1/20/2022

Verification Services for Mortgage Lending

 

Martin Johnson Heade Apple Blossoms










Verification Services for Mortgage Lending

 

Or a letter to “Sam” to deeper understand my use of acronyms and silly lingo that did not clarify. Complete with list of vendors

 

Mortgage Lenders us Residential Mortgage Credit Reports (RMCR) also called a Tri-Merged report which is more detailed and different than a consumer credit report. A RMCR report often will have lower FICO scores than a consumer report. A RMCR is a long form many pages history of payments, balances, name variations, inquiries, and other details. The RMCR report is collected from sources and sold to mortgage lenders via what I call aggregators. These credit aggregators pull the data from the main three credit cops: Equifax, Experian, and TransUnion plus they add more information. These main three credit cops also sell RMCR’s.

 

Here is a list of commonly used and integrated by secure API to lenders Loan Operating Systems (LOS software):

 

Accurate Financial Services 
ACRAnet, Inc. 
Advantage Credit, Inc. 
Advantage Credit Bureau 
Advantage Plus Credit Reporting, Inc. 
American Reporting Company, LLC 
Avantus 
Birchwood Credit Services, Inc. 
CBA 
CBC Innovis, Inc. 
Certified Credit Reporting, Inc.
CIC Mortgage Credit, Inc. 
Cisco Credit 
CIS Info Services 

CoreLogic Credco

Credit Associates 
Credit Data Solutions

CIC
Credit Information Systems 
Credit Link, LLC 
Credit Plus, Inc. 

CRS
Credit Quick Services 
Credit Technology, Inc. (CIT) 
Credit Technologies, Inc. 
Cred Star 
Data Facts, Inc. 
EGS Global Solutions, Inc. 
Equifax Mortgage Solutions 
Factual Data aka: MACS 
Funding Suite 
Information Searching Company 
Informative Research 

KCB Credit, LLC 
Kroll Factual Data 
Merchants Credit Bureau aka: MCB 
MFI Credit Solutions 
Midwest Mortgage Credit Services, Inc. 
NCO / EGS / Alorica Credit Services, Inc. 
Online Information Services, Inc. 
Partners Credit and Verification Solutions 
Premium Credit Bureau 
SARMA 
Settlement One 
Sharper Lending, LLC 
Strategic Information Resources, Inc. 
The Credit Network KFD 
United One, Inc. 
Universal Credit Services, Inc. 

Some of these credit aggregators are patched in directly into mortgage lender software for other systems to read the bits of data such as monthly payment due, balance, and averaged middle FICO score. Monthly payments and balances owing are pieces of information needed for Underwriting approval to discern the debt-to-income ratio. The middle FICO score is used in LOS in pricing engines and Underwriting software to determine rate and fees available with these hurdles or attributes. Also, as a deciding factor to fit the ins and outs of a mortgage loan product at a given moment in time.

Other plug-in bits of integration information are:

Appraisal

Flood certificate

4506T from the IRS

SSA-89 also from mine government

Mortgage Insurance (many providers MGIC, Genworth…)

The Work Number (and a hundred other Verification of Employment apps or manual order)

New bank statement reading apps

MERS

Compliance apps

And so forth

All these vendor pieces are integrated into a lender’s Loan Operating System (there are many of these, most commonly Encompass (Ellie Mae bought by Intercontinental Exchange ICE) Empower owned by Black Knight, Blend, Lending QB, Turnkey, Lending Pad, Calyx Point, Open Point, Meridian, Power Lender, Net Oxygen…

 

To sell a loan to Fannie Mae (DU system) or Freddie Mac (LP system) the puzzle pieces, as in all these parts, must be 1. A provider the end company accepts or certifies 2. Be in format that flows into now MISMO 3.4 and XML directly into the end approver’s website.

To sell a loan to a Non-QM lender they have a different list of acceptable pieces and companies they require.

To sell to FHA and USDA again other triangular shaped pieces must fit their square box.

