3/29/2022

Sell House While in Probate



Mom and Dad passed away and the real estate is not vested in a Living Trust.

You may need to go through probate court to pay off everyone, if there are disputes you probably need an expensive attorney in California. See the percentage scale they can charge, it’s huge.

The cash back cap is $166,250. Inheritors can claim the assets with a simple sworn statement (affidavit) or can go through a streamlined summary probate process. Cal. Probate Code § 13100.

 

1.    Find the will. The executor named in the will starts the process. If there's no will, or the person named to serve as executor isn't available/doesn’t want the duty, then a family member may ask the court to be appointed as the administrator/PR of the estate. The personal representative (PR) of the estate asks the court that full authority be given to administer the estate under the Independent Administration of Estate Act, known as IAEA. The PR accepts a fiduciary duty to all the people in the chain of connections.

 

2.    The PR files the will, along with a document called "Petition for Probate," with the probate court in the county where the deceased person lived. There is a filing fee of around $450.00.

 

The heirs, devisees, and beneficiaries may know where all the mortgage bills, tax bills, bank accounts, life insurance policies, brokerage accounts, and maybe they don’t. It is the PR’s job to hunt down the money and the debts called the assets and liabilities.

.

 

3.    PR applies for a taxpayer ID number for the estate and opens an estate bank account. The PR orders and files with the court, an inventory and appraisal of all probate property. Inventory and Appraisal form filed with the court. Ask your lender for an appraiser recommendation they have to be independent and certified. Then wait for court approval before you publish in the MLS or auction. The list price needs to line up with the appraisal.

 

4.    Next the Notice of Proposed Action is given to all the heirs that the house is being sold. Unless the Will waives bond or all the heirs waive bond, then the PR must post a bond as an insurance policy against losses due to the PR’s wrongdoing. Next, the Notice of Petition to Administer Estate must be filed and served to all heirs within 15 days before the first court hearing. Probate Code 8121 requires that the probate be published in a newspaper of general circulation in the city where the decedent resided at the time of death.

 

 

5.    The “Statement of Duties and Liabilities” is filed by the PR. The Letters Court Form is needed before you can sell the house to be filed. The certified “Letters” form allows the PR to sell the house, access the deceased’s bank accounts, pay the creditors or take actions that are required to administer the estate.

 

6.    After PR accepts an offer from a buyer, petition the probate court for a hearing to confirm the sale of the real estate. The wait before the hearing varies, depending on the current load of that county court’s calendar

7.    Secure a deposit from the buyer of 10% of the purchase price. Secure the deposit before the scheduled date of the court hearing.

8.    Advertise the sale of the real estate along with the price that the buyer offered with a local newspaper. This advertisement tells the public of the sale of real estate. This allows open bidding at the court hearing among any interested parties.

9.    Attend the court hearing and wait for the bidding process to go forward. Bids proceed in increments of $500 above the offer from the intended original buyer’s offer. The buyer of the real estate must be allowed to bid, as well say if a family member wants to purchase the stated buyer can out bid them. The bids are unconditional. The winner of the bidding must present a cashier’s check to the probate court for a deposit on the real estate after confirming the bid which acts as the earnest money deposit to escrow.

 

10.                  If a new buyer outbids the original buyer, you will need to refund the deposit to the original buyer.

11.                  Close the real estate contract by completing the sale. All proceeds go to the estate account. Payoff mortgage, taxes, insurance...

 

The PR has full authority then the estate does not have to sell the house for the required 90% minimum of the value listed in the I & A Form. The I & A Form must be filed with the court within four months after issuance of Letters (Probate Code 8800). The PR must also file a change in ownership statement with the County. The PR also needs to file and mail a form called “Notice of Administration of the Estate” to all known and reasonably ascertainable creditors and to the required public entities (such as the Department of Health, California Victim Compensation, and the Franchise Tax Board). After the house closes the sale, creditors are paid, and taxes have been accounted for, then the estate can be put to rest by petitioning the court to close the estate. Heirs CANNOT use any of the proceeds from the sale of the house until the court approves the distribution of the proceeds.

It is possible to sell real estate during the probate process without getting court approval. The Independent Administration of Estates Act allows Executors to sell real estate owned by the estate as long as they notify all beneficiaries at least 15 days before the real estate sale. As long as there are no objections from the beneficiaries, the sale can proceed.

 

Personal advise:

I have seen an attorney eat up all of an estate out of loyalty or greed.

Get everyone to be reasonable and fair, follow the will. 


