds requested by or to be paid to a person in advance of or during the processing of a mortgage loan application. An application fee is a fee charged to process a loan application.

A property defined as a residential structure or mobile home which contains one to four family housing units or individual units of condominiums or cooperatives is a/an:

 

A dwelling is defined as a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer if used as a residence.



The term discount point refers to:

 

Discount points are fees that are a percentage of the mortgage amount imposed by the lender to lower the rate.  



Funds that are to be paid prior to the processing of a mortgage loan application are known as a:

 

Advance Fees are any fund requested by or paid to a person in advance or during the processing of a mortgage loan application. This excludes fees paid by a consumer directly to a credit agency reporting bureau, title company, or real estate appraiser. A finder's fee (also referred to as a referral fee) is a payment of money or other consideration for the referral of a mortgage loan to a licensee, except for consideration paid for goods or facilities actually furnished or services actually performed.



A key term in nearly every surety bond is the penal sum. What is a penal sum?

 

The maximum amount of money that surety will pay in the event of the licensee's default of obligation is known as the penal sum.



A person who engages in the mortgage loan business by directly or indirectly negotiating or placing mortgage loans for others in the primary market for consideration is known as a:

 

A person who engages in the mortgage loan business by directly or indirectly negotiating or placing mortgage loans for others in the primary market for consideration is known as a Mortgage Broker. A Mortgage Loan Correspondent is a person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans in his or her own name utilizing funds provided by a wholesale table funder or other funding sources and simultaneously assigning the mortgage loans to a wholesale table funder. A Wholesale Table Funder is a licensed mortgage lender who, in the regular course of business, provides funding for the closing of mortgage loans through mortgage loan correspondents and who by assignment obtains title to the mortgage loans.

A broker must maintain a surety bond of ____ if they originate $51,000,000 a year:

 


What is the surety bond required for a mortgage lender when they originated $48,000,000 in a calendar year?

 

$250,000
A broker must maintain a surety bond of ____ if they originate $51,000,000 a year:

 



What is the surety bond required for a mortgage lender when they originated $48,000,000 in a calendar year?

 

Score: 100%

Question 3

If a creditor contracts for or receives a separate charge for insurance, the insurance may not exceed:

 



What federal regulation must all advertisements comply with?

 


A nonrefundable assumption fee cannot exceed the lesser of ____ or ___% of the unpaid balance of the loan:

 

A creditor must give notice to a consumer about a default if the borrower has been in default for ___ days for failure to make a required payment:

 



The borrower may recover from the mortgage broker or loan originator charged with the violation a penalty in an amount determined by the court of not less than $1,500 and not more than _____for each loan transaction.

 

Score: 100%

Question 3

A ____ means a card or device issued by a supervision financial organization per an arrangement where the card or device enables the customer to obtain cash, goods, services, or anything else of value.

 



A reasonable time is presumed to be ____ days:

 



What is the maximum amount of an award in a class-action lawsuit against a lender for a violation?