MLO SAFE Test 2024 (Michigan) with Complete Solutions

MLO SAFE Test 2024 (Michigan) with Complete Solutions Dodd-Frank - Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 - Changed oversight & capitalization of financial institutions, added licensing an education standards, and limited riskier products in the marketplace - Established the CFPB - Defined and specifically outlawed UDAAPs CFPB - Consumer Financial Protection Bureau - The Bureau - Oversees and enforces Dodd-Frank specifically to protect consumers from UDAAPs UDAAPs - Unfair, Deceptive, or Abusive Acts or Practices - Unfair: Activities that cause injury (financial harm) to consumer - Deceptive: Activities where the MLO intends (or does) lie to or mislead the consumer - Abusive: Activities where the MLO takes advantage of their position to confuse the consumer MLO - Mortgage Loan Originator - Takes residential mortgage loan applications, offers or negotiates rates or terms for compensation or gain Mortgage Broker - Loan originators who work independently of lenders - Originate mortgages then shops for a lender - Matchmaker between customer and lender Lender - A person or company that makes loans for real estate Processor - Works for a MLO and provides clerical functions collecting documents and verifying information - Not licensed, not allowed to negotiate rates and terms Underwriter - Works for a MLO and reviews loan applications to determine risk to the lender - Not licensed, not allowed to negotiate rates and terms Appraiser - Independent of the MLO - Provides service of determining the property value Title Agent - Independent of the MLO - Researches ownership (title) on the property - Offers title insurance - Also called abstractors Real Estate Agent - Independent party - Works on behalf of either buyer or seller in a purchase transaction Investor - Person or organization that puts money in to financial arrangements with the expectation of making a profit Regulator - Person or institution that supervises or controls a financial system in order to guarantee fair and efficient markets and promote financial stability Consumer - Individual who may obtain financial services - Shopping (no commitments) Customer - Individual in an ongoing process or relationship with a financial services provider (also called Client by Rocket Pro)