Term
|
Definition
| A number assigned by protocols established by NMLS |
|
|
Term
|
Definition
| Director of Financial Institutions department of each state which is responsible for the enforcement of the Act. |
|
|
Term
|
Definition
| A residential structure that contains one to four unites whether or not that structure is attached to real property. Dwelling includes an individual condo unit, an individual coop unit, a mobile home, and a trailer if used as a residence. |
|
|
Term
|
Definition
| Spouse, child, sibling, parent, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships. |
|
|
Term
| Loan Processor or Underwriter |
|
Definition
| Individuals who perform clerical or support duties as an employee at the direction or and subject to the supervision and instruction of a person licensed, or exempt from licensing pursuant to the Act. |
|
|
Term
|
Definition
| A natural person, corporation, company, limited liability company, partnership, or association. |
|
|
Term
|
Definition
| An individual who for compensation or gain or in the expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan. |
|
|
Term
| Non-Mortgage Loan Originator |
|
Definition
| A person engaged soley as a loan processor or underwriter, a person that only performs brokerage activities, (unless they are paid by a lender, a mortgage loan company, or, other loan originator,)or, a person who solely extends credit on timeshare units. |
|
|
Term
|
Definition
| Any mortgage product other than a thirty year fixed rate mortgage. |
|
|
Term
| Registered Mortgage Loan Originator |
|
Definition
| Meets the definition of a mortgage loan originator and is an employee of: a depository institution, (Bank), a subsidiary that is 1)owned and controlled by a depository institution, and 2) regulated by a federal banking agency, or, an institution regulated by the farm credit administration. |
|
|
Term
| Residential Mortgage Loan |
|
Definition
| 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 on residential real estate upon which is constructed or is intended to be constructed at dwelling as so defined. |
|
|
Term
|
Definition
| Any real property upon which is constructed or intended to be constructed a dwelling. |
|
|
Term
|
Definition
| An individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual, or an individual who offers or negotiates terms of a real property sale financed in whole or in part by the seller and secured by the sellers real property, (REC), A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, (unless they are compensated by a lender, a mortgage loan company, loan originator, or by any agent. |
|
|
Term
|
Definition
| A determination MAY include, but is not limited to review of: Outstanding judgments, (except medical), Outstanding tax or other government liens, patterns of seriously delinquent accounts in the last 3 years, foreclosures within the past 3 years. |
|
|
Term
|
Definition
| Surety Bond requirements shall be determined, implemented and enforced by the Commissioner, or Director. |
|
|
Term
|
Definition
| Each applicant must pass with a score of 75% a qualified written exam from a test provider acceptable to the NMLS that covers, 1. Ethics, 2. Federal law and regulations, 3. State laws and regulations regarding origination, 4. Federal and State laws and regulations regarding a. fraud, b. consumer protection, c. non-traditional mortgage products. |
|
|
Term
|
Definition
The test can be re-taken after 30 days from the date of the original exam if it was not passed and again 30 days later if not passed again.
If 3 consecutive failures occur, the applicant must wait six months to retake the exam.
If a licensed originator lets their license expire for a period of five years, he/she must re-take the test. |
|
|
Term
|
Definition
8 hours continuing education required annually, Three hours federal law and regulations, two hours of ethics, two hours of non-traditional mortgage standards
CANNOT take the same course in the same or successive years.
