FLORIDA mortgage questions and answers
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?
