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.
