The SAFE Act Ch 6 Exam Questions With 100% Correct Answers

The SAFE Act Ch 6 Exam Questions With 100% Correct Answers Nontraditional Mortgage Product - answerDefined by the SAFE Act as any mortgage product other than a 30-year fixed rate mortgage; as defined by the Interagency Guidance on Nontraditional Mortgage Product Risk, allows a borrower to defer principal and, sometimes, interest. Registered Loan Originator - answerA natural person who is employed by a depository institution that is regulated by a federal banking agency and is exempt from state licensing regulation who works with a prospective borrower to gather information, assist with completing applications, and otherwise making or initiating a new loan. Residential Mortgage Loan. - answerAny loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in Section 103(v) of the Truth in Lending Act) or residential real estate upon which is constructed or intended to be constructed a dwelling (as so defined). State. - answerThe term "state" means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. Residential Real Estate - answerAny real property located in the state upon which is constructed or intended to be constructed a dwelling (as defined under TILA). State-licensed Mortgage Loan Originator - answerAny individual who is an MLO; is not an employee of a depository institution or a subsidiary that is (a) owned and controlled by a depository institution; and (b) regulated by a federal banking agency; State-Licensed Loan Originator. Any individual who: - answerA. Is a loan originator. B. Is not an employee of: 1. A depository institution. 2. A subsidiary that is: a) Owned and controlled by a depository institution; and b) Regulated by a Federal banking agency. 3. An institution regulated by the Farm Credit Administration. C. Is licensed by a state or by the Secretary under Section 1508 and registered as a loan originator with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry. Unique Identifier - answerA number (or other identifier) assigned by protocols established by the Nationwide Mortgage Licensing System and Registry (NMLS) to a single individual on a nationwide basis. Unique Identifier. In general, a number or other identifier that: - answer• Permanently identifies a loan originator; • Is assigned by protocols established by the Nationwide Mortgage Licensing System and Registry and the Federal banking agencies to facilitate electronic tracking of loan originators and uniform identification of, and public access to, the employment history of and the publicly adjudicated disciplinary and enforcement actions against loan originators; and • Shall not be used for purposes other than those set forth under the SAFE Act. • To the greatest extent possible and to accomplish the purpose of the SAFE Act, states shall use unique identifiers in lieu of Social Security numbers. The NMLS unique identifier is required on all - answermarketing materials, applications, required disclosures, and business cards. If the marketing materials reference the company only, the company's unique identifier must be used. If the marketing materials and business cards are issued in the name of the mortgage loan originator, then the marketing materials and business cards require the MLO's unique identifier. All disclosures require the MLO's unique identifier. To become a state-licensed MLO, an applicant must complete at least twenty (20) hours of approved pre-licensing education, which includes: - answer• Federal law and regulation (3 hours) • Ethics, including fraud, consumer protection, and fair lending (3 hours) • Nontraditional mortgage products, which the SAFE Act defines as anything other than 30-year fixed rate loan (2 hours) • Elective topics (12 hours) True or False: It is up to each state to determine whether to also require state-specific topics, either as part of the 12 hours of electives or in addition to the 20 hours required. - answerTrue 1. According to the SAFE Act, which incident from 10 years ago would NOT automatically disqualify an applicant for a mortgage loan originator license?