What I was illustrating is that the originator/ salesperson who is skilled must know their client’s dark secret story and desires to know before ordering credit, appraisal and certain pieces of the mortgage application from day one. By ordering a KFD credit report I cannot sell to Fannie, Freddie, or Non-QM I will need to order a second report perhaps later in the progress and the FICO middle score will be lower if I wait more than thirty days to order the second more fitting appropriate type.

 

I hope this explanation of the bones of software, not really the difference in SaaS or Cloud based or the many varieties of methods to review a home loan.

When I started in mortgage a pencil, paper, HP, and the borrower was what I needed. Today I can still outperform all these digital tools when the borrower is self-employed, the property not cookie cutter, and risk is an issue. Fintech has not put my brain to pasture, yet.


(949) 784-9699

C G 

Caroline Gerardo Barbeau

NMLS 324982

Sun West Mortgage LLC  NMLS 3277




 

 

1/05/2022

HOEPA January 2022

 


pink african violets
Growing African Violets


Effective for loans originated on or after January 1, 2021, 

CFPB’s Final Rule updates the dollar amounts for provisions

 implementing amendments to Truth-in-Lending Act (TILA)

 under the Home Ownership and Equity Protection Act (HOEPA) and the Dodd-Frank Act. 

Accordingly, Sun West will be updating the following sections of its Implementation Guide:


Home Ownership and Equity Protection Act (HOEPA)
The Loan Amount Thresholds and Points and Fees Limit used to determine whether

 a transaction is a High Cost Mortgage are revised as below:

Loan Amount ThresholdPoints and Fees Limit
Loan Amount GE.png $22,969
5% of Total Loan Amount
 Loan Amount < $22,969 8% of Total Loan Amount or $1,148, whichever is less

Dodd-Frank Act - Ability to Repay/Qualified Mortgage (QM)
The Loan Amount Thresholds and Points and Fees Limits used to determine 

whether a transaction is a Qualified Mortgage (QM) are revised as below:

Loan AmountPoints and Fees Limit
Loan Amount GE.png $114,847
3% of Total Loan Amount
 $68,908 SE.png Loan Amount < $114,847 $3,445
 $22,969 SE.png Loan Amount < $68,908 5% of Total Loan Amount
 $14,356 SE.png Loan Amount < $22,969 $1,148
 Loan Amount < $14,356.1 8% of Total Loan Amount

The Total Loan Amount is calculated by subtracting any points and 

fees that are financed by the creditor from the amount financed.



Sincerely,


C G
 
Sun West Mortgage Company, Inc.

6131 Orangethorpe Avenue, Suite 500
Buena Park, California 90620

Phone: (949) 784- 9699

This information is provided to licensed mortgage professionals only and not for distribution to consumers. Please visit https://www.swmc.com/disclaimer.phpor 

refer to  www.nmlsconsumeraccess.org  to see where 

Sun West Mortgage Company, Inc. (NMLS ID 3277) is a licensed lender and servicer. 

All Rights Reserved.

 Our products and services have no affiliation with or endorsement from 

any government agency or body. We are not accepting applications from 

Georgia or Massachusetts residents or purchasing mortgages secured by Georgia, 

Massachusetts and Rhode Island properties at this time. 

Sun West Mortgage Company, Inc. (NMLS ID 3277) 

holds a Financing Law License (#6030119) 

[Loans made or arranged pursuant to a California Financing Law license], 

licensed by the California Department of Financial Protection and Innovation,

 Phone: (866) ASK-CORP and has a

 DRE Real Estate Corporation License Endorsement (#00793885), 

licensed by the California Department of Real Estate, Phone: (877) 373-4542.

EHO LOGO 2018.png

12/28/2021

Michigan Mortgage Lending License Laws

 



Michigan Mortgage Loan Laws



How may a person who is ordered to cease and desist be entitled to a hearing before the commissioner?

 

The person must provide to the commissioner professional references from four borrowers who can attest to the business practices of the person ordered to cease and desist.

The person must pay a fine of $10,000 before 30 days after the effective date of the order (the $10,000 may be refunded to the person if the commissioner recinds the cease and desist order).

