Mom and
Dad passed away and the real estate is not vested in a Living Trust.
You may
need to go through probate court to pay off everyone, if there are disputes you
probably need an expensive attorney in California. See the percentage scale
they can charge, it’s huge.
The cash back cap is $166,250. Inheritors can claim the assets with a simple sworn
statement (affidavit) or can go through a streamlined summary probate process. Cal.
Probate Code § 13100.
1.Find the will. The
executor named in the will starts the process. If there's no will, or the
person named to serve as executor isn't available/doesn’t want the duty, then a
family member may ask the court to be appointed as the administrator/PR of the
estate. The personal representative (PR) of the estate asks the court
that full authority be given to administer the estate under the Independent
Administration of Estate Act, known as IAEA. The PR accepts a fiduciary
duty to all the people in the chain of connections.
2.The PR files the
will, along with a document called "Petition for Probate," with the
probate court in the county where the deceased person lived. There is a filing
fee of around $450.00.
The heirs, devisees, and beneficiaries may know where all the
mortgage bills, tax bills, bank accounts, life insurance policies, brokerage
accounts, and maybe they don’t. It is the PR’s job to hunt down the money and
the debts called the assets and liabilities.
.
3.PR applies for a
taxpayer ID number for the estate and opens an estate bank account. The PR orders
and files with the court, an inventory and appraisal of all probate property.
Inventory and Appraisal form filed with the court. Ask your lender for an
appraiser recommendation they have to be independent and certified. Then wait
for court approval before you publish in the MLS or auction. The list price
needs to line up with the appraisal.
4.Next the Notice of Proposed Action is given to all the heirs
that the house is being sold. Unless the Will waives bond or all the heirs
waive bond, then the PR must post a bond as an insurance policy against losses
due to the PR’s wrongdoing. Next, the Notice of Petition to Administer Estate
must be filed and served to all heirs within 15 days before the first court
hearing. Probate Code 8121 requires that the probate be published in a
newspaper of general circulation in the city where the decedent resided at the
time of death.
5.The “Statement of Duties and Liabilities” is filed by the PR.
The Letters Court Form is needed before you can sell the house to be filed. The
certified “Letters” form allows the PR to sell the house, access the deceased’s
bank accounts, pay the creditors or take actions that are required to
administer the estate.
6.After PR accepts an offer from a buyer, petition the probate
court for a hearing to confirm the sale of the real estate. The wait before the
hearing varies, depending on the current load of that county court’s calendar
7.Secure a deposit from the buyer of 10% of the purchase price. Secure
the deposit before the scheduled date of the court hearing.
8.Advertise the sale of the real estate along with the price
that the buyer offered with a local newspaper. This advertisement tells the
public of the sale of real estate. This allows open bidding at the court
hearing among any interested parties.
9.Attend the court hearing and wait for the bidding process to go
forward. Bids proceed in increments of $500 above the offer from the intended
original buyer’s offer. The buyer of the real estate must be allowed to bid, as
well say if a family member wants to purchase the stated buyer can out bid them.
The bids are unconditional. The winner of the bidding must present a cashier’s
check to the probate court for a deposit on the real estate after confirming
the bid which acts as the earnest money deposit to escrow.
10.If a new buyer outbids
the original buyer, you will need to refund the deposit to the original buyer.
11.Close the real estate
contract by completing the sale. All proceeds go to the estate account. Payoff mortgage, taxes, insurance...
The PR has full authority then the estate does not have to sell the
house for the required 90% minimum of the value listed in the I & A Form.
The I & A Form must be filed with the court within four months after
issuance of Letters (Probate Code 8800). The PR must also file a change in
ownership statement with the County. The PR also needs to file and mail a form
called “Notice of Administration of the Estate” to all known and reasonably
ascertainable creditors and to the required public entities (such as the
Department of Health, California Victim Compensation, and the Franchise Tax
Board). After the house closes the sale, creditors are paid, and taxes have
been accounted for, then the estate can be put to rest by petitioning the court
to close the estate. Heirs CANNOT use any of the proceeds from the sale of the
house until the court approves the distribution of the proceeds.
It is possible to sell real estate during the
probate process without getting court approval. The Independent Administration of Estates Act allows
Executors to sell real estate owned by the estate as long as they notify all
beneficiaries at least 15 days before the real estate sale. As long as there
are no objections from the beneficiaries, the sale can proceed.
