Quizlet provide four examples of conditions that could mean license denial or refusal to renew.

-Directly/indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person

-Engage in any unfair or deceptive practice toward any person

-Obtain property by fraud or misrepresentation

-Solicit or enter a contract with a borrower that the licensee may earn a fee or commission through "best efforts" to obtain a loan even though no loan is actually obtained for the borrower

-Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing term unless the terms are actually available at the time

-Conduct any business covered by this act without holding a valid license, or assist or aid and abet any person in the conduct of business under this Act without a valid license

-Fail to male disclosures as required by any applicable state or federal law

-Make, in any manner, any false or deceptive statement or representation, with regard to the rates, points, or other financing terms/conditions for a residential mortgage loan, or engage in bait and switching advertising

-Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any info or reports filed with a gov agency, the NMLS, or in connection with any investigation conducted by the Commissioner of another gov agency

-Make any payment, threat, or promise, directly/indirectly, to any person for the purposes of influencing the independent judgement of the person, or any appraiser of a property, for the purposes of influencing the independent judgement of the appraiser with respect to the value of the property

-Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by this Act

-Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the insurer

-Fail to truthfully account for monies belonging to a party to a residential mortgage loan transaction

Recommended textbook solutions

Human Geography

13th EditionArthur Getis, Daniel Montello, Mark Bjelland

107 solutions

Social Psychology

10th EditionElliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson

525 solutions

Myers' Psychology for the AP Course

3rd EditionC. Nathan DeWall, David G Myers

955 solutions

Myers' Psychology for AP

2nd EditionDavid G Myers

900 solutions

retain attorneys, accountants or other professionals and specialists as examiners, auditors or investigators to conduct or assist in the examination or investigation.
enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce the regulatory burden by sharing resources, standardized or uniform methods of procedures and documents, records, information or evidence obtained.
use, hire, contract or employ public and privately available analytical systems, methods or software to examine or investigate the licensee, individual or other person.
accept or rely on:
examination or investigation reports made by other government officials, either from within that state or another state; and
audit reports made by an independent certified public accountant for the licensee or person.

is any activity that involves offering or providing real estate brokerage services to the public, including:

acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property;
bringing together parties interested in the sale, purchase, lease, rental or exchange of real property;
negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property (other than in connection with providing financing with respect to such transaction); and
engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law.

1. The amount or percentage of any down payment (e.g., "5% down," "95% financing," "$6,200 down"), except when the amount of the down payment is zero
2. The number of payments or period of repayment (e.g., "360 monthly payments" or "30-year loan")
3 . The amount of any payment (e.g., "payments of less than $1,400 per month")
4. The amount of any finance charge (e.g., "total financing costs of less than $3,000") If an ad states a rate of finance charge, it must state the rate as an annual percentage rate, using that term or the abbreviation "APR." The primary lending rate that may be advertised is the APR. If the APR can change during the loan term, that fact must be contained in the ad.

Disclosure is required even if a triggering term is not stated explicitly but may be readily determined from the content of the ad.

For Example
An ad that states "80% financing" implies that a 20% down payment is required, so additional disclosures are required. However, an ad that states "100% financing" requires no further disclosures because no down payment is required.
Disclosures required in an ad containing a triggering term include:

the amount or percentage of the down payment.
the terms of repayment (i.e., the payment schedule [i.e., the number, timing and amount of the payments], including any final balloon payment, scheduled to repay the debt).
the annual percentage rate, using that term or the abbreviation "APR."
For Example
An ad containing all the required credit terms would be:
Cash price $100,000. $5,000 down. Interest at 9?% (10.5% APR). Mortgage of $94,600 to be paid in 360 equal and consecutive monthly installments of $822.08, plus taxes and insurance.

Advertisements for Credit Secured by a Dwelling
The following requirements apply to any ad for credit secured by a dwelling, other than television or radio advertisements, including promotional materials accompanying applications.