The person must send a written, notarized Form C&D to the commissioner no later than two weeks after receiving the notification to cease and desist.

The person must send a written request for a hearing which is filed 30 days or less after the effective date of the order..

A person ordered to cease and desist shall be entitled to a hearing before the commissioner if a written request for a hearing is filed with the commissioner not more than 30 days after the effective date of the order. A hearing shall be conducted in accordance with the provisions of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws. (MBLSLA Act 173 of 1987 §445.1666)

 

 



How long may a person with a suspended or revoked license continue to service existing mortgage loans?

 

up to one year

N/A; a person with a suspended or revoked license may discontinue servicing existing mortgage loans immediately.

up to 6 months.

up to 3 months

If a person whose license or registration has been suspended or revoked, summarily, they may continue to service mortgage loans pursuant to servicing contracts in existence at the time of the suspension for up to 6 months after the date of the entry of the final decision of the presiding officer in the contested case suspending or revoking the license. (MCL §445.1669)

 

 



What is the minimum net worth a mortgage broker who receives funds from a prospective borrower maintain?

 

not less than $50,000

not less than $100,000

not less than $75,000

not less than $25,000.

A licensee who acts as a mortgage broker and who receives funds from a prospective borrower before the closing of the mortgage loan shall maintain a net worth of not less than $25,000.00. A licensee who acts as a mortgage lender shall maintain a net worth of not less than $25,000.00. (MBLSLA Act 173 of 1987 §445.1655)

 

 How may a person who is ordered to cease and desist be entitled to a hearing before the commissioner?

 

The person must provide to the commissioner professional references from four borrowers who can attest to the business practices of the person ordered to cease and desist.

The person must pay a fine of $10,000 before 30 days after the effective date of the order (the $10,000 may be refunded to the person if the commissioner recinds the cease and desist order).

The person must send a written, notarized Form C&D to the commissioner no later than two weeks after receiving the notification to cease and desist.

The person must send a written request for a hearing which is filed 30 days or less after the effective date of the order..

A person ordered to cease and desist shall be entitled to a hearing before the commissioner if a written request for a hearing is filed with the commissioner not more than 30 days after the effective date of the order. A hearing shall be conducted in accordance with the provisions of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws. (MBLSLA Act 173 of 1987 §445.1666)

https://carolineg.swmcretail.com/

Caroline Gerardo Barbeau

NMLS 324982

Sun West Mortgage Corporation Inc 

NMLS 32477

(949)   784 - 9699

If a lender advertises a specific loan term:

 

The lender may turn down applicants if they reach a predetermined quota

The lender may change the size of the loan

The lender may change the terms with no warning

The lender must have the full intention of making loans at those rates.

A licensee shall not make a false, misleading, or deceptive advertisement regarding mortgage loans or the availability of mortgage loans. A licensee shall not advertise any size of loan, security required for a loan, rate of charge, or other condition of lending except with the full intent of making loans at those rates, or lower rates, and under those conditions, to mortgage loan applicants who meet the standards or qualifications prescribed by the licensee or registrant. (MBLSLA § 445.1672a)

Coercing an appraiser can result in a fine up to: It's a no no.

 

$500

$1,000 t$5,000

$15,000

Coercing a real estate appraiser to inflate the value of real property is a misdemeanor punishable by a fine of not more than $15,000, imprisonment for not more than 1 year, or both. (Secondary Mortgage Loan Act § 493.77)

 

 

What must a licensee or registrant do should his/her license or registration certificate be destroyed or lost?

 

He /she must pay a fine of $250 to the commissioner for adminstrative costs for reissuance.

He / she must submit a notarized affidavit of the loss with a written notice that he / she surrenders the license or registration to the commissioner..

He / she must notify the commissioner and the NMLS within one month of the loss.

He / she must retake all licensing exams and notify the commissioner that the license or registration has been lost or destroyed.

A licensee or registrant whose license or registration certificate has been destroyed or lost may comply with this section by submitting to the commissioner a notarized affidavit of the loss accompanied by written notice that the licensee or registrant surrenders the license or registration. (Secondary Mortgage Loan Act § 493.61)

 

 

A secondary mortgage loan may be made by all of the following EXCEPT:

 

A licensed MLO.

