SAFE
SAFE Act
Secure and Fair Enforcement Act
NMLS
Nationwide Multistate Licensing System and Registry
CFPB
Consumer Financial Protection Bureau
Form to register for Companies
Mu1
Form to register for individuals
Mu4
What is a UDAAP?
An unfair, deceptive or abusive act or practice
Why was the NMLS Created?
Increase consumer protection
Streamline the licensing process
Is the state model a law?
No just a template of standards for how to regulate mortgage industry
Who must the MLO submit their Mortgage Call Reports to
NMLS
Is a real estate broker and MLO?
No
what are the different names that the state authority can be referred to as
Superintendent
Department
Commissioner
Directory
Authority
Secretary
Bureau
The state
What is the difference between Regulation G and Regulation H under the SAFE Act?
Regulation G–
Regulation G of the SAFE Act applies to any federally regulated depository institution that operates in the mortgage industry.
Regulation H–
Regulation H of the SAFE Act applies to:
Which MLO does not need a license?
MLOs working for depository institutions
how many hours needed for Pre licensing Education?
20 hours
3 Federal LAw and regulations
3 hours Ethics
2 Hours Non traditional Mortgage lending standards
12 hours undefined
How many hours needed for Continuing Education
8 hours
3 hours federal law and regulations
2 hours Ethics
2 hours Non traditional Mortgage lending standards
1 hour Undefined
What’s the purpose of the Secure and Fair Enforcement for Mortgage Licensing Act
To improve consumer protection in the mortgage industry
Main Purpose of the cfpb
To protect consumers from deceptive and unethical financial practices
You convince your client that an ARM is their best option even though they don’t feel comfortable changing their rate and payment.
UDAAPs
Steps to Register
Pass background check
submit fingerprints
submit 10 year work history
submit mu form
pay fee
An MLO who works for a non-depository institution in Maine and writes loans in Maine must be
Registered with the NMLS
Correctly checked
Licensed in Maine
State standards and the SAFE ACT
List the different things that are agreed upon under the state model
Requirement for licensing / registration of MLOS
Application issuance of licenses/ registries
Education Req
Testing Req
Licensing Renewal
Enforcement, Authority, Violations and Penalties
Surety Bond State fund and Networth Requirements
Enforcement, authority, violations, and penalties
investigation and examination requirements
prohibited acts and practices
Mortgage call reports
Use of NMLS
Req unique identifiers on all ads
maximum penalty of 31,928
Who does not need a license?
MLOs working for depository institutions
Which of the following portions of the SAFE Act applies to non-federally regulated entities that engage in mortgage-related activity?
Regulation H
What information is available through the NMLS Consumer Access site for both individual MLOs and MLO companies
NMLS ID
State licenses/registrations
can publish findings in the NMLS
The State Authority
CFPB