9/13/2021

Colorado Mortgage License

 










Colorado

 Mortgage home loan questions and answers

A mortgage loan originator shall have a duty of good faith and fair dealing with borrowers. Which of the following is NOT an example of good faith and fair dealing?

 

Asking about the borrower’s current and prospective income, existing debts and other obligations

Ensuring that the borrower understands the responsibilities of a mortgage loan and other expenses that must be considered in purchasing a home

To recommend or originate a mortgage loan that takes into consideration the borrower's information

Recommending that the borrower to enter into a transaction that does not have a reasonable, tangible net benefit to the borrower

 

Rudubecia yellow cone flowers









(1) A mortgage loan originator shall have a duty of good faith and fair dealing in all communications and transactions with a borrower. Such duty includes, but is not limited to: (a) The duty to not recommend or induce the borrower to enter into a transaction that does not have a reasonable, tangible net benefit to the borrower, considering all of the circumstances, including the terms of a loan, the cost of a loan, and the borrower’s circumstances; (b) The duty to make a reasonable inquiry concerning the borrower’s current and prospective income, existing debts and other obligations, and any other relevant information and, after making such inquiry, to make his or her best efforts to recommend, broker, or originate a residential mortgage loan that takes into consideration the information submitted by the borrower, but the mortgage loan originator shall not be deemed to violate this section if the borrower conceals or misrepresents relevant information; and (c) The duty not to commit any acts, practices, or omissions in violation of section 38-40-105, C.R.S.

 

Advertising is required to have the mortgage company name, name of at least one responsible party and the business phone number clearly shown, EXCEPT in the case of...

 

… mortgage loan rates that are available for a limited time.

….home equity products.

… mortgage loan products.

… promotional items.

A. Any advertisement which indirectly promotes a credit transaction and which contains only the name of the mortgage company, the name and title of the mortgage loan originator, the contact information for the mortgage company or the mortgage loan originator, a mortgage company logo, or any license or registration numbers, such as the inscription on a coffee mug, pen, pencil, youth league jersey, sign, business card, or other promotional item; or B. Any rate sheet, pricing sheet, or similar proprietary information provided to real estate brokers, builders, and other commercial entities that is not intended for distribution to consumers.

 

If a licensee receives a letter from the board about a complaint regarding the licensee stating that the action doesn't warrant formal action but shouldn't be dismissed, how many days does the licensee have to request a formal disciplinary proceeding to clear the complaint regarding his/her actions?

 

1 week after proven receipt .

2 weeks after proven receipt of the letter

3 days after proven receipt of the letter

20 days after proven receipt of the letter

When a complaint or an investigation discloses an instance of misconduct that, in the opinion of the board, does not warrant formal action by the board but that should not be dismissed as being without merit, the board may send a letter of admonition by certified mail, return receipt requested, to the licensee against whom a complaint was made and a copy of the letter of admonition to the person making the complaint, but the letter shall advise the licensee that the licensee has the right to request in writing, within twenty days after proven receipt, that formal disciplinary proceedings be initiated to adjudicate the propriety of the conduct upon which the letter of admonition is based. If such request is timely made, the letter of admonition shall be deemed vacated, and the matter shall be processed by means of formal disciplinary proceedings

 

Which of the following is NOT TRUE when listing actions by a mortgage loan originator that would cause revocation of a license?

 

Advertise any rate of interest without conspicuously disclosing the annual percentage rate implied by such rate of interest t.

Obtain property by fraud or misrepresentation

Employ any scheme or device to defraud or mislead borrowers or lenders or to defraud any person

Fail to pay a third-party provider, no later than ten days after the recording of the loan closing documents or sixty days after completion of the third-party service, whichever comes firstYou

 

 

(1) A mortgage loan originator shall not: (a) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; b) Engage in any unfair or deceptive practice toward any person; (c) Obtain property by fraud or misrepresentation; (d) Solicit or enter into a contract with a borrower that provides in substance that the mortgage loan originator may earn a fee or commission through the mortgage loan originator’s “best efforts” to obtain a loan even though no loan is actually obtained for the borrower; (e) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting from a lender with whom the mortgage loan originator maintains a written correspondent or loan agreement under section 12-61-913; (f) Fail to make a disclosure to a loan applicant or a noninstitutional investor as required by section 12-61-914 and any other applicable state or federal law; (g) Make, in any manner, any false or deceptive statement or representation with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan or engage in “bait and switch” advertising; (h) Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any reports filed by a mortgage loan originator or in connection with any investigation conducted by the division; (i) Advertise any rate of interest without conspicuously disclosing the annual percentage rate implied by such rate of interest; (j) Fail to comply with any requirement of the federal “Truth in Lending Act”, 15 U.S.C. sec. 1601 and Regulation Z, 12 CFR 226; the “Real Estate Settlement Procedures Act of 1974”, 12 U.S.C. sec. 2601 and Regulation X, 24 CFR 3500; the “Equal Credit Opportunity Act”, 15 U.S.C. sec. 1691 and Regulation B, 12 CFR 202.9, 202.11, and 202.12; Title V, Subtitle A of the financial services modernization act of 1999 (known as the “Gramm-Leach-Bliley Act”), 12 U.S.C. secs. 6801 to 6809; the federal trade commission’s privacy rules, 16 CFR 313-314, mandated by the “Gramm-Leach-Bliley Act”; the “Home Mortgage Disclosure Act of 1975”, 12 U.S.C. sec. 2801 et seq. and Regulation C, home mortgage disclosure, 12 CFR 203; the “Federal Trade Commission Act”, 15 U.S.C. sec. 45(a); the “Telemarketing and Consumer Fraud and Abuse Prevention Act”, 15 U.S.C. secs. 6101 to 6108; and the federal trade commission telephone sales rule, 16 CFR 310, as amended, in any advertising of residential mortgage loans or any other applicable mortgage loan originator activities covered by the acts. The board may adopt rules requiring mortgage loan originators to comply with other applicable federal statutes and regulations. (k) Fail to pay a third-party provider, no later than thirty days after the recording of the loan closing documents or ninety days after completion of the third-party service, whichever comes first, unless otherwise agreed or unless the third-party service provider has been notified in writing that a bona fide dispute exists regarding the performance or quality of the third-party service; or (l ) Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by section 12-61-914 or 12-61-915.

Score: 0%

Which of the following is a trigger for re-disclosure?

 

the closing date changed

the borrower provides the earnest monies for deposit

the appraisal is higher than the loan amount

the annual percentage rate increases more than 1/8 of one percentage point

When applicable, the disclosures set forth in Rule 5.14(B) must be made within three (3) business days after receipt of a loan application, entering into a lock-in agreement, or if the annual percentage rate increases more than 1/8 of one (1) percentage point from an earlier disclosure.