RMLO For Real Estate Agents (Champions) – Questions
& Accurate Answers
Primary Mortgage Market Right Ans - The market where borrowers and
mortgage originators come together to negotiate terms and effectuate
mortgage transaction. Mortgage brokers, mortgage bankers, credit unions and
banks are all part of the primary mortgage market.
Secondary Mortgage Market Right Ans - A market for the purchase and sale
of existing mortgages designed to provide greater liquidity for selling
mortgages.
Commercial Banks Right Ans - Working capital is primarily generated
through deposits from its clients
Private Lenders Right Ans - The least regulated category of lender, they can
fulfill a space in the marketplace for conventional loans.
Mortgage Companies Right Ans - Rely on commercial banks that grant
"warehouse" lines of credit to them.
Federal Housing Finance Agency (FHFA) Right Ans - The Federal agency
established to restore Fannie Mae & Freddie Mac to a sound & solvent
financial condition.
Government National Mortgage (GNMA) Association Right Ans - Guarantee
that allows mortgage lenders to obtain a better price for their loans in the
capital markets.
Pre-licensing education Right Ans - Includes topics on federal law and
regulations, ethics, non traditional mortgage products, and origination.
Unique Identifier Right Ans - a number that permanently identifies each
mortgage loan originator, whether he is licensed or merely registered.
S.A.F.E. Act Right Ans - Designed to enhance consumer protection & reduce
fraud by encouraging states to establish minimum standards for licensing and
registration of MLOs.
,State-licensed mortgage loan originator Right Ans - An MLO employed by a
federally insured depository institution is a federally supervised credit union.
American Association of Residential Mortgage Regulators (AARMR) Right
Ans - National association of executives and employees of the various states
charged with the responsibility for administration & regulation of residential
mortgage lending, servicing and brokering.
Nationwide Mortgage Licensing System & Registry (NMLSR) Right Ans - All
loan originators must be licensed through or registered with_____.
Federal Banking Agencies: Right Ans - 1.The Board of Governors of the
Federal Reserve System
2. The Comptroller of the Currency
3. The National Credit Union Administraton
(NCUA)
4. The Federal Deposit Insurance Corporation
(FDIC)
Regulation G of the SAFE Act establishes Right Ans - A federal registration
requirement for mortgage loan originators.
Regulation "H" authorizes: Right Ans - The CFPB to implement the Secure
and Fair Enforcement for Mortgage Licensing Act of 2008. It also directs the
states to adopt minimum uniform standards for licensing & registration of
residential mortgage loan originators.
All loan originators must be licensed through or registered with: Right Ans
- NMLSR
Nov. 1st through Dec. 31st of each year... Right Ans - Registered MLOs must
renew their registration during
Non-traditional Mortgage Product Right Ans - Any mortgage product other
than a 30 year fixed rate mortgage.
, Residential Mortgage Loan Right Ans - Any 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 or residential real estate
upon which a dwelling is constructed or intended to be constructed.
Federally Registered Loan Originator Right Ans - Is an individual who
meets the definition of a loan originator and is an employee of a depository
institution that is regulated by a federal banking agency.
Mortgage Loan Originator Right Ans - Person who takes a residential
mortgage loan application.
Permanently Identifies Loan Originator Right Ans - Unique Identifier
Stable Income Right Ans - A borrower's gross monthly income from all
verifiable sources that can reasonably be expected to continue for at least 3
years.
Credit Score Right Ans - An overall assessment that predicts a borrower's
credit risk.
Employee Income Right Ans - A borrower's base pay/regular wages.
Hard Inquiry Right Ans - Appears on a consumer's credit report and can
influence their credit score.
Soft Inquiry Right Ans - Does not appear on credit report or impact
consumer's credit score.
Exceptions to the 2 year employment history requirement Right Ans -
School and military
"4 R" model used to determine the borrower's monthly income. Are the
employment & income considered: Right Ans - Regular (earned on
consistent basis), Recurring (weekly, bi-weekly), Received in cash (W-2, Tax
return or Bank Statement), Reasonable (is income inline or realistic for
occupation?)