A licensed real estate broker

A salesperson acting as an agent for a residential builder

A real estate salesperson

A secondary mortgage loan may be made by either of the following: a salesperson acting as an agent for a residential builder, or a licensed residential builder, when made or negotiated in connection with the sale of a residential structure constructed by that builder OR a licensed real estate broker or real estate salesperson engaged in the sale of real estate as a principal vocation, when made or negotiated in connection with a real estate sale where the real estate broker or salesperson affiliated with the broker represents either the buyer or seller. (Secondary Mortgage Loan Act § 493.80)

 

 4

The Commissioner evaluates each application based on all of the following EXCEPT:

 

Applicant's character

Applicant's medical history.

Applicant's experience

Applicant's financial responsibility

The Commissioner evaluates the financial responsibility, experience, character, and general fitness of the applicant for a license (Secondary Mortgage Loan Act § 493.55)

 

 

A broker who receives funds before the closing of the secondary mortgage loan must provide proof of financial responsibility in what amount?

 

$25,000.

$50,000

$10,000

$75,000

$25,000 for a license or registration to act as a broker who receives funds from a prospective borrower before the closing of the secondary mortgage loan or who acts as a lender. (Secondary Mortgage Loan Act § 493.56)

A licensee under the CFSA is prohibited from all of the following EXCEPT:

 

Engaging as a pawn broker

Engage in MLO activities.

Engaging as a debt management company

Engaging as a real estate broker

A licensee may not: Engage in the business of a real estate broker or real estate salesperson; Engage in the business of a pawnbroker; Engage in the business of a debt management company; Entering into a tying arrangement through which the licensee conditions the sale of one financial service to a consumer on the agreement by the consumer to purchase one or more other financial services from the licensee, an affiliate, or subsidiary of the licensee; Knowingly permit a person to violate an order that prohibits that person from being employed by, an agent of, or a control person of the licensee. (Consumer Financial Services Act § 487.2067)

 

 2

How much notice must the Commissioner provide prior to an annual report's due date?

 

45 days

30 days.

60 days

14 days

The commissioner shall provide at least 30 days' advance notice of the date each annual report is due. (Consumer Financial Services Act § 487.2065)

 

 3

If a loan is transferred, the licensee must keep records available for at least how long?

 

2 years after the loan is transferred

2 years after the loan is originated.

3 years after the loan is transferred.

3 years after the loan is originated

If the loan is transferred or assigned, the licensee shall preserve and keep available for examination by the commissioner, as applicable, copies of the promissory note, mortgage, truth-in-lending disclosure statement, and settlement statement in its possession or control for 3 years after the date the loan is transferred or assigned. (Consumer Financial Services Act § 487.2064)

 

 

What is the annual operating fee based upon?

 

Loan volume and types of activity.

Net worth

Number of loan applications

It is the same for everyone.

The annual operating fee based upon the volume and types of activities conducted by the licensee during the previous calendar year. (Consumer Financial Services Act § 487.2061)

 

 

The principal amount of a surety bond under the CFSA must be at least:

 

$500,000.

$100,000

$50,000

$75,000

The principal amount of a surety bond or letter of credit shall be at least $500,000.00. (Consumer Financial Services Act § 487.2056)

What is the maximum civil penalty the Attorney General may impose on a person?

 

$20,000

$15,000

$10,000

$5,000

$20,000. The maximum civil penalty the Attorney General may impose on a person is $20,000, as defined by Section 445.1640 of the Consumer Mortgage Protection Act.

 

 

According to the CMPA, what is preempted by state and federal law?

 

Municipal law.

Non mortgage related laws

Precedence

Administrative decisions

Both state and federal law regulate the business of mortgage laws, both of which preempt any municipal laws, defined by Section 445.1644 of the Consumer Mortgage Protection Act.

 

 

Which of the following is NOT included in the Borrower's Bill of Rights?