Personal advise:
I have seen an attorney eat up all of an estate out of loyalty or greed.
Get everyone to be reasonable and fair, follow the will.
I am working on a list of hard money lenders that I know
I do not broker to hard money. Call me if you want a recommendation.
These are the companies I know as of March 2022
I may add their websites later and welcome your comments about your experience with any. I note their location as most of these are NOT nationwide lenders. Many stay close to home. Think fix and flip, expensive construction, ARV, STR, high rates, heavy fee load, for short term, and not for the light hearted.
Have your exit plan in stone. If you maybe think you can refinance conventional mortgage after you do your magic plan be CERTAIN have a loan commitment in writing before you go down this path. Or plan to sell. Everything costs more than you think. The portfolio lender looks at the subject property with eyes to own it.
If the person who caused an advertisement to be published
is an originator or a mortgage company, the advertisement must contain the name
of the originator and sometimes the words:
Mortgage
Loan Originator
Residential
Mortgage Loan Originator.
Licensed
Mortgage Loan Originator
Registered
Mortgage Loan Originator
Except
as provided in subsection (c) of TAC Title 7, §80.203, if the person who caused
the advertisement to be published is an originator or a mortgage company, the
advertisement must contain, among other things, the name of the originator
followed by, as applicable, either the phrase "Residential Mortgage Loan
Originator" or the name of the sponsoring mortgage banker, as designated
in the records of the Commissioner as of the date of the advertisement.
2
A copy of the loan application along with a final (most
current) itemized disclosure of the actual fees, points, interest, costs, and
charges to be assessed at closing must be provided to the homeowner at the
latest:
7
days prior to closing
5
days prior to closing
3
days prior to closing
1
day prior to closing
A
copy of the loan application along with a final (most current) itemized
disclosure of the actual fees, points, interest, costs, and charges to be
assessed at closing must be provided to the homeowner no later than 24 hours
prior to closing.
3
As per TAC Title 7, §80.201, when an applicant submits an
application, an MLO must provide a disclosure informing the customer of the
pathway to follow in order to:
Cancel
an insurance policy
Rescind
on the loanYou shouldn't have checked this.
Request
compensationYou should have checked this.
Alter
the loan agreement
As
per TAC Title 7, §80.201, when an applicant submits an application, an MLO must
provide a disclosure informing the customer of the pathway to follow in order
to file a complaint or request compensatory action.
4
Form B' is also known as the:
Pre-qualification
form
Pre-approval
form.
Pre-acceptance
form
Pre-screening
form
Form
B' is also known as the pre-approval form.
Licensees who advertise rates, terms, or conditions must
comply with the disclosure requirements of:
Regulation
X
The
Real Estate Settlement Procedures Act (RESPA)
Regulation
Z.
The
Truth in Lending Act (TILA)
Licensees
who advertise rates, terms, or conditions must comply with the disclosure
requirements of Regulation Z. Any advertisements must also comply with
applicable state and federal disclosure requirements.
6
How must the Complaint/Recovery Fund Notice be
disseminated?
Emailed
to borrowers
Printed
and displayed.
Mailed
to borrowers
Advertised
in print and online media
The
Complaint/Recovery Fund Notice must be printed and displayed.
7
In order to obtain a license, a loan company must
designate an MLO as a(n):
Principal
manager
Exclusive
agent
Qualifying
individual.
Natural
person
A
loan company wishing to obtain a license must designate an MLO as a Qualifying
Individual. The individual must also share some of the responsibility of the
designating loan company.
8
A borrower, who has other liens on his property for a
total amount of $25,000, applies for a HELOC. The fair market value of his
property is found to be $245,000. What is the maximum line of credit that can
be 3closed in this particular case?
$171,000.
$220,000
$196,000
$176,000
The
fair value of the house being $245,000, the maximum line of credit that could
potentially be closed is $196,000 (80% of $245,000). However, the borrower has
$25,000 outstanding on other liens. In this case, the maximum line of credit
that can be extended is therefore $171,000 ($196,000-$25,000).
9
The Texas SAFE Mortgage Licensing Act of 2009 is also
known as:
TFC
Title 3, §180.
TFC
Title 3, §156
TFC
Title 3, §158
TFC
Title 3, §157
The
Texas SAFE Mortgage Licensing Act of 2009 is also known as TFC Title 3, §180.