 Laws vary a bit by State 

This is for California

3/11/2022

Hard Money Lenders

broken piggy bank of a deer



 

Hard Money Mortgages

Private Money Lenders

I am working on a list of hard money lenders that I know

I do not broker to hard money. Call me if you want a recommendation.

These are the companies I know as of March 2022


I may add their websites later and welcome your comments about your experience with any. I note their location as most of these are NOT nationwide lenders. Many stay close to home.  Think fix and flip, expensive construction, ARV, STR, high rates, heavy fee load, for short term, and not for the light hearted.

Have your exit plan in stone. If you maybe think you can refinance conventional mortgage after you do your magic plan be CERTAIN have a loan commitment in writing before you go down this path. Or plan to sell. Everything costs more than you think. The portfolio lender looks at the subject property with eyes to own it.


ACC Mortgage Rockville, MD https://accmortgage.com/

Anchor Loans Calabassas,CA https://www.anchorloans.com/state-resources


Aloha Capital Boulder. CO https://alohaprivatelending.com/


ACRA Lending Irvine, CA https://acralending.com



Alliance Portfolio



Builder Finance https://builderfinance.com




Brookview Financial Connecticut https://www.brookviewfinancial.com/

Coventus San Francisco https://www.cvlending.com/



Corvest



Capital Three sixty https://www.capitalthreesixty.com/



Civic Financial Redondo Beach https://www.civicfs.com/



CMN Funding Albany NY https://cmnfunding.com/




Center Street Lending Irvine, CA https://centerstreetlending.com/




Corvest CA http://corvestfinance.com/

  once was Redwood



Cogo https://cogocapital.com/



Cal CAP Financial https://calcapfinancial.com/





Capital Funding Services Miami


Cherrywood Commercial



CMN Albany NY


Dominion Group Baltimore MD



Deephaven


Direct Lending


DLP Lending


Easystreet Lending


Fund That Flip


Forrest Fund Denver


Gelt Financial Delray Beach FL

Good Funds Lending

Littleton CO



Global Capital NY


Hard Money Loans



Harbor Private Equity Atlanta Georgia



Hamiton Group Funding


ICGIO Capital Aventure FL



Kind





JCAP



Kiavi



Lending 1



Loan Stream



Lyn K Capital



Lima One Greenville SC     40 States https://limaone.com/


Level 4 funding Arcadia CA



Layla Capital



Lead Funding Greenwich Village CO


NewRez


Mortgage Vintage



Mountain West

New Silver



Nationwide


Patch of Land,  Sherman Oaks



Red Rock Capital

Colorado Springs



Rapid Comerica Frisco TX



Renovo


SCL Mortgage CO


Straightline funding


Stratton Funding Stratton Equities NJ



Sprout



Redwood Mortgage



RCN RCN



Next Funding



SCL Mortgage CastlerockCO



Taylor Mortgage Elizabeth CO



Seattle Funding Group


Temple View



Quick Fast Capital



Union Home Loan Calabasas, CA



Val-Chris Investments California





Visio Austin TX


2/26/2022

Texas Mortgage Laws

 



 





If the person who caused an advertisement to be published is an originator or a mortgage company, the advertisement must contain the name of the originator and sometimes the words:

 

Mortgage Loan Originator

Residential Mortgage Loan Originator.

Licensed Mortgage Loan Originator

Registered Mortgage Loan Originator

Except as provided in subsection (c) of TAC Title 7, §80.203, if the person who caused the advertisement to be published is an originator or a mortgage company, the advertisement must contain, among other things, the name of the originator followed by, as applicable, either the phrase "Residential Mortgage Loan Originator" or the name of the sponsoring mortgage banker, as designated in the records of the Commissioner as of the date of the advertisement.

 

 2

A copy of the loan application along with a final (most current) itemized disclosure of the actual fees, points, interest, costs, and charges to be assessed at closing must be provided to the homeowner at the latest:

 

7 days prior to closing

5 days prior to closing

3 days prior to closing

1 day prior to closing

A copy of the loan application along with a final (most current) itemized disclosure of the actual fees, points, interest, costs, and charges to be assessed at closing must be provided to the homeowner no later than 24 hours prior to closing.

 

 3

As per TAC Title 7, §80.201, when an applicant submits an application, an MLO must provide a disclosure informing the customer of the pathway to follow in order to:

 

Cancel an insurance policy

Rescind on the loanYou shouldn't have checked this.

Request compensationYou should have checked this.

