GA MLO flashcards
GA MLO · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- SAFE Act registration
- Federal law requiring mortgage loan originators to register with the NMLS and be state-licensed (or federally registered) before originating residential mortgage loans; registration renews annually.
- RESPA Section 8
- Prohibits paying or receiving anything of value for the referral of settlement service business; bona fide compensation must be for goods or services actually performed and not tied to referral volume.
- Qualified written request
- A borrower's written request for information or a dispute about servicing; the servicer must acknowledge within 5 business days and respond within 30 business days, extendable by 15.
- HOEPA high-cost loan
- A mortgage triggering HOEPA protections when points and fees exceed 5% of the loan amount (indexed annually) or the loan meets other statutory triggers; prepayment penalties and balloon payments are restricted.
- TRID timing rules
- The Loan Estimate must be delivered within 3 business days of application; the Closing Disclosure must be received at least 3 business days before consummation, with limited changed-circumstance exceptions.
- ECOA adverse action notice
- A notice required within 30 days of a completed application denial or other adverse action, stating the reasons and the borrower's right to a copy of the appraisal and credit report.
- HMDA LAR submission
- Covered institutions report application, origination, and denial data, including race, ethnicity, sex, and census tract, on a loan/application register submitted by March 1 for the prior year.
- Fair Housing Act protected classes
- Prohibits discrimination in the sale, rental, or financing of dwellings based on race, color, religion, sex, national origin, familial status, or disability; disparate impact claims are recognized.
- Loan-to-value ratio
- Loan amount divided by property value (or purchase price, whichever is lower); a higher LTV generally increases the required mortgage insurance premium.
- Conforming loan limit
- The maximum loan amount eligible for Fannie Mae or Freddie Mac purchase; the 2024 baseline is $766,550 for a one-unit property in most areas, higher in high-cost areas.
- FHA mortgage insurance premium
- FHA loans require an upfront MIP of 1.75% plus an annual premium; MIP typically lasts the life of the loan if the down payment is under 10%.
- VA funding fee
- A one-time fee for eligible veterans, typically 2.15%–3.3% for first use depending on down payment; it may be financed into the loan, and no monthly mortgage insurance applies.
- USDA loan eligibility
- Zero down payment for eligible rural properties; household income limits apply (typically 115% of area median income), and a guarantee fee (upfront and annual) applies.
- Adjustable-rate mortgage caps
- An ARM has an initial fixed period, then adjusts based on an index plus margin, subject to periodic and lifetime caps that limit how much the rate can change.
- Discount point
- A fee paid upfront to lower the interest rate; one point equals 1% of the loan amount, and points are included in the closing costs disclosed on the Loan Estimate.
- Debt-to-income ratio
- Total monthly debt obligations divided by gross monthly income; back-end DTI includes housing plus all other debt, while front-end DTI includes only housing expenses.
- Pre-approval vs. pre-qualification
- A pre-qualification is an informal estimate based on stated information; a pre-approval involves a credit review and documented underwriting and is stronger evidence to sellers.
- Tri-merge credit report
- A report combining data from Equifax, Experian, and TransUnion; errors should be disputed in writing, and mortgage-shopping inquiries in a short window are generally treated as one inquiry.
- Gift fund documentation
- Gift funds require a gift letter and documentation of the transfer; the donor generally must be a relative, and the funds must be verified as deposited into the borrower's account.
- Appraisal review
- An independent appraiser determines market value; the borrower receives a copy, and if the value is low the borrower may renegotiate, bring cash to closing, or dispute the value.
- Rate lock and float-down
- A rate lock commits the lender to a rate for a specified period, and a lock extension may cost a fee; a float-down option lets the borrower get a lower rate if rates fall before closing.
- Closing disclosure delivery
- The Closing Disclosure must be received by the consumer at least 3 business days before consummation; a revised CD restarts the waiting period only in specified changed-circumstance cases.
- Self-employed income documentation
- Self-employed borrowers generally must provide 2 years of tax returns plus a year-to-date profit-and-loss statement and business license to verify stable income.
- Fiduciary duty of MLO
- An MLO owes the borrower loyalty, confidentiality, disclosure, and obedience to lawful instructions, and must act in the borrower's best interest rather than merely closing the loan.
- Loan originator compensation rule
- Under Regulation Z, compensation may not be based on the loan's terms or conditions (other than the amount of credit extended), and dual compensation from both borrower and lender on the same loan is prohibited.
- GLBA confidentiality
- Non-public personal information must be protected under the Gramm-Leach-Bliley Act; an MLO may not disclose borrower information without authorization except as required by law or to service the loan.
- NMLS identifier in advertising
- The SAFE Act requires mortgage advertising to include the MLO's NMLS unique identifier; advertisements may not be false, misleading, or omit material terms such as the APR.
- Conflict of interest disclosure
- An MLO must disclose any financial interest in a service provider, such as a title company or appraisal management company, and may not accept undisclosed referral fees.
- Georgia MLO pre-licensing
- Georgia requires 20 hours of pre-licensing education, including 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage lending, plus passing the SAFE MLO test.
- Georgia continuing education
- Georgia requires 8 hours of annual CE, including 3 hours of federal law and regulations, 2 hours of ethics (including fraud and consumer protection), and 2 hours of non-traditional mortgage lending, completed by December 31.
- Georgia Fair Lending Act
- Restricts high-cost home loans, including limits on points and fees, prepayment penalties, and balloon payments; it prohibits lending without regard to ability to repay and restricts flipping within 12 months.
- Georgia escrow account rule
- A mortgage broker or lender holding borrower funds in escrow must maintain a separate escrow account and reconcile it monthly; commingling escrow funds with operating funds is prohibited.