 

The right to compare the charges of different mortgage brokers and lenders

The right to obtain a "Loan Estimate" after closing

The right to be informed about the total cost of the loan

The right to know what fees are nonrefundable if you decide to withdraw your loan application

Borrowers have the RIGHT to obtain a "Loan Estimate" of all loan and settlement charges before they agree to the loan or pay any fees. (Consumer Mortgage Protection Act § 445.1636)

 

If a person is found servicing a mortgage loan in a manner that violates the MBLSLA, the Commissioner may do all of the following EXCEPT:

 

Enforce corresponding penalties

Forward the complaint to the appropriate regulatory agency

Suspend the licensee indefinitely

Initiate a cause of action

If the commissioner determines that a person is brokering, making, servicing or collecting mortgage loans in violation, he or she may initiate a cause of action, enforce the corresponding penalties and remedies, or forward a complaint to the appropriate regulatory or investigatory authority. (Consumer Mortgage Protection Act § 445.1639)

 

 

The claim amount against financial responsibility may include all of the following EXCEPT:

 

Excess escrow paid

Estimated fees

Actual fees

Overcharges of principal

The amount of the claim shall not exceed actual fees in connection with a loan application, overcharges of principal and interest, and excess escrow collections charged by the licensee and paid by the claimant to the licensee. (Consumer Mortgage Protection Act § 445.1638)

If a person is found servicing a mortgage loan in a manner that violates the MBLSLA, the Commissioner may do all of the following EXCEPT:

 

Suspend the licensee indefinitely.

Initiate a cause of action

Forward the complaint to the appropriate regulatory agency

Enforce corresponding penalties

If the commissioner determines that a person is brokering, making, servicing or collecting mortgage loans in violation, he or she may initiate a cause of action, enforce the corresponding penalties and remedies, or forward a complaint to the appropriate regulatory or investigatory authority. (Consumer Mortgage Protection Act § 445.1639)

A credit granting institution may consider all of the following in its lending criteria EXCEPT:

 

Presence of active neighborhood organizations

Applicant's credit eligibility

Market value of a proposed security

Applicant's family history.

Lending policies and criteria of a credit granting institution used in the consideration of a loan application shall include without limitation the following: consideration of the credit eligibility of the applicant and the market value of a proposed security; the presence of active community and neighborhood organization, the presence of government, nonprofit, and private programs in the neighborhood intended to eliminate negative environmental influences, other revitalization efforts, and any other factors potentially mitigating the effect of physical decline. (Mortgage Lending Practices § 445.1603)

A credit-granting institution must retain a complete record of each loan application that has been accepted, rejected, or varied for how long?

 

25 months after loan application has been submitted or until the loan has been repaid, whichever is longer

36 months after loan application has been submitted

36 months after loan application has been submitted, except rejected applications, which may be discarded immediately

25 months after loan application has been submitted or until the loan has been repaid, whichever is earlier.

A credit granting institution shall retain, for a period of 25 months after a loan application has been submitted or until the loan is repaid, whichever is earlier, a complete record of each loan application which has been accepted, rejected, or varied and the reason for the application's rejection or variation, together with any other documents relating to the application. (Mortgage Lending Practices § 445.1607)

Each year, a mortgage servicer must provide the borrower with a statement providing each of the following EXCEPT:

 

Amount deposited into escrow during the entirety of the loan.

Interest paid during the preceding 12 months

The loan's unpaid principal balance from the preceding 12 months

Amount deposited into escrow from preceding 12 months

A mortgage servicer shall annually deliver to the borrower a statement of the borrower's account, which must show the: • Unpaid principal balance of the mortgage loan at the end of the immediately preceding 12-month period • Interest paid during such period • Amounts deposited into escrow and disbursed from escrow during the period (Mortgage Lending Practices § 445.1607)

A credit granting institution may not impose a minimum mortgage amount greater than:

 

$1,000

$2,500

$10,000.

$5,000

A credit granting institution shall not impose a minimum mortgage amount greater than $10,000. (Mortgage Lending Practices § 445.1602)

If there is an error on an appraisal, the credit granting institution:

 

Is liable to the appraiser

Is liable to the applicant

Is not liable to the applicant.

