CA STATE LICENSE EXAM FULLY SOLVED #14
Annual Audit - correct answer a certified audit of a licensee's books, records, and
systems of internal control performed by an independent certified public accountant in
accordance with generally accepted accounting principles and auditing standards
Call report - correct answer a report of condition on a residential mortgage lender or
mortgage servicer and its operations, including financial statements and production
activity volumes
Institutional investor - correct answer this exceptionally broad term encompasses
governmental entities, government agencies, government-sponsored enterprises,
depository institutions, non-depository lenders, corporations, securities brokers, real
estate brokers, and any other partnership, business, or association that can purchase or
sell investments, including mortgage loans
Institutional lender - correct answer in addition to residential mortgage lenders and
mortgage servicers licensed under the Residential Mortgage Lending Act, the law
broadly defines the term "institutional lender" to include governmental entities,
depository institutions, non-depository lenders, and corporations. These include:
An agency or instrumentality of the United States or any state, district, territory, city, or
county, including Fannie Mae and Freddie Mac
A bank, trust company, savings and loan, credit union, industrial loan company,
insurance company, or wholly-owned service or investment company
A publicly traded corporation
Lender - correct answer a person that:
Is an approved lender for the Federal Housing Administration, Veterans Administration,
Farmers Home Administration, Ginnie Mae, Fannie Mae, or Freddie Mac
Directly makes residential mortgage loans, and
Makes the credit decision in the loan transaction
Loan processor or underwriter - correct answer an individual who performs clerical or
support duties as an employee at the direction and under the supervision of a mortgage
loan originator. Clerical and support duties include receiving, collecting, and distributing
information necessary to process a mortgage loan and communicating with a consumer
to obtain information necessary for loan processing, as long as the communication does
not include any offer or negotiation of lending terms and interest rates
Mortgage loan originator - correct answer an individual who, for compensation or gain,
or in the expectation of compensation or gain, takes a residential mortgage loan
application or offers or negotiates terms of a residential mortgage loan
Mortgage servicer - correct answer a person that:
, Is an approved servicer for the Federal Housing Administration, Veterans
Administration, Farmers Home Administration, Ginnie Mae, Fannie Mae, or Freddie
Mac, and
Directly services or offers to service mortgage loan
Registered mortgage loan originator - correct answer meets the definition of a
"mortgage loan originator," and is registered with and maintains a unique identifier
through the NMLS. However, registered mortgage loan originators work for a depository
institution, a subsidiary that is owned and controlled by a depository institution and
regulated by a federal banking agency, or an institution regulated by the Farm Credit
Administration
Servicing - correct answer receiving more than three installment payments of principal,
interest, or other amounts placed in escrow pursuant to the terms of a mortgage loan,
and performing services relating to the receipt of payments, on behalf of the holder of
the note
Sponsoring - correct answer the maintenance of an employment relationship between a
mortgage loan originator and a residential mortgage lender or mortgage servicer in
which the loan origination activities are subject to the oversight of the lender or servicer
Unique identifier - correct answer a number or other identifier assigned by protocols
established by the NMLS
California Residential Mortgage Lending Act - correct answer Enacted by the California
State Legislature in 1994, the ___ applies to non-depository lenders and loan servicers,
and to the mortgage loan originators that they employ
California Finance Lenders Law - correct answer Also enacted in 1994, the ___
regulates the lending activities of finance lenders and brokers. The provisions of the
California Finance Lenders Law apply to lenders and brokers that make consumer loans
and commercial loans.
Finance Lenders Law license - correct answer may be issued as a finance lender, a
broker, or both
Residential Mortgage Lending Act license - correct answer which may be issued as a
residential mortgage lender, a residential mortgage loan servicer, or both
Exempt company registration - correct answer is also available and may be voluntarily
obtained by a mortgage company that is exempt under the law but that has employees
acting as mortgage loan originators.
A person may not engage in the activities of a licensee without first - correct answer
obtaining and maintaining annually a license under California law.
