CT SAFE EXAM QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT RATED
A+
Q: What is the Connecticut Department of Banking, and who leads it?
A: It’s a state regulatory agency responsible for overseeing financial services and
institutions. It is led by the Banking Commissioner, who is appointed by the
governor to serve a four-year term.
Q: What does the Consumer Credit Division oversee?
A: This division enforces consumer credit laws, including the Truth-in-Lending
Act, and regulates and licenses mortgage lenders, brokers, correspondent
lenders, and loan originators.
Q: What is the role of the Financial Institutions Division?
A: It supervises state-chartered banks, trust companies, credit unions, savings
banks, and savings and loan associations. It also monitors foreign banking
entities, processes applications for new institutions, handles mergers, and
evaluates branch or field of membership expansions. Additionally, it licenses
certain financial entities.
Q: What reporting duties does the Banking Commissioner have?
A: The Commissioner must submit an annual report to the Governor detailing
the condition of all regulated entities, along with any recommendations.
Q: Are there any limitations on the Connecticut Department of Banking’s
authority?
A: Yes, its powers are limited to what is granted by the state legislature—it can
only act within the scope of authority it has been officially given.
, must publish a proposed rule and open a period for public comment
aggrieved parties can seek judicial review of an agency's action
Mortgage Correspondent Lender - ANSWER✔✔makes residential mortgage loans
in own name where the loans are not held for more than 90 days and are funded by
another person
table-funding agreement - ANSWER✔✔person agrees to fund mortgage loans to
be made in another person's name and to then purchase the loans after they are
made
Control person - ANSWER✔✔right to vote 10% or more of a class of any voting
security
power to sell or direct the sale of 10% or more of any class of voting securities
Underemployed person - ANSWER✔✔income during the 12-month period before
a foreclosure action is less than 50k or less than 75% of average annual income
during the preceding 2 years
High-cost home loan - ANSWER✔✔APR at consummation is greater than the
yield on Treasury securities by more than a specified number of percentage points
Persons Required to be Licensed - ANSWER✔✔mortgage loan originators,
mortgage brokers, mortgage lenders, and mortgage correspondent lenders
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT RATED
A+
Q: What is the Connecticut Department of Banking, and who leads it?
A: It’s a state regulatory agency responsible for overseeing financial services and
institutions. It is led by the Banking Commissioner, who is appointed by the
governor to serve a four-year term.
Q: What does the Consumer Credit Division oversee?
A: This division enforces consumer credit laws, including the Truth-in-Lending
Act, and regulates and licenses mortgage lenders, brokers, correspondent
lenders, and loan originators.
Q: What is the role of the Financial Institutions Division?
A: It supervises state-chartered banks, trust companies, credit unions, savings
banks, and savings and loan associations. It also monitors foreign banking
entities, processes applications for new institutions, handles mergers, and
evaluates branch or field of membership expansions. Additionally, it licenses
certain financial entities.
Q: What reporting duties does the Banking Commissioner have?
A: The Commissioner must submit an annual report to the Governor detailing
the condition of all regulated entities, along with any recommendations.
Q: Are there any limitations on the Connecticut Department of Banking’s
authority?
A: Yes, its powers are limited to what is granted by the state legislature—it can
only act within the scope of authority it has been officially given.
, must publish a proposed rule and open a period for public comment
aggrieved parties can seek judicial review of an agency's action
Mortgage Correspondent Lender - ANSWER✔✔makes residential mortgage loans
in own name where the loans are not held for more than 90 days and are funded by
another person
table-funding agreement - ANSWER✔✔person agrees to fund mortgage loans to
be made in another person's name and to then purchase the loans after they are
made
Control person - ANSWER✔✔right to vote 10% or more of a class of any voting
security
power to sell or direct the sale of 10% or more of any class of voting securities
Underemployed person - ANSWER✔✔income during the 12-month period before
a foreclosure action is less than 50k or less than 75% of average annual income
during the preceding 2 years
High-cost home loan - ANSWER✔✔APR at consummation is greater than the
yield on Treasury securities by more than a specified number of percentage points
Persons Required to be Licensed - ANSWER✔✔mortgage loan originators,
mortgage brokers, mortgage lenders, and mortgage correspondent lenders