10
Any owner of the homestead may rescind the extension of
credit, without penalty or charge, provided they do so within:
3
business days after the extension of creditYou shouldn't have checked
this.
5
calendar days after the extension of credit
5
business days after the extension of credit
3
calendar days after the extension of creditYou should have checked this.
Any
owner of the homestead may rescind the extension of credit, without penalty or
charge, provided they do so within 3 calendar days after the extension of
credit. If the third calendar day falls on a Sunday or federal legal public
holiday, the right of rescission extends to the next calendar day that is not a
Sunday or federal legal public holiday.
In the case of the sale of real property under a power of
sale conferred by a deed of trust or other contract lien, the commissioner's court
must designate the area at the courthouse where the sale is to take place and
record the location in the real property records of the county. Should the
location change, this must be recorded and the sale cannot take place within:
60
days
30
days
90
days.
120
days
In
the case of the sale of real property under a power of sale conferred by a deed
of trust or other contract lien, the commissioner's court must designate the
area at the courthouse where the sale is to take place and record the location
in the real property records of the county. Should the location change, this
must be recorded and the sale cannot take place within 90 days.
12
Texas voters backed a constitutional amendment which
allowed reverse mortgages to be created as liens on a homestead in:
2013
2003
1997You should have checked this.
1999
Historically,
constitutional provisions did not permit liens on the homestead for equity
homestead loans. With the development of loan products, on November 4, 1997,
Texas voters approved a constitutional amendment which allowed reverse
mortgages to be created as liens on a homestead.
13
A sale of real property under a power of sale conferred
by a deed of trust or other contract lien must be a public sale at auction held
on the first Tuesday of the month between the hours of:
10
a.m and 5 p.m
10
a.m. and 5 p.m.
10
a.m. and 4 p.m..
9
a.m. and 5 p.m.
A
sale of real property under a power of sale conferred by a deed of trust or
other contract lien must be a public sale at auction held on the first Tuesday
of the month between the hours of 10 a.m. and 4 p.m.
14
A lender foreclosed on a borrower who owed $135,000 and
sold the property for $110,000. The fair market value of the property at the
time of the sale was $112,500 and there are no unextinguished liens. The
determined deficiency in this particular case is:
$22,500.
$25,000
$18,500
$12,500
The
determined deficiency that the lender can recover in this particular case is
$22,500 (135,000-112,500).
Assuming that a foreclosure sale took place on January
15, 2011 and that the price at which the real property was sold was less than
the unpaid balance of the indebtedness secured by the real property, any action
to recover the deficiency had to be brought by:
July
15, 2012
July
15, 2011
January
15, 2012
January
15, 2013
If
the price at which real property is sold at a foreclosure sale is less than the
unpaid balance of the indebtedness secured by the real property, resulting in a
deficiency, any action to recover the deficiency must be brought within two
years of the foreclosure sale.
If a mortgage servicer decides to sell the property of a
debtor who has failed to cure a default, the mortgage servicer is required to
give a minimum of:
21
days' notice.
20
days' notice
30
days's
12
days' notice
If
a mortgage servicer decides to sell the property of a debtor who has failed to
cure a default, the mortgage servicer is required to give a minimum of 21 days'
notice. The calendar day the notice is given is included in computing the
21-day notice period and the calendar day of the foreclosure sale is excluded.
17
A preliminary determination automatically becomes final
if it is not otherwise resolved and is not disputed by written notice to the
Commissioner within:
15
days following the notification date
21
days following the notification date
31
days following the notification date.
30
days following the notification date
A
preliminary determination automatically becomes final if it is not otherwise
resolved by agreement and is not disputed by written notice to the Commissioner
within 31 days following the notification date.
18
An MLO must disclose if he or she is serving in any of
the following additional roles EXCEPT:
Attorney
for the lender
Attorney
for the buyer
Real
estate broker for the seller
Attorney
for the appraiser.
The
disclosure of multiple roles in a consumer real estate transaction includes: a
real estate agent, broker, salesperson or representative for the buyer, seller
or both; or attorney for buyer, seller or lender.
19
A borrower with $50,000 of other liens on his home closes
a HELOC where he requests an advance of $40,000, so that he can have some money
available and begin to pay off the other debt. The lender tells him 3he can
only have $30,000 despite the fact that the credit limit is $80,000 . What is
the fair market value of the home at the close?