Alter the loan agreement

As per TAC Title 7, §80.201, when an applicant submits an application, an MLO must provide a disclosure informing the customer of the pathway to follow in order to file a complaint or request compensatory action.

 

 4

Form B' is also known as the:

 

Pre-qualification form

Pre-approval form.

Pre-acceptance form

Pre-screening form

Form B' is also known as the pre-approval form.

 

 

Licensees who advertise rates, terms, or conditions must comply with the disclosure requirements of:

 

Regulation X

The Real Estate Settlement Procedures Act (RESPA)

Regulation Z.

The Truth in Lending Act (TILA)

Licensees who advertise rates, terms, or conditions must comply with the disclosure requirements of Regulation Z. Any advertisements must also comply with applicable state and federal disclosure requirements.

 

 6

How must the Complaint/Recovery Fund Notice be disseminated?

 

Emailed to borrowers

Printed and displayed.

Mailed to borrowers

Advertised in print and online media

The Complaint/Recovery Fund Notice must be printed and displayed.

 

 7

In order to obtain a license, a loan company must designate an MLO as a(n):

 

Principal manager

Exclusive agent

Qualifying individual.

Natural person

A loan company wishing to obtain a license must designate an MLO as a Qualifying Individual. The individual must also share some of the responsibility of the designating loan company.

 

 8

A borrower, who has other liens on his property for a total amount of $25,000, applies for a HELOC. The fair market value of his property is found to be $245,000. What is the maximum line of credit that can be 3closed in this particular case?

 

$171,000.

$220,000

$196,000

$176,000

The fair value of the house being $245,000, the maximum line of credit that could potentially be closed is $196,000 (80% of $245,000). However, the borrower has $25,000 outstanding on other liens. In this case, the maximum line of credit that can be extended is therefore $171,000 ($196,000-$25,000).



 

 9

The Texas SAFE Mortgage Licensing Act of 2009 is also known as:

 

TFC Title 3, §180.

TFC Title 3, §156

TFC Title 3, §158

TFC Title 3, §157

The Texas SAFE Mortgage Licensing Act of 2009 is also known as TFC Title 3, §180.

 

 10

Any owner of the homestead may rescind the extension of credit, without penalty or charge, provided they do so within:

 

3 business days after the extension of creditYou shouldn't have checked this.

5 calendar days after the extension of credit

5 business days after the extension of credit

3 calendar days after the extension of creditYou should have checked this.

Any owner of the homestead may rescind the extension of credit, without penalty or charge, provided they do so within 3 calendar days after the extension of credit. If the third calendar day falls on a Sunday or federal legal public holiday, the right of rescission extends to the next calendar day that is not a Sunday or federal legal public holiday.

 

 

In the case of the sale of real property under a power of sale conferred by a deed of trust or other contract lien, the commissioner's court must designate the area at the courthouse where the sale is to take place and record the location in the real property records of the county. Should the location change, this must be recorded and the sale cannot take place within:

 

60 days

30 days

90 days.

120 days

In the case of the sale of real property under a power of sale conferred by a deed of trust or other contract lien, the commissioner's court must designate the area at the courthouse where the sale is to take place and record the location in the real property records of the county. Should the location change, this must be recorded and the sale cannot take place within 90 days.

 

 12

Texas voters backed a constitutional amendment which allowed reverse mortgages to be created as liens on a homestead in:

 

2013

2003

1997You should have checked this.

1999

Historically, constitutional provisions did not permit liens on the homestead for equity homestead loans. With the development of loan products, on November 4, 1997, Texas voters approved a constitutional amendment which allowed reverse mortgages to be created as liens on a homestead.

 

 13

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held on the first Tuesday of the month between the hours of:

 

10 a.m and 5 p.m

10 a.m. and 5 p.m.

10 a.m. and 4 p.m..

9 a.m. and 5 p.m.

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held on the first Tuesday of the month between the hours of 10 a.m. and 4 p.m.

 

 14

A lender foreclosed on a borrower who owed $135,000 and sold the property for $110,000. The fair market value of the property at the time of the sale was $112,500 and there are no unextinguished liens. The determined deficiency in this particular case is:

 

$22,500.

$25,000

$18,500

$12,500

The determined deficiency that the lender can recover in this particular case is $22,500 (135,000-112,500).

 

 

Assuming that a foreclosure sale took place on January 15, 2011 and that the price at which the real property was sold was less than the unpaid balance of the indebtedness secured by the real property, any action to recover the deficiency had to be brought by:

 

July 15, 2012

July 15, 2011

January 15, 2012

January 15, 2013

If the price at which real property is sold at a foreclosure sale is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency, any action to recover the deficiency must be brought within two years of the foreclosure sale.

