NMLS Test Practice for Maryland
licensee
may not allow any note, or loan contract, mortgage, or evidence of indebtedness
secured by a secondary mortgage or deed of trust to:
Be signed or executed at any place for which
the person does not have a license except at attorney or title company offices.You correctly checked this.
Be signed or executed at any place for which
the originator's lender has a branch office.
Be signed or executed at any place for which
the person does not have a license
Be signed or executed at the lender's
principal office.
A
licensee may not allow any note, or loan contract, mortgage, or evidence of
indebtedness secured by a secondary mortgage or deed of trust to be signed or
executed at any place for which the person does not have a license, except at
the office of (1) the attorney for the borrower or for the licensee; or (2) a
title insurance company, title company or an attorney for a title insurance
company or a title company.
Question 2
Lenders
may not require borrowers or title insurance companies to perform a title
search as a settlement condition if:
Borrower notifies lender within seven (7)
business days after loan application of name and address of borrowers choice.You shouldn't have checked this.
Borrower notifies lender within seven (7)
days after loan application of name and address of borrowers choice.You should have checked this.
Borrower notifies lender within three (3)
days after loan application of name and address of borrowers choice.
Borrower notifies lender within five (5) days
after loan application of name and address of borrowers choice.
A
lender may not require a borrower or title insurance company to perform a title
search, examination of title or closing as a settlement condition if the
borrower notifies the lender within 7 days after the loan application of the
name and business address of the borrower's choice.
Question 3
Any
lender, his officer or employee and any other person who willfully violates
state and federal law is guilty of a misdemeanor and on conviction is:
Subject to a fine not exceeding $1,000 per
violation.
Subject to a fine not exceeding $5,000 or
imprisonment not exceeding one year or both.
Subject to a fine not exceeding $1,000 or
imprisonment not exceeding one year or both.You correctly checked this.
Subject to criminal penalties and
imprisonment up to five years.
A
person who violates any State or Federal law in the state of Maryland is guilty
of a misdemeanor and on conviction is subject to imprisonment not exceeding one
year or a fine not exceeding $1,000 or both.
Score: 100%
Question 4
Lender
inspection fees are permitted under the following circumstances:
To support real estate appraiser's
independent estimate of value.
To establish existence of real property for
documentation when using local tax base to establish value.
To verify that a house is actually located on
the property.
To determine completion of new home
construction and to verify completion of repairs required by lender as a
condition of approval.You correctly checked this.
Lenders
are not allowed to impose inspection fees except when needed to determine
completion of: (1) construction of a new home; or (2) repairs, alterations or
other work required by the lender.
Question 5
Loan
Origination fees are permitted in Maryland subject to certain restrictions
which include:
$1,000 or 10% of net proceeds of a commercial
loan of $75,000 or less or $500 of 10% of net proceeds of any other loan made.
$500 or 10% of net proceeds of a residential
mortgage loan of $75,000 or less or $250 or 10% of net proceeds of any other
loan made.
$500 or 10% of net proceeds of a commercial
loan of $75,000 or less or $250 or 10% of net proceeds of any other loan made
plus commission, finder's fees, points.You shouldn't have checked
this.
$500 or 10% of net proceeds of a commercial
loan of $75,000 or less or $250 or 10% of net proceeds of any other loan made.You should have checked this.
A
lender may collect a loan origination fee for making a loan subject to the
following restrictions: (1) the aggregate amount of the loan origination fee
imposed by a lender - when combined with any finder's fee imposed by a mortgage
broker may not exceed: (a) $500 or 10% of the net proceeds of a commercial loan
of $75,000 or less; or (b) $250 or 10% of the net proceeds of any other loan;
(2) a lender may not collect from the borrower any other commission, finder's
fee or points for obtaining, procuring or placing a loan; (3) Origination fees
are not permitted on secondary market purchase loans compliant to Federal
Agency investors including but not limited to GNMA, FNMA, FHLMC, the Federal
Reserve Bank and the Farmers Home Administration.