$90,000
$100,000.
$50,000
$80,000
This
is asking about the 80% rule, which
limits the initial advance. The advance, combined with the current outstanding
principal under the HELOC and any other debts secured by the house, cannot
exceed 80% of the fair market value. Since the borrower plans to keep the
$50,000 in loans for some period of time, and the lender says the maximum he
can extend is $30,000, the lender is saying that the maximum allowable initial
advance is $80,000, which is 80% of $100,000. The fair market value is $100,000
If the sale of real property subject to a deed of trust
or other contract lien is sold at a foreclosure sale under a court judgment and
results in a deficiency, any action to obtain a fair market value determination
following the date of the foreclosure sale must be brought within:
60
days
120
days
30
days
90
days.
If
the sale of real property subject to a deed of trust or other contract lien is
sold at a foreclosure sale under a court judgment and results in a deficiency,
any action to obtain a fair market value determination following the date of
the foreclosure sale must be brought within 90 days.
21
No home equity line may include fees paid to any person
that are necessary to originate, evaluate, maintain, record, insure, or service
the extension of credit that exceed:
1
% of the original principal amount of the extension of credit
3
% of the original principal amount of the extension of credit
2.5%
of the original principal amount of the extension of credit
2
% of the original principal amount of the extension of credit.
No
home equity line may include fees paid to any person that are necessary to
originate, evaluate, maintain, record, insure, or service the extension of
credit that exceed 3% of the original principal amount of the extension of
credit.
22
Form A' is also known as the:
Pre-qualification
form
Pre-acceptance
form
Pre-screening
form
Pre-approval
form
Form
A' is also known as the pre-qualification form.
23
What is the required waiting period between receiving the
home equity contract disclosure form and closing on a loan?
12
days.
1
day
5
days
1
month
The
Texas Constitution requires a 12-day waiting period must lapse from the time an
application is taken AND the following consumer rights notice is given to the
borrower to the closing. For example, if a potential borrower submits an
application on Monday, but doesn't receive a copy of the consumer rights notice
until Wednesday, then the 12-day countdown would begin on Wednesday. Once the
waiting period has passed, the loan can be closed.
24
Which of the following is NOT used in evaluating the
compliance management system?
Personnel's
combined years of experience
Company's
responsiveness to compliance deficiencies
Policies
and procedures
Personnel's
knowledge level
Factors
used in measuring adequacy include (a) Knowledge level and commitment of
mortgage company and personnel; (b) Mortgage company's responsiveness to
compliance deficiencies; (c) Mortgage company information systems and proper
settings; (d) Policies and procedures and (e) Training program.BO3
John is named as a borrower on a HELOC (limit of the loan
$100,000). As a result, he may request advances provided these exceed:
$3,000
$4,000.
$2,000
$5,000
Any
owner who is named as a borrower on a HELOC may request advances, repay money
and re-borrow money up to the limit of the loan. Each advance, however, must be
in an amount of at least $4,000.00.
26
On an application for an original license or for renewal
of an MLO license, the applicant, in addition to paying the original
application fee or renewal fee, will pay a fee determined by the Commissioner
which cannot exceed:
$25
$20
$10
$15
On
an application for an original license or for renewal of an MLO license, the
applicant, in addition to paying the original application fee or renewal fee,
will pay a fee determined by the Commissioner which cannot exceed $20.
27
If a preliminary determination is disputed by an
applicant, a license holder, or any surety by written notice to the
Commissioner before the set deadline, the Commissioner will:
Issue
a suspension order
Schedule
a hearing.
Issue
a final determination
Issue
a temporary determination
If
a preliminary determination is disputed by an applicant, a license holder, or
any surety by written notice to the Commissioner before the 31st day after the
notification date, the matter will be set for a hearing governed by Government
Code and the hearing rules of the finance commission.
A sale of real property under a power of sale conferred
by a deed of trust or other contract lien must begin at the time stated in the
sale notice or within:
2
hours past that time
3
hours past that time.
30
minutes past that time
1
hour past that time
A
sale of real property under a power of sale conferred by a deed of trust or
other contract lien must be a public sale at auction held between 10 a.m. and 4
p.m. of the first Tuesday of a month. A notice regarding the sale will
designate a time. The sale must begin at the time stated in the notice of sale
or not later than three hours after that time.
