Costco Mortgage

Start counting all the rocks in this pile to win a home loan with Costco

Closing a loan today is more intense than ever before. If Costco thinks they can close a mortgage by posting a sign in a store, they have lost their mind. A computer cannot give you automatic approval, not only is the concept now illegal, it is nonsense. Will Costco be doing in warehouse weddings and dispensing haircuts from a machine?

I can visit your home and pick up the necessary paperwork often in one visit, rather than have you make numerous trips to locate additional pieces of information. I recommend you ask your accountant to send you your tax returns as pdf attachments. Most often you have access to your bank statements as “print a statement” and we will help you put this together.

Thank you for considering me to help you achieve the best loan financing. As local mortgage professional twenty three years working in our community, I understand area lending guidelines, unique beach front or Orange County properties and draw on resources  lender.

My team works closely with you to help provide information so you can make informed decisions. We provide:
• Competitive rates and fees
• An extensive product line
• Prompt communication, feel free to call us anytime
• Service that continues after your loan closes

As your Loan Consultant I'll work with you every step of the way.

SAFE ACT California Study Guide Free

rainbow over houses

I'm studying to take the California component of the SAFE ACT Test
These questions and answers I have provided as a study guide.
I don't guarantee you will pass or these are the questions, but practice on the laws can't hurt.
Some where over the rainbow our values will come back?
Some where over the rainbow being in the mortgage business won't mean you are frowned upon in every circle.

1. A compensation contract for a loan transaction must be retained for three years.
2. MLO’s certificate for Continuing Education does not need to be retained.
3. Grace period for a DRE license is two years after expiration
4. Division of California Department of Corporations that handles violations of the California Financial Code is the Enforcement Division
5. If a MLO is not in compliance with a DOC provision, his bond can be increased from $50000 to $100000
6. If an advertisement has been disapproved, the MLO must discontinue the ad immediately.
7. MLO who advertises on radio/ air waves must maintain a transcript of the ad for audit 90 days
8. Regulators are concerned with improper production, not loan volume
9. An administrative penalty is $2500 while civil court penalty is $25000
10. Independent escrow agents are subject to regulations of the Department of Corporations
11. MLO and certain fiduciaries are regulated by the operational arm of the California Department of Corporations known as the Financial Services Division
12. Commissioner of DRE is a real estate broker with 5 years experience and is appointed by the Governor
13. DRE audits a licensed real estate broker and charges cost if a violation is proven
14. MLO can prove a particular interest rate was available by showing the rate sheet
15. California Foreclosure Act guides borrowers in the pursuit of a modification
16. Lenders and brokers may not add anything to the appraisal fee
17. MLO files BK must notify commissioner in 5 days
18. Covered loan can have a prepay for 3 years
19. Loan denial record must be kept 3 years
20. Prepay penalty is waived in a natural declared disaster
21. MLO guilty of redlining license suspended
22. Conversion is misappropriation of funds
23. Fees on a covered loan can’t exceed $1000 or 6% of original balance
24. Violation on covered loan is suspend 6 months to 3 years 2^nd time permanent  and $2500+ civil liable $15000+++
25. Broker must place $ for others in trust account in 3 business days
26. Broker must withdraw any of his own funds from trust account (example property manager) as fees in 25 days
27. Mortgage lender may no longer consider rising real estate prices as a mitigating factor against loan risks
28. MLO continuing education on: 3 hours of Federal law and regulations;

• 2 hours of ethics including training on fair lending, fraud, and consumer protection challenges;
• 2 hours of lessons related to lending standards for the nontraditional mortgage product market; and 1 hour other

29. Net worth and surety bond for California Residential Mortgage Lenders is: surety bond $50000 net worth $250000
30. Net worth and surety bond for Finance Lenders License is: surety bond of $25000 and net worth $25000
31. If Finance Lender employs more than one MLO net worth increases to $250000.
32. Law October 2009 to ensure California complied with SAFE Act is SB 32
33. January 2010 all licensed real estate brokers, salespersons and RE corporations who make arrange or service loans must submit to the DRE an online report called the RE-866.
34. RE-866 if licensee is a real estate corporation, the name an license number of the officer will be provided
35. Re-866 form due January 31, 2010 or 30 days of commencing Mortgage orginations
36. Penalty to file RE—866 $50 day for first 30 and $100 a day up to $10000.
37. B&PCode Section 10131 real estate broker is one who for compensation, solicits, negotiates or performs services for others
38. B&P Code Section 10131 real estate broker engages n the making of loans, buying from. Selling to, or exchanging with the public real property sales contracts or secured promissory notes as a principal
39. B&P Code “in the business” means acquiring for resale to the public real property sales contracts or secured promissory notes in the amount of 8 or more a year
40. Cash, corporate capital, warehouse credit lines, other $ that are liability items on the person’s financial statements secured or unsecured are known as own funds
41. To renew a California real estate license licensee must take
42. Fees for a lock-in agreement are refunded if the agreement is executed and the loan is denied
43. MLO activity can take place only at the address on license unless borrower requests otherwise
44. MLO license should be placed prominently in office
45. Renewal fees are due December 31 each year
46. Change of ownership form is filed with Commissioner when mortgage co changes hands
47. Print media must match business name and information registered with NMLS
48. DOC commissioner inspects books and records of MLO every 2 years
49. DOC commissioner may inspect as often as necessary
50. Commissioner of DOC and DRE can issue a desist and refrain order
51. Audits by DRE or Doc MLO Co pays costs
52. Broker licensed under Consumer Finance Lending Laws may broker loans to Finance Lenders
53. Delaying the closing of a loan to increase costs is predatory lending
54. Compensation contract for a loan transaction must be retained for 3 years
55. Residential mortgage loan is 1-4 units
56. MU1- corporation or sole proprietor-business
57. MU2 –each control persons
58. MU3-license branch
59. MU4 individual

