Minnesota Exam Prep Questions And Answers

Minnesota Department of Commerce - ANS The state agency responsible for the business activities of Minnesota mortgage professionals Secretary of State - ANS Office that the Minnesota Dept of Commerce is located within NMLS - ANS With the passing of the SAFE Act DOC shares mortgage lending Licensing authority with whom? State Regulatory Registry, LLC - ANS Who is the NMLS operated by Commissioner - ANS Who heads the DOC? Financial Institutions Division - ANS Regulates the activities of mortgage lenders, mortgage originators, servicers and LOs Office of Administrative Hearings - ANS Any enforcement actions that the DOC pursues take place before whom? Duties of the Commissioner and DOC - ANS Writing rules to guide compliance reviewing license apps determining whether to issue or deny licenses to applicants conducting investigations to assess compliance with the law issuing orders to cease and desist holding administrative hearings subpoenaing witnesses for recording hearings Imposing penalties for violations of the law Examinations and investigations duties of the Commissioner - ANS Require or permit any person to file a statement in wirting under oath for all the facts hold hearings Conduct investigations and hold hearings for the purpose of compiling information Examine the books, accounts and records publish orders require any person subject to his authority to report regulated sales or transactions Assess a person or entity the expenses of an investigation 30 Days - ANS How long does an applicant or licensee have to comply with requests for information Subpoena Power - ANS The commissioner has the same power as a court to issue subpoenas and cause them to be served and enforced Contempt of court - ANS Failure to obey an order of the court is punishable as At least once every 24 calendar months - ANS How often does the Commissioner have to examine each mortgage originator Control access to docs and records Take possession of, or place in exclusive charge of, the docs and reocrds in the place where they are usually kept - ANS In the course of an examination, the Commissioner may do what to control access to docs? A court order or the consent of the Commissioner - ANS While under control, a document or record may not be removed by anyone except under what A Loan originators employment history Any publicly adjudicated disciplinary and enforcement actions in which a LO was involved - ANS NMLS is authorized to publish and make available to the public information about what? Residential Mortgage Originator and Servicer Licensing Act - ANS Minnesota's licensing law for mortgage lending institutions that are not traditional depository and lending institutions such as banks, savings and loans and CU Person - ANS Natural person, corporation, LLC, partnership, limited liability partnership, association or other form of business organization. It also includes the officers, directors, employees or agents of that person. Residential Mortgage Loan - ANS Loan secured by a mrotgage on a residential real property or by stock evidencing cooperative ownership in residential real property Residential real Property - ANS Defined as real property improved by or intended to be improved by a structure designed principally for the occupancy of one to four families, whether or not the owner occupies the real property. 2 points above the rate on the US Treasury Bill - ANS APR has to be at what level for an ARM to be considered subprime? 3 points above US Treasury Bill - ANS What is the APR threshold for first lien loans other than ARMs to be considered subprime? 5 Points above the US Treasury Bill - ANS What is the APR threshold for a subordinate lien to be considered subprime? Residential Mortgage Originator - ANS Person that earns or expects to earn compensation by soliciting, accepting or offering to accept a residential mortgage loan app through any medium or mode of communication or making a residential mortgage loan - Includes lenders and brokers Lender - ANS Person that expects to earn compensation by advancing funds or making a commitment to advance funds for a residential mortgage or provides table funding Mortgage broker - ANS Person that earns or expects to earn compensation from a borrower and or lender by assiting a borrower in obtaining a residential mortgage loan. Residential Mortgage Servicer - ANS Person who engages in the activities of servicing a RML Minnesota SAFE Mortgage Licensing Act of 2010 - ANS Licensing Law for Individual mortgage loan originators. Does not cover licensing of business entities such as lenders, borkers or servicing companies Mortgage Loan Originator - ANS An individual who earns or expects to earn compensation by takinga residential mortgage loan app, offering or negotiating the terms of a residential mortgage loan Registered Mortgage Loan Originator - ANS Works for a depository institution, meets definition or mortgage loan originator, registered with NMLS and maintains a unique identifier. Examples of Federal Banking Agencies - ANS Board of Governors of the FED Comptroller of Currency National Credit Union Administration FDIC Offer - ANS Any advertisement or solicitation of any type, including one made in newspapers and magazines, by mail or telephone, on television or radio, or by way of the internet or other electronic means Makes no more than 3 loans using their own funds during any 12 month period - ANS A person is exempt if they make no more than _____ loans with ________ ______ funds, during any ___ _______ period. Financial Institutions and Those exempt by order of the commissioner - ANS Who must obtain a Certificate of Exemption? NMLS - ANS Submissions of all applications must be done through the NMLS FORM MU1 - ANS Form used by business entity or sole proprietor seeking a license as a mortgage lender, mortgage broker or servicer MU2 - ANS Business entity applicant must submit this form, along with MU1 form, for any individual designation as a control person or qualifying individual. The form provides biographical and identifying information for such an individual, as well as employment history and information on any other business activity in which the individual is involved MU3 - ANS Must be submitted for each branch location that will be conducting mortgage business in Minnesota MU4 - ANS An individual applicant seeking a license as a mortgage loan originator must complete this form Minnesota Bureau of Criminal Apprehension form and Disclosure of BCA form - ANS License application process for direct owners and executive officers includes what form? Licensing fees for Mortgage originator - ANS License fee 1000 NMLS Processing Fee 100 Total 1100 Mortgage Servicer Licensing fee - ANS License fee 500 NMLS Proc fee 100 Total 600