Is liable to the applicant if the error is because of the credit granting institution

Except for an error or omission that is a violation, a credit granting institution is not liable to an applicant or any other person for an error or omission in an appraisal or other supporting documents made available to an applicant. (Mortgage Lending Practices § 445.1602)

A credit granting institution must post a written notice in all of the following places EXCEPT:

 

Call center.

Service center

Branch office

Main office

A credit granting institution shall post a written notice in a conspicuous place to reasonably apprise a loan inquirer or applicant of his or her rights under this act in the institution's main office and each branch office or service center. (Mortgage Lending Practices § 445.1605)

hat type of compensation do board members receive?

 

Board members are not compensated. However, the DFIS shall reimburse members for travel and other expenses incurred in the performance of an official board function. (MBLSLA § 445.1683)

 

 The principal amount of a surety bond under the CFSA must be at least:

 

The principal amount of a surety bond or letter of credit shall be at least $500,000.00. (Consumer Financial Services Act § 487.2056)

 

 

Coercing an appraiser can result in a fine up to:

 

Coercing a real estate appraiser to inflate the value of real property is a misdemeanor punishable by a fine of not more than $15,000, imprisonment for not more than 1 year, or both. (Secondary Mortgage Loan Act §   One of the steeper newer fines in the industry 493.77)

 

 

The Commissioner evaluates each application based on all of the following EXCEPT:

 

The Commissioner evaluates the financial responsibility, experience, character, and general fitness of the applicant for a license (Secondary Mortgage Loan Act § 493.55)

 

 

A licensee under the CFSA is prohibited from all of the following EXCEPT:

 

A licensee may not: Engage in the business of a real estate broker or real estate salesperson; Engage in the business of a pawnbroker; Engage in the business of a debt management company; Entering into a tying arrangement through which the licensee conditions the sale of one financial service to a consumer on the agreement by the consumer to purchase one or more other financial services from the licensee, an affiliate, or subsidiary of the licensee; Knowingly permit a person to violate an order that prohibits that person from being employed by, an agent of, or a control person of the licensee. (Consumer Financial Services Act § 487.2067)

 

 

A claim amount may include all of the following EXCEPT:

 

The amount of the claim shall not exceed actual fees paid by the claimant to the licensee in connection with a loan application, overcharges of principal and interest, and excess escrow collections by the licensee. (Consumer Financial Services Act § 487.2056)

 

 

What is the Mortgage Industry Advisory Board's primary responsibility?

 

The board communicates to the commissioner issues of concern to the residential mortgage industry and reviews and makes recommendations on rules and procedures pertaining to the mortgage industry. (MBLSLA § 445.1683)

 

 

An application must include all of the following information EXCEPT:

 

The application must state the name, residence, and business addresses of the applicant, each member if the applicant is a partnership, association, or limited liability company, and of each officer, director, and stockholder if the applicant is a corporation. (Secondary Mortgage Loan Act § 493.53)

 

 

When can an MLO in Michigan reapply for a license that was revoked 12 years ago in New Jersey?

 

You can never reapply for an MLO license if your mortgage license has been revoked anywhere once you are out you can never get back in as so much financial information needs to be secure and held by honest people, as defined by Section 493.139 of the Mortgage Loan Originator Licensing Act 75 of 2009.

If there is an error on an appraisal, the credit granting institution:

 

Except for an error or omission that is a violation, a credit granting institution is not liable to an applicant or any other person for an error or omission in an appraisal or other supporting documents made available to an applicant. (Mortgage Lending Practices § 445.1602)

 

 

What is the maximum fine the Commissioner may impose for a violation?

 

The Commissioner may impose a civil fine on an MLO if the Commissioner finds, on the record after notice and opportunity for hearing, that the MLO has violated or failed to comply with any requirements, a rule promulgated by the Commissioner, or any other applicable order issued. (MLO Licensing Act § 493.155)

 

 12

The Mortgage Industry Advisory Board consists of how many members?