 

 


If a mortgage servicer decides to sell the property of a debtor who has failed to cure a default, the mortgage servicer is required to give a minimum of:

 

21 days' notice.

20 days' notice

30 days's

12 days' notice

If a mortgage servicer decides to sell the property of a debtor who has failed to cure a default, the mortgage servicer is required to give a minimum of 21 days' notice. The calendar day the notice is given is included in computing the 21-day notice period and the calendar day of the foreclosure sale is excluded.

 

 17

A preliminary determination automatically becomes final if it is not otherwise resolved and is not disputed by written notice to the Commissioner within:

 

15 days following the notification date

21 days following the notification date

31 days following the notification date.

30 days following the notification date

A preliminary determination automatically becomes final if it is not otherwise resolved by agreement and is not disputed by written notice to the Commissioner within 31 days following the notification date.

 

 18

An MLO must disclose if he or she is serving in any of the following additional roles EXCEPT:

 

Attorney for the lender

Attorney for the buyer

Real estate broker for the seller

Attorney for the appraiser.

The disclosure of multiple roles in a consumer real estate transaction includes: a real estate agent, broker, salesperson or representative for the buyer, seller or both; or attorney for buyer, seller or lender.

 

 19

A borrower with $50,000 of other liens on his home closes a HELOC where he requests an advance of $40,000, so that he can have some money available and begin to pay off the other debt. The lender tells him 3he can only have $30,000 despite the fact that the credit limit is $80,000 . What is the fair market value of the home at the close?

 

$90,000

$100,000.

$50,000

$80,000

This  is asking about the 80% rule, which limits the initial advance. The advance, combined with the current outstanding principal under the HELOC and any other debts secured by the house, cannot exceed 80% of the fair market value. Since the borrower plans to keep the $50,000 in loans for some period of time, and the lender says the maximum he can extend is $30,000, the lender is saying that the maximum allowable initial advance is $80,000, which is 80% of $100,000. The fair market value is $100,000

 

 

If the sale of real property subject to a deed of trust or other contract lien is sold at a foreclosure sale under a court judgment and results in a deficiency, any action to obtain a fair market value determination following the date of the foreclosure sale must be brought within:

 

60 days

120 days

30 days

90 days.

If the sale of real property subject to a deed of trust or other contract lien is sold at a foreclosure sale under a court judgment and results in a deficiency, any action to obtain a fair market value determination following the date of the foreclosure sale must be brought within 90 days.

 

 21

No home equity line may include fees paid to any person that are necessary to originate, evaluate, maintain, record, insure, or service the extension of credit that exceed:

 

1 % of the original principal amount of the extension of credit

3 % of the original principal amount of the extension of credit

2.5% of the original principal amount of the extension of credit

2 % of the original principal amount of the extension of credit.

No home equity line may include fees paid to any person that are necessary to originate, evaluate, maintain, record, insure, or service the extension of credit that exceed 3% of the original principal amount of the extension of credit.

 

 22

Form A' is also known as the:

 

Pre-qualification form

Pre-acceptance form

Pre-screening form

Pre-approval form

Form A' is also known as the pre-qualification form.

 

 23

What is the required waiting period between receiving the home equity contract disclosure form and closing on a loan?  

 

12 days.

1 day

5 days

1 month

The Texas Constitution requires a 12-day waiting period must lapse from the time an application is taken AND the following consumer rights notice is given to the borrower to the closing. For example, if a potential borrower submits an application on Monday, but doesn't receive a copy of the consumer rights notice until Wednesday, then the 12-day countdown would begin on Wednesday. Once the waiting period has passed, the loan can be closed.

 

 24

Which of the following is NOT used in evaluating the compliance management system?

 

Personnel's combined years of experience

Company's responsiveness to compliance deficiencies

Policies and procedures

Personnel's knowledge level

Factors used in measuring adequacy include (a) Knowledge level and commitment of mortgage company and personnel; (b) Mortgage company's responsiveness to compliance deficiencies; (c) Mortgage company information systems and proper settings; (d) Policies and procedures and (e) Training program.BO3

 

 

John is named as a borrower on a HELOC (limit of the loan $100,000). As a result, he may request advances provided these exceed:

 

$3,000

$4,000.

