CALIFORNIA STATE –NMLS DEFINITIONS PRACTICE TEST GRADED TO PASS EXCELLENTLY.
Ca-DBO - ANSWER California Department of Business Oversight
CFLL - ANSWER California Finance Lenders Law
CRMLA - ANSWER California Residential Mortgage Lending Act
NMLS - ANSWER Nationwide Multi-state licensing System & Registry
Senate Bill 36 - ANSWER Implemented Federal SAFE Act requirements
MU1 Form - ANSWER Uniform Mortgage Lender/Mortgage Broker Form used for
companies
MU2 Form - ANSWER Uniform Biographical Statement & Consent Form used for
direct/indirect control persons of a company
MU3 Form - ANSWER Uniform Mortgage Branch Office Form used for Branch
Offices
MU4 Form - ANSWER Individual Mortgage License/Registration & Consent Form
used for individuals (new/amend/surrender/cancel) license
Mission of DBO - ANSWER To regulate state-licensed financial institutions,
products and professionals to provide accessibility to fair and secure financial
services
In 2013, Dept of Corporations (DOC) and Dept of Financial Inst. (DFI) merged to
create this department - ANSWER Department of Business Oversight
Financial Services Division (FSD) - ANSWER Subdivision of DBO tasked with
regulation pertaining to residential mortgage lending
The Finance Lender Law was created to replace 3 licenses: - ANSWER Personal
Property Brokers, Consumer Finance Lenders, Commercial Finance Lenders
In 1995, CFLL contained in Div9 of CA Financial Code commencing with 22000 -
ANSWER Required licensing; prohibits misrepresentation, fraudulent and deceptive
acts; provide administrative, civil and criminal remedies for violation of the law
Secured Loans - ANSWER May be secured by personal property; if principal
amount of loan is >$5k, it may be secured solely by real property or a combo
Unsecured Loans - ANSWER Loans not protected by any collateral like credits card,
student loans and personal loans
Finance Lender - ANSWER Any person who is engaged in the business of making
consumer/commercial loans
"Non-loan" transactions - ANSWER Bona fide leases, automobile sales finance
contracts, retail installment sales not subject toe CFLL
Ca-DBO - ANSWER California Department of Business Oversight
CFLL - ANSWER California Finance Lenders Law
CRMLA - ANSWER California Residential Mortgage Lending Act
NMLS - ANSWER Nationwide Multi-state licensing System & Registry
Senate Bill 36 - ANSWER Implemented Federal SAFE Act requirements
MU1 Form - ANSWER Uniform Mortgage Lender/Mortgage Broker Form used for
companies
MU2 Form - ANSWER Uniform Biographical Statement & Consent Form used for
direct/indirect control persons of a company
MU3 Form - ANSWER Uniform Mortgage Branch Office Form used for Branch
Offices
MU4 Form - ANSWER Individual Mortgage License/Registration & Consent Form
used for individuals (new/amend/surrender/cancel) license
Mission of DBO - ANSWER To regulate state-licensed financial institutions,
products and professionals to provide accessibility to fair and secure financial
services
In 2013, Dept of Corporations (DOC) and Dept of Financial Inst. (DFI) merged to
create this department - ANSWER Department of Business Oversight
Financial Services Division (FSD) - ANSWER Subdivision of DBO tasked with
regulation pertaining to residential mortgage lending
The Finance Lender Law was created to replace 3 licenses: - ANSWER Personal
Property Brokers, Consumer Finance Lenders, Commercial Finance Lenders
In 1995, CFLL contained in Div9 of CA Financial Code commencing with 22000 -
ANSWER Required licensing; prohibits misrepresentation, fraudulent and deceptive
acts; provide administrative, civil and criminal remedies for violation of the law
Secured Loans - ANSWER May be secured by personal property; if principal
amount of loan is >$5k, it may be secured solely by real property or a combo
Unsecured Loans - ANSWER Loans not protected by any collateral like credits card,
student loans and personal loans
Finance Lender - ANSWER Any person who is engaged in the business of making
consumer/commercial loans
"Non-loan" transactions - ANSWER Bona fide leases, automobile sales finance
contracts, retail installment sales not subject toe CFLL