29
A person on whose behalf payment was made from the
recovery fund is not eligible to receive a new license or have a suspension
lifted until that person has repaid:
At
least 50% of the amount disbursed by the fund on their behalf, plus interest at
the current legal rate
100%
of the amount disbursed by the fund on their behalf, plus interest at the
current legal rate
100%
of the amount disbursed by the fund of their behalf, excluding interest at the
current legal rate
At
least 50% of the amount disbursed by the fund of their behalf, excluding
interest at the current legal rate
A
person on whose behalf payment was made from the recovery fund is not eligible
to receive a new license or have a suspension lifted until the person has
repaid in full, plus interest at the current legal rate, the amount paid from
the fund on the person's behalf and any costs associated with investigating and
processing the claim against the fund or with collection of reimbursement for
payments from the fund.
The consumer disclosure must be provided to the owner at
least: trick question
14
days before the date the extension of credit is made.
7
days before the date the extension of credit is made.
12
days before the date the extension of credit is made.
3
days before the date the extension of credit is made.
The
consumer disclosure must be provided to the owner at least 12 days before the
date the extension of credit is made.
31
Apart from the standard required notice on a home equity
loan, a lender must also provide a 'notice regarding a reverse mortgage' at
least:
12
days before closing..
5
days before closing
3
days before closing
10
days before closing
Apart
from the standard required notice on a home equity loan, a lender must also
provide a 'notice regarding a reverse mortgage' at least 12 days before
closing.
The books and records which might be requested by the
Commissioner or his/her designee must be retained for at least:
3
years.
4
years
5
years
2
years
The
books and records which might be requested by the Commissioner or his/her
designee must be retained for three years or such longer period(s) as may be
required by applicable state and/or federal laws and regulations.
Assuming that a reverse mortgage will close on November
1, the borrower and his spouse will only receive such mortgage if their
counselling completed on:
17-May
1-Jan
15-Apr
1-Mar.
A
borrower and his spouse cannot have completed their counselling earlier than
the 180th day or later than the 5th day before the date the reverse mortgage is
closed. These conditions re only satisfied if the counselling in this
particular case ended on May 17 (approximately 170 days earlier).
The minimum age to obtain a reverse mortgage was raised
from
55
to 62.
55
to 61
55
to 60
55
to 58
The
amendment passed in 1999 to reduce transaction costs also raised the minimum
age to obtain a reverse mortgage from 55 to 62 and increased the property size
limit to 10 acres.
The reinstatement fee charged by the commissioner when a
residential mortgage loan originator renews their license between Jan. 1 and
March 1 is equal to:
200%
of the renewal fee
250%
of the renewal fee
150%
of the renewal fee
100%
of the renewal fee
A
person whose residential mortgage loan originator license has not been renewed
before January 1 but who is otherwise eligible to renew a license, and does so
before March 1, may renew the license by paying the commissioner a
reinstatement fee in an amount that is equal to 150% of the required renewal
fee.
For each notice of sale filed, the country clerk receives
a fee of:
$2
$5
$10
$1
For each notice of sale filed, the country clerk receives
a fee of $2.
2
A borrower sends a notice to a lender regarding a failure
to comply with an obligation on a Monday. The lender receives the notice on the
Wednesday. Day 1 of the 60-day period in which the lender may correct the
failure to comply with the obligation is:
Monday
Wednesday
Tuesday
Thursday
A lender or holder may correct a failure to comply with
an obligation on or before the 60th day after a lender or holder receives a
notice from a borrower. The day after the lender or holder receives the
borrower's notification represents day one of the 60-day period.
If a home equity loan closes on Nov. 1, the first
installment is due on:
1-JanYou correctly checked this.
31-Dec
1-Dec
Nov-31
If a home equity loan closes on Nov. 1, the first
installment is due on Jan. 1.
If a lender fails to make loan advances as required in
the loan documents and fails to cure the default as required in the loan
documents after notice from the borrower, the lender will forfeit:
25%
of the principal and interest of the reverse mortgage
100%
of the principal and interest of the reverse mortgage
50%
of the principal and interest of the reverse mortgage
75%
of the principal and interest of the reverse mortgage
If a lender fails to make loan advances as required in
the loan documents and fails to cure the default as required in the loan
documents after notice from the borrower, the lender will forfeit all the
principal and interest of the reverse mortgage.
Which of the following is NOT required on a mortgage
transaction log?