$2,000

$5,000

Any owner who is named as a borrower on a HELOC may request advances, repay money and re-borrow money up to the limit of the loan. Each advance, however, must be in an amount of at least $4,000.00.

 

 26

On an application for an original license or for renewal of an MLO license, the applicant, in addition to paying the original application fee or renewal fee, will pay a fee determined by the Commissioner which cannot exceed:

 

$25

$20

$10

$15

On an application for an original license or for renewal of an MLO license, the applicant, in addition to paying the original application fee or renewal fee, will pay a fee determined by the Commissioner which cannot exceed $20.

 

 27

If a preliminary determination is disputed by an applicant, a license holder, or any surety by written notice to the Commissioner before the set deadline, the Commissioner will:

 

Issue a suspension order

Schedule a hearing.

Issue a final determination

Issue a temporary determination

If a preliminary determination is disputed by an applicant, a license holder, or any surety by written notice to the Commissioner before the 31st day after the notification date, the matter will be set for a hearing governed by Government Code and the hearing rules of the finance commission.

 

 

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must begin at the time stated in the sale notice or within:

 

2 hours past that time

3 hours past that time.

30 minutes past that time

1 hour past that time

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held between 10 a.m. and 4 p.m. of the first Tuesday of a month. A notice regarding the sale will designate a time. The sale must begin at the time stated in the notice of sale or not later than three hours after that time.

 

 29

A person on whose behalf payment was made from the recovery fund is not eligible to receive a new license or have a suspension lifted until that person has repaid:

 

At least 50% of the amount disbursed by the fund on their behalf, plus interest at the current legal rate

100% of the amount disbursed by the fund on their behalf, plus interest at the current legal rate

100% of the amount disbursed by the fund of their behalf, excluding interest at the current legal rate

At least 50% of the amount disbursed by the fund of their behalf, excluding interest at the current legal rate

A person on whose behalf payment was made from the recovery fund is not eligible to receive a new license or have a suspension lifted until the person has repaid in full, plus interest at the current legal rate, the amount paid from the fund on the person's behalf and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement for payments from the fund.

 

 

The consumer disclosure must be provided to the owner at least:  trick question 

 

14 days before the date the extension of credit is made.

7 days before the date the extension of credit is made.

12 days before the date the extension of credit is made.

3 days before the date the extension of credit is made.

The consumer disclosure must be provided to the owner at least 12 days before the date the extension of credit is made.

 

 31

Apart from the standard required notice on a home equity loan, a lender must also provide a 'notice regarding a reverse mortgage' at least:

 

12 days before closing..

5 days before closing

3 days before closing

10 days before closing

Apart from the standard required notice on a home equity loan, a lender must also provide a 'notice regarding a reverse mortgage' at least 12 days before closing.

 


The books and records which might be requested by the Commissioner or his/her designee must be retained for at least:

 

3 years.

4 years

5 years

2 years

The books and records which might be requested by the Commissioner or his/her designee must be retained for three years or such longer period(s) as may be required by applicable state and/or federal laws and regulations.

 


Assuming that a reverse mortgage will close on November 1, the borrower and his spouse will only receive such mortgage if their counselling completed on:

 

17-May

1-Jan

15-Apr

1-Mar.

A borrower and his spouse cannot have completed their counselling earlier than the 180th day or later than the 5th day before the date the reverse mortgage is closed. These conditions re only satisfied if the counselling in this particular case ended on May 17 (approximately 170 days earlier).

 


The minimum age to obtain a reverse mortgage was raised from

 

55 to 62.

55 to 61

55 to 60

55 to 58

The amendment passed in 1999 to reduce transaction costs also raised the minimum age to obtain a reverse mortgage from 55 to 62 and increased the property size limit to 10 acres.

 

 

The reinstatement fee charged by the commissioner when a residential mortgage loan originator renews their license between Jan. 1 and March 1 is equal to:

 

200% of the renewal fee

250% of the renewal fee

150% of the renewal fee

100% of the renewal fee

A person whose residential mortgage loan originator license has not been renewed before January 1 but who is otherwise eligible to renew a license, and does so before March 1, may renew the license by paying the commissioner a reinstatement fee in an amount that is equal to 150% of the required renewal fee.

 

For each notice of sale filed, the country clerk receives a fee of:

 

$2

$5

$10

$1

For each notice of sale filed, the country clerk receives a fee of $2.