60. Mortgage bankers must have net worth $250000 and surety $50000
61. Application fee for California Mortgage banker’s license is $900 CRMLA
62. Maintenance annual fee DRE license MLO endorsement is $300
63. Reporting requirements for brokers: list of licensees, advertising media, types loans serviced- how many covered loans…
64. Maintain license classes: 8 hours continuing education+ 45 hours continuing education every 4 years
65. Processors and Underwriters who work as independent contractors must be licensed
66. Pre-licensed education is 20 hours
67. Applicants who completed endorsement before August 31 2010 do not have to complete the 20 hours
68. New applicants for Finance lender in CA file through NMLS is they intend to make or broker mortgage loans (they can finance cars and not do mortgages)
69. Section2924.6 Civil Code due on sale clauses are not allowed for:transfer resulting from death of spouse, adding spouse on title, divorce decree- Dissolution, inter vivos trust transfer where they are beneficiaries,junior liens
70. Section 50318 misleading public as to education, license … 12 months bar
71. Unruh Civil rights act- sex race color religion ancestry national origin disability medical condition marital status sexual orientation
72. Holden Act- redlining geographical discrimination 1-4  Section 35801, Borrower complains to Secretary of the California Department of Business, Transportation and Housing 30 days determination
73. Holden Act is Secretary determines the violation desist and refrain – make the loan or pay $1000
74. Holden Act Appeal to hearing 10 days – hearing happens in 20 days – decision in 45 days can be appealed in court
75. Section2780 RE Commissioner Regulations: race color  sex religion ancestry physical handicap marital status national origin- panic selling block busting
76. Mortgage broker agreements-cannot be for high cost per HOEPA
77. Mortgage broker agreements can charge actual charges upfront and an application fee
78. Advertising no no words: guaranteed, safe, bonded, sound, investment plan, growth plan, low doc, no income, no assets, stated, immediate approvals
79. Loan modification scams cannot charge fees upfront, take a wage assignment, power of attorney,
80. Loan modification scam fines $10000 plus one year county jail individual, $50000 for corporation 3X damages
81. California Foreclosure Prevention Act- 90 days notice of default + 90 4 days before sale for reinstatement
82. MLO can’t charge a fee for best efforts to find a loan- must deliver
83. Loan servicers must pay interest of 2% on advance impound accounts
84. Covered loan law California Civil Code 4970- 4979.8 High Cost Loans Any residential loan does not exceed Fannie Mae’s conforming loan limit- APR exceeds 8% over Treasuries of 15^th day of month or total points and fees paid by consumer exceed 6% of loan amount or $1000– No prepayment 3 years, no balloon less than 5 except for bridge loans, neg am must be disclosed, 55% DTI, no loan flipping, must be a benefit
85. Trust funds – must deposit in escrow or trust account 3 business days
86. Trust fund record keeping: 3 years, reconcile monthly, no interest
87. Covered loan is not a super jumbo
88. Willful violation of Covered Loan Law $15000 or damages
89. California Finance Lenders Law Commissioner Department Corporations can suspend a license not to exceed 12 months
90. Maximum criminal penalty for violation of California Residential Mortgage Lending Act is $10000 and one year in jail
91. DRE cannot file criminal charges
92. Max payout to consumers from DRE Real Estate Recovery account  $250000
93. California Administrative Procedures Act hearing final decision 100 days

blurry saint painting - ghost? pray I pass

Mortgage Loan Originator FREE NLMS refresher

labels on bugs

All the Regulations to Memorize for your NMLS Test

For fun I have listed here some more than one hundred questions and the correct answers for you to memorize for your NMLS Test. This is in case the droning voice recording on your online test made you fall asleep, or the teacher was on something. You must memorize the details the way NMLS is testing for nationally, it does not matter what you think or how you practice in your local market. It does not matter about common sense, burn the facts in your head. Mortgage now is run by Barney Frank who once had a boyfriend at Wells Fargo Home Mortgage, so he really knows how to properly regulate a complex business with certain laws that do not help consumers. So here it is, do not question the man behind the curtain, he is the great and powerful Oz. This does not guarantee you will pass. This is not necessarily  any exact list of the questions. This is a free study guide.

