Colorado
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
(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.