 

 2

A borrower sends a notice to a lender regarding a failure to comply with an obligation on a Monday. The lender receives the notice on the Wednesday. Day 1 of the 60-day period in which the lender may correct the failure to comply with the obligation is:

 

Monday

Wednesday

Tuesday

Thursday

A lender or holder may correct a failure to comply with an obligation on or before the 60th day after a lender or holder receives a notice from a borrower. The day after the lender or holder receives the borrower's notification represents day one of the 60-day period.

 

 

If a home equity loan closes on Nov. 1, the first installment is due on:

 

1-JanYou correctly checked this.

31-Dec

1-Dec

Nov-31

If a home equity loan closes on Nov. 1, the first installment is due on Jan. 1.

 

 

If a lender fails to make loan advances as required in the loan documents and fails to cure the default as required in the loan documents after notice from the borrower, the lender will forfeit:

 

25% of the principal and interest of the reverse mortgage

100% of the principal and interest of the reverse mortgage

50% of the principal and interest of the reverse mortgage

75% of the principal and interest of the reverse mortgage

If a lender fails to make loan advances as required in the loan documents and fails to cure the default as required in the loan documents after notice from the borrower, the lender will forfeit all the principal and interest of the reverse mortgage.

 

 

Which of the following is NOT required on a mortgage transaction log?

 

Occupancy

Loan status

Applicant credit score

Originator NMLS ID

Mortgage transaction logs must include: Application date, applicant name, applicant contact information, loan status (closed, in-process, denied or withdrawn), occupancy (owner occupied or investment), name of the initial loan originator and originator NMLS ID.

 

 

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held on the first Tuesday of the month between the hours of:

 

10 a.m. and 4 p.m.

10 a.m and 5 p.m

10 a.m. and 5 p.m.

9 a.m. and 5 p.m.

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held on the first Tuesday of the month between the hours of 10 a.m. and 4 p.m.

 

 

The finance commission may grant an exemption from the residential mortgage loan originator licensing requirements if it determines that granting the exemption is not inconsistent with the intentions of the:

 

Secure and Fair Enforcement for Mortgage Licensing Act of 2009

Secure and Fair Enforcement for Mortgage Licensing Act of 2007

Secure and Fair Enforcement for Mortgage Licensing Act of 2008

Secure and Fair Enforcement for Mortgage Licensing Act of 2010

The finance commission may grant an exemption from the residential mortgage loan originator licensing requirements of this chapter to a municipality, county, community development corporation, or public or private grant administrator to the extent the entity is administering the Texas HOME Investment Partnerships program if the commission determines that granting the exemption is not inconsistent with the intentions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

 

 

In order to recover from the fund, a residential mortgage loan applicant must file with the Commissioner a written:

 

Sworn application

Sworn pledge

Sworn request

Sworn statement

In order to recover from the fund, a residential mortgage loan applicant must file with the Commissioner a written sworn application in the form prescribed by the Commissioner, subject to the statute of limitations.

 

 

In order for the Commissioner to use any excess of money remaining in the recovery fund to offset the expenses of participating in and sharing information with the NMLS, the fund must, at the end of a calendar year, hold in excess of:

 

$2.5m.

$3.5 m

$5.5m

$4.5m

In order for the Commissioner to use any excess of money remaining in the recovery fund to offset the expenses of participating in and sharing information with the NMLS, the fund must, at the end of a calendar year, hold in excess of $3.5m.

 


The term 'balloon' is used to describe an installment which is more than an amount equal to twice:

 

The average of all installments that took place in the previous 12 months

The average of all the installments that took place in the previous 6 months

The previous installment

The average of all previous installments

The term ˜balloon' is used to describe an installment which is more than an amount equal to twice the average of all installments scheduled before that installment.

 

 

If a mortgage servicer decides to sell the property of a debtor who has failed to cure a default, the mortgage servicer is required to give a minimum of:

 

30 days's

21 days' notice

12 days' notice

If a mortgage servicer decides to sell the property of a debtor who has failed to cure a default, the mortgage servicer is required to give a minimum of 21 days' notice. The calendar day the notice is given is included in computing the 21-day notice period and the calendar day of the foreclosure sale is excluded.

 

 

Assuming that a foreclosure sale took place on January 15, 2011 and that the price at which the real property was sold was less than the unpaid balance of the indebtedness secured by the real property, any action to recover the deficiency had to be brought by:

 

January 15, 2012

July 15, 2012

January 15, 2013

July 15, 2011

If the price at which real property is sold at a foreclosure sale is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency, any action to recover the deficiency must be brought within two years of the foreclosure sale.

