MLO EXAM MA Law 1 QUESTIONS WITH COMPLETE SOLUTIONS

Massachusetts' predatory lending law Correct Answer: Predatory Home Loan Practices Act the S.A.F.E. Act Correct Answer: Secure and Fair Enforcement for Mortgage Licensing Act of 2008 Massachusetts General Laws (MGL c. 255F) Correct Answer: The state's licensing law for the regulation of mortgage loan originators is Chapter 255F of the Massachusetts General Laws The primary goal of the S.A.F.E. Act Correct Answer: to ensure that individual mortgage loan originators in every state meet minimum educational, financial, and ethical standards prior to obtaining a license. State regulators Correct Answer: such as the Massachusetts Division of Banks, are still responsible for making licensing decisions after reviewing the information that license applicants submit to them through the NMLS. The Massachusetts Division of Banks Correct Answer: is the chartering authority and primary regulator for financial services professionals in the Commonwealth. The Division incorporates several subdivisions, including a Policy Group and the following five sections: Correct Answer: Non-Depository Institution Supervision Depository Institution Supervision Legal Affairs and Bank Structure Enforcement and Investigation Consumer Assistance and Public Information Non-Depository Institution Supervision (NDIS) Section Correct Answer: (License) responsible for conducting examinations and inspections of mortgage licensees to ensure that they are operating in compliance with the law. The NDIS Section is also responsible for reviewing applications from individuals looking to obtain and renew licenses. "person" Correct Answer: Refers to an individual but also includes corporations, partnerships, associations, and other legal entities. "individual" Correct Answer: specifically identify a natural person, such as a mortgage loan originator (MGL c. 255F §1). The licensing requirements mandated by Massachusetts law apply to the following mortgage professionals: Correct Answer: Mortgage loan originators Mortgage brokers Mortgage lenders