Annual Audit - correct answer a certified audit of a licensee's books, records, and
systems of internal control performed by an independent certified public accountant in
accordance with generally accepted accounting principles and auditing standards
Call report - correct answer a report of condition on a residential mortgage lender or
mortgage servicer and its operations, including financial statements and production
activity volumes
Institutional investor - correct answer this exceptionally broad term encompasses
governmental entities, government agencies, government-sponsored enterprises,
depository institutions, non-depository lenders, corporations, securities brokers, real
estate brokers, and any other partnership, business, or association that can purchase or
sell investments, including mortgage loans
Institutional lender - correct answer in addition to residential mortgage lenders and
mortgage servicers licensed under the Residential Mortgage Lending Act, the law
broadly defines the term "institutional lender" to include governmental entities,
depository institutions, non-depository lenders, and corporations. These include:
An agency or instrumentality of the United States or any state, district, territory, city, or
county, including Fannie Mae and Freddie Mac
A bank, trust company, savings and loan, credit union, industrial loan company,
insurance company, or wholly-owned service or investment company
A publicly traded corporation
Lender - correct answer a person that:
Is an approved lender for the Federal Housing Administration, Veterans Administration,
Farmers Home Administration, Ginnie Mae, Fannie Mae, or Freddie Mac
Directly makes residential mortgage loans, and
Makes the credit decision in the loan transaction
Loan processor or underwriter - correct answer an individual who performs clerical or
support duties as an employee at the direction and under the supervision of a mortgage
loan originator. Clerical and support duties include receiving, collecting, and distributing
information necessary to process a mortgage loan and communicating with a consumer
to obtain information necessary for loan processing, as long as the communication does
not include any offer or negotiation of lending terms and interest rates
Mortgage loan originator - correct answer an individual who, for compensation or gain,
or in the expectation of compensation or gain, takes a residential mortgage loan
application or offers or negotiates terms of a residential mortgage loan
Mortgage servicer - correct answer a person that:
, Is an approved servicer for the Federal Housing Administration, Veterans
Administration, Farmers Home Administration, Ginnie Mae, Fannie Mae, or Freddie
Mac, and
Directly services or offers to service mortgage loan
Registered mortgage loan originator - correct answer meets the definition of a
"mortgage loan originator," and is registered with and maintains a unique identifier
through the NMLS. However, registered mortgage loan originators work for a depository
institution, a subsidiary that is owned and controlled by a depository institution and
regulated by a federal banking agency, or an institution regulated by the Farm Credit
Administration
Servicing - correct answer receiving more than three installment payments of principal,
interest, or other amounts placed in escrow pursuant to the terms of a mortgage loan,
and performing services relating to the receipt of payments, on behalf of the holder of
the note
Sponsoring - correct answer the maintenance of an employment relationship between a
mortgage loan originator and a residential mortgage lender or mortgage servicer in
which the loan origination activities are subject to the oversight of the lender or servicer
Unique identifier - correct answer a number or other identifier assigned by protocols
established by the NMLS
California Residential Mortgage Lending Act - correct answer Enacted by the California
State Legislature in 1994, the ___ applies to non-depository lenders and loan servicers,
and to the mortgage loan originators that they employ
California Finance Lenders Law - correct answer Also enacted in 1994, the ___
regulates the lending activities of finance lenders and brokers. The provisions of the
California Finance Lenders Law apply to lenders and brokers that make consumer loans
and commercial loans.
Finance Lenders Law license - correct answer may be issued as a finance lender, a
broker, or both
Residential Mortgage Lending Act license - correct answer which may be issued as a
residential mortgage lender, a residential mortgage loan servicer, or both
Exempt company registration - correct answer is also available and may be voluntarily
obtained by a mortgage company that is exempt under the law but that has employees
acting as mortgage loan originators.
A person may not engage in the activities of a licensee without first - correct answer
obtaining and maintaining annually a license under California law.