NMLS TEST QUESTIONS AND STUDY GUIDE FREE

1.       Prior to closing how long does RESPA require you give the HUD1 to borrower if they ask?

One business day

2.       UNDER ECOA What may NOT be used adversely in Underwriting?

Borrower receives public assistance

Remember ECOA is REG B

3.       Who is not a depository institution?

Mortgage banker because they don’t lend their own dough or work for a bank or S&L

4.       What is difference between a mortgage banker and mortgage broker?

Mortgage broker is middleman intermediary, bankers do that but also raise stock to loan their own money

5.       According to Truth in Lending Act a borrower on a refinance who was not disclosed the APR can?

Rescind the loan for three years

6.       Lender who doesn’t sell loans to investors is:

Portfolio Lender

7.       Regulation forbids seller to steer to certain Title Company

REG X

8.       If the fed buys government securities the money supply:

Increases

9.       What law defines high cost loans or Section 32 loans?

HOEPA Home Ownership and Equity Protection Act

10.   Fannie or Freddie can force a lender to buy back /repurchase a loan if

Evidence of fraud

11.   What Federal legislation requires information about race?

Home Mortgage Disclosure Act HMDA

12.   A registered State Licensed MLO is identified in NLMS by

Unique identifier

13.   Common name of Title V?

SAFE ACT

14.   TIL does not require:

Name of entity who services but does

requires amount, finance charges, total payments…

15.   What is the fine for violating Do Not Call?

$16000.00

16.   State Licensed MLO lets license expire must retest if :

5 years have past

17.   Federal regulation regarding adverse collection information on credit report?

REG V

18.   Registered MLO hours education?

0 only State has 20

19.   MLO fails test 3^rd time must wait:

180 days

20.   SAFE requires State Licensed x hours continuing education?

8

21.   RESPA requires what disclosure at closing?

HUD-1

22.   Fixed rate fully amortized loans each payment:

Interest portion decreases and principle increases

23.   HMDA does not include:

Land loans

24.   Refinance recission:

3 business days including Saturday not Sunday or Fed holidays

25.   Lender must notify Borrower of decision in:

30 days

26.   RESPA applies to all

Real estate credit 1-4 family dwellings

27.   APR must be disclosed on

TIL

28.   FCRA # days a credit information provider respond to dispute?

30

29.   Mortgage Disclosure Improvement Act fastest # days can close

7^th business day after disclosures delivered

30.   What settlement charge may have 10% tolerance between GFE and closing?

Government recording charges

31.   Estimate for settlement charges on GFE is available for X days

7

32.   What fee may be charged before delivery TIL and GFE?

Credit report fee

33.   Mortgage broker rents discounted space from a Title Co for referrals violates:

RESPA

34.   APR initial TIL 5.99% increases to 6.25% on final how long wait to close?

3 business days after redisclosure

35.   Higher priced loan is

APR is average prime offer rate + 1.5%

36.   GFE lumps together:

Lender and mortgage broker fees

37.   According to SAFE a MLO convicted of felony assault 10 years ago

Can apply

38.   MLO can be paid on:

Fixed percentage of loan amount

39.   Conventional loans are backed by the government?

Not guaranteed

40.   What kind of loan is assumable?

FHA

41.   Down payment for FHA with FICO 580+

3.5%   or 10% for score 500-579

42.   Seller contribution allowed FHA

6% of closing but not down payment

43.   FHA refinance amount UFMIP?

1% loan for both refi and purchase

44.   FHA housing ration and DTI?

31% / 43%

45.   FHA tax free income – disability/child support

Gross up  125%

46.    VA Housing Ratio and DTI

41% / 41%

47.   VA seller maximum buy down rate is

4%

48.   VA funding fee for first time (not National Guard or reserve)

2.15%

49.   Rural Housing Services RHS under

USDA

50.   PMI requires what down?

3%

51.   Cancel PMI under:

Homeowners Protection Act

52.   Homeowners Protection Act requires lender to drop PMI at:

78% of original purchase price

53.   Jumbo loan is

Nonconforming loan

54.   Definition of nontraditional loan is under

SAFE Act

55.   Mortgage second with predetermined maximum loan amount, adjustable, IO minimum, can be reborrowed is

HELOC

56.   Borrower right to change from ARM to Fixed one time

Convertible loan

57.   Conforming loan

Follows Freddie and Fannie criteria

58.   Nontraditional mortgage highest risk in underwriting is

High debt to income ratio