 

 

A borrower, who has other liens on his property for a total amount of $25,000, applies for a HELOC. The fair market value of his property is found to be $245,000. What is the maximum line of credit that can be 3closed in this particular case?

 

$220,000

$196,000

$171,000

$176,000

The fair value of the house being $245,000, the maximum line of credit that could potentially be closed is $196,000 (80% of $245,000). However, the borrower has $25,000 outstanding on other liens. In this case, the maximum line of credit that can be extended is therefore $171,000 ($196,000-$25,000).

 


No home equity line may include fees paid to any person that are necessary to originate, evaluate, maintain, record, insure, or service the extension of credit that exceed:

 

2 % of the original principal amount of the extension of credit

3 % of the original principal amount of the extension of credit

2.5% of the original principal amount of the extension of credit

1 % of the original principal amount of the extension of credit

No home equity line may include fees paid to any person that are necessary to originate, evaluate, maintain, record, insure, or service the extension of credit that exceed 3% of the original principal amount of the extension of credit.

 


When an MLO is part of a mortgage company, the MLO will provide to the applicant a disclosure that specifies the following except for:

 

The way in which the MLO is compensated

The duties that the applicant can expect from the MLO

The duration of the relationship between the MLO and the mortgage company

The nature of the relationship between applicant and MLO

When an MLO is part of a mortgage company, the MLO will provide to the applicant a disclosure that specifies the nature of the relationship between applicant and MLO, the duties the MLO has to the applicant, and how the MLO will be compensated. The duration of the relationship between the MLO and the mortgage company does not need specifying.

 

 16

Any owner of the homestead may rescind the extension of credit, without penalty or charge, provided they do so within:

 

5 business days after the extension of credit

5 calendar days after the extension of credit

3 calendar days after the extension of credit

3 business days after the extension of credit

Any owner of the homestead may rescind the extension of credit, without penalty or charge, provided they do so within 3 calendar days after the extension of credit. If the third calendar day falls on a Sunday or federal legal public holiday, the right of rescission extends to the next calendar day that is not a Sunday or federal legal public holiday.

 

 

As per TAC Title 7, §80.201, when an applicant submits an application, an MLO must provide a disclosure informing the customer of the pathway to follow in order to:

 

Alter the loan agreement

Cancel an insurance policy

Rescind on the loan

Request compensation

As per TAC Title 7, §80.201, when an applicant submits an application, an MLO must provide a disclosure informing the customer of the pathway to follow in order to file a complaint or request compensatory action.

 

 

An SML examiner conducts on-site examinations to do all of the following EXCEPT:

 

Document violations

Make a determination of the loan cut

Policies and procedures

Assess the compliance management system

During the on-site phase of an examination, the examiner will thoroughly review a mortgage company's loan application log to make a determination of the loan cut; assesses the quality and viability of the compliance management system; and documents any system weaknesses and violations of consumer protection laws and regulations.

 


If a consumer wishes to file a complaint against a RMLO, where should he or she send it?

 

SML

HUD

Federal Reserve Board of Governors

NMLS

Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending.

 


If a preliminary determination is disputed by an applicant, a license holder, or any surety by written notice to the Commissioner before the set deadline, the Commissioner will:

 

Issue a temporary determination

Schedule a hearing

Issue a final determination

Issue a suspension order

If a preliminary determination is disputed by an applicant, a license holder, or any surety by written notice to the Commissioner before the 31st day after the notification date, the matter will be set for a hearing governed by Government Code and the hearing rules of the finance commission.

 

 

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must begin at the time stated in the sale notice or within:

 

1 hour past that time

30 minutes past that time

3 hours past that time

2 hours past that time

A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held between 10 a.m. and 4 p.m. of the first Tuesday of a month. A notice regarding the sale will designate a time. The sale must begin at the time stated in the notice of sale or not later than three hours after that time.

 


ML compliance examinations are scheduled using which of the following approaches?

 

Random

Asset-focused

Risk-focused

Consumer-based

The scheduling of SML compliance examinations is based on a risk-focused approach that incorporates items such as consumer complaints, inconsistent licensing information, inaccurate advertising or other sources, and the volume of production.

 

 

On an application for an original license or for renewal of an MLO license, the applicant, in addition to paying the original application fee or renewal fee, will pay a fee determined by the Commissioner which cannot exceed:

 

$10

$20

$15

On an application for an original license or for renewal of an MLO license, the applicant, in addition to paying the original application fee or renewal fee, will pay a fee determined by the Commissioner which cannot exceed $20.