States can impose additional requirements for state specific education. |
|
|
Term
|
Definition
| The commissioner will be responsible for establishing requirements such as 1. background checks for criminal history through finger prints and other date bases civil or administrative records, credit history and anything deemed necessary by NMLS. 2. Fees for new and renewal licensing, 3. Setting renewal and reporting dates, 4. Requirements for amending or surrendering licenses. (Per State) |
|
|
Term
|
Definition
| The commissioner may 1. deny, suspend, revoke, or decline to renew licenses for a. violations of the Act, b. failure to meet requirements, c. withholding information or make material misstatements in an application, d. order restitution, e. impose fines, f. order affirmative action, g. issue orders and directives, h. issue eases and desist orders, permanent or temporary, i. bar or suspend a mortgage originator from originating mortgage loans. |
|
|
Term
|
Definition
| 1. Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or so defraud any person. 2. Engage in any unfair or deceptive practice toward any person, 3. obtain property by fraud or misrepresentation, 4. Enter into an agreement with a borrower to get paid for "best efforts," to find a loan, 5. Solicit, advertise or enter into a contract for specific interest rates, points, or other financing terms if those terms are not available at the time of the advertising. 6. Conduct any business without a valid license, or help someone without a valid license conduct business. |
|
|
Term
|
Definition
| 7. Fail to make disclosures required by the Act. 9, Engaging in bait and switch advertising 10. making false statements or any omission of material fact in connections with any information or reports, 11. making any payment or threat to any person trying to influence the independent judgment, or payment or threat to any appraiser, 12. collect, charge, attempt to collect or charge or to use any agreement purporting to collect any fees prohibited by law, |
|
|
Term
|
Definition
| 14. Fail to account truthfully for the money belonging to a part to a residential mortgage loan transaction, 15. represent or originate for more than 1 company at a time. 16. pay, received, or collect in whole or in part any commission, fee, or other compensation for originating a mortgage in violation of the act, or originating for any unlicensed person. 17. charge or collect any fee, commission or rate of interest or make or originate any loan with terms or conditions contrary to other applicable federal and state laws. 18, advertise terms for any mortgage loan where those terms are not available for a reasonable amount of borrowers. |
|
|
Term
|
Definition
| 19. coerce, extort, induce, bribe, or intimidate any appraiser. 20. originate a mortgage loan with a pre-payment penalty. 21. misrepresent a borrowers credit rating. 22. inflate or otherwise misrepresent a borrowers income. (standard grossing up of non-taxed income is not included in this.)24. originate a no-income verification loan, or any loan that does not require documentation and consideration of a borrowers reasonable ability to repay the loan. (streamline refinances will not be included in this violation) 25. originate a residential mortgage loan that does not require a determination of the borrowers reasonable ability to repay, including qualifying the borrower at the fully indexed rate on an adjustable rate mortgage. |
|
|
Term
|
Definition
| The commissioner can impose a civil penalty for each violation in an amount up to 25,000.00 |
|
|
Term
|
Definition
| 1. temporary restraining order, 2. a civil penalty up to 25,000.00, 3. disgorgement, (forfeit profits) 4. declaratory judgement, 5. restitution to consumers, 6. appointment of a receiver or conservator for the defendant, 7. recovery by the commissioner of all costs and expenses for the investigation, and or enforcement, 8. other relief as the court deems just. |
|
|
Term
| Powers and Duties of the Commissioner |
|
Definition
Supervision and control over mortgage originators who are state licensed.
Implementation of the Act
Determine compliance with the Act
Access to: criminal, administrative, person history, and evidence and any other relevant documents.
Examination & Subpoena powers
Access to originators records
Controls access to relevant investigation docs. |
|
|
Term
|
Definition
| A mortgage loan officer cannot advertise in any way without using their unique identifier prominently. |
|
|
Term
| SAFE Act (referred to as the ACT) |
|
Definition
| Secure and Fair Enforcement for Mortgage Licensing Act of 2008 |
|
|
Term
|
Definition
| Housing and Economic Recovery Act of 2008 which focusing on subprime lending. |
|
|
Term
|
Definition
| Department of Housing and Urban Development, (HUD), Conference of State Bank Supervisors, (CSBS), American Association of Residential Mortgage Regulators, (AARMR), Both agencies drafted the law and sent it to HUD for approval. |
|
|
Term
|
Definition
| The implementing regulations for the SAFE Act written by HUD. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Consumer Financial Protection Bureau - created via the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010. Oversight of the SAFE Act and Regulation H was transferred to the CFPB in July 21, 2011. |
|
|
Term
| SAFE ACT Responsibilities |
|
Definition
| 1. Direct states to adopt minimum uniform standards for licensing. 2. require state participation in NMLS database. |
|
|
Term
|
Definition
| 1. sets loan originator licensing requirements. 2. requirements for effective supervision, 3. a program for the enforcement of the law. |
|
|
Term
|
Definition
| 1. a term that gives specific credit terms, i.e. down payment amount (5%, 10% etc), (except when the amount of the down payment is zero.)2. The number of payments or period of repayment, i.e. 360 monthly, or 30 year loan, 3. the amount of the monthly payment, i.e. 1400.00 per month, 4. the amount of any finance charge, i.e. total financing costs of less than 3,000. |
|
|
Term
| Disclosure requirements for ads with "Trigger terms." |
|
Definition
1. Amount or percentage of down payment
2. Term of repayment, number, timing and amount.
3. Annual percentage rate or APR |
|
|