Occupancy
Loan
status
Applicant
credit score
Originator
NMLS ID
Mortgage transaction logs must include: Application date,
applicant name, applicant contact information, loan status (closed, in-process,
denied or withdrawn), occupancy (owner occupied or investment), name of the
initial loan originator and originator NMLS ID.
A sale of real property under a power of sale conferred
by a deed of trust or other contract lien must be a public sale at auction held
on the first Tuesday of the month between the hours of:
10
a.m. and 4 p.m.
10
a.m and 5 p.m
10
a.m. and 5 p.m.
9
a.m. and 5 p.m.
A sale of real property under a power of sale conferred
by a deed of trust or other contract lien must be a public sale at auction held
on the first Tuesday of the month between the hours of 10 a.m. and 4 p.m.
The finance commission may grant an exemption from the
residential mortgage loan originator licensing requirements if it determines
that granting the exemption is not inconsistent with the intentions of the:
Secure
and Fair Enforcement for Mortgage Licensing Act of 2009
Secure
and Fair Enforcement for Mortgage Licensing Act of 2007
Secure
and Fair Enforcement for Mortgage Licensing Act of 2008
Secure
and Fair Enforcement for Mortgage Licensing Act of 2010
The finance commission may grant an exemption from the
residential mortgage loan originator licensing requirements of this chapter to
a municipality, county, community development corporation, or public or private
grant administrator to the extent the entity is administering the Texas HOME
Investment Partnerships program if the commission determines that granting the
exemption is not inconsistent with the intentions of the federal Secure and
Fair Enforcement for Mortgage Licensing Act of 2008.
In order to recover from the fund, a residential mortgage
loan applicant must file with the Commissioner a written:
Sworn
application
Sworn
pledge
Sworn
request
Sworn
statement
In order to recover from the fund, a residential mortgage
loan applicant must file with the Commissioner a written sworn application in
the form prescribed by the Commissioner, subject to the statute of limitations.
In order for the Commissioner to use any excess of money
remaining in the recovery fund to offset the expenses of participating in and
sharing information with the NMLS, the fund must, at the end of a calendar
year, hold in excess of:
$2.5m.
$3.5 m
$5.5m
$4.5m
In order for the Commissioner to use any excess of money
remaining in the recovery fund to offset the expenses of participating in and
sharing information with the NMLS, the fund must, at the end of a calendar
year, hold in excess of $3.5m.
The term 'balloon' is used to describe an installment
which is more than an amount equal to twice:
The
average of all installments that took place in the previous 12 months
The
average of all the installments that took place in the previous 6 months
The
previous installment
The
average of all previous installments
The term ˜balloon' is used to describe an installment
which is more than an amount equal to twice the average of all installments
scheduled before that installment.
If a mortgage servicer decides to sell the property of a
debtor who has failed to cure a default, the mortgage servicer is required to
give a minimum of:
30
days's
21
days' notice
12
days' notice
If a mortgage servicer decides to sell the property of a
debtor who has failed to cure a default, the mortgage servicer is required to
give a minimum of 21 days' notice. The calendar day the notice is given is
included in computing the 21-day notice period and the calendar day of the
foreclosure sale is excluded.
Assuming that a foreclosure sale took place on January
15, 2011 and that the price at which the real property was sold was less than
the unpaid balance of the indebtedness secured by the real property, any action
to recover the deficiency had to be brought by:
January
15, 2012
July
15, 2012
January
15, 2013
July
15, 2011
If the price at which real property is sold at a
foreclosure sale is less than the unpaid balance of the indebtedness secured by
the real property, resulting in a deficiency, any action to recover the
deficiency must be brought within two years of the foreclosure sale.
A borrower, who has other liens on his property for a
total amount of $25,000, applies for a HELOC. The fair market value of his
property is found to be $245,000. What is the maximum line of credit that can
be 3closed in this particular case?
$220,000
$196,000
$171,000
$176,000
The fair value of the house being $245,000, the maximum
line of credit that could potentially be closed is $196,000 (80% of $245,000).
However, the borrower has $25,000 outstanding on other liens. In this case, the
maximum line of credit that can be extended is therefore $171,000
($196,000-$25,000).