& Accurate Answers
Primary Mortgage Market Right Ans - The market where borrowers and
mortgage originators come together to negotiate terms and effectuate
mortgage transaction. Mortgage brokers, mortgage bankers, credit unions and
banks are all part of the primary mortgage market.
Secondary Mortgage Market Right Ans - A market for the purchase and sale
of existing mortgages designed to provide greater liquidity for selling
mortgages.
Commercial Banks Right Ans - Working capital is primarily generated
through deposits from its clients
Private Lenders Right Ans - The least regulated category of lender, they can
fulfill a space in the marketplace for conventional loans.
Mortgage Companies Right Ans - Rely on commercial banks that grant
"warehouse" lines of credit to them.
Federal Housing Finance Agency (FHFA) Right Ans - The Federal agency
established to restore Fannie Mae & Freddie Mac to a sound & solvent
financial condition.
Government National Mortgage (GNMA) Association Right Ans - Guarantee
that allows mortgage lenders to obtain a better price for their loans in the
capital markets.
Pre-licensing education Right Ans - Includes topics on federal law and
regulations, ethics, non traditional mortgage products, and origination.
Unique Identifier Right Ans - a number that permanently identifies each
mortgage loan originator, whether he is licensed or merely registered.
S.A.F.E. Act Right Ans - Designed to enhance consumer protection & reduce
fraud by encouraging states to establish minimum standards for licensing and
registration of MLOs.
,State-licensed mortgage loan originator Right Ans - An MLO employed by a
federally insured depository institution is a federally supervised credit union.
American Association of Residential Mortgage Regulators (AARMR) Right
Ans - National association of executives and employees of the various states
charged with the responsibility for administration & regulation of residential
mortgage lending, servicing and brokering.
Nationwide Mortgage Licensing System & Registry (NMLSR) Right Ans - All
loan originators must be licensed through or registered with_____.
Federal Banking Agencies: Right Ans - 1.The Board of Governors of the
Federal Reserve System
2. The Comptroller of the Currency
3. The National Credit Union Administraton
(NCUA)
4. The Federal Deposit Insurance Corporation
(FDIC)
Regulation G of the SAFE Act establishes Right Ans - A federal registration
requirement for mortgage loan originators.
Regulation "H" authorizes: Right Ans - The CFPB to implement the Secure
and Fair Enforcement for Mortgage Licensing Act of 2008. It also directs the
states to adopt minimum uniform standards for licensing & registration of
residential mortgage loan originators.
All loan originators must be licensed through or registered with: Right Ans
- NMLSR
Nov. 1st through Dec. 31st of each year... Right Ans - Registered MLOs must
renew their registration during
Non-traditional Mortgage Product Right Ans - Any mortgage product other
than a 30 year fixed rate mortgage.
, Residential Mortgage Loan Right Ans - Any 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 or residential real estate
upon which a dwelling is constructed or intended to be constructed.
Federally Registered Loan Originator Right Ans - Is an individual who
meets the definition of a loan originator and is an employee of a depository
institution that is regulated by a federal banking agency.
Mortgage Loan Originator Right Ans - Person who takes a residential
mortgage loan application.
Permanently Identifies Loan Originator Right Ans - Unique Identifier
Stable Income Right Ans - A borrower's gross monthly income from all
verifiable sources that can reasonably be expected to continue for at least 3
years.
Credit Score Right Ans - An overall assessment that predicts a borrower's
credit risk.
Employee Income Right Ans - A borrower's base pay/regular wages.
Hard Inquiry Right Ans - Appears on a consumer's credit report and can
influence their credit score.
Soft Inquiry Right Ans - Does not appear on credit report or impact
consumer's credit score.
Exceptions to the 2 year employment history requirement Right Ans -
School and military
"4 R" model used to determine the borrower's monthly income. Are the
employment & income considered: Right Ans - Regular (earned on
consistent basis), Recurring (weekly, bi-weekly), Received in cash (W-2, Tax
return or Bank Statement), Reasonable (is income inline or realistic for
occupation?)
