Lending Licensing, Compliance and Unique Test Areas Flashcards

Mortgage Loan Origination - ProSchools - UST Oregon Mortgage Lending Licensing, Compliance and Unique Test Areas Flashcards The Director may cancel an application or license if he determines that the following circumstances apply to the applicant or licensee EXCEPTthe applicant or licensee cannot be located after a reasonable search.the applicant or licensee has failed to update information in the NMLS as required.the applicant or licensee has ceased doing business as a mortgage baker or mortgage broker.the applicant or licensee has failed to maintain the required corporate surety bond or irrevocable letter of credit.The correct answer is B. The Director may cancel an application or license if he determines that the applicant or licensee has ceased doing business as a mortgage banker or mortgage broker; cannot be located after a reasonable search; or has failed to maintain the required corporate surety bond or irrevocable letter of credit.Three yearsQualified individual must have this amount of mortgage experience A mortgage broker or mortgage lender licensee may not make a false statement in a filing with the Director or during an investigation conducted by the Department or another government agency, or knowingly or willfully make any omission of a fact which isimportant.obtainable in writing.material.verifiable.The correct answer is C. A mortgage broker or mortgage lender licensee may not make any false statement, or knowingly and willfully make any omission of a material fact, when filing a document or report with the Director or the NMLS or during an investigation conducted by the Department or another government agency.Tom, Nick and Terry formed a partnership in order to open TNT, a mortgage brokerage firm. Tom had been a real estate salesman for three years. Nick had been a title officer for seven years and Terry had worked in a consumer finance company for two years. Within nine months of opening their office, Nick, who served as the qualified individual, was offered a job back with the title company which he decided to accept. Will Nick's leaving affect TNT's license?Yes, TNT will fail to satisfy the experience requirementNo, his leaving will not affect the licenseYes, the remaining partners will have to file amending documentsNo, if a qualified individual is located within 60 days The correct answer is A. TNT will fail to satisfy the experience requirement. Nick met the requirement of having three years' experience within the past five years.Neither Tom nor Terry met the requirements as Tom's experience would be credited at 1.5 years and Terry's would be credited at 1 year. TNT must satisfy the experience requirement within 30 (not 60) days, or the Director may suspend or revoke its license.T/F Licensee ads may not contain the phrases "verified as eligible" or "preapproved." F The SAFE Actencourages state participation in the NMLS.provides standards that affect uniformity, regulatory burden, consumer protection and fraud in the mortgage industry.has provisions with which the Oregon Mortgage Lender Law's most recent amendments comply.All of the above The correct answer is D. The SAFE Act encourages state participation in the NMLS and provides standards to increase uniformity, reduce regulatory burden, enhance consumer protection and affect fraud in the mortgage industry. The Oregon Mortgage Lender Law was amended in 2009 to implement the SAFE Act.Which of the following would be considered a foreclosure consultant?An attorney providing his client with advice

about his debtsA financial advisor who, for compensation, promises to assist a homeowner in obtaining a loanA mortgage broker who discusses refinancing options with a homeowner facing foreclosureA state-regulated bank offering consultation to a client facing foreclosure The correct answer is B. A foreclosure consultant is a person that, directly or through association with another,

makes a solicitation, representation or offer to a homeowner to, in return for compensation from the homeowner,perform a service resulting in, among other actions, assistance to the homeowner in obtaining a loan or advance of funds. Not included in the definition of a foreclosure consultant is an Oregon-licensed attorney, if performing services within an attorney-client relationship; a state- or federally regulated bank, trust company, savings and loan association, credit union or insurance company; and an Oregon-licensed mortgage banker or mortgage broker.Loan originatorIndividual who takes a mortgage loan application and negotiates loan terms Trex Mortgage Lenders require loan applicants to pay for services in advance. As such, Trex is permitted tomaintain a separate trust account for prepayments.maintain a separate journal for prepayments.place the prepayments in their business account.maintain an account at a neutral escrow depository.The correct answer is A. If a licensee requires its loan applicants to pay for services in advance, it may maintain a separate escrow account for prepayments. The prepaid funds must remain in the trust account until either the services are performed or the loan is rejected.Which of the following is a negative amortization loan?A $35,000 loan in which the loan balance, together with all mortgage loans secured by the same property, and the value of the property have a loan-to-value ratio of 45 percentA loan with a term of 12 months on which the borrower pays interest only when the entire loan balance comes dueA loan on which a borrower's scheduled payments do not cover the accruing interest on the loanA reverse mortgage The correct answer is C. A negative amortization loan is a mortgage loan or mortgage banking loan under which a borrower's scheduled payment is insufficient to pay the accruing interest on the loan. Such a loan does not include a bridge loan, which has a term of less than 18 months and on which the borrower must pay only interest until the entire unpaid loan balance comes due; a mortgage loan in which the principal amount is less than $50,000 and the balance of the loan, combined with all mortgage loans secured by the same property, and the value of the property has a loan-to-value ratio of not more than 50 percent; or a reverse mortgage.Penelope's mother had a very serious health issue which required Penelope to spend much of the year travelling out of state to help her mother. Consequently, Penelope was three hours short in meeting the continuing education license renewal requirements. What action can Penelope take to maintain her license?She can borrow three hours from a friendShe can make a hardship request to the DirectorShe can request forbearanceShe can reapply for a new license The correct answer is B. To make up deficiencies from hardship or illness, the loan originator must submit a written request to the Director that includes a description of the hardship or illness and the reason why the loan originator was unable to meet the requirements. Upon submission of the request, the Director will make a decision as to whether and in what manner the licensee may make up his deficiency.Mortgage broker Gabby Straw closed a residential mortgage loan in his own name. He is required to retain the same records as ainvestor funding a residential mortgage loan.mortgage broker in any transaction.mortgage banker funding a residential mortgage loan.consumer finance

company funding a residential mortgage loan.The correct answer is C. A mortgage broker that closed a residential mortgage loan in the name of the broker is required to retain the same records as a mortgage banker funding a residential mortgage loan.