When the
Commissioner investigates complaints brought by parties aggrieved by the
licensee, the licensee will:
Pay to the Commissioner a per-day fee set by
the Commissioner for each of the Commissioner's employees engaged in the
investigation.You should have checked this.
Pay to the Commissioner full reimbursement
for State employees engaged in the investigation.
Pay to the Commissioner an upfront fee of
$2500 plus a per-diem fee set by the Commissioner for each of the
Commissioner's employees engaged in the investigation.You shouldn't have checked
this.
Pay a flat fee of $5,000 to the Commissioner
to cover costs of the state's investigation and examination.
Any
person aggrieved by the conduct of a licensee in connection with a mortgage
loan may file a written compliant with the Commissioner who shall investigate
the compliant. A licensee shall pay to the Commissioner a per-day fee set by
the Commissioner for each of the Commissioner's employees engaged in any
examination or investigation conducted.
Question 2
Upon
issuance of a "Cease and Desist Order" by the Commissioner, the
licensee may be required to:
Terminate employment of the employee who
committed the violation thereby eliminating the source of the violation.
To cease and desist from violation and take
affirmative action to correct the violation including the restitution of money
or property to any person aggrieved by the violation.You correctly checked this.
Terminate employment of the employee who
committed the violation, thereby relieving the lender of liability.
To cease and desist from the violation and
any further similar violations.
Upon
issuance of a "Cease and Desist Order" by the Commissioner, the
licensee may be required to cease and desist from the violation and any further
similar violations and take affirmative action to correct the violation
including the restitution of money or property to any person aggrieved by the
violation.
Question 3
Any
unlicensed person who is not exempt from licensing who makes or assists a
borrower in obtaining a mortgage loan in violation of Maryland mortgage law may
collect:
The principal amount of the loan only and
must reimburse the borrower all fees and charges collected by the unlicensed
person plus rebate 15% of interest charges previously collected.
The principal amount of the loan and any
interest, costs, finder's fees, broker fees, or other charges with respect to
the loan.
Any interest, costs, broker fees, or other
charges with respect to the loan.
The principal amount of the loan and may not
collect any interest, costs, finder's fees, broker fees, or other charges with
respect to the loan.You correctly checked this.
Any
unlicensed person who is not exempt from licensing and who assists a borrower
in obtaining a mortgage loan may collect only the principal amount of the loan
and may not collect any interest, costs, finder's fees, brokers fees or other
charges with respect to the loan.
Question 4
Exempted
institutions employing Registered Mortgage Originators are:
Relieved of any responsibility required by
federal or state rules, laws, or regulations governing mortgage lending in the
State.
Compliant to federal and state mortgage
rules, laws, or regulations and receive exemptions from certain penalties
established by the Commissioner's Office.
Relieved of responsibility required by state
rules, laws, or regulations governing mortgage lending in the State; but not
relieved from Federal regulation and statutes.
Not relieved of any responsibility required
by federal or state rules, laws, or regulations governing mortgage lending in
the State.You correctly checked this.
The
employment of a mortgage originator licensed under Subtitle 6 Mortgage
Originator Law by a mortgage lender does not relieve the mortgage lender of a
responsibility for ensuring that their employees follow all rules, regulations
and laws governing mortgage lending in Maryland.
Question 5
Any
Mortgage Loan Originator who willfully violates Maryland regulation/law is
guilty of a felony and:
On conviction is subject to a fine not
exceeding $25,000 plus full restitution to aggrieved party or imprisonment not
exceeding 10 years.
On conviction is subject to a fine not
exceeding $25,000 or imprisonment not exceeding 5 years or both.You correctly checked this.
On conviction is subject to a fine not
exceeding $50,000 or imprisonment not exceeding 5 years or both.
On conviction is subject to a fine not
exceeding $50,000 or imprisonment not exceeding 10 years or both.