59.   Difference between index and the rate charged is called

Margin

60.   Total payments payoff the entire balance at term is

Fully amortizing

61.   During reverse mortgage what decreases:

Equity

62.   Reverse mortgage must be repaid if unoccupied by owner for:

12 months

63.   HECM not available on:

No cooperatives

64.   HECM does not consider:

Credit of borrower

65.   Lender refuses to make loans in certain neighborhood

Redlining

66.   RESPA kickback who pays fine

All parties who received

67.   TIL in Advertising

Think numbers like: 10% down

68.   Advertising

APR amount down terms repayment

69.   Discouraging minority application

ECOA

70.   Not protected by Fair Housing Act

Sexual orientation

71.   ARM loans address

Recessions

72.   Initial rate ARM 4% lower than fully indexed

Teaser

73.   Recast ARM

Recomputed monthly payments to fully amortize

74.   5/2/6 ARM (6 is the

Payment cap

75.   Lowest teaser rate

Pay option ARM

76.   Option ARM accelerated payment is

Fully amortized over shorter loan term (15 or 20)

77.   Option ARM recast

Regular normal every 5 years

78.   Conversion right on ARM must requalify if:

Sold to secondary

79.   Graduated Payment mortgage is

Payments increase at regular intervals

80.   Graduated Payment Mortgages

Have neg am

81.   ARM’s

Have Home Equity Conversion Mortgage

82.   HECM is

Reverse Mortgage

83.   HECM

Cannot be second or subordinate loan

84.   Reverse Mortgage

Borrower must maintain, live in and pay taxes

85.   Land Contract

Vendor/seller transfers equitable title to vendee/ buyer

86.   Alienation clause is

Due on sale/ if sold payoff loan

87.   MLO can’t be a modification counselor advertisement under

Truth in Lending Act

88.   3 day rescission Regulation

Reg Z

89.   Flipping analyze past

3 years history of transfers

90.   Civil Rights 1866 prohibits discrimination on

Race

91.   Repeated refinancing

Loan flipping

92.   Fed. Legislation requiring “equal housing lender”

Fair Housing Act

93.   Fair Housing Act does NOT cover

Disability (does cover religion, maritial, sex)

94.   Fed law covers redlining

Community Reinvestment Act

95.   Discount points are:

Paid to reduce rate

96.   Defeasance clause

Lender releases (defeated) when repaid

97.   Deficiency judgment

Lender recovers the losses

98.   Blanket mortgage

On one or more parcels

99.   Partially amortized loan

Has balloon

100.                        Higher rate charged in exchange for lower upfront costs

Yield spread premium

Stuff you must memorize because a couple questions use these assumptions:

Conventional Ratios: 28% / 36%

FHA                              31%/ 43%

VA                                       /41%

more questions and answers to the National Mortgage Registry Test

101.                        Market value

Most probable selling price

102.                        Minimum number comps required

3

103.                        Section 502 loans are

USDA

104.                        Chapter 7 BK shows on credit for

10 years

105.                        VA loan to value

100%

106.                        UFMIP is on

FHA

107.                        Hypothecation

Using collateral without surrendering possession

SAFE 2008

HERA 2008 V-NMLS

RESPA=X=HUD=GFE=HUD-1, 1-4 family properties, kickbacks 1975

TILA=Z=FTC 1968 (Fed) 3 rescission, 3 day disclosure forms:TIL, booklet, CHARM, APR

ECOA=B=Federal Reserve =Discriminate sex age marriage race religion public assistance Cons. P.

HMDA= C =1975 gathers information about discrimination

FACTA=V=FTC=2003=

GrammLeach GLB=P=FTC 1999 privacy

Nat Do not Call $16000 fine

FCRA= V=credit= FTC

HOEPA+ Z=Section 32+ FTC= high cost= rescind 3 years, APR TBill+8%/ 2^nd +10%

USPAP –appraisal HUCC – AIR

Dodd Frank

HPA- PMI 1998 cancel 78% of original sales price or lender at 80%

MLO compensation rule = Z = Fed

CRA 1977 low mod loans

Civil Rights Act 1866 – no racial discrimination in buying selling homes

Fair Housing Act 1968

Fannie Freddie appraisal

Max gross adjustment to comp 25% Robin Hood

Max net 15% of sale price of comp

copyright Caroline Gerardo all this is mine even the photograph and we prosecute stealers. If you would like to print and study, that is fine. If you want to reproduce you will need to buy one of my books and have written (email) permission from me. Do not repost on Pinterest all rights reserved.

Cost Approach

Marshall Swift rebuild minus depreciation + land

Income Approach

Net operating income divided by Capitalization Rate= Value

If I think of more I'll post another homework list.