No home equity line may include fees paid to any person
that are necessary to originate, evaluate, maintain, record, insure, or service
the extension of credit that exceed:
2
% of the original principal amount of the extension of credit
3
% of the original principal amount of the extension of credit
2.5%
of the original principal amount of the extension of credit
1
% of the original principal amount of the extension of credit
No home equity line may include fees paid to any person
that are necessary to originate, evaluate, maintain, record, insure, or service
the extension of credit that exceed 3% of the original principal amount of the
extension of credit.
When an MLO is part of a mortgage company, the MLO will
provide to the applicant a disclosure that specifies the following except for:
The
way in which the MLO is compensated
The
duties that the applicant can expect from the MLO
The
duration of the relationship between the MLO and the mortgage company
The
nature of the relationship between applicant and MLO
When an MLO is part of a mortgage company, the MLO will
provide to the applicant a disclosure that specifies the nature of the
relationship between applicant and MLO, the duties the MLO has to the
applicant, and how the MLO will be compensated. The duration of the
relationship between the MLO and the mortgage company does not need specifying.
16
Any owner of the homestead may rescind the extension of
credit, without penalty or charge, provided they do so within:
5
business days after the extension of credit
5
calendar days after the extension of credit
3
calendar days after the extension of credit
3
business days after the extension of credit
Any owner of the homestead may rescind the extension of
credit, without penalty or charge, provided they do so within 3 calendar days
after the extension of credit. If the third calendar day falls on a Sunday or
federal legal public holiday, the right of rescission extends to the next
calendar day that is not a Sunday or federal legal public holiday.
As per TAC Title 7, §80.201, when an applicant submits an
application, an MLO must provide a disclosure informing the customer of the
pathway to follow in order to:
Alter
the loan agreement
Cancel
an insurance policy
Rescind
on the loan
Request
compensation
As per TAC Title 7, §80.201, when an applicant submits an
application, an MLO must provide a disclosure informing the customer of the
pathway to follow in order to file a complaint or request compensatory action.
An SML examiner conducts on-site examinations to do all
of the following EXCEPT:
Document
violations
Make
a determination of the loan cut
Policies
and procedures
Assess
the compliance management system
During the on-site phase of an examination, the examiner
will thoroughly review a mortgage company's loan application log to make a
determination of the loan cut; assesses the quality and viability of the
compliance management system; and documents any system weaknesses and
violations of consumer protection laws and regulations.
If a consumer wishes to file a complaint against a RMLO,
where should he or she send it?
SML
HUD
Federal
Reserve Board of Governors
NMLS
Consumers wishing to file a complaint against a company
or a residential mortgage loan originator should complete and send a complaint
form to the Texas Department of Savings and Mortgage Lending.
If a preliminary determination is disputed by an
applicant, a license holder, or any surety by written notice to the
Commissioner before the set deadline, the Commissioner will:
Issue
a temporary determination
Schedule
a hearing
Issue
a final determination
Issue
a suspension order
If a preliminary determination is disputed by an
applicant, a license holder, or any surety by written notice to the
Commissioner before the 31st day after the notification date, the matter will
be set for a hearing governed by Government Code and the hearing rules of the
finance commission.
A sale of real property under a power of sale conferred
by a deed of trust or other contract lien must begin at the time stated in the
sale notice or within:
1
hour past that time
30
minutes past that time
3
hours past that time
2
hours past that time
A sale of real property under a power of sale conferred
by a deed of trust or other contract lien must be a public sale at auction held
between 10 a.m. and 4 p.m. of the first Tuesday of a month. A notice regarding
the sale will designate a time. The sale must begin at the time stated in the
notice of sale or not later than three hours after that time.
ML compliance examinations are scheduled using which of
the following approaches?
Random
Asset-focused
Risk-focused
Consumer-based
The scheduling of SML compliance examinations is based on
a risk-focused approach that incorporates items such as consumer complaints,
inconsistent licensing information, inaccurate advertising or other sources,
and the volume of production.
On an application for an original license or for renewal
of an MLO license, the applicant, in addition to paying the original
application fee or renewal fee, will pay a fee determined by the Commissioner
which cannot exceed:
$10
$20
$15
On an application for an original license or for renewal
of an MLO license, the applicant, in addition to paying the original
application fee or renewal fee, will pay a fee determined by the Commissioner
which cannot exceed $20.
Apart from the standard required notice on a home equity
loan, a lender must also provide a 'notice regarding a reverse mortgage' at
least:
12
days before closing.