Any
mortgage loan originator who willfully violates any provision, rule or
regulation of mortgage lending law in Maryland is guilty of a felony and, on
conviction, is subject to a fine not exceeding $25,000 or imprisonment not
exceeding 5 years or both.
In
cases where lenders are allowed by law to collect a delinquent charge, the
borrower must, among other things, have been delinquent for a least:
30 calendar days.
28 business days
15 business days
x 15 calendar days
If a loan contract
provides for a delinquent (or late charge), this may be collected and will not
constitute interest. A delinquent charge of the greater of $2 or 5 percent of
the total amount of any delinquent or late periodic installment of principal
and interest may be levied if 1) the delinquency has continued for at least 15
calendar days; and 2) a delinquent or late charge has not already been charged
for the same delinquency.
Question 2
Under
Title 12, Subtitle 1 (§ 12-103) of Maryland Commercial Law, when a loan is
secured by a certificate of deposit held by the borrower, a lender may charge
interest in excess of the rate payable on the certificate of deposit. However,
the rate set by the lender can not exceed the rate payable on the certificate
by more than:
1.5 percentage points
1 percentage point
0.5 percentage point
2 percentage pointsYou correctly checked this.
Under Title 12,
Subtitle 1 (§ 12-103) of Maryland Commercial Law, when a loan is secured by the
pledge of collateral which is a certificate of deposit held by the borrower,
the lender may charge interest at a rate not to exceed 2 percent in excess of
the rate of interest payable on the certificate of deposit.
Question 3
A
lending institution which lends money secured by a first mortgage on any
interest in residential real property and creates an escrow account in
connection with that loan will pay interest to the borrower on the funds in the
escrow account:
Every 6 months
Every month
Every 12 monthsYou correctly checked this.
Every week
A lending institution
which lends money secured by a first mortgage or first deed of trust on any interest
in residential real property and creates or is the assignee of an escrow
account in connection with that loan will pay interest to the borrower on the
funds in the escrow account at the greater of: (i) a rate of 3 percent per
annum simple interest; or (ii) the rate of interest regularly paid by the
lending institution on regular passbook savings accounts. Interest on these
funds will be (i) computed on the average monthly balance in the escrow
account; and (ii) paid annually to the borrower by crediting the escrow account
with the amount of interest due. In addition, the lending institution will
annually provide the borrower with a statement of the escrow balance.
Question 4
A
lender who receives scheduled monthly periodic payments on more than five loans
secured by an interest in real property must provide the borrower, at given
intervals, a written statement informing the borrower of the following except
for:
The payments received to cover insurance
policiesYou should have checked this.
The payments received towards reducing the
principal
The principal balance which remains to be
paid
The payments received towards the interest
dueYou shouldn't have checked this.
Under Title 12,
Subtitle 1 (§ 12-106) of Maryland Commercial Law, at least annually and, on
request of the borrower, at any other reasonable time or interval, a lender who
receives scheduled monthly periodic payments on more than five loans secured by
an interest in real property will furnish to the borrower a written statement
informing the borrower of the amount of: 1) the payments credited to reducing
the principal; 2) the payments credited to interest as defined in this
subtitle; and 3) the remaining unpaid principal balance.
Question 5
In the
case of a commercial loan not secured by residential real property, lenders may
charge interest at any rate under Title 12, Subtitle 1 (§ 12-103) of Maryland
Commercial Law provided the loan is in excess of:
$15,000You correctly checked this.
$25,000
$75,000
$55,000
Under Title 12,
Subtitle 1 (§ 12-103) of Maryland Commercial Law, lenders may charge interest
at any rate if a loan is: 1) a loan made to a corporation; 2) a commercial loan
in excess of $15,000 not secured by residential real property; or 3) a
commercial loan in excess of $75,000 secured by residential real property.
Commercial loans to individuals secured by residential real property must
comply with the provisions of § 12-407.1.
