Florida Mortgage broker Exam with verified solutions already graded A+

What is the regulatory authority in the state of Florida and what is it responsible for? The OFR ( The Office of Financial Regulation) AKA The Office. They are responsible for overseeing banks, credit unions, savings associations, etc. also licenses and regulates non-depository finance entities. Who is the head of the OFR and the Office of Insurance Regulation. Who is involved? The Financial Services Commission (The Commission) Members that make up The Commission include: The Governor, Attorney General, Cheif Financial Officer and Commissioner of Agriculture Commission. What is the Commission responsible for? For final approval and adoption of rules developed by each Office. How is the OFR broken down? 3 Divisions, and 1 Bureau: Division of Financial Institutions:Oversees banks, credit unions, non-depository trusts. Division of Finance:Protects by licencing and regulating Division of Securities:Protects the investigating public from unlawful securities activities. Bureau of Financial Investigations:Conducts financial investigations into suspected fraudulent and unlicensed activity. What is the commissioners duties? Require compliance w florida slate laws Issue mortgage lending licenses Approving licenses and continuing education courses for mortgage lenders Monitor licensee behavior Issue and serve subpoenas and subpoenas to produce evidence Conduct investigations into possible violations Define - Individual, partnership, or corporation, or trust that has the power to direct the management and policies of a company(10%) Control Person What is the difference between a In House Loan Processor and a Contract Loan Processor. In house is an employee of Mort. Broker or Mort. Lender who ONLY engages in Loan Processing. Contract LP is and independant contractor of a MB or ML that is LICENSED as a Loan Orig. and ONLY engages in LP. Licensees total assets minus liabilites is ? Net Worth what authorizes a mortgage lender to service a loan for more that 4 months? Servicing Endorsement What is the periodic payment of principle and interest on a loan? Debt Service Define Material Change and 3 examples A change that would be important to the borrower as far as their decision making. 1. A change in the interest rate previously offered. 2. A change in the type of loan offered 3. A change in fees to be charged, resulting in total fees greater than $100. What is the Uniform Form for Mortgage Lender/Mort. Brokers? MU1 What is a Loan originators Initial Licensing fee? $332 A fund that protects consumers by insuring payment to those who suffer financial losses due to fraud and/or deception by the mort. originator. How much per individual? Mortgage Guaranty Trust Fund. $20 for each individual when does the collection of the Mortgage Guaranty Trust Fund discontinue? (dollar amount). When will it be re-imposed?(dollar amount) Discontinues once the fund reaches $5 Million. Re-imposed when fund dips below $1 Million Borrowers seeking recovery for actions on the Mort Guar. Trust Fund cannot collect more than ($ amount). Claims against any one license may not exceed Cannot collect more than $50,000 from the fund for any claim. claims against any one license cannot exceed $250,000 What are the minimum net worth requirements for 1. seeking an endorsement 2. not seeking an endorsement Seeking an endorsement - $250,000 Not seeking an endorsement - $63,000 When is a service endorsement required? a service endorsement is required if the mortgage lender wishes to service mortgage loans for more than 4 months. If the servicing endorsement net worth of $250,000 is not met, who must the lender notify and what actions need to be taken? Lender must notify the Office within 2 days and immediatly stop taking new loan applications. What does a lender submit when indicating whether or not they will be seeking a servicing endorsement on the application form? Lender must submit a copy of their financial audit report for the most recent fiscal year documenting their net worth. How long does a lender have to indicated their net worth and what happens if they are late? How long do they have if they make the Office aware that they will be past the late date? a lender has 60 days to provide the office with their net worth requirements.If it is not met within the 60 days, the license is cancelled and the lender must dispose of all servicing contracts. If prior to an examination the mortgage lender makes the Office aware, they will have 120 days. Within how many years can a person not be eligable to apply for a license with a financial misdemeanor. within 10 years. Who must each mortgage broker or lender business designate to supervise the business and employees? A principle loan originator What are the terms to being a Principle loan originator. To be licensed as a loan originator and may not be a principle loan originator for more than one business at any given time. What are the requirements for a loan princ. orig. to supervise a mortgage broker business specifically? he/she must demonstrate to the Office that he/she has been engaged in the mortgage business for at least 1 year prior to the position. An application for licensure will be approved or denied within how many days? 90 days 30 days of receiving the application, the Office will notify the applicant for licensure of an errors or omissions to fix within how many days? within the next 30 days Felony conviction or guilty plea for a violent crime or drug offense that constitutes an act of moral turpitude in the past how many years will you not be accepted for licensure. within the past 15 years. The following must be reported to the OFR within 30 days: 3 of them After the date of conviction, entry of plea of nolo contendre or felony involving fraud. any action of bankruptcy, voluntary or invol, after the action is complete. any change in to the initial app or any amendment for (report to NMLS) after the change is effective. If changes to personal info and updates, what must be reported to the OFR 30 days prior to change? If a mort. broker or lender proposes to change any control persons listed on the initial application, they must file an amendment through NMLS no later than 30 days prior to the change or 2 business days after the date the licensee first received notice of the change. Licenses are valid for 1 year and expire on what date? Dec. 31st What is the renewal fee for a Loan Originator $176 Violations of renewal rules can result in ? License suspension and a fine of $500 Records of loan transactions, discolsures, etc must be maintained for at least how many years after the date of the original entry? 3 years after the date of original entry. All records must be updated on a current basis meaning? within 7 days of when events occurred. If books and records are requested by the OFR, and those items are kept at a location other than their principle place of buisiness, how many days must they be provided after written request. 3 business days of written request. Failing to notify OFR that books and records are at a location other than the principle place of business will result in what? Will be deemed "noncompliant" and may result in a fine of $500. The following documents must be retained by a mortgage broker Mortgage Brokerage Agreement GFE Copy of written commitment supplied by the lender Copy of written lock in agreement supplied by the lender HUD settlement statement Notice of Adverse Action of denial document Other required disclosures Name of borrower and date of application