Maryland Licensing Questions and Answers Already Passed

Maryland Licensing Questions and Answers Already Passed Under the Secondary Mortgage Loan Law, a consumer has the right to limit origination fees on which of the following? Secondary mortgages A borrower's gross monthly income and assets may be verified based on a review of third-party written documentation, including each of the following, except: Employer reference letter The Maryland's Finder's Fee Law has been included in the Maryland Code since what year? 1979 Which of the following license types is generally offered to entities, rather than individuals? Mortgage lender In conjunction with S.A.F.E. Act requirements, the Maryland Mortgage Originator Law specifies that individuals must complete ____ hours of education prior to becoming licensed. 20 Which of the following is responsible for making licensing decisions in the state of Maryland? The Commissioner of Financial Regulation Which division of the Maryland Department of Labor, Licensing and Regulation oversees mortgage brokers? Financial Regulation The Finder's Fee Law limits the amount of the compensation or commission that a broker may charge a borrower to which of the following? 8% of the amount of the loan Several sections of the Maryland Code address repayment ability. In order to determine a borrower's ability to repay a mortgage loan, all of the following must be considered, except: Tax bracket An individual is not eligible for licensure as a loan originator if he or she has been convicted of a felony within the ______ preceding application for licensure. Seven years Which of the following is not considered a prohibited act under Maryland's mortgage laws? Requesting an appraiser to correct errors in a report Maryland licenses that are not renewed according to provisions of the licensing law expire on: December 31st If the provisions of a financing agreement are subject to change after execution, the lender must give the borrower a fully-executed commitment: At least 72 hours prior to settlement A mortgage originator is required to wait _______ after failing a third attempt on a licensing exam. A minimum of 180 days Mortgage lenders who file five or more applications for licensure of multiple branch offices at the same time may obtain a blanket surety bond of ________ with approval from the Department of Financial Regulation. $750,000 Which of the following statements, if included in borrower agreement under the Finder's Fee Law,would most likely be found acceptable to the Maryland Department of Financial Regulation? "We are acting in the capacity of a broker, not a lender, and will charge a $1,800 fee due at settlement for loan origination services." The Finder's Fee Law is used to discourage mortgage brokers from encouraging consumers to do which of the following? Refinance mortgage loans repeatedly within a short period of time The Maryland Mortgage Originator Law specifies that that Commissioner cannot use any of the following as the sole reason for finding an individual applicant unable to meet financial responsibility standards for licensure, except: Judgments for unpaid child support Under Maryland law, a mortgage loan originator is required to complete ____ hour(s) of federal law as part of annual continuing education. Three Which of the following is not a law governing mortgage professionals conducting business in the state of Maryland? The Maryland Fairness in Lending and Loan Origination Act According to the Maryland Mortgage Lender Law, originators must meet all of the following requirements prior to being licensed, except: Letter of recommendation from a previous employer Which of the following is not considered direct compensation? Reasonable facsimile and copying fees Other than rescission, when may a borrower be eligible for a refund of compensation paid to a mortgage broker? When the loan does not close In conjunction with S.A.F.E. Act requirements, the Maryland Mortgage Originator Law specifies that individuals must complete ____ hours of education prior to becoming licensed. 20 Under Maryland law, a mortgage lender licensee who does not lend money, or who lends $1,000,000 or less, is required to maintain a net worth of: $25,000 Which of the following would not be grounds for denial of a mortgage loan originator license application? Failure to maintain minimum required net worth If a broker violates the Finder's Fee Law, the broker may have to pay which of the following penalties? Three times the amount of the fee that the broker collected from the borrower Which agency has argued that markups made by and for the benefit of a single party are in violation of RESPA's prohibition on fee-splitting? HUD A mortgage broker may not collect which of the following fees? Compensation for a rescinded loan Which of the following federal laws includes provisions related to restricting excessive charges? RESPA If a written mortgage broker agreement lists the broker's fee as zero, which of the following is true? The broker cannot collect a fee Under the Maryland Mortgage Lender Law and the Mortgage Originator Law, the Commissioner of Financial Regulation has the authority to do all but which of the following? Decide on jail terms for violations of the law The Finder's Fee Law allows a mortgage broker to charge the borrower for an appraisal or credit report obtained by the mortgage broker only if: The charge reflects the actual cost Which of the following is not a requirement for loan servicers when servicing a higher-priced mortgage? Encouraging a borrower to default How many hours of education pertaining to Maryland law are required prior to licensure as a mortgage loan originator? Five If the Commissioner suspects or determines that a mortgage broker has violated the Finder's Fee Law, he or she can perform all of the following actions, except: Incarcerate the broker in federal prison The disclosure required by the Finder's Fee Law must state the fact that the broker is acting as a broker and not as a: Lender The statute of limitations for an action under Maryland's Finder's Fee Law is: 12 years