What did the federal reserve establish? a federal charter for banks that permitted them to make real estate loans, which established a framework for government involvement in mortgage lending. What act was created to help the housing industry recover from the Great Depression? the National Housing Act created the Federal Housing Administrative (FHA) in 1934 A mortgage loan originator (MLO) is • An individual who for compensation or gain or in • An individual engaged solely as a loan processor
or Real estate brokerage activity: For purposes of this Act the term "real estate brokerage • Acting as a real estate agent or real estate broker for a buyer,
seller, lessor, or lessee There are registered mortgage loan originators. A registered mortgage loan originator is • Meets the definition of the
mortgage loan originator and is an employee of— is a registration system that was developed and maintained by the Conference of To be licensed as an MLO, an individual is required to be sponsored What would be considered a clerical or support duty? "Clerical or support duties" can • The receipt, collection, distribution, and analysis of information common for the Big players on the secondary market are: • The Federal National Mortgage Association (FNMA, Fannie Mae). This process is called the mortgage loan life cycle. There are three stages: • The first stage is the borrower decides to obtain a mortgage loan; they are financially A surety bond is a lot like malpractice insurance for a doctor. If a There are a lot of things that go into the • No license revocation – an applicant cannot have ever had an MLO license revoked in Some of the things that are taken into consideration when determining whether an • Current outstanding judgments (except medical judgments) What does temporary authority allow for? an MLO licensed in another state, to operate in a new • Continue to meet the minimum standards for licensure (including financial responsibility What does the Loan Orginator Compensation Rule Prohibit? prohibits compensation based on terms or A loan originator receives compensation if the borrower uses one title company over another. The loan originator’s overall dollar volume. Steering in the sense of actions that
mortgage loan originators take that is like steering a The Recession of 2008 brought about many changes to the mortgage industry through the The Dodd-Frank Wall Street Reform Act. Dodd-Frank implemented __________________________. MLO compensation rules, created CFBP and MLO contact of What did the safe act implement? NMLS, registration of all
MLO’s and the licensing of a government sponsored entity that buys only Conventional
a government sponsored entity that buys only Conventional Fannie & Freddie place the loans into a ___________ and is sold into the ___________. 1. Mortgage BAcked Security (MBS) is a government agency that places closed government loans (FHA, VA), underwrite or fund loans. fund and underwrite loans. Also, called a Mortgage Lender Nationwide Multistate Licensing System and Registry. Wholesaler/wholesale lending is the
lender underwriting and funding Mortgage Broker Obtaining a License as an MLO: • Any person that takes applications, negotiates terms or expects compensation on the Maintaining a License as an MLO: • MLOs (and company licensees) have to renew their licenses yearly by December 31. Prohibited Acts: o Fraud Disciplinary Action & Enforcement: • The NMLS and CFPB have authority to audit and exam any company or MLO, that they Loan Originator Compensation: • Passed in 2014; mandated by the Dodd-Frank Act. |