 


Apart from the standard required notice on a home equity loan, a lender must also provide a 'notice regarding a reverse mortgage' at least:

 

12 days before closing.

5 days before closing

3 days before closing

10 days before closing

Apart from the standard required notice on a home equity loan, a lender must also provide a 'notice regarding a reverse mortgage' at least 12 days before closing.

 


Form B' is also known as the:

 

Pre-qualification form

Pre-screening form

Pre-approval form

Pre-acceptance form

Form B' is also known as the pre-approval form.

 

 

The consumer disclosure must be provided to the owner at least:

 

7 days before the date the extension of credit is made.

14 days before the date the extension of credit is made.

3 days before the date the extension of credit is made.

12 days before the date the extension of credit is made.

The consumer disclosure must be provided to the owner at least 12 days before the date the extension of credit is made.

 

Following an act or omission which resulted in damages, an application for the recovery of such damages from the fund can be filed as long as this is done before the:

 

Fourth anniversary of the date the act or omission took place

Second anniversary of the date the act or omission took place

Third anniversary of the date the act or omission took place

Fifth anniversary of the date the act or omission took place

An application for the recovery of actual damages from the fund may not be filed after the fourth anniversary of the date of the alleged act or omission causing the actual damages or the date the act or omission should reasonably have been discovered.

 

 

Individuals who provide clerical or support duties as independent contractor loan processors or underwriters are required to be licensed under:

 

The Home Equity Loans Laws

The Residential Mortgage Loan Company Licensing and Registration Act

The Texas SAFE Mortgage Licensing Act

The Mortgage Banker and RMLO statutes

Individuals who provide clerical or support duties as independent contractor loan processors or underwriters are required to be licensed under the Texas SAFE Mortgage Licensing Act of 2009 (TFC Title 3, §180).

 


The reinstatement fee charged by the commissioner when a residential mortgage loan originator renews their license between Jan. 1 and March 1 is equal to:

 

150% of the renewal feeY

200% of the renewal fee

250% of the renewal fee

100% of the renewal fee

A person whose residential mortgage loan originator license has not been renewed before January 1 but who is otherwise eligible to renew a license, and does so before March 1, may renew the license by paying the commissioner a reinstatement fee in an amount that is equal to 150% of the required renewal fee.

 

 30

An MLO must disclose if he or she is serving in any of the following additional roles EXCEPT:

 

Real estate broker for the seller

Attorney for the buyer

Attorney for the lender

Attorney for the appraiserY

The disclosure of multiple roles in a consumer real estate transaction includes: a real estate agent, broker, salesperson or representative for the buyer, seller or both; or attorney for buyer, seller or lender.

 


In order to obtain a license, a loan company must designate an MLO as a(n):

 

Natural person

Principal manager

Exclusive agent

Qualifying individualY

A loan company wishing to obtain a license must designate an MLO as a Qualifying Individual. The individual must also share some of the responsibility of the designating loan company.

 

 

If the person who caused an advertisement to be published is an originator or a mortgage company, the advertisement must contain the name of the originator and sometimes the words:

 

Residential Mortgage Loan Originator

Registered Mortgage Loan Originator

Licensed Mortgage Loan Originator

Mortgage Loan Originator

Except as provided in subsection (c) of TAC Title 7, §80.203, if the person who caused the advertisement to be published is an originator or a mortgage company, the advertisement must contain, among other things, the name of the originator followed by, as applicable, either the phrase "Residential Mortgage Loan Originator" or the name of the sponsoring mortgage banker, as designated in the records of the Commissioner as of the date of the advertisement.

 


The books and records which might be requested by the Commissioner or his/her designee must be retained for at least:

 

5 years

4 years

3 years

2 years

The books and records which might be requested by the Commissioner or his/her designee must be retained for three years or such longer period(s) as may be required by applicable state and/or federal laws and regulations.

 

 34

Form A' is also known as the:

 

Pre-approval form

Pre-screening form

Pre-acceptance form

Pre-qualification formYou correctly checked this.

Form A' is also known as the pre-qualification form.

 

 35

A lender foreclosed on a borrower who owed $195,000 and sold the property for $178,500. The lender brings an action to recover the $16,500 difference from the borrower. The fair market value of the property 5at the time of the sale was $192,500 and there are no unextinguished liens. The offset in this case would be:

 

$26,000

$16,500

$14,000You should have checked this.

$2,500You shouldn't have checked this.

The offset in this particular case would be $14,000 (192,500-178,500).