5
days before closing
3
days before closing
10
days before closing
Apart from the standard required notice on a home equity
loan, a lender must also provide a 'notice regarding a reverse mortgage' at
least 12 days before closing.
Form B' is also known as the:
Pre-qualification
form
Pre-screening
form
Pre-approval
form
Pre-acceptance
form
Form B' is also known as the pre-approval form.
The consumer disclosure must be provided to the owner at
least:
7
days before the date the extension of credit is made.
14
days before the date the extension of credit is made.
3
days before the date the extension of credit is made.
12
days before the date the extension of credit is made.
The consumer disclosure must be provided to the owner at
least 12 days before the date the extension of credit is made.
Following an act or omission which resulted in damages,
an application for the recovery of such damages from the fund can be filed as
long as this is done before the:
Fourth
anniversary of the date the act or omission took place
Second
anniversary of the date the act or omission took place
Third
anniversary of the date the act or omission took place
Fifth
anniversary of the date the act or omission took place
An application for the recovery of actual damages from
the fund may not be filed after the fourth anniversary of the date of the
alleged act or omission causing the actual damages or the date the act or
omission should reasonably have been discovered.
Individuals who provide clerical or support duties as
independent contractor loan processors or underwriters are required to be
licensed under:
The
Home Equity Loans Laws
The
Residential Mortgage Loan Company Licensing and Registration Act
The
Texas SAFE Mortgage Licensing Act
The
Mortgage Banker and RMLO statutes
Individuals who provide clerical or support duties as
independent contractor loan processors or underwriters are required to be
licensed under the Texas SAFE Mortgage Licensing Act of 2009 (TFC Title 3,
§180).
The reinstatement fee charged by the commissioner when a
residential mortgage loan originator renews their license between Jan. 1 and
March 1 is equal to:
150%
of the renewal feeY
200%
of the renewal fee
250%
of the renewal fee
100%
of the renewal fee
A person whose residential mortgage loan originator
license has not been renewed before January 1 but who is otherwise eligible to
renew a license, and does so before March 1, may renew the license by paying
the commissioner a reinstatement fee in an amount that is equal to 150% of the
required renewal fee.
30
An MLO must disclose if he or she is serving in any of
the following additional roles EXCEPT:
Real
estate broker for the seller
Attorney
for the buyer
Attorney
for the lender
Attorney
for the appraiserY
The disclosure of multiple roles in a consumer real
estate transaction includes: a real estate agent, broker, salesperson or
representative for the buyer, seller or both; or attorney for buyer, seller or
lender.
In order to obtain a license, a loan company must
designate an MLO as a(n):
Natural
person
Principal
manager
Exclusive
agent
Qualifying
individualY
A loan company wishing to obtain a license must designate
an MLO as a Qualifying Individual. The individual must also share some of the
responsibility of the designating loan company.
If the person who caused an advertisement to be published
is an originator or a mortgage company, the advertisement must contain the name
of the originator and sometimes the words:
Residential
Mortgage Loan Originator
Registered
Mortgage Loan Originator
Licensed
Mortgage Loan Originator
Mortgage
Loan Originator
Except as provided in subsection (c) of TAC Title 7,
§80.203, if the person who caused the advertisement to be published is an
originator or a mortgage company, the advertisement must contain, among other
things, the name of the originator followed by, as applicable, either the
phrase "Residential Mortgage Loan Originator" or the name of the
sponsoring mortgage banker, as designated in the records of the Commissioner as
of the date of the advertisement.
The books and records which might be requested by the
Commissioner or his/her designee must be retained for at least:
5
years
4
years
3
years
2
years
The books and records which might be requested by the
Commissioner or his/her designee must be retained for three years or such
longer period(s) as may be required by applicable state and/or federal laws and
regulations.
34
Form A' is also known as the:
Pre-approval
form
Pre-screening
form
Pre-acceptance
form
Pre-qualification
formYou correctly checked this.
Form A' is also known as the pre-qualification form.
35
A lender foreclosed on a borrower who owed $195,000 and
sold the property for $178,500. The lender brings an action to recover the
$16,500 difference from the borrower. The fair market value of the property 5at
the time of the sale was $192,500 and there are no unextinguished liens. The
offset in this case would be:
$26,000
$16,500
$14,000You should have checked this.
$2,500You shouldn't have checked this.
The offset in this particular case would be $14,000
(192,500-178,500).
