AR MLO flashcards
AR MLO · Build recall with a focused review session.
33 cards. Read the term and the definition here. The deck at the top of this page is optional.
- RESPA Section 8
- Prohibits giving or receiving anything of value in exchange for referrals of settlement service business and prohibits fee splitting except for services actually performed.
- TRID Loan Estimate timing
- The Loan Estimate must be delivered or placed in the mail no later than 3 business days after the creditor receives the consumer's application.
- Closing Disclosure timing
- The Closing Disclosure must be received by the consumer at least 3 business days before loan consummation, with limited exceptions.
- ECOA prohibited bases
- Race, color, religion, national origin, sex, marital status, age, public assistance receipt, and good-faith exercise of Consumer Credit Protection Act rights.
- Ability-to-Repay rule
- Regulation Z requirement that creditors make a reasonable, good-faith determination that the consumer can repay the loan based on verified income and debts.
- Flood insurance requirement
- Federally related loans secured by improved property in a Special Flood Hazard Area require flood insurance, and escrow is required for certain loans.
- HMDA purpose
- Requires covered financial institutions to collect and report data on mortgage applications, originations, and purchases to identify discriminatory lending patterns.
- Arkansas licensing regulator
- The Arkansas Securities Department, Mortgage Division, licenses and examines mortgage bankers, brokers, and loan originators under state law.
- Arkansas surety bond
- Arkansas mortgage licensees must maintain a surety bond, with the required amount scaling based on loan volume or number of licensed originators.
- Arkansas Home Loan Protection Act
- State law restricting high-cost home loans by limiting prepayment penalties and prohibiting certain features like balloon payments on covered loans.
- Arkansas CE requirement
- Arkansas MLOs must complete 8 hours of annual continuing education, including 1 hour specific to Arkansas law, consistent with SAFE Act standards.
- Arkansas change notification
- Licensees must notify the Arkansas Securities Commissioner of changes in control, name, or principal place of business within statutory timeframes.
- Arkansas record retention
- Mortgage licensees must maintain loan records and make them available for examination by the Arkansas Securities Department, generally for 3 years.
- Arkansas unlicensed activity
- Originating mortgage loans in Arkansas without a license subjects the person to civil penalties and cease-and-desist orders from the Commissioner.
- Debt-to-income ratio
- DTI equals total monthly debt obligations divided by gross monthly income; conventional guidelines typically cap it near 43 to 50 percent.
- Loan-to-value ratio
- LTV equals the loan amount divided by the lesser of appraised value or purchase price; CLTV includes all liens on the property.
- FHA mortgage insurance
- FHA loans require upfront and annual mortgage insurance premiums, allowing lower credit scores and higher DTI than many conventional programs.
- VA funding fee
- A fee charged on VA loans to offset program costs, which may be waived for veterans with service-connected disabilities and certain others.
- Rate lock
- A lender commitment to a specified interest rate for a set period; extension fees apply if the lock expires before the loan closes.
- Three Cs of underwriting
- Credit history, capacity to repay based on income and DTI, and collateral value based on appraisal and LTV.
- Escrow cushion limit
- RESPA limits the lender's escrow cushion to no more than one-sixth of the total annual disbursements for taxes and insurance.
- USDA rural loan
- A loan program targeting rural areas with income limits, often featuring 100 percent financing and a guarantee fee paid by the borrower.
- Occupancy fraud
- Misrepresenting intent to occupy a property as a primary residence to obtain more favorable loan terms or pricing.
- Straw buyer scheme
- Using a nominee purchaser to obtain financing or conceal the true beneficiary, a common mortgage fraud red flag.
- Fraud red flags
- Suspicious indicators such as sudden employment changes, unusual down payment sources, and inconsistent data across loan documents.
- FCRA permissible purpose
- A creditor may pull a consumer credit report only for a permissible purpose, such as evaluating a credit application or account review.
- GLBA privacy rule
- Requires financial institutions to safeguard nonpublic personal information and provide privacy notices to consumers describing information-sharing practices.
- UDAAP
- Dodd-Frank prohibition on unfair, deceptive, or abusive acts or practices in consumer financial products and services.
- Suspicious Activity Report
- A report filed with FinCEN when an institution suspects mortgage fraud or other suspicious activity; tipping off the subject is prohibited.
- NMLS annual renewal
- MLOs must renew their NMLS registration annually by December 31 and complete required continuing education before renewal.
- SAFE Act CE hours
- Annual continuing education requires 8 hours: 3 hours federal law, 2 hours ethics, 2 hours non-traditional lending, and 1 hour electives.
- NMLS Consumer Access
- A public website allowing consumers to verify an MLO's licensing status, employment history, and any regulatory actions.
- Single-entity sponsorship
- A mortgage loan originator may originate loans for only one licensed mortgage entity at a time and must be sponsored by it.