 

The board consists of 7 individuals, appointed by the commissioner. (MBLSLA § 445.1683)

 

 

Which of the following is NOT an example of a bona fide error?

 

Examples of a bona fide error include clerical, calculation, computer malfunction, programming, or printing errors. An error in legal judgment with respect to a person's obligations is not a bona fide error. (Consumer Mortgage Protection Act § 445.1641)

 

 

Out of the following reasons, a credit granting institution may only deny a loan application because of:

 

A credit granting institution shall not deny a loan application for either of the following: racial or ethnic characteristics or trends in the neighborhood in which the real estate is located; the age of the structure on the real estate proposed as security or the age of other structures in the neighborhood in which the real estate is located. This does not preclude a credit granting institution from considering the physical condition and probable remaining useful life of the structure and all structures within a radius of 750 feet. (Mortgage Lending Practices § 445.1602)

 

 

What must a licensee or registrant do should his/her license or registration certificate be destroyed or lost?

 

A licensee or registrant whose license or registration certificate has been destroyed or lost may comply with this section by submitting to the commissioner a notarized affidavit of the loss accompanied by written notice that the licensee or registrant surrenders the license or registration. (Secondary Mortgage Loan Act § 493.61)

 

 

How often must an organization file an affidavit stating it meets qualifications?

 

An organization must file an affidavit that it continues to meet the qualifications by February 1 every other year. (MBLSLA § 445.1675a)

 

 

Which of the following would not be exempt from licensure in Michigan?

 

An out-of-state person originating mortgages for properties located in Michigan. An MLO would not be exempt from licensing if they were located out-of-state, as defined by Section 445.1675 of the Mortgage Brokers, Lenders, and Servicers Licensing Act 173 of 1987.

 

 

A lender does not need to be licensed under the Secondary Mortgage Loan Act if he or she services less than how many secondary mortgage loans a year?

 

A lender is exempt if he or she makes or negotiates two or fewer secondary mortgage loans in a calendar year. (Secondary Mortgage Loan Act § 493.52)

What is the minimum net worth a mortgage broker who receives funds from a prospective borrower maintain?

 

A licensee who acts as a mortgage broker and who receives funds from a prospective borrower before the closing of the mortgage loan shall maintain a net worth of not less than $25,000.00. A licensee who acts as a mortgage lender shall maintain a net worth of not less than $25,000.00. (MBLSLA Act 173 of 1987 §445.1655)

According to DIFS, an MLO license would be required for which of the following?

 

A person originating 1st mortgages. A Mortgage license would be required for a person originating 1st mortgages, as defined by Section 493.135 of the Mortgage Loan Originator Licensing Act 75 of 2009.

A secondary mortgage loan may be made by all of the following EXCEPT:

 

A secondary mortgage loan may be made by either of the following: a salesperson acting as an agent for a residential builder, or a licensed residential builder, when made or negotiated in connection with the sale of a residential structure constructed by that builder OR a licensed real estate broker or real estate salesperson engaged in the sale of real estate as a principal vocation, when made or negotiated in connection with a real estate sale where the real estate broker or salesperson affiliated with the broker represents either the buyer or seller. (Secondary Mortgage Loan Act § 493.80)

A home improvement loan minimum may not be more than:

 

A credit granting institution shall not impose a minimum loan amount of greater than $1,000 for a home improvement loan. (Mortgage Lending Practices § 445.1602)

Before a license is suspended, the licensee must receive how much notice?

 

A license shall not be suspended or revoked until after 10 days' notice to the licensee setting forth in writing the reasons for the suspension or revocation. (Consumer Financial Services Act § 487.2060)

Which of the following must be provided by the lender at the time of a mortgage loan application?

 

The lender must provide a credit counseling notice, as well as a Borrower's Bill of Rights. (Consumer Mortgage Protection Act § 445.1636 and § 445.1637)

DIFS is required to create a model financial program that includes all of the following basic principles EXCEPT:

 

The program must be designed to teach personal financial management skills and the basic principles involved with saving, borrowing, investing, and protection against predatory and other fraudulent lending practices. (Consumer Mortgage Protection Act § 445.1643)