FL MLO cheat sheet

RESPA Section 8 prohibits giving or receiving anything of value for referrals of settlement service business and prohibits unearned fee splits.

TRID requires the Loan Estimate within 3 business days of application and the Closing Disclosure at least 3 business days before consummation.

TILA right of rescission gives 3 business days to cancel a refinance or HELOC secured by the principal dwelling; purchases and investment properties are excluded.

ECOA/Regulation B requires adverse action notice within 30 days of a completed application and prohibits discrimination on specified bases.

HMDA/Regulation C requires covered institutions to collect and report application, origination, and purchase data for mortgage loans.

HOEPA high-cost triggers include an APR more than 6.5 percentage points above APOR for a first lien (8.5 for a subordinate lien) or points and fees above 5% of the loan amount (8% for loans under $20,000).

The Flood Disaster Protection Act requires flood insurance for improved structures in a Special Flood Hazard Area when the loan is made by a regulated lender.

SAFE Act requires MLOs to be licensed or registered, pass a national test, complete education, and submit fingerprints for background checks.

FCRA limits consumer reports to permissible purposes and requires notice when adverse action is based on a credit report.

LTV = loan amount ÷ lesser of sales price or appraised value; CLTV includes all liens secured by the property.

DTI = total monthly debts ÷ gross monthly income; the back-end ratio includes the housing payment plus all recurring debts.

PITI = principal, interest, taxes, and insurance; escrow accounts collect taxes and insurance monthly.

Borrower-paid PMI may be canceled on request at 80% LTV and must terminate automatically at 78% LTV based on the original value and amortization schedule.

One discount point = 1% of the loan amount and buys a lower note rate; origination points compensate the lender.

ARM fully indexed rate = index + margin; initial, periodic, and lifetime caps limit payment increases.

Conforming loan limits are set annually by FHFA; loans above the applicable limit are nonconforming or jumbo.

Fixed-rate loans have constant principal and interest; ARM payments change when the index adjusts.

Lender's title insurance protects the mortgagee up to the loan balance; owner's title insurance protects the buyer's equity.

Receipt of the six application pieces (name, income, SSN, property address, estimated value, loan amount) starts the 3-business-day Loan Estimate clock.

AUS findings from DU or LP guide documentation and eligibility; manual underwriting requires documented compensating factors.

Appraisal Independence Rules prohibit coercion or improper influence and require the borrower to receive a copy of the appraisal.

HPML first liens require an escrow account for taxes and insurance unless a specific regulatory exemption applies.

The Closing Disclosure must be received 3 business days before consummation; changed terms may require re-disclosure and a new waiting period.

Rate locks must disclose the locked rate, expiration date, cost, and any float-down terms.

Pre-qualification is based on unverified information; pre-approval involves credit and income review.

Fraud indicators include inflated income, occupancy misrepresentation, straw buyers, and undisclosed liens.

Loan files must document borrower intent, source of funds, and any gift or grant used for closing.

ECOA prohibited bases are race, color, religion, national origin, sex, marital status, age, and public assistance; the Fair Housing Act adds familial status and disability.

Steering borrowers to inferior products or terms based on a protected characteristic is prohibited.

RESPA requires written affiliated business arrangement disclosure and does not require the borrower to use the affiliate.

Advertising a rate or payment triggers APR and terms disclosure under TILA; the NMLS ID must appear in covered advertisements.

GLBA requires privacy notices and safeguards for nonpublic personal information.

Kickbacks and referral fees for settlement services violate RESPA Section 8.

Assisting a borrower to misstate income, assets, or occupancy is mortgage fraud.

Conflicts of interest must be disclosed; loan originators may not accept undisclosed compensation.

Licensees must report suspected fraud and cooperate with regulators.

MLO licensing requires NMLS registration, pre-licensing education, testing, a background check, and sponsorship by a licensed entity.

SAFE pre-licensing requires 20 hours, including 3 hours federal law, 3 hours ethics, and 2 hours nontraditional mortgage products.

Annual continuing education is 8 hours, including 3 hours federal law, 2 hours ethics, and 2 hours nontraditional mortgage products unless state law adds requirements.

Licenses renew annually through NMLS; late renewal may require reinstatement and additional fees.

State regulators may examine records, subpoena documents, impose fines, suspend or revoke licenses, and order restitution.

Unlicensed application taking or loan term negotiation is prohibited and subject to civil and criminal penalties.

Licensees must notify the regulator of changes to name, address, or employment within state-specified deadlines.

Consumer complaints are investigated; licensees must respond and produce requested records.