If the ad states a simple annual rate of interest and more than one simple annual rate of interest will apply over the term of the advertised loan, the ad must clearly and conspicuously (i.e., with equal prominence and in close proximity to any advertised rate) disclose:

each applicable simple annual rate of interest. In a variable-rate transaction, a rate determined by adding a reasonably current index and margin must be disclosed.
the period of time during which each simple annual rate of interest will apply.
the APR for the loan.
If the ad states the amount of any payment, it must clearly and conspicuously disclose:

the amount of each applicable payment over the term of the loan, including any balloon payment (based on reasonably current index and margin, for a variable-rate loan).
the period of time during which each payment will apply.
for credit secured by a first lien on a dwelling, the fact that the payments do not include amounts for taxes and insurance premiums, if applicable, and that the actual payment obligation will be greater.

An ad for credit secured by a dwelling may not:

state that a product is a "government loan program," "government-supported loan" or otherwise endorsed or sponsored by any government entity unless the ad is for an FHA loan, VA loan or similar loan program that is, in fact, endorsed or sponsored by a government entity.
use the name of the consumer's current creditor if the ad is not sent by or on behalf of that creditor, unless:
the name of the person or lender making the advertisement is disclosed with equal prominence; and
the ad includes a clear and conspicuous statement that the person making the advertisement is not associated with, or acting on behalf of, the consumer's current creditor.
make any misleading claim that the product offered will eliminate debt or result in a waiver or forgiveness of a consumer's existing loan terms with, or obligations to, another lender.
use the term "counselor" to refer to a for-profit mortgage broker or mortgage lender, its employees or persons working for the broker or lender that are involved in offering, originating or selling mortgages.
provide information about some trigger terms or required disclosures (e.g., an initial rate or payment) only in a foreign language and provide information about other trigger terms or required disclosures (e.g., information about the fully indexed rate or fully amortizing payment) only in English.

Exempt Individuals

an individual offers or negotiates terms of a residential mortgage loan with or on behalf of a member of his immediate family. Therefore, state statutes generally exclude from licensing and registration requirements an individual who offers or negotiates terms of a residential mortgage loan only with or on behalf of an immediate family member.
an individual seller provides financing to a buyer in the course of the sale of his own residence. The frequency with which a particular seller provides financing is so limited that CFPB's view is that Congress did not intend to require such sellers to obtain mortgage loan originator licenses. Therefore, state statutes generally exclude from licensing and registration requirements an individual who offers or negotiates terms of a residential mortgage loan only to the buyer, or a prospective buyer, of the seller's residence.
a licensed attorney, in the course of representing the client, negotiates terms of a residential mortgage loan with a prospective lender on his client's behalf, as the attorney owes significant duties of loyalty, competence and diligence to his client. However, if the attorney is compensated by a lender, mortgage broker or other mortgage loan originator, the definition of "mortgage loan originator" would apply.

Other Requirements

The SAFE Act provides that, among the criteria for eligibility for a license, an individual must not have been convicted of, or pled guilty or nolo contendere to, any felony in a domestic, foreign or military court within the preceding seven years or convicted of a felony involving an act of fraud, dishonesty, a breach of trust or money laundering at any time prior to application.

Because the provision is triggered by a conviction, rather than by an extant (i.e., still existing) record of a conviction, CFPB interprets the provision to make an individual ineligible for a mortgage loan originator license even if the conviction is later expunged. However, pardoned convictions are generally treated as legal nullities for all purposes under state law and would not render an individual ineligible. The law under which an individual is convicted, rather than the state where the individual applies for a license, determines whether a particular crime is classified as a felony.

To show he can satisfy these requirements, the applicant must furnish to the NMLS the following information concerning his identity:

Fingerprints for submission to the FBI and any governmental agency or entity authorized to conduct a criminal history background check
Personal history and experience, including authorization for the NMLS to obtain independent credit report information related to any administrative, civil or criminal findings by any governmental jurisdiction

State Examination Authority

Each state licensing agency has the authority to review, investigate or examine any mortgage loan originator as often as necessary in order to carry out the purposes of the SAFE Act. In such an investigation, the licensing authority has access to a mortgage loan originator's business books and records and may interview the officers, principals, mortgage loan originators, employees, independent contractors, agents and customers of the licensee concerning their business.

A mortgage loan originator must make its books and records available upon request of the state licensing agency. Any person subject to investigation or examination is prohibited from knowingly withholding, abstracting, removing, mutilating, destroying or secreting any books, records, computer records, or other